Clean Diesel Technologies Reports 2006 Third Quarter Results
STAMFORD, Conn.--Clean Diesel Technologies, Inc. (“Clean Diesel” or “The Company”) (EBB: CDTI, AIM: CDT/CDTS & XETRA: CDI), a developer of technological solutions to reduce harmful engine emissions, today announces its results for the third quarter to September 30, 2006.
Highlights
- Revenue doubled compared with Q3 2005
- Four fleet trials successfully completed and each has converted into a customer
- Several large, high profile trials for Q4 already underway
Dr. Bernhard Steiner, President and CEO, comments: “We are delighted to report that our products continue to gain traction in our commercial markets and that our focused sales and marketing efforts have generated new customers and distributors. At the same time existing customers have extended their usage. All of our businesses and technological areas are progressing according to plan, and we are pleased with their continued innovation and development. We have also entered into several trials in the fields of marine, rail and agricultural / off road applications. All of these trials are performing very positively and the Company is expecting to turn these trials into ongoing customers.”
“With this experience the Company is now poised to broadly go to its markets and offer both large and small corporations its leading emission reduction technologies coupled with meaningful improvements in fuel economy.”
Operational Review
Clean Diesel’s revenue more than doubled in the third quarter of 2006 compared with the same period in 2005 and, for the first nine months of 2006, revenues were up 42% compared with the same period in 2005. Increased Platinum Plus fuel borne catalyst sales are driving the revenue increases.
In the third quarter of 2006, four Platinum Plus® fuel-borne catalyst (FBC) fleet trials were completed with annual Platinum Plus® FBC revenue of approximately $250,000. Each of these trials has converted into a customer with two of these fleets based in the United States and two in Europe, in the areas of people transportation, delivery, food and waste management. Furthermore, several additional high profile customers have been attracted to the trial program for the first time with larger fleets. These trials are underway with initial results confirming the strength of Clean Diesel’s products and are expected to be successfully completed during the fourth quarter.
Expenses in the third quarter of 2006 were down slightly in comparison to the same period of 2005 as a result of lower compensation expense relating to the first quarter severance charge, as well as the timing of R&D programs, mostly offset by increased European professional expenses and non-cash compensation expense ($49,000) for stock options.
For the months January to September 2006, operating expenses were up slightly versus the same period of 2005 due to higher R&D investment related to increased engineering and testing for the Clean Diesel wire-mesh diesel particulate filter technology, non-cash compensation expense ($155,000) for stock options, and severance recognized in the first quarter of 2006. As now required under the United States Financial Accounting Standard 123R, the fair value of options granted must be calculated and the expense recognized over the vesting term of the option.
About Clean Diesel Technologies, Inc.
Clean Diesel Technologies, Inc. and its UK Branch office, Clean Diesel International LLC, is a developer of technological solutions to reduce harmful engine emissions. Clean Diesel Technologies has patented products that reduce emissions from combustion engines while simultaneously improving fuel economy and power. Products include Platinum Plus® fuel-borne catalysts (FBC), the Platinum Plus Purifier System, catalyzed wire mesh diesel particulate filter technologies and the ARIS® injection systems for selective catalytic reduction of NOx. Platinum Plus and ARIS are registered trademarks of Clean Diesel Technologies, Inc. For more information, visit CDT at www.cdti.com or contact the Company directly.