Clean Diesel Technologies Reports First Quarter Results
17 May 1999
Clean Diesel Technologies Reports First Quarter Results
STAMFORD, Conn.--May 17, 1999--Clean Diesel Technologies Inc. (EBB:CDTI), a development-stage company, Monday reported results for the first quarter ended March 31, 1999.According to the announcement by Clean Diesel Technologies Chief Executive Officer Jeremy D. Peter-Hoblyn, CDT reported a net loss attributable to Common Stockholders for the first quarter of $704,000, or $0.28 per share, compared with a net loss of $741,000, or $0.29 per share, for the year-earlier period.
The first quarter 1999 net loss attributable to Common Stockholders includes a $49,000 charge for dividends paid in-kind to holders of its Series A Preferred Stock which was initially issued as part of the company's $3.2 million net financing in the latter part of 1998.
Peter-Hoblyn commented, "1998 marked the beginning of a shift in our primary emphasis at Clean Diesel from research and development toward a focus on commercialization of our Platinum Plus(R) diesel fuel catalyst and ARIS(TM) 2000 NOx reduction system. As evidence of this shift, CDT recently completed 1,500 hours of durability testing on its ARIS 2000 NOx reduction system and began commercial quotations to prospective customers for control of NOx emissions from stationary diesel engines. Commercial fleet testing is also currently underway in the U.S. with marketing partners to confirm fuel economy improvements of the company's Platinum Plus diesel fuel catalyst."
The company expects revenue from its Platinum Plus additives to come initially from sales to fleets and aftermarket products and later to engine manufacturers for inclusion with an "on board dosing" system on new vehicles fitted with filters.
Emissions benefits of the platinum fuel catalyst ("PFC") with particulate filters have been confirmed in commercial fleet trials in Taiwan and Korea, and vehicle programs with two diesel OEMs are scheduled to commence in the second quarter of 1999. CDT recently demonstrated the ability of its PFC to significantly improve the performance of diesel aftertreatment devices as part of an industry consortium project. This program also showed the ability of the PFC to help meet diesel emission NOx and particulate standards for the year 2002 on a 1998 heavy-duty diesel engine.
The first shipments to several engine manufacturers of the ARIS 2000 prototypes, which were made in the second half of 1998, have performed well, and the company will begin commercial production of the ARIS 2000 for stationary diesels in the second quarter of 1999. The company is also in discussions with several parties concerning funding development of the mobile ARIS system for heavy-duty diesel vehicles.
CDT also expects revenue from demonstration programs and joint development agreements under its proposals to engine manufacturers and the U.S. EPA (both for its ARIS 2000 system and its Platinum Plus additives for particulate filters and oxidizers) as part of the $109 million settlement between the EPA/OEMs, but will not know whether its programs are accepted until mid-1999.
General & Administrative expenses decreased to $381,000 from $451,000 in the first quarter of 1999 versus the comparable period in 1998; R&D costs increased slightly to $268,000 in the first quarter of 1999 versus $236,000 in the comparable year-earlier period. The decrease in G&A is primarily due to costs associated with the company's efforts to raise additional capital in the first quarter of 1998, as well as measures being taken by the company to reduce expenditures in order to conserve cash pending securing additional funding and the success of its commercialization efforts. R&D increased as a result of the costs associated with the completion of U.S. EPA registration testing of CDT's platinum-cerium bimetallic fuel additive.
Clean Diesel Technologies is a development-stage company with patent-protected products that reduce emissions from diesel engines while simultaneously improving fuel economy and power. R&D efforts and products are grouped into two categories: PFCs and NOx Reduction Systems. Platinum Plus is a registered trademark of Clean Diesel Technologies Inc.
Certain statements in this news release constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, including those detailed in the company's filings with the Securities and Exchange Commission, uncertainties and other factors which may cause the actual results, performance or achievements of the company, or industry results, to be materially different from any future results, performance, or achievements expressed or implied by such forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof.
CLEAN DIESEL TECHNOLOGIES INC.
(A Development-Stage Company)
STATEMENTS OF OPERATIONS
(Unaudited)
(in thousands except per share data)
Period from
Three Months Ended Jan. 1, 1992
March 31, through
1999 1998 March 31, 1999
Sales $ 9 $ -- $ 254
Costs and expenses:
Cost of sales 5 -- 166
General and administrative 381 451 6,938
Research and development 268 236 6,594
Patent filing and
maintenance 24 56 1,118
Loss from operations 669 743 14,562
Interest income (15) (13) (637)
Interest expense 1 11 303
Cost of withdrawn
Rights Offering -- -- 264
Net loss during
development stage 655 741 14,492
Preferred Stock dividend 49 -- 49
Net loss attributable to
Common Stockholders $ 704 $ 741 $ 14,541
Basic and diluted loss
per common share $ 0.28 $ 0.29 N/A
Average number of common
shares outstanding 2,550 2,517 N/A