Clean Diesel Technologies Reports Second Quarter, Six-Month Results
17 August 1999
Clean Diesel Technologies Reports Second Quarter, Six-Month Results
STAMFORD, Conn.--Aug. 17, 1999--Clean Diesel Technologies Inc. (EBB:CDTI), a development-stage company, Tuesday reported results for the second quarter and six months ended June 30, 1999.For the second quarter, CDT reported a net loss attributable to common stockholders of $661,000, or $0.26 per share, compared with a net loss of $516,000, or $0.21 per share for the same year-earlier period. For the six months ended June 30, CDT reported a net loss of $1,365,000, or $0.53 per share, compared with a net loss of $1,257,000, or $0.50 per share during the prior year's six-month period.
President and Chief Executive Officer Jeremy D. Peter-Hoblyn said, "The company is in transition from research and development to the commercialization of its products. We started selling our ARIS 2000(R) stationary systems for NOx reduction to engine companies and catalyst companies earlier this year.
"In addition, we are now selling commercial units of the system, with the first of these units having been recently installed. The company has also announced its intention to license its ARIS 2000 NOx reduction technology and is in discussion with interested parties.
"Field trials of the company's Platinum Plus(R) diesel fuel additive started in March 1999 and are continuing," Peter-Hoblyn added. "Based on the results of trials that have been completed, we expect commercial sales of Platinum Plus to start in late 1999 or the first half of 2000."
The company's platinum-cerium bimetallic additive has proven in testing to be very effective in reducing the "carbon fraction" of diesel particulate emissions.
"This additive also regenerates particulate filters much more effectively than iron or cerium additives," Peter-Hoblyn said, "and it does so at a much lower dose rate. Dose rates are very important since lower dose rates reduce ash build up and increase the useful life of the filters. PSA Peugeot in France has announced it will use particulate filters in some model year 2000 vehicles."
Research and development expenses remained relatively flat, increasing to $184,000 in the second quarter of 1999 from $179,000 in the comparable 1998 period. In the first six months of 1999, research and development expenses increased to $452,000 from $415,000 in the comparable period in 1998.
The 1999 increase was primarily due to costs incurred in completing the US EPA Tier 1 registration testing of the company's platinum-cerium bimetallic product, as well as increased travel costs of technical personnel. Patent costs were also flat in the first quarter but decreased to $52,000 in the first half of 1999 versus $80,000 in the comparable period in 1998.
The decrease is due in part to the company's shift in emphasis to the commercialization of its products from the research and development of its technologies.
CDT's general and administrative expenses (G&A) increased to $368,000 the second quarter of 1999 from $304,000 in the same period last year. The increase in the second quarter of 1999 was primarily due to the costs associated with the company's efforts to commercialize its products. G&A expenses remained relatively flat in the first six months of 1999 as compared with the same period in 1998.
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.
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 or 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)
Three Months Ended Six Months Ended Period from
June 30, June 30, Jan. 1, 1992
1999 1998 1999 1998 June 30, 1999
Sales $ 50 $ 9 $ 59 $ 9 $ 304
Costs and
expenses:
Cost of
sales 33 5 38 5 199
General
and
administrative 368 304 749 755 7,306
Research
and
development 184 179 452 415 6,778
Patent
filing
and
maintenance 28 24 52 80 1,146
Loss from
operations 563 503 1,232 1,246 15,125
Interest
income (7) (8) (22) (21) (644)
Interest
expense -- 21 1 32 303
Cost of
withdrawn
Rights Offering -- -- -- -- 264
Net loss
during
development
stage 556 516 1,211 1,257 15,048
Preferred
Stock
dividend 105 -- 154 -- 154
Net loss
attributable to
Common
Stockholders $ 661 $ 516 $ 1,365 $ 1,257 $15,202
Basic and diluted
loss per common
share $ 0.26 $ 0.21 $ 0.53 $ 0.50 N/A
Average number
of common
shares
outstanding 2,591 2,517 2,567 2,517 N/A