RNS Number : 1303B
Clean Diesel Technologies, Inc
12 August 2008
Clean Diesel Technologies, Inc. Announces 111%
Increase in Sales for the Second Quarter of 2008
Stamford, CT -August 12, 2008 - Clean Diesel Technologies, Inc. (NASDAQ:CDTI; XETRA:CDIA; AIM:CDT), the cleantech emissions reduction
company, today announced financial results for the second quarter and six months ended June 30, 2008.
Recent Highlights:
* Total revenue of $2.6 million in the second quarter of 2008 compared to $1.2 million in the second quarter of 2007, driven by
strong sales of Purifier* System particulate matter emission control solutions
* Second successive quarter in which product sales exceed full year 2007 product sales
* Total revenue of $5.2 million for the six months ended June 30, 2008 exceeded total revenue of $4.9 million for all of 2007
* Entered strategic license agreement with Hilite International, Inc., a leading supplier of automotive powertrain components
* Phase-in of London Low Emission Zone compliance deadlines driving demand for Clean Diesel; most recent compliance deadline-July
2008
Dr. Bernhard Steiner, President and CEO of Clean Diesel Technologies, commented, "We are pleased to see continued international demand
for Clean Diesel's technologies and solutions as compliance requirements become increasingly stringent worldwide and low emission zones
(LEZs) are enacted in major cities. In London, we have seen exceptional pickup for our technologies in light of the LEZ. Furthermore, our
recent licensing agreement with Hilite International, Inc., is clear evidence we have been aggressively working to expand our global market
position through strategic partners. We have also been pursuing additional verification and approvals of our OEM and retrofit applications,
such as the recent approval of our technologies to supply the Scottish Government Emissions Reduction Register program. Additionally, we
have been enhancing our global sales organization with the appointment of key personnel to support our anticipated growth, as well as a
number of new initiatives on the marketing front, including the launch of our new corporate website: www.cdti.com."
"Our strategic license agreement with Hilite International, a leading supplier of automotive powertrain components, represents an
important new distribution partner with deep penetration into the heavy-, medium- and light-duty commercial vehicle and passenger car
markets. The license enables Hilite to utilize our ARIS� airless injection technology and the patented combination of selective catalytic
reduction (SCR) with exhaust gas recirculation (EGR), to reduce oxides of nitrogen (NOx) emissions and to optimize fuel economy. This
agreement comes on the heels of our agreements with Bosch and Tenneco, and provides further validation of our global licensing strategy and
intellectual property strength."
Dr. Steiner continued, "We have experienced strong product sales and revenue growth directly related to London's LEZ legislation. The
most recent compliance deadline for vehicles greater than 3.5 metric tons occurred in July 2008 and Clean Diesel is now one of the leading
suppliers of emission control technologies for the London LEZ. Although direct product sales are more capital intensive than licensing our
technology, our strategic decision to obtain certification and supply product for the LEZ program has proven an effective means of seeding
the market as evidenced by the credibility we have gained both in Europe and globally. We believe this strategy has opened the door to
additional markets for the technology, as we pursue our longer-term strategy of licensing the technology through our global distribution
partners. This licensing strategy will help reduce our costs considerably in the next 18 months."
"With over 63 million diesel engines on the road today, and over 11 million new engines going into service annually, diesel will
continue to play an important role in on-road, as well as off-road markets. Moreover, we believe that Clean Diesel will support and enhance
that growth through our fuel efficient, emission-reduction technology," concluded Dr Steiner.
Second Quarter 2008 Financial Results
Total revenue for the second quarter of 2008 was $2.6 million compared to $1.2 million in the second quarter of 2007. The increase in
the second quarter was primarily due to sales of the company's Purifier* System as an emission reduction solution to meet standards mandated
for the London Low Emission Zone. Net loss for the second quarter of 2008 was $2.1 million or $0.26 per share compared to $519,000 or $0.08
per share in the comparable period in 2007. Net loss for the quarter included $238,000 of non-cash charges for the fair value of stock
options compared to $91,000 in non-cash stock option compensation expense in the three months ended June 30, 2007. The company also
recorded an unrealized loss of $164,000 for the second quarter of 2008 that reduced the value of its investments in auction rate securities
with a corresponding reduction in stockholders' equity.
Total revenue for the six months ended June 30, 2008 was $5.2 million compared to $1.5 million for the same period in 2007. Net loss for
the six months ended June 30, 2008 was $3.7 million or $0.46 per share compared to $2.3 million or $0.37 per share in the comparable period
in 2007. Net loss for the six months ended June 30, 2008 included $538,000 of non-cash charges for the fair value of stock options compared
to $642,000 in non-cash stock option compensation expense in the six months ended June 30, 2007. The company also recorded an unrealized
loss of $750,000 for the six months ended June 30, 2008 that reduced the value of its investments in auction rate securities with a
corresponding reduction in stockholders' equity.
The Company said that its investment holdings of $11.7 million par value of auction rate securities were through UBS Financial Services,
Inc. The Company understands from public statements that an agreement in principle has been reached between UBS and certain regulatory
bodies that may apply to these holdings, but has not yet determined what the effect on the Company may be.
Additional information about the Company's financial results is available on its Form 10-Q filed with the Securities & Exchange
Commission:
http://www.sec.gov/Archives/edgar/data/949428/000114036108018882/form10q. htm�p1i1i
About Clean Diesel Technologies
Clean Diesel Technologies (NASDAQ: CDTI) is a cleantech company providing sustainable solutions to reduce emissions, increase energy
efficiency and lower the carbon intensity of on- and off-road engine applications. Clean Diesel's patented technologies and products allow
manufacturers and operators to comply with increasingly strict regulatory emissions and air quality standards, while also improving fuel
economy and power. The Company's solutions, which are in commercial use worldwide, significantly reduce emissions formed by the combustion
of fossil fuels and biofuels, including particulate matter (PM), nitrogen oxides (NOx), carbon monoxide and hydrocarbons. Clean Diesel
solutions also reduce carbon dioxide (CO2) emissions, a key greenhouse gas associated with global climate change.
Clean Diesel develops and manages intellectual property from original concept to full-scale commercial deployment. Its offerings include
ARIS� Selective Catalytic Reduction (SCR); the patented combination of SCR and Exhaust Gas Recirculation; hydrocarbon injection for
emissions control applications; Platinum Plus� Fuel-Borne Catalyst (FBC); the Purifier* family of particulate filter systems; and its Wire
Mesh Filter particulate filter technologies. The Company was founded in 1995 and is headquartered in Stamford, Connecticut. A wholly owned
subsidiary, Clean Diesel International, LLC, is based in London, England. For more information, please visit www.cdti.com.
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 U.S. 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.
Please visit us on the World Wide Web at: www.cdti.com
Contacts:
Crescendo Communications, LLC Clean Diesel Technologies, Inc.
(U.S. investor contact) Ann Ruple
David K. Waldman or Klea Theoharis CFO
+1 212 671 1020 +1 203 327 7050
cdti@crescendo-ir.com aruple@cdti.com
Innovator Capital Limited Charles Stanley Securities
(Financial press inquiries) Nominated Adviser
Shaun Brown Philip Davies / Freddy Crossley
Jade Summer Tel: +44 20 7149 6457
+44 20 7297 6840
jade.summer@innovator-capital.com.
Matter Communications
(Technical press inquiries)
Jacqueline Volovich
+1 415-984-6281
jackie@matternow.com
CLEAN DIESEL TECHNOLOGIES, INC.
Condensed Consolidated Balance Sheets
(in thousands, except share data)
June 30, December 31, June 30,
2008 2007 2007
(Unaudited) (Audited) (Unaudited)
Assets
Current assets:
Cash and cash equivalents $ 4,485 $ 1,517 $ 10,778
Accounts receivable, net of 3,330 1,927 1,031
allowance of $290, $49 and $63,
respectively
Investments * 7,100 *
Inventories, net 1,038 1,093 609
Other current assets 242 234 103
Total current assets 9,095 11,871 12,521
*
Investments 10,975 11,725
Patents, net 950 817 638
Fixed assets, net of 74
accumulated depreciation of 186 175
$461, $421 and $385respectively
Other assets 71 75 37
Total assets $ 21,277 $ 24,663 $ 13, 270
Liabilities and Stockholders'
Equity
Current liabilities:
Accounts payable $ 1,006 $ 757 $ 174
Accrued expenses 867 850 457
Customer deposits 71 56 *
Total current liabilities 1,944 1,663 631
Commitments
Stockholders' equity:
Preferred stock, par value
$0.01 per share:
authorized 100,000 shares; no * * *
shares issued and outstanding
Common stock, par value $0.01
per share:
authorized 12,000,000 shares;
issued and outstanding
8,139,302,
8,124,056 and 7,115,232 81 81 71
shares, respectively
Additional paid-in capital 73,242 72,447 59,875
Treasury stock, 86 shares of * * (1)
common stock, at cost
Accumulated other comprehensive (745) (16) 5
income / loss
Accumulated deficit (53,245) (49,512) (47,311)
Total stockholders' equity 19,333 23,000 12,639
Total liabilities and $ 21,277 $ 24,663 $13,270
stockholders' equity
CLEAN DIESEL TECHNOLOGIES, INC.
Condensed Consolidated Statements of Operations
(Unaudited; in thousands, except per share amounts)
Three Months Ended Six Months Ended
June 30, June 30,
2008 2007 2008 2007
Revenue:
Product sales $ 2,490 $ 139 $ 5,017 $ 344
Technology licensing fees and 129 1,104 203 1,115
royalties
Consulting and other * * * *
Total revenue 2,619 1,243 5,220 1,459
Costs and expenses:
Cost of revenue * product 1,993 105 4,058 221
sales
Cost of revenue * licensing * * * *
fees and royalties
Cost of revenue * consulting * * * *
and other
Selling, general and 2,722 1,495 5,044 3,298
administrative
Research and development 89 150 154 192
Patent amortization and other 42 79 78 176
expense
Operating costs and expenses 4,846 1,829 9,334 3,887
Loss from operations (2,227) ( 586) (4,114) (2,428)
Other income (expense):
Interest income 113 67 356 94
Other income (expense), net (29) * 25 *
Net loss $ (2,143) $ ( 519) $ (3,733) $ (2,334)
$ (0.26) $ (0.08) $ (0.46) $ (0.37)
Basic and diluted loss per
common share
Basic and diluted 8,138 6,550 8,137 6,333
weighted-average number of
common shares outstanding
CLEAN DIESEL TECHNOLOGIES, INC.
Condensed Consolidated Statements of Cash Flows
(Unaudited; in thousands)
Six Months Ended
June 30,
2008 2007
Operating activities
Net loss $ (3,733) $ (2,334)
Adjustments to reconcile net loss to cash used in
operating activities:
Depreciation and amortization 68 68
Provision for doubtful accounts, net 241 30
Compensation expense for stock options and 771 642
warrants
Changes in operating assets and liabilities:
Accounts receivable (1,644) (961)
Inventories 55 (244)
Other current assets and other assets (4) (7)
Accounts payable, accrued expenses and other 281 (298)
liabilities
Net cash used for operating activities (3,965) (3,104)
Investing activities
Sales of investments 7,100 *
Patent costs (161) (68)
Purchases of fixed assets (51) (18)
Net cash provided by (used for) investing 6,888 (86)
activities
Financing activities
Proceeds from issuance of common stock, net * 4,313
Proceeds from issuance of warrants, net * 4,346
Stockholder-related charges * (45)
Proceeds from exercise of stock options 24 40
Net cash provided by financing activities 24 8,654
Effect of exchange rate changes on cash 21 *
Net increase in cash and cash equivalents $ 2,968 $ 5,464
Cash and cash equivalents at beginning of the 1,517 5,314
period
Cash and cash equivalents at end of the period $ 4,485 $ 10,778
Supplemental non-cash activities:
Payment of accrued directors' fees in common $ * $ 140
stock
Unrealized loss on available-for-sale securities $ 750 $ *
This information is provided by RNS
The company news service from the London Stock Exchange
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