STAMFORD, Conn.--(BUSINESS WIRE)--March 28, 2000--Clean Diesel Technologies Inc. (EBB:CDTI) (CDT) Tuesday reported results for the fourth quarter and fiscal year ended Dec. 31, 1999.
For the fourth quarter of 1999, CDT reported a net loss attributable to common stockholders of $787,000, or $0.30 loss per share, compared with a net loss of $782,000, or $0.31 loss per share, for the year earlier period. For the 1999 year, CDT reported a net loss attributable to common stockholders of $4.58 million, or $1.77 loss per share, on revenues of $142,000 compared with a net loss in 1998 of $2.98 million, or $1.19 loss per share, on revenues of $46,000. Included in the 1999 full year results was a one-time, imputed non-cash preferred dividend of $1.75 million, or $0.68 per common share. Without the one-time, imputed non-cash dividend, CDT's net loss attributable to common stockholders for the year ended Dec. 31, 1999 would have been $2.83 million or $1.09 loss per share.
The one-time, imputed non-cash preferred dividend referred to above was the result of the successful completion of the company's $1.75 million Preferred Stock offering in the third quarter of 1999. The company received commitments from investors for a further issue of its Series A Convertible Preferred Stock at a time when the company's Common Stock traded below the conversion price of $1.50. Prior to receiving the proceeds of the offering, the price of the company's Common Stock increased to more than $3.00 per share. Because the increase in the share price preceded the receipt of the offering proceeds, the company is required to recognize this one-time, imputed non-cash preferred dividend of $1.75 million, or $0.68 per common share, for the 12-month period ending Dec. 31, 1999.
Clean Diesel Technologies' Chief Executive Officer, Jeremy D. Peter-Hoblyn commented, "1999 marked a milestone at CDT as the company transitioned to a commercial operation." In late December 1999, the company received EPA registration for its patented Platinum Plus(R) diesel fuel borne catalyst. The EPA registration is required for a fuel additive to be sold commercially for on highway use.
Regional fleet test marketing for the Platinum Plus fuel economy product is underway in the United States and planned for in Europe. The company is negotiating marketing and distribution arrangements with fuel oil marketers and additive companies in the United States and planned for Europe.
The emissions benefit of Platinum Plus has been confirmed in fleet trials in the United States and Asia and test marketing of the Platinum Plus emissions product has begun in the United States, Europe and Asia. Recent research data published in Diesel Fuel News confirmed that a diesel engine using Platinum Plus, a particulate filter and EGR technology is as clean as a natural gas engine.
Research and development expenses decreased to $178,000 in the fourth quarter of 1999 from $325,000 in the comparable 1998 period. For the year ended Dec. 31, 1999, research and development expenses decreased to $827,000 from $1.01 million as the company transitioned from research and development to commercialization. General and administrative expense increased in the fourth quarter of 1999 to $461,000 from $394,000 in the comparable 1998 period. For the year, general and administrative expense increased slightly to $1.59 million from $1.52 million in 1998.
Clean Diesel Technologies Inc. is a specialty chemical company with patented products that reduce emissions from diesel engines while simultaneously improving fuel economy and power. Products include Platinum Plus fuel catalysts and ARIS (TM) 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 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.
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CONTACT: Clean Diesel Technologies Inc.
James Valentine or David Whitwell, 203/327-7050
or
Allen & Caron Inc.
Mark Alvino (investors), 212/698-1360
or
Kari Rinkeviczie (media), 616/647-0780 |
