Revenue during the quarter grew 15.20 percent to $0.36 million from $0.31 million in the previous year period. Gross margin for the quarter expanded 1446 basis points over the previous year period to 29.50 percent.

Operating loss for the quarter was $0.19 million, compared with an operating loss of $0.33 million in the previous year period.

“During the past year, we continued to see a shift from domestic to international interest in engine conversions, primarily due to the precipitous drop in oil prices. Unfortunately, these global factors delayed several conversion projects that we had expected to ramp up in 2016. Air pollution regulations and the price disparity between diesel and natural gas, mostly because of higher taxes on diesel fuel, are still important catalysts for Omnitek in certain foreign markets -- particularly in Mexico, Europe and Asia. The company recorded a modest order backlog at December 31, 2016 of approximately $256,000, with expectations that this will increase as demand for engine conversion kits and/or converted engines in export markets gains momentum as delayed evaluation programs are completed and sizable orders are placed,” said Werner Funk, president and chief executive officer of Omnitek Engineering Corp.