Puradyn Filter Technologies Incorporated (OTCBB:PFTI), manufacturer of the puraDYN bypass oil filtration system, has reported results of operations for the third fiscal quarter ended September 30, 2006.

Net sales for the third quarter 2006 increased by 19%, to $641,000 as compared to $538,000 for the third quarter 2005. Net sales year-to-date (YTD) increased by 31%, to $2.32 million compared to $1.78 million for the same period in 2005.

The Company reported a net loss of $639,000 or ($0.03) per share, basic and diluted, for the quarter ended September 30, 2006, compared to a net loss of $800,000 or ($0.04) per share, basic and diluted, for the same period in 2005. Basic and diluted weighted average shares used in the calculation for the three-months ended 2006 and 2005 were 25,355,915 and 22,276,099, respectively.

The Company's YTD net income includes an increase of approximately $165,000 over last year’s non-cash compensation expense, related to certain variable equity awards and other stock-based compensation.

Cost of products sold increased by 15% from $475,000 in third quarter 2005 to $544,000 in third quarter 2006, and by 4%, from $1.73 million in 2005 YTD, to $1.8 million in 2006 YTD. Cost of products sold, as a percentage of sales, decreased from 88% in the three months ending September 30, 2005 to 85% for the same time period in 2006, and from 98% for 2005 YTD to 78% 2006 YTD. The reduction is primarily due to continuous improvement in raw material sourcing and improved facility utilization.

Selling and administrative expenses decreased by approximately $106,000, or 10%, from $1,049,000 in 2005 YTD, to $943,000 for the same time period in 2006. There was a $260,000 decrease in expenses related to fluctuation in exchange rates, a reduction in travel, entertainment and lodging expenses as well as a reduction in deferred finance costs and patent expenses. However, this was offset by an increase in non-cash stock-related expenses of $154,000.

Kevin G. Kroger, President and COO, stated, “During the third quarter 2006, the Company continued to achieve meaningful growth in sales while continuing to streamline expenses. We have focused on our business plan and the entire Company has embraced the ongoing challenge of continuously improving the quality of our product and service to our customers while researching innovative ways to improve the bottom line. The new 2007 emissions requirements have presented challenges to fleet owners that we are equipped to address.

“The environmental benefit of the puraDYN bypass filtration system, saving up to 90% of a working fleet’s oil usage and handling, address our responsibility to conserve natural resources in a forward-thinking and common sense manner.”

Kroger concluded, “The puraDYN system is a safe and dependable solution to many of the oil-related maintenance challenges facing any fleet in that we safely and significantly extend oil drains, reduce engine oil usage, disposal, and related maintenance costs.”

Last Updated ( Thursday, 16 November 2006 )