SOURCE: EnerTeck Corporation

August 24, 2006 10:00 ET

EnerTeck Corporation Announces 2006 Second Quarter Financial Results

STAFFORD, TX -- (MARKET WIRE) -- August 24, 2006 -- ENERTECK CORPORATION (the "Company") (OTCBB: ETCK) today announced results for the three and six months ended June 30, 2006.

For the three months ended June 30, 2006, the Company recorded sales revenues of $287,000 versus sales revenues of $9,000 in the same period of 2005. This brought revenues for the six month period ended June 30, 2006, to $561,000 versus sales revenues of $12,000 for the same period in 2005. The increase in revenues for both the three and six month periods over that of the prior year can primarily be traced to a concerted marketing effort extended well back into 2005, which targeted the Company's marine diesel market and culminated in an initial order from Custom Fuel Services Inc., a subsidiary of Ingram Barge, during the first quarter of 2006.

Gross profit, defined as revenues less cost of goods sold, was $229,000 of sales for the three months ended June 30, 2006, compared to $6,000 for the three months ended June 30, 2005, an increase of $223,000. Such increase is primarily due to the Company's first shipment of EnerBurn® to Custom as described above. For the six months ended June 30, 2006 gross profit was $367,000 compared to $8,000 for the same period in 2005.

During the three months ended June 30, 2006, the Company reported a net loss of $7,000 as compared to a net loss of $708,000 for the three months ended June 30, 2005. For the six months ended June 30, 2006, the Company recorded a loss of $153,000 as compared to $791,000 for the same period in 2005.

Dwaine Reese, Chief Executive Officer of the Company, commented, "We are pleased with the results achieved in the second quarter. The initial purchase order from Custom plus the second order received in the second quarter of 2006, amount in size to more revenue and a higher margin than all the orders combined for 2005, 2004 and 2003. Although we still had a net loss for the three months ended June 30, 2006, we are encouraged by the fact that we would have achieved net income of $58,000 for the quarter ended June 30, 2006 if we had been able to eliminate a non-cash charge of $64,500 for warrants issued in that period."

Statements contained herein that are not based upon current or historical fact are forward-looking in nature. Such forward-looking statements reflect the Company's expectations about its future operating results, performance and opportunities that involve substantial risks and uncertainties. When used herein, the words "anticipate," "believe," "estimate," "plan," "intend" and "expect" and similar expressions, as they relate to EnerTeck Corporation, or its management, are intended to identify such forward-looking statements. These forward-looking statements are based on information currently available to the Company and are subject to a number of risks, uncertainties, and other factors that could cause the Company's actual results, performance, prospects, and opportunities to differ materially from those expressed in, or implied by, these forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, such factors discussed in the Company's Annual Report on Form 10-KSB for the year ended December 31, 2005. Except as required by the Federal Securities law, the Company does not undertake any obligation to release publicly any revisions to any forward-looking statements to reflect events or circumstances after the date hereof or for any other reason

Contact Information

  • Contact:
    Dwaine Reese
    Chief Executive Officer
    (281) 240-1787