SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
-----------------
Form 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): August 5, 1999
TURBODYNE TECHNOLOGIES INC.
(Exact Name of Registrant as Specified in Charter)
Delaware 0-21391 95-4699061
(State or Other Jurisdiction (Commission (IRS Employer
of Incorporation) File Number) Identification No.)
21700 Oxnard Street, Suite 1550
Woodland Hills, CA 91367
(Address of Principal Executive Offices)
(818) 593-2282
(Registrant's Telephone Number)
Page 1
<PAGE>
ITEM 5. OTHER EVENTS
Reference is made to Registrant's press release issued on August 5, 1999,
which contains information meeting the requirements of this Item 5, and which is
incorporated herein by this reference. A copy of the press release is attached
to this Form 8-K as Exhibit 99.1.
Page 2
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
August 6, 1999 TURBODYNE TECHNOLOGIES INC.
By: /s/ KHAL A. KADER
--------------------------------
Khal A. Kader
Chief Financial Officer
Page 3
<PAGE>
EXHIBIT INDEX
EXHIBITS PAGE NUMBER
- -------- -----------
99.1 Press Release dated August 5, 1999.
EXHIBIT 99.1
COMPANY ANNOUNCEMENT: TURBODYNE REPORTS HALF YEAR AND SECOND QUARTER
PRELIMINARY RESULTS FOR PERIODS ENDED JUNE 30, 1999
Woodland Hills, CA - August 5, 1999 - Turbodyne Technologies Inc. (EASDAQ:TRBD)
today reported preliminary results for the half year and the second quarter
ended June 30, 1999.
Revenues for the half year ended June 30, 1999 increased to $30,252,000,
compared to $20,750,000 for the same period of 1998, an increase of 46% over the
first half of 1998. Revenues in the Light Metals Division were $29,824,000,
compared to $20,374,000 in the first half of 1998. Revenues in the Engine
Technology Division were $428,000, an increase of 14%, compared to the first
half of 1998.
Net loss for the first half of 1999 was approximately $6,823,000, a decrease of
$946,000, or 12%, compared to $7,769,000 in the first half of 1998. Loss per
share for the first half of 1999 was 18 cents, compared to a loss of 23 cents
per share for the same period in 1998, a decrease of 22%. The fully diluted
weighted average shares outstanding for the first half of 1999 were 37,933,000,
compared to 33,704,000 a year ago.
Revenues for the quarter ended June 30, 1999 increased to $16,180,000, compared
to $11,024,000 for the same period of 1998, an increase of $5,156,000, or 47%,
over the second quarter of 1998.
Net loss for the second quarter was approximately $3,339,000, a decrease of
approximately $412,000, or 11%, compared to $3,751,000 in the second quarter of
1998. Loss per share for the second quarter of 1999 was 9 cents, compared to a
loss of 11 cents per share for the same period in 1998, a decrease of 18%. The
fully diluted weighted average shares outstanding for the quarter were
38,906,000, compared to 34,736,000 a year ago. This decrease of loss was reached
in spite of severance costs payable, part of the Company's cost reduction
program, as indicated in the Q1 report (see press release dated April 23, 1999).
The lower than expected revenues generated by the Engine Technology Division in
the first quarter of 1999 were well caught up upon in the second quarter,
surpassing the first half of 1998 by 14%. It is management's intention to
further develop the marketing efforts of the Engine Technology Division in order
to generate a substantial contribution to the Company's balance sheet by that
division. This strategy is implemented domestically by Turbodyne's national
sales team and, internationally, by Turbodyne International (see press release
dated July 7, 1999). Turbodyne's management is strongly committed to increasing,
through these two channels, the revenues generated by the Engine Technology
Division.
Prof. Dr.-Ing. Peter Hofbauer, Turbodyne's new CEO, stated, "The development
of Turbodyne Technologies in the second quarter and overall in the first
half of 1999 shows a reassuring trend that the company is pursuing its
corporate goals in a very focused manner.
Page 2
<PAGE>
The relocation of our Light Metals Division is substantially complete. This
strategic move is reflected in increasing revenues in that division. We were
able to expand our contractual obligations to our different customers due to the
now available increased capacity.
Turbodyne's exclusive licensing and joint development agreements with
AlliedSignal are being implemented in an accelerated mode for first prototype
Dynacharger(TM) models in engine specific design to be manufactured, tested and
shipped to various interested OEMs for their development programs."
Turbodyne Systems, the Engine and Pollution Technology Division of Turbodyne,
designs, develops, manufactures and markets patented pollution-reduction, fuel
economy and performance enhancing products for internal combustion engines in
the automotive, construction, marine, mining and military industries.
Turbodyne's Light Metals Division is a manufacturer of machined aluminum
castings and a supplier to the automotive industry.
Turbodyne Technologies Inc. maintains offices and/or plants located in
Carpinteria, La Mirada, Encinitas and Woodland Hills, California; New
York; Ensenada and Mexico City, Mexico; London, England; Paris
France; and Frankfurt, Germany.
With the exception of the historical information contained in this news release,
the matters discussed above include forward-looking statements that involve
risks and uncertainties. Actual results may vary substantially as a result of a
variety of factors. Among the important factors that could cause actual results
to differ are the ability of the Company to increase revenues and gross profit
margins, the level of selling, as well as research and development costs to
finalize the development for mass production, the effects of competition, the
effects of the Company's recent cost reduction measures, the results of pending
litigation and the successful implementation of the revised business plan. The
failure of any of these factors could cause actual results to differ materially
from the forward-looking statements discussed above.
Turbodyne's World Wide Web address is: www.turbodyne.com.
Contacts:
Corporate Communications: Peter Weichselbraun, (800) 566- 1130
Investor Relations: Mark White, (800) 350-2031
European Business Development: Markus Kumbrink, +49-69-975-44-655
