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Exhibit 99.5
TURBODYNE REPORTS FINANCIAL RESULTS FOR THE THREE MONTHS
ENDED MARCH 31, 2000
CARPINTERIA, CA - MAY 15, 2000 - Turbodyne Technologies Inc. (EASDAQ:TRBD) today
reported financial results for the three months period ended March 31, 2000.
In December 1999, the Company sold substantially all of the assets of Pacific
Baja pursuant to an order of the U.S. Bankruptcy Court. Pacific Baja accounted
for substantially all of the Company's sales on a consolidated basis for the
twelve months ended December 31, 1999. Accordingly, Pacific Baja's results of
operations for the first quarter of 1999 are no longer reported or discussed in
the comparative analysis.
Net sales for the three months ended March 31, 2000 increased to $268,000
compared to $103,000 for the same period in 1999, an increase of 165,000 or
160%. This increase is attributed to the substantial increase in sales to
Detroit Diesel.
Gross profit for the three months ended March 31, 2000 decreased to $14,000, or
5% of sales, from $21,000, or 20% of sales, for the same period in 1999, a
decrease of $7,000, or 33%. This decrease in gross profit is attributed to the
change in the method of applying overhead and labor to cost of goods sold.
Selling, general and administrative expenses for the three months ended March
31, 2000 decreased to $852,000 from $2,718,000 for the same period in 1999, a
decrease of $1,866,000 or 69%. The decrease in selling, general and
administrative expenses as a percent of sales is a result of staff reductions
implemented by management, and the substantial increase in sales.
Research and development costs for the three months ended March 31, 2000
increased to $1,246,000 from $1,171,000 for the same period in 1999, an increase
of $75,000 or 6%. This increase is a result of an increase in research and
development necessary for the Joint Development Project with Honeywell.
Net loss for the three months ended March 31, 2000 was $2,118,000 compared to
$3,761,000 for the same period in 1999. This improvement is the result of
reduced costs of selling, general and administrative expenses as discussed in
more detail in the Company's Quarterly Report on Form 10-Q.
In 1999, the Company entered into joint development, licensing, supply and
royalty agreements with Honeywell Turbocharging Systems, a leading turbocharger
manufacturer, under which the Company and Honeywell will jointly continue the
development for mass production of the Turbopac(TM) and Dynacharger(TM) product
lines. In the first three months of 2000, the Company and Honeywell delivered
one prototype of the Dynacharger(TM) to an automotive manufacturer. Revenue
under these agreements in 1999 and the first three months of 2000 was minimal.
In 2000, the Company also continued low volume production and limited sales of
the Turbopac(TM) 2500 model pursuant to its contract with Detroit Diesel
Corporation, a major global diesel engine producer. The contract with Detroit
Diesel Corporation is presently the main source of sales of Turbodyne's
products. Aside from this contract, the Company is largely dependent on its
ability to raise funds for its working capital and research and development
through financings. The report of Turbodyne's independent auditor notes that
there is substantial doubt about the Company's ability to continue as a going
concern.
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On March 3, 2000, the US Secretary of Energy announced that the United States
Department of Energy will be awarding approximately $5 million this fiscal year
to seven teams for the development of hybrid propulsion systems and advanced
components to reduce fuel consumption and emissions from truck diesel engines.
Four of these teams will develop advanced fuel and emissions components. They
will match Energy Department funding at a one-to-three ratio. The Company,
Honeywell and Navistar have jointly been selected to develop an electrically
assisted turbocharger (EAT) for improved vehicular response, reduced fuel
consumption and lower emission levels.
The Company intends to file its Quarterly Report on Form 10-Q for the first
quarter of 2000 today with the US Securities and Exchange Commission via the
Edgar system and with the Market Authority of EASDAQ.
Turbodyne Technologies Inc., a California based high technology company,
specializes in the development of charging technology for internal combustion
engines plus the development and manufacturing of high-tech assemblies for
electrically assisted turbochargers and superchargers. Turbodyne Technologies
Inc.'s headquarters is located in Carpinteria, CA; the European business
location is Frankfurt, Germany. Additional information about the company is
available on the Internet at http://www.turbodyne.com.
Contacts:
Corporate Communications, Peter Weichselbraun (800) 566-1130
VP Group Finance - Investor Relations, Ken Fitzpatrick (800) 566-1130
European Investor Relations, Markus Kumbrink +49-69-975-44-665
