Ocean Power Technologies, Inc. (“OPT” or “the Company”) (NASDAQ:
OPTT), a leader in innovative and cost-effective ocean energy
solutions, today announced financial results for the third quarter
of fiscal year 2020 ended January 31, 2020.
Recent Operational Highlights
- Increased Revenue in the Quarter Compared to Prior Year
by 171% as a result of revenue generated from the Enel
Green Power (“EGP”) project in Chile.
- Adriatic Sea PB3 PowerBuoy® Lease Extended –
After more than a year of continuous and error-free operation in
support of Eni’s goal of decarbonizing oil and gas operations using
renewable technologies, the PB3 PowerBuoy® will be redeployed to
provide carbon-free power to a project exploring the potential of
future ecologically sustainable life-extension strategies for oil
and gas platforms at the end of their productive phase.
- PB3 PowerBuoy® Shipped to Chile – OPT shipped
a PB3 PowerBuoy® to Chile under a pair of contracts including the
company’s first product sale and the installation of a turn-key
ocean-based laboratory power and communications solution.
Anticipated FY2020 revenues from the project are nearly $1.8
million.
- Joint Development of Groundbreaking Carbon-Free AUV
Residency Solution – OPT is developing a carbon-free
subsea residency solution for autonomous underwater vehicles (AUVs)
with Modus Seabed Intervention and Saab Seaeye and jointly pursuing
U.S. government development and demonstration funding.
- Partnership with Asian Government Contractor –
OPT has signed a letter of intent with Taiwan-based BAP Precision
to provide PowerBuoy® joint surveillance solutions for government
agency contract pursuits for policing territorial waters.
- Sales & Business Development Leadership
Additions – OPT welcomed Jeffrey Wiener as Vice President
of Global Sales and Philipp Stratmann as Vice President of Global
Business Development.
- Safety Milestone – OPT’s ongoing commitment to
fostering and maintaining a culture of safety marked more than 1000
consecutive days safe.
Management Commentary
“We delivered substantial revenue growth in the
quarter as the result of our first PowerBuoy® sale, demonstrating
our commitment to commercializing OPT’s unique, wave-power based
renewable energy solution,” said George Kirby, OPT President and
Chief Executive Officer. “Our primary focus at this time is on
converting multiple groundbreaking technologies into commercial
opportunities. At the same time, we continue to dedicate
substantial resources to developing new applications and partnering
with customers and symbiotic technology providers focused on
autonomous offshore power and communications solutions.”
“We are also fostering repeat business with
customers. It’s validating to work closely with a company like Eni,
which is fiercely committed to decarbonizing its operations, to
utilize our solutions for multiple applications,” Kirby added.
“There is a real desire for carbon reducing autonomous offshore
power and communications solutions and we’re really just beginning
to tap into those possibilities.”
Third Quarter FY 2020 Financial Review
Revenue for the third quarter of fiscal 2020 was
$725,000, an increase of $457,000 as compared to $268,000 for the
prior-year period. The increase was attributable to revenue
generated from the EGP project. Cost of revenues increased $281,000
to $681,000, as compared to $400,000 during the three months ended
January 31, 2019. Cost of revenues for the three months ended
January 31, 2020 included higher upfront spending and material
costs on the new customer revenue-generating project with EGP. The
net loss for the third quarter of fiscal 2020 was $2.9 million, as
compared to a net loss of $2.6 million for the prior-year period.
The increase in net loss was mainly attributable to a delay in
receipt of funds from the sale of net operating losses credits and
was partly offset by lower spending in engineering and product
development costs.
Fiscal First Nine Months 2020 Financial
Review
Revenue for the first nine months of fiscal 2020
was $1,131,000, an increase of $691,000 as compared to $440,000 for
the prior-year period. The increase was attributable to revenue
generated from the EGP project. Cost of revenues increased $155,000
to $1,335,000, as compared to $1,180,000 during the nine months
ended January 31, 2019. This is a result of increased costs
associated with new projects, including EGP, and was offset by
lower spending on both the Eni and Premier Oil projects as compared
to the same period in fiscal 2019. The net loss for the first nine
months of fiscal 2020 was $9.1 million, compared to a net loss of
$9.7 million for the prior-year period. The decrease in net loss
was mainly attributable to higher revenues and decreased spending
in engineering and product development costs as well as a decreased
spending in selling, general and administrative costs, which were
partly offset by a delay in receipt of funds from the sale of net
operating losses credits.
Balance Sheet and Cash Flow
Total cash, cash equivalents, and restricted
cash were $10.8 million as of January 31, 2020, down $6.4 million
from April 30, 2019. Net cash used in operating activities during
the nine months ended January 31, 2020, was $8.6 million, a
decrease of $1.3 million compared to $9.9 million during the nine
months ended January 31, 2019.
Conference Call & Webcast
OPT will host a conference call and webcast to
review its financial and operating results on Tuesday, March 10,
2019, at 11:00 A.M. Eastern Time. Interested parties may access the
conference call by dialing 877-407-8291 (toll-free in the U.S.) or
201-689-8345 for international callers.
Investors, analysts and members of the media
interested in listening to the live presentation are encouraged to
join a webcast of the call available on the investor relations
section of the Company’s website at
https://www.oceanpowertechnologies.com/investor-relations.
A digital replay will be available by telephone
approximately two hours after the completion of the call and until
June 10, 2020 and may be accessed by dialing 877-660-6853 from the
U.S. or 201-612-7415 for international callers and using the
Conference ID#13698889. The webcast will also be archived on the
OPT website investor relations page.
About Ocean Power Technologies
Headquartered in Monroe Township, New Jersey,
OPT aspires to transform the world through durable, innovative and
cost-effective ocean energy solutions. Its PB3 PowerBuoy® solution
platform provides clean and reliable electric power and real-time
data communications for remote offshore and subsea applications in
markets such as offshore oil and gas, defense and security, science
and research, and communications. To learn more, visit
www.oceanpowertechnologies.com.
Forward-Looking Statements
This release may contain forward-looking
statements that are within the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995. Forward-looking
statements are identified by certain words or phrases such as
"may", "will", "aim", "will likely result", "believe", "expect",
"will continue", "anticipate", "estimate", "intend", "plan",
"contemplate", "seek to", "future", "objective", "goal", "project",
"should", "will pursue" and similar expressions or variations of
such expressions. These forward-looking statements reflect the
Company's current expectations about its future plans and
performance. These forward-looking statements rely on a number of
assumptions and estimates which could be inaccurate, and which are
subject to risks and uncertainties. Actual results could vary
materially from those anticipated or expressed in any
forward-looking statement made by the Company. Please refer to the
Company's most recent Forms 10-Q and 10-K and subsequent filings
with the SEC for a further discussion of these risks and
uncertainties. The Company disclaims any obligation or intent to
update the forward-looking statements in order to reflect events or
circumstances after the date of this release.
Financial Tables Follow
Additional information may be found in the
company's Annual Report on Form 10-K that has been filed with the
U.S. Securities and Exchange Commission ("SEC"). The Form 10-K may
be accessed at www.sec.gov or at the company's website in the
Investor Relations section.
Ocean Power
Technologies, Inc. and Subsidiaries |
Consolidated
Balance Sheets |
(in
thousands, except share data) |
|
|
|
|
|
|
|
|
|
|
|
January 31, 2020 |
|
April 30, 2019 |
|
|
|
|
(Unaudited) |
|
|
ASSETS |
|
|
|
|
Current assets: |
|
|
|
|
|
Cash and cash equivalents |
|
$ |
9,877 |
|
|
$ |
16,660 |
|
|
Restricted cash- short-term |
|
|
707 |
|
|
|
344 |
|
|
Accounts receivable |
|
|
70 |
|
|
|
63 |
|
|
Contract assets |
|
|
35 |
|
|
|
15 |
|
|
Other current assets |
|
|
1,095 |
|
|
|
537 |
|
|
|
Total current assets |
|
|
11,784 |
|
|
|
17,619 |
|
Property and equipment, net |
|
|
536 |
|
|
|
592 |
|
Right-of-use asset, net |
|
|
1,215 |
|
|
|
- |
|
Restricted cash- long-term |
|
|
221 |
|
|
|
155 |
|
|
|
Total
assets |
|
$ |
13,756 |
|
|
$ |
18,366 |
|
LIABILITIES AND
STOCKHOLDERS' EQUITY |
|
|
|
|
Current liabilities: |
|
|
|
|
|
Accounts payable |
|
$ |
118 |
|
|
$ |
312 |
|
|
Accrued expenses |
|
|
2,208 |
|
|
|
1,938 |
|
|
Contract liabilities |
|
|
295 |
|
|
|
188 |
|
|
Warrant liabilities |
|
|
- |
|
|
|
6 |
|
|
Right-of-use liability- current |
|
|
222 |
|
|
|
- |
|
|
|
Total
current liabilities |
|
|
2,843 |
|
|
|
2,444 |
|
Right-of-use liability |
|
|
1,139 |
|
|
|
- |
|
Deferred rent |
|
|
- |
|
|
|
147 |
|
|
|
Total
liabilities |
|
|
3,982 |
|
|
|
2,591 |
|
Commitments and contingencies |
|
|
|
|
Stockholders’ Equity: |
|
|
|
|
|
Preferred stock, $0.001 par value; authorized
5,000,000 shares,none issued or outstanding |
|
|
- |
|
|
|
- |
|
|
Common stock, $0.001 par value; authorized
100,000,000 shares,issued 8,699,319 and 5,425,517 shares,
respectively |
|
|
9 |
|
|
|
5 |
|
|
Treasury stock, at cost; 4,251 and 3,770 shares, respectively |
|
(302 |
) |
|
|
(301 |
) |
|
Additional paid-in capital |
|
|
229,167 |
|
|
|
226,026 |
|
|
Accumulated deficit |
|
|
(218,917 |
) |
|
|
(209,784 |
) |
|
Accumulated other comprehensive loss |
|
|
(183 |
) |
|
|
(171 |
) |
|
|
Total
stockholders' equity |
|
|
9,774 |
|
|
|
15,775 |
|
|
|
Total
liabilities and stockholders’ equity |
|
$ |
13,756 |
|
|
$ |
18,366 |
|
|
|
|
|
|
|
|
Ocean Power
Technologies, Inc. and Subsidiaries |
Consolidated
Statements of Operations |
(in
thousands, except per share data) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended January 31, |
|
Nine months ended January 31, |
|
|
|
|
2020 |
|
|
|
2019 |
|
|
|
2020 |
|
|
|
2019 |
|
|
|
|
|
|
|
|
|
|
|
Revenues |
$ |
725 |
|
|
$ |
268 |
|
|
$ |
1,131 |
|
|
$ |
440 |
|
Cost of revenues |
|
681 |
|
|
|
400 |
|
|
|
1,335 |
|
|
|
1,180 |
|
|
|
Gross
profit/(loss) |
|
44 |
|
|
|
(132 |
) |
|
|
(204 |
) |
|
|
(740 |
) |
|
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
Engineering and product development costs |
|
896 |
|
|
|
1,382 |
|
|
|
3,403 |
|
|
|
4,105 |
|
|
Selling, general and administrative costs |
|
2,093 |
|
|
|
2,008 |
|
|
|
5,629 |
|
|
|
5,909 |
|
|
|
Total
operating expenses |
|
2,989 |
|
|
|
3,390 |
|
|
|
9,032 |
|
|
|
10,014 |
|
Operating loss |
|
(2,945 |
) |
|
|
(3,522 |
) |
|
|
(9,236 |
) |
|
|
(10,754 |
) |
|
|
|
|
|
|
|
|
|
|
Gain due to the change in fair value of warrant liabilities |
|
- |
|
|
|
47 |
|
|
|
6 |
|
|
|
183 |
|
Interest income, net |
|
27 |
|
|
|
2 |
|
|
|
102 |
|
|
|
23 |
|
Foreign exchange gain/(loss) |
|
(1 |
) |
|
|
12 |
|
|
|
(5 |
) |
|
|
(43 |
) |
Loss before income taxes |
|
(2,919 |
) |
|
|
(3,461 |
) |
|
|
(9,133 |
) |
|
|
(10,591 |
) |
|
Income tax benefit |
|
- |
|
|
|
850 |
|
|
|
- |
|
|
|
850 |
|
Net loss |
$ |
(2,919 |
) |
|
$ |
(2,611 |
) |
|
$ |
(9,133 |
) |
|
$ |
(9,741 |
) |
Basic and diluted net loss per share |
$ |
(0.46 |
) |
|
$ |
(2.72 |
) |
|
$ |
(1.40 |
) |
|
$ |
(10.46 |
) |
|
Weighted average shares used to compute basic and diluted net loss
per share |
|
6,318,162 |
|
|
|
959,287 |
|
|
|
6,543,500 |
|
|
|
931,052 |
|
|
|
|
|
|
|
|
|
|
|
Ocean Power
Technologies, Inc. and Subsidiaries |
Consolidated
Statements of Cash Flows |
(in
thousands) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine months ended January 31, |
|
|
|
|
|
|
|
2020 |
|
|
|
2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from operating activities: |
|
|
|
|
|
Net loss |
|
$ |
(9,133 |
) |
|
$ |
(9,741 |
) |
|
Adjustments to reconcile net loss to net cash used in operating
activities: |
|
|
|
|
|
|
Foreign exchange loss |
|
|
5 |
|
|
|
43 |
|
|
|
Depreciation and amortization |
|
|
263 |
|
|
|
135 |
|
|
|
Compensation expense related to stock option grants and restricted
stock |
|
225 |
|
|
|
200 |
|
|
|
Gain due to the change in fair value of warrant liabilities |
|
|
(6 |
) |
|
|
(183 |
) |
|
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
Accounts receivable |
|
|
(7 |
) |
|
|
105 |
|
|
|
|
Unbilled receivables |
|
|
- |
|
|
|
71 |
|
|
|
|
Contract assets |
|
|
(20 |
) |
|
|
(85 |
) |
|
|
|
Other assets |
|
|
19 |
|
|
|
(203 |
) |
|
|
|
Accounts payable |
|
|
(194 |
) |
|
|
(116 |
) |
|
|
|
Accrued expenses |
|
|
257 |
|
|
|
281 |
|
|
|
|
Deferred rent |
|
|
- |
|
|
|
5 |
|
|
|
|
Deferred credit payable |
|
|
- |
|
|
|
(600 |
) |
|
|
|
Unearned revenue |
|
|
- |
|
|
|
(18 |
) |
|
|
|
Change in lease liability |
|
|
(147 |
) |
|
|
- |
|
|
|
|
Contract liabilities |
|
|
107 |
|
|
|
256 |
|
|
|
|
|
Net cash
used in operating activities |
|
|
(8,631 |
) |
|
|
(9,850 |
) |
Cash flows from investing activities: |
|
|
|
|
|
Purchases of marketable securities |
|
|
- |
|
|
|
(25 |
) |
|
Maturities of marketable securities |
|
|
- |
|
|
|
50 |
|
|
Purchase of computers, equipment and furniture |
|
|
(61 |
) |
|
|
(54 |
) |
|
|
|
|
Net cash
used in investing activities |
|
|
(61 |
) |
|
|
(29 |
) |
Cash flows from financing activities: |
|
|
|
|
|
Proceeds from issuance of common stock, net of issuance costs |
|
|
- |
|
|
|
464 |
|
|
Proceeds from issuance of common stock- Aspire financing net of
issuance costs |
|
|
850 |
|
|
|
- |
|
|
Proceeds from issuance of common stock- AGP At The Market offering,
net of issuance costs |
|
|
1,520 |
|
|
|
- |
|
|
Costs associated with exercise of pre-funded warrants |
|
|
(16 |
) |
|
|
- |
|
|
Payment of capital lease obligations |
|
|
- |
|
|
|
(23 |
) |
|
Acquisition of treasury stock |
|
|
(1 |
) |
|
|
(1 |
) |
|
|
|
|
Net cash
provided by financing activities |
|
|
2,353 |
|
|
|
440 |
|
Effect of exchange rate changes on cash, cash equivalents and
restricted cash |
|
|
(15 |
) |
|
|
(58 |
) |
|
|
|
|
Net decrease
in cash, cash equivalents and restricted cash |
|
|
(6,354 |
) |
|
|
(9,497 |
) |
Cash, cash equivalents and restricted cash, beginning of
period |
|
|
17,159 |
|
|
|
12,225 |
|
Cash, cash equivalents and restricted cash, end of period |
|
$ |
10,805 |
|
|
$ |
2,728 |
|
|
|
|
|
|
|
|
|
|
Contact Information
Investors:
609-730-0400 x401
InvestorRelations@oceanpowertech.com
Media:
609-730-0400 x402
MediaRelations@oceanpowertech.com
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