Ocean Power Technologies, Inc. (Nasdaq:OPTT) today
announced financial results for its Fiscal 2017 third quarter ended
January 31, 2017.
George H. Kirby, President and Chief Executive
Officer of OPT, stated, "I am pleased to announce the third quarter
was a period filled with opportunities for us due to our aggressive
commercialization efforts. Through marketing campaigns and numerous
face-to-face meetings with market stakeholders throughout the
quarter, we have continued to introduce our PB3 PowerBuoy to our
target markets: oil and gas, defense, metocean and communications.
Through these efforts, we have been focusing on numerous
applications to enhance our knowledge of the challenges encountered
in these markets that require innovative solutions where the
PowerBuoy can play a central role. We continue to incorporate
this input to ensure that we are meeting the specific needs of
market applications in the most flexible manner. We have responded
to a number of requests for proposals as we continue to garner what
we believe is increasing interest in our commercial-ready PB3
product in the U.S. and abroad.
We also had several notable operational
achievements in the quarter:
- Our commercial-ready PB3 PowerBuoy was shipped to Japan for the
previously announced lease with Mitsui Engineering and Shipbuilding
(“MES”).
- We proceeded with the upgrade of our pre-commercial PB3
PowerBuoy, which will make it our second commercial-ready unit.
This effort is nearly complete and enables us to aggressively
pursue near-term customer application demonstrations.
- In early May, we plan to display a PB3 PowerBuoy at one of the
largest global offshore ocean technology events in the world: the
Offshore Technology Conference in Houston, Texas. This conference
is well attended by decision-makers across each of our target
markets, and we believe will provide a great opportunity to allow
direct product access to potential customers.
- We have initiated the production of a third commercial-ready
PB3 unit, where it is our intent to have this unit deployment-ready
by Q2 of fiscal 2018.
- We announced a joint marketing agreement with Sonalysts to
pursue mutual opportunities in defense and oil and gas applications
where persistent power and real-time data communications are
critical.
- We announced a joint application development and marketing
agreement with HAI Technologies Corp. ("HAI") to pursue and develop
opportunities in the oil and gas industry with an initial focus on
offshore oil and gas subsea chemical injection systems where we
believe pairing two distinctive offshore technologies will create
new methods to deal with long distance and remote offshore field
developments.
- We increased our commercial capabilities through new hires in
marketing and business development, and engagement of expert market
consultants. We continue to acquire new skills to maximize our
market outreach and creation of new business opportunities.
- Our accelerated life testing continues to increase our
confidence in the readiness of our product. We believe the
combination of ocean deployment and factory test data has provided
the credibility which allows us to progress to customer application
demonstrations, which we believe is a critical step in the
PowerBuoy commercialization process.
- We have undertaken steps through product life-cycle management
to define and implement a set of cost-takeout initiatives on the
PB3 while maintaining a focus on continued reliability. We also
continue to advance our PB15 PowerBuoy design given what we believe
has been very favorable market feedback.”
Mr. Kirby continued, "We believe that our accomplishments over
previous months have been aggressive, and in accordance with our
communicated strategy. This strategy focuses on
commercializing the PB3 PowerBuoy while pursuing collaborative and
strategic partnerships in support of product commercialization and
delivery, which we believe will enable us to scale our business in
the most cost-effective and expeditious manner."
Results for the Third Fiscal Quarter Ended January 31,
2017
For the three months ended January 31, 2017, we reported revenue
of $221,000, as compared to revenue of $5,000 for the three months
ended January 31, 2016. The increase in revenues compared to the
prior year was due to our contracts with MES and the Department of
Defense Office of Naval Research ("ONR") in the current year.
The net loss for the three months ended January 31, 2017 was
$2.1 million as compared to a net loss of $2.0 million for the
three months ended January 31, 2016. The slight increase in net
loss is primarily due to a lower income tax benefit in the current
year, which was mostly offset by a decrease in product development
costs in the current year from prior year.
Results for the Nine Months Ended January 31,
2017
For the nine months ended January 31, 2017, OPT reported revenue
of $593,000, as compared to revenue of $605,000 for the nine months
ended January 31, 2016. Revenue decreased in the current year
compared to the prior year as a result of the contracts with MES
and ONR in the current year having slightly lower revenue than the
WavePort contract with the EU for our project in Spain and billable
work under prior contracts with the DOE, both of which were in the
prior year.
The net loss for the nine months ended January 31, 2017 was $6.9
million, as compared to a net loss of $9.1 million for the nine
months ended January 31, 2016. The decrease in the Company's net
loss is due to lower selling, general, and administrative costs,
product development costs, the fair market value of the common
stock warrants liability, and income tax benefit in the current
year as compared to the prior year.
Balance Sheet and Available Cash
As of January 31, 2017, total cash, cash equivalents, and
marketable securities were $11.1 million, up from $6.8 million on
April 30, 2016. As of January 31, 2017 and April 30, 2016,
restricted cash was $0.3 million for each period. Net cash used in
operating activities was $7.6 million for the nine months ended
January 31, 2017, compared with $8.1 million for the nine months
ended January 31, 2016.
Conclusion
Mr. Kirby concluded, "We believe we are well positioned to
execute our strategy of commercializing the PB3 PowerBuoy as we
continue to receive strong market feedback about the need for
persistent offshore power and communications.”
Conference Call Details
The Company will host a conference call and webcast to review
financial and operating results. The call will be held on
Wednesday, March 8, 2017 at 9:00 eastern time. Please call (844)
864-2538 and enter pass code 83351994. Additionally, the call
will be webcast live at the Company's website at
www.oceanpowertechnologies.com. A telephonic replay will be
available from 5:00 p.m. eastern time the day of the teleconference
until March 15, 2017. To listen to the archived call, dial (855)
859-2056 or (404) 537-3406 and enter pass code 83351994, or access
the webcast replay via the Company website at
www.oceanpowertechnologies.com, where a transcript will be posted
once available.
About Ocean Power Technologies
Headquartered in Pennington, New Jersey, Ocean Power
Technologies (Nasdaq:OPTT) is a pioneer in renewable wave-energy
technology that converts ocean wave energy into electricity. OPT
has developed and is seeking to commercialize its proprietary
PowerBuoy® technology, which is based on a modular design and has
undergone periodic ocean testing since 1997. OPT specializes in
designing cost-effective, and environmentally sound ocean wave
based power generation and management technology.
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 Quarterly
Report on Form 10-Q that has been filed with the U.S. Securities
and Exchange Commission ("SEC"). The Form 10-Q 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, 2017 |
|
April 30, 2016 |
|
(Unaudited) |
|
|
ASSETS |
|
|
|
Current
assets: |
|
|
|
|
Cash and
cash equivalents |
$ |
11,110 |
|
|
$ |
6,730 |
|
|
Marketable
securities |
|
25 |
|
|
|
75 |
|
|
Restricted
cash |
|
299 |
|
|
|
300 |
|
|
Unbilled
receivables |
|
324 |
|
|
|
37 |
|
|
Litigation
receivable |
|
- |
|
|
|
2,500 |
|
|
Other
current assets |
|
337 |
|
|
|
117 |
|
|
Total current assets |
|
12,095 |
|
|
|
9,759 |
|
Property
and equipment, net |
|
195 |
|
|
|
273 |
|
Other
noncurrent assets |
|
131 |
|
|
|
319 |
|
|
Total assets |
$ |
12,421 |
|
|
$ |
10,351 |
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
Current
liabilities: |
|
|
|
|
Accounts
payable |
$ |
189 |
|
|
$ |
373 |
|
|
Accrued
expenses |
|
3,121 |
|
|
|
2,675 |
|
|
Litigation
payable |
|
- |
|
|
|
3,000 |
|
|
Unearned
revenue |
|
- |
|
|
|
39 |
|
|
Warrant
liabilities |
|
653 |
|
|
|
- |
|
|
Current
portion of long-term debt and capital lease obligations |
|
34 |
|
|
|
81 |
|
|
Deferred
credits payable current |
|
600 |
|
|
|
- |
|
|
Total current liabilities |
|
4,597 |
|
|
|
6,168 |
|
Long-term
debt and capital lease obligations |
|
32 |
|
|
|
55 |
|
Deferred
credits payable non-current |
|
- |
|
|
|
600 |
|
|
Total liabilities |
|
4,629 |
|
|
|
6,823 |
|
Commitments
and contingencies |
|
|
|
Ocean Power
Technologies, Inc. stockholders’ equity: |
|
|
Preferred
stock |
|
- |
|
|
|
- |
|
|
Common
stock |
|
6 |
|
|
|
2 |
|
|
Treasury
stock |
|
(260 |
) |
|
|
(138 |
) |
|
Additional
paid-in capital |
|
193,000 |
|
|
|
181,670 |
|
|
Accumulated
deficit |
|
(184,794 |
) |
|
|
(177,884 |
) |
|
Accumulated
other comprehensive loss |
|
(160 |
) |
|
|
(122 |
) |
|
Total stockholders' equity |
|
7,792 |
|
|
|
3,528 |
|
|
Total liabilities and stockholders’ equity |
$ |
12,421 |
|
|
$ |
10,351 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ocean Power Technologies, Inc. and
Subsidiaries |
Unaudited Consolidated Statements of
Operations |
(in thousands, except per share
data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended January 31, |
|
Nine months ended January 31, |
|
|
|
|
|
2017 |
|
|
|
2016 |
|
|
|
2017 |
|
|
|
2016 |
|
|
Revenues |
$ |
221 |
|
|
$ |
5 |
|
|
$ |
593 |
|
|
$ |
605 |
|
Cost of
revenues |
|
363 |
|
|
|
5 |
|
|
|
615 |
|
|
|
605 |
|
|
Gross
profit (loss) |
|
(142 |
) |
|
|
- |
|
|
|
(22 |
) |
|
|
- |
|
Operating
expenses: |
|
|
|
|
|
|
|
|
Product
development costs |
|
950 |
|
|
|
1,752 |
|
|
|
3,894 |
|
|
|
5,412 |
|
|
Selling,
general and administrative costs |
|
1,617 |
|
|
|
1,690 |
|
|
|
4,859 |
|
|
|
5,419 |
|
|
Total
operating expenses |
|
2,567 |
|
|
|
3,442 |
|
|
|
8,753 |
|
|
|
10,831 |
|
Operating
loss |
|
(2,709 |
) |
|
|
(3,442 |
) |
|
|
(8,775 |
) |
|
|
(10,831 |
) |
(Loss) gain
on fair value of warrant liabilities |
|
(104 |
) |
|
|
- |
|
|
|
1,161 |
|
|
|
- |
|
Interest
income, net |
|
24 |
|
|
|
1 |
|
|
|
26 |
|
|
|
10 |
|
Other
(expense) income, net |
|
- |
|
|
|
(3 |
) |
|
|
- |
|
|
|
240 |
|
Foreign
exchange loss |
|
(26 |
) |
|
|
(188 |
) |
|
|
(20 |
) |
|
|
(194 |
) |
Loss before
income taxes |
|
(2,815 |
) |
|
|
(3,632 |
) |
|
|
(7,608 |
) |
|
|
(10,775 |
) |
|
Income tax
benefit |
|
698 |
|
|
|
1,674 |
|
|
|
698 |
|
|
|
1,674 |
|
Net
loss |
|
(2,117 |
) |
|
|
(1,958 |
) |
|
|
(6,910 |
) |
|
|
(9,101 |
) |
|
Less: Net
profit attributable to the |
|
|
|
|
|
|
|
|
|
|
non-controlling interest in Ocean Power |
|
|
|
|
|
|
|
|
|
|
Technologies (Australasia) Pty Ltd. |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(45 |
) |
Net loss
attributable to Ocean Power |
|
|
|
|
|
|
|
Technologies, Inc. |
$ |
(2,117 |
) |
|
$ |
(1,958 |
) |
|
$ |
(6,910 |
) |
|
$ |
(9,146 |
) |
Basic and
diluted net loss per share |
$ |
(0.37 |
) |
|
$ |
(1.05 |
) |
|
$ |
(1.84 |
) |
|
$ |
(5.07 |
) |
|
Weighted
average shares used to compute |
|
|
|
|
|
|
|
|
|
|
basic and diluted net loss per share |
|
5,783,494 |
|
|
|
1,865,464 |
|
|
|
3,763,564 |
|
|
|
1,803,559 |
|
|
|
|
|
|
|
|
|
|
Ocean Power Technologies, Inc. and
Subsidiaries |
Unaudited Consolidated Statements of Cash
Flows |
(in thousands) |
|
|
Nine months ended January 31, |
|
|
2017 |
|
|
|
2016 |
|
|
Cash flows
from operating activities: |
|
Net
loss |
$ |
(6,910 |
) |
|
$ |
(9,101 |
) |
|
Adjustments
to reconcile net loss to net cash |
|
|
|
|
used in operating activities |
|
|
|
|
Foreign exchange gain |
|
20 |
|
|
|
194 |
|
|
Depreciation and amortization |
|
104 |
|
|
|
84 |
|
|
Compensation expense related to stock option |
|
|
|
|
|
|
grants & restricted stock |
|
998 |
|
|
|
298 |
|
|
Gain on fair value of warrant liabilities |
|
(1,161 |
) |
|
|
- |
|
|
Payments for litigation settlements |
|
(500 |
) |
|
|
- |
|
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
Decrease in accounts receivable |
|
- |
|
|
|
89 |
|
|
(Increase) decrease in unbilled receivables |
|
(286 |
) |
|
|
44 |
|
|
Increase in other current assets |
|
(222 |
) |
|
|
(30 |
) |
|
Decrease in other noncurrent assets |
|
169 |
|
|
|
27 |
|
|
(Decrease) increase in accounts payable |
|
(186 |
) |
|
|
98 |
|
|
Increase in accrued expenses |
|
461 |
|
|
|
221 |
|
|
Decrease in unearned revenues |
|
(39 |
) |
|
|
- |
|
|
Net cash used in operating activities |
|
(7,552 |
) |
|
|
(8,076 |
) |
Cash flows
from investing activities: |
|
|
|
|
Purchases
of marketable securities |
|
(25 |
) |
|
|
- |
|
|
Maturities
of marketable securities |
|
75 |
|
|
|
25 |
|
|
Restricted
cash |
|
1 |
|
|
|
111 |
|
|
Purchases
of equipment |
|
(22 |
) |
|
|
(24 |
) |
|
Net cash provided by investing activities |
|
29 |
|
|
|
112 |
|
Cash flows
from financing activities: |
|
|
|
|
Proceeds
from sale of common stock, net of issuance costs |
|
- |
|
|
|
205 |
|
|
Proceeds
from issuance of common stock |
|
|
|
|
and related warrants, net of costs |
|
12,150 |
|
|
|
- |
|
|
Repayment
of debt |
|
(70 |
) |
|
|
(75 |
) |
|
Acquisition
of treasury stock |
|
(122 |
) |
|
|
(4 |
) |
|
Net cash provided by financing activities |
|
11,958 |
|
|
|
126 |
|
Effect of
exchange rate changes on cash and cash equivalents |
|
(55 |
) |
|
|
(85 |
) |
|
Net increase (decrease) in cash and cash equivalents |
|
4,380 |
|
|
|
(7,923 |
) |
Cash and
cash equivalents, beginning of period |
|
6,730 |
|
|
|
17,336 |
|
Cash and
cash equivalents, end of period |
$ |
11,110 |
|
|
$ |
9,413 |
|
|
Company Contact:
Matthew T. Shafer
Chief Financial Officer of OPT
Phone: 609-730-0400
Investor Relations Contact:
Andrew Barwicki
Barwicki Investor Relations Inc.
Phone: 516-662-9461
Ocean Power Technologies (NASDAQ:OPTT)
Historical Stock Chart
From Apr 2024 to May 2024
Ocean Power Technologies (NASDAQ:OPTT)
Historical Stock Chart
From May 2023 to May 2024