Ocean Power Technologies, Inc. (Nasdaq:OPTT) today
announced financial results for its fiscal 2017 fourth quarter and
the full fiscal year 2017 ended April 30, 2017.
George H. Kirby, President and Chief Executive Officer of OPT,
stated, "Fiscal 2017 marked a year of substantial progress in our
commercialization efforts. We continue to see large interest
in our PB3 PowerBuoy through communications with key
decision-makers and end-users. During the fourth quarter, we
accomplished some key milestones. We announced the relocation
of our corporate headquarters and manufacturing center that will
occur during the latter part of calendar year 2017 to our new
location in Monroe, New Jersey, which is more than double the size
of our current facility in Pennington, New Jersey and which
significantly expands our manufacturing capacity. The move will
allow us to dramatically expand our manufacturing capabilities to
support the increasing interest in our PB3. We also shipped a
PB3 to Japan to fulfill the requirements of our previously
announced lease with Mitsui Engineering and Shipbuilding (MES) and
then later successfully deployed the buoy off of the coast of
Kozushima Island. The unit continues to meet all of its
performance requirements, and our accelerated life testing program
continues to increase our confidence level in the readiness of our
design. We have continued to advance our PB15 product design,
and have undertaken initial steps of product life cycle management
of our PB3 to define and implement cost removal initiatives.
We continue to aggressively pursue our markets and business
opportunities by hiring market experts and business development
personnel."
Mr. Kirby further stated, "After the close of the fourth
quarter, OPT attended one of the largest global offshore oil and
gas events in the world, the Offshore Technology Conference (OTC),
which took place in Houston, TX, in early May. This was a
tremendous business development and marketing opportunity for us,
where we exhibited our second commercial PB3 unit to potential
customers and end-users. Also in early May, we closed on a
public offering of 6,192,750 shares of common stock, which
generated net proceeds of approximately $7.2 million.”
Results for the Fourth Fiscal Quarter Ended April 30,
2017
For the three months ended April 30, 2017, OPT reported revenue
of $250,000 as compared to revenue of $100,000 for the three months
ended April 30, 2016. The increase in revenues versus the prior
year was due to higher revenue from our contracts with MES and the
Department of Defense Office of Naval Research (ONR) in the current
year, as compared to the revenue in the prior year from our
WavePort contract with the European Union (EU) for our project in
Spain and the billable work under our prior contracts with the
Department of Energy (DOE).
The net loss for the three months ended April 30, 2017 was $2.6
million as compared to a net loss of $4.0 million for the three
months ended April 30, 2016. The decrease in net loss is
attributable to lower product development and legal costs compared
to prior year period and the decline in the fair value of the
warrants liability in the current year. These were partially
offset by slightly higher selling, general, and administrative
expenses in the current year compared to the prior year period.
Results for the Year Ended April 30, 2017
For fiscal year 2017, OPT reported revenue of $843,000 as
compared to revenue of $705,000 for fiscal year 2016. The increase
in revenues as compared to the prior year period was due to higher
revenue from our contracts with MES and ONR in the current year as
compared to the revenue in the prior year from our WavePort
contract with the EU for our project in Spain and the billable work
under our prior contracts with DOE during fiscal year 2016.
The net loss for fiscal year 2017 was $9.5 million, as compared
to a net loss of $13.1 million for fiscal year 2016. The decrease
in the Company's net loss is due to lower selling, general, and
administrative expenses, product development expense, the decline
in the fair market value of the warrants liability, and lower
income tax benefit in the current year as compared to the prior
year.
Balance Sheet and Available Cash
As of April 30, 2017, total cash, cash equivalents and
marketable securities were $8.4 million, up from $6.8 million on
April 30, 2016. Restricted cash was $488,000 as of April 30,
2017 and $300,000 as of April 30, 2016. Net cash used in operating
activities was $10.0 million for fiscal year 2017, compared with
$10.9 million for fiscal year 2016.
Conclusion
Mr. Kirby concluded, "We continue to be excited by our
commercial progress and the strong positive market feedback we have
been receiving about the need for persistent offshore power and
communications. We are continuing to discuss new
opportunities with potential customers as part of our business
development and commercialization efforts. We are encouraged by the
opportunities in our target markets, which we believe can derive
significant benefits from our PB3 PowerBuoy power and real-time
communications solutions."
Conference Call Details
The Company will host a conference call to review financial and
operating results. The call will be held on Monday July 17, 2017 at
3:30 p.m. eastern time. Please call 844-473-0979 and enter pass
code 51649776. A telephonic replay will be available from 6:30 p.m.
eastern time the day of the teleconference until July 24, 2017. To
listen to the archived call, dial 855-859-2056 and enter pass code
51649776, or access via the Company website at
www.oceanpowertechnologies.com, where a transcript will be posted
once available.
About Ocean Power Technologies
Headquartered in New Jersey, Ocean Power
Technologies aspires to transform the world through durable,
innovative and cost-effective ocean energy solutions. Our PB3
PowerBuoy uses ocean waves to provide clean, reliable and
persistent electric power and real-time communications for remote
offshore applications in markets such as oil and gas, defense,
security, ocean observing, 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) |
|
|
|
|
|
|
|
|
|
|
|
April 30, 2017 |
|
April 30, 2016 |
|
|
|
|
|
|
|
ASSETS |
|
|
|
|
Current
assets: |
|
|
|
|
|
Cash and cash equivalents |
|
$ |
8,421 |
|
|
$ |
6,730 |
|
|
Marketable securities |
|
|
25 |
|
|
|
75 |
|
|
Restricted cash- short-term |
|
|
334 |
|
|
|
300 |
|
|
Accounts Receivable |
|
|
48 |
|
|
|
- |
|
|
Unbilled receivables |
|
|
296 |
|
|
|
37 |
|
|
Litigation receivable |
|
|
- |
|
|
|
2,500 |
|
|
Other current assets |
|
|
622 |
|
|
|
117 |
|
|
|
Total
current assets |
|
|
9,746 |
|
|
|
9,759 |
|
Property
and equipment, net |
|
|
170 |
|
|
|
273 |
|
Restricted cash- long-term |
|
|
154 |
|
|
|
- |
|
Other
noncurrent assets |
|
|
3 |
|
|
|
319 |
|
|
|
Total
assets |
|
$ |
10,073 |
|
|
$ |
10,351 |
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
Current
liabilities: |
|
|
|
|
|
Accounts payable |
|
$ |
586 |
|
|
$ |
373 |
|
|
Accrued expenses |
|
|
3,059 |
|
|
|
2,675 |
|
|
Litigation payable |
|
|
- |
|
|
|
3,000 |
|
|
Unearned revenue |
|
|
- |
|
|
|
39 |
|
|
Warrant liabilities |
|
|
323 |
|
|
|
- |
|
|
Current portion of long-term debt and capital lease
obligations |
|
35 |
|
|
|
81 |
|
|
Deferred
credits payable current |
|
|
600 |
|
|
|
- |
|
|
|
Total
current liabilities |
|
|
4,603 |
|
|
|
6,168 |
|
Long-term
debt and capital lease obligations |
|
|
23 |
|
|
|
55 |
|
Deferred
credits payable non-current |
|
|
- |
|
|
|
600 |
|
|
|
Total
liabilities |
|
|
4,626 |
|
|
|
6,823 |
|
Commitments
and contingencies |
|
|
|
|
Ocean Power
Technologies, Inc. stockholders’ equity: |
|
|
|
|
|
Preferred stock, $0.001 par value; authorized 5,000,000
shares, |
|
|
|
|
|
none issued or outstanding |
|
|
- |
|
|
|
- |
|
|
Common stock, $0.001 par value; authorized 50,000,000
shares, |
|
|
|
|
issued 6,313,996 and 2,352,100 shares, respectively |
|
|
6 |
|
|
|
2 |
|
|
Treasury stock, at cost; 48,065 and 6,894 shares,
respectively |
|
|
(263 |
) |
|
|
(138 |
) |
|
Additional paid-in capital |
|
|
193,234 |
|
|
|
181,670 |
|
|
Accumulated deficit |
|
|
(187,370 |
) |
|
|
(177,884 |
) |
|
Accumulated other comprehensive loss |
|
|
(160 |
) |
|
|
(122 |
) |
|
|
Total
stockholders' equity |
|
|
5,447 |
|
|
|
3,528 |
|
|
|
Total
liabilities and stockholders’ equity |
|
$ |
10,073 |
|
|
$ |
10,351 |
|
Ocean Power Technologies, Inc. and
Subsidiaries |
Consolidated Statements of
Operations |
(in thousands, except per share
data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended April 30, |
|
Twelve months ended April 30, |
|
|
|
|
|
|
2017 |
|
|
|
2016 |
|
|
|
2017 |
|
|
|
2016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
|
|
$ |
250 |
|
|
$ |
100 |
|
|
$ |
843 |
|
|
$ |
705 |
|
Cost of
revenues |
|
|
|
324 |
|
|
|
63 |
|
|
|
938 |
|
|
|
668 |
|
|
|
Gross
profit (loss) |
|
|
|
(74 |
) |
|
|
37 |
|
|
|
(95 |
) |
|
|
37 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses: |
|
|
|
|
|
|
|
|
|
|
Product development costs |
|
|
|
1,134 |
|
|
|
1,638 |
|
|
|
5,029 |
|
|
|
7,051 |
|
|
Selling, general and administrative costs |
|
|
|
1,704 |
|
|
|
1,328 |
|
|
|
6,563 |
|
|
|
6,747 |
|
|
Litigation settlement |
|
|
|
- |
|
|
|
1,097 |
|
|
|
- |
|
|
|
1,097 |
|
|
|
Total
operating expenses |
|
|
|
2,838 |
|
|
|
4,063 |
|
|
|
11,592 |
|
|
|
14,895 |
|
Operating
loss |
|
|
|
(2,912 |
) |
|
|
(4,026 |
) |
|
|
(11,687 |
) |
|
|
(14,858 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Change in
fair value of warrant liabilities |
|
|
|
330 |
|
|
|
- |
|
|
|
1,491 |
|
|
|
- |
|
Interest
income, net |
|
|
|
2 |
|
|
|
(2 |
) |
|
|
28 |
|
|
|
8 |
|
Other
income |
|
|
|
- |
|
|
|
1 |
|
|
|
- |
|
|
|
241 |
|
Foreign
exchange gain (loss) |
|
|
|
5 |
|
|
|
46 |
|
|
|
(16 |
) |
|
|
(149 |
) |
Loss before
income taxes |
|
|
|
(2,575 |
) |
|
|
(3,981 |
) |
|
|
(10,184 |
) |
|
|
(14,758 |
) |
|
Income tax
benefit |
|
|
|
- |
|
|
|
- |
|
|
|
698 |
|
|
|
1,674 |
|
Net
loss |
|
|
$ |
(2,575 |
) |
|
$ |
(3,981 |
) |
|
$ |
(9,486 |
) |
|
$ |
(13,084 |
) |
Ocean Power Technologies, Inc. and
Subsidiaries |
Consolidated Statements of Cash
Flows |
(in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve months ended April 30, |
|
|
|
|
|
|
|
2017 |
|
|
|
2016 |
|
|
|
|
|
|
|
|
Cash flows
from operating activities: |
|
|
|
|
|
Net loss |
|
$ |
(9,486 |
) |
|
$ |
(13,084 |
) |
|
Adjustments to reconcile net loss to net cash used in operating
activities: |
|
|
|
|
|
|
Foreign exchange loss |
|
|
16 |
|
|
|
149 |
|
|
|
Depreciation and amortization |
|
|
140 |
|
|
|
112 |
|
|
|
Loss on disposal of property, plant and equipment |
|
|
- |
|
|
|
2 |
|
|
|
Compensation expense related to stock option grants and
restricted stock |
|
|
1,232 |
|
|
|
336 |
|
|
|
Change in
fair value of warrant liabilities |
|
|
(1,491 |
) |
|
|
- |
|
|
|
Common
Stock issuance in settlement of lawsuit |
|
|
- |
|
|
|
597 |
|
|
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
Accounts receivable |
|
|
(48 |
) |
|
|
103 |
|
|
|
|
Unbilled receivable |
|
|
(258 |
) |
|
|
44 |
|
|
|
|
Other assets |
|
|
(212 |
) |
|
|
75 |
|
|
|
|
Accounts payable |
|
|
213 |
|
|
|
22 |
|
|
|
|
Accrued expenses |
|
|
395 |
|
|
|
175 |
|
|
|
|
Litigation payable |
|
|
(500 |
) |
|
|
500 |
|
|
|
|
Unearned revenues |
|
|
(39 |
) |
|
|
39 |
|
|
|
|
|
Net cash
used in operating activities |
|
|
(10,038 |
) |
|
|
(10,930 |
) |
Cash flows
from investing activities: |
|
|
|
|
|
Maturities of marketable securities |
|
|
50 |
|
|
|
- |
|
|
Restricted cash |
|
|
(189 |
) |
|
|
139 |
|
|
Purchases of equipment |
|
|
(37 |
) |
|
|
(24 |
) |
|
|
|
|
Net cash
(used in) provided by investing activities |
|
|
(176 |
) |
|
|
115 |
|
Cash flows
from financing activities: |
|
|
|
|
|
Proceeds from issuance of common stock, net of costs |
|
|
- |
|
|
|
289 |
|
|
Proceeds from issuance of common stock and related warrants,
net of costs |
|
|
12,150 |
|
|
|
- |
|
|
Payment of capital lease obligations |
|
|
(28 |
) |
|
|
(63 |
) |
|
Payment of debt |
|
|
(50 |
) |
|
|
- |
|
|
Acquisition of treasury stock |
|
|
(125 |
) |
|
|
(6 |
) |
|
|
|
|
Net cash
provided by financing activities |
|
|
11,947 |
|
|
|
220 |
|
Effect of
exchange rate changes on cash and cash equivalents |
|
|
(42 |
) |
|
|
(11 |
) |
|
|
|
|
Net
increase (decrease) in cash and cash equivalents |
|
|
1,691 |
|
|
|
(10,606 |
) |
Cash and
cash equivalents, beginning of period |
|
|
6,730 |
|
|
|
17,336 |
|
Cash and
cash equivalents, end of period |
|
$ |
8,421 |
|
|
$ |
6,730 |
|
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
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