Ocean Power Technologies Announces Results for the First Quarter of Fiscal Year 2018 ended July 31, 2017
September 08 2017 - 9:25AM
Ocean Power Technologies, Inc. (Nasdaq:OPTT) today
announced financial results for the first quarter of fiscal year
2018 ended July 31, 2017.
"Our first quarter results were in line with our expectations,
and we continued to make progress on our strategic initiatives to
commercialize the PB3 PowerBuoy and position the company for future
growth,” said George H. Kirby, President and Chief Executive
Officer of OPT.
Operations Review
Kirby added, “Production is underway on two new commercial PB3
PowerBuoys. These will be our third and fourth units and they are
being built to meet anticipated demand from potential new
customers. We are continuing to pursue additional opportunities to
identify markets and applications for the PB3 PowerBuoy that could
contribute to increased sales and financial performance for OPT. As
part of that initiative, we announced our presence in Houston,
Texas during the quarter to support our offshore oil and gas
business development activities. In May, we exhibited our PB3
commercial unit to customers and end users at the Offshore
Technology Conference, which is one of the largest global offshore
oil and gas events in the world, and were pleased with the response
from attendees. In April, the Company announced the
relocation of its corporate headquarters and manufacturing center
to Monroe, NJ. The new facility will more than double the size of
the existing OPT facility. The move is on track to be
completed later in this calendar year.”
Financial Highlights
Revenue for the first quarter of fiscal year 2018 was $195,000,
which was relatively flat compared to revenue of $202,000 for the
first quarter of fiscal year 2017. Revenue for the first quarter of
fiscal year 2018 came from contracts with Mitsui Engineering and
Shipbuilding and the Department of Defense Office of Naval Research
while revenue for first quarter of fiscal year 2017 came from the
contract with Mitsui Engineering and Shipbuilding.
The net loss for the first quarter of fiscal year 2018 was $2.7
million, compared to a net loss of $3.8 million for the first
quarter of fiscal year 2017. The decrease in net loss for the first
quarter of fiscal year 2018 is primarily attributable to lower
product development costs and the decline in the fair value of the
company’s warrants liability, partially offset by slightly higher
selling, general, and administrative expenses.
Total cash, cash equivalents, restricted cash and marketable
securities were $12.0 million at July 31, 2017, up from $8.9
million on April 30, 2017. Restricted cash was $515,000 as of
July 31, 2017, compared to $488,000 as of April 30, 2017. Net cash
used in operating activities was $4.2 million for the first quarter
of fiscal year 2018, compared with $2.9 million for the first
quarter of fiscal year 2017.
The company closed on a public offering of its common stock on
May 2, 2017, which raised $7.2 million. “The additional capital
strengthens our financial position and will support the continued
execution of our business plan,” added Kirby.
Summary
"We remain committed to developing long-term partnerships and
generating revenues as quickly as possible. We are focused on
establishing new strategic relationships, as well as pursuing
unique opportunities with our current partners and potential
customers. Our emphasis for the remainder of the fiscal year will
be on maximizing our sales and marketing activities as well as
improving overall operational execution,” said Kirby.
Conference Call Details
OPT management will host a conference call to review the first
quarter financial and operating results on Tuesday, September 12,
2017 at 10:00 a.m. Eastern time. Interested parties may listen to
the call live on the internet through the investor relations
section of the company’s website:
www.oceanpowertechnologies.com, or by dialing 844-473-0979
and entering the passcode 79960581. A telephone replay of the
conference call will be available from 1:00 p.m. Eastern time the
day of the teleconference until September 19, 2017 by dialing
855-859-2056 and entering the passcode 79960581. A replay of the
webcast and transcript of the call will be archived on the
company’s website.
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) |
|
|
|
|
|
|
|
|
|
|
July 31, 2017 |
|
|
April 30, 2017 |
|
|
|
(Unaudited) |
|
|
|
ASSETS |
|
|
|
|
|
|
Current
assets: |
|
|
|
|
|
|
Cash and cash equivalents |
|
|
$ |
11,414 |
|
|
|
$ |
8,421 |
|
Marketable securities |
|
|
|
25 |
|
|
|
|
25 |
|
Restricted cash- short-term |
|
|
|
361 |
|
|
|
|
334 |
|
Accounts Receivable |
|
|
|
86 |
|
|
|
|
48 |
|
Unbilled receivables |
|
|
|
163 |
|
|
|
|
296 |
|
Litigation receivable |
|
|
|
350 |
|
|
|
|
- |
|
Other current assets |
|
|
|
383 |
|
|
|
|
622 |
|
Total
current assets |
|
|
|
12,782 |
|
|
|
|
9,746 |
|
Property
and equipment, net |
|
|
|
146 |
|
|
|
|
170 |
|
Restricted cash- long-term |
|
|
|
154 |
|
|
|
|
154 |
|
Other
noncurrent assets |
|
|
|
3 |
|
|
|
|
3 |
|
Total
assets |
|
|
$ |
13,085 |
|
|
|
$ |
10,073 |
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
Current
liabilities: |
|
|
|
|
|
|
Accounts payable |
|
|
$ |
183 |
|
|
|
$ |
586 |
|
Accrued expenses |
|
|
|
1,530 |
|
|
|
|
3,059 |
|
Litigation payable |
|
|
|
350 |
|
|
|
|
- |
|
Warrant liabilities |
|
|
|
286 |
|
|
|
|
323 |
|
Current portion of capital lease obligations |
|
|
|
36 |
|
|
|
|
35 |
|
Deferred credits payable current |
|
|
|
600 |
|
|
|
|
600 |
|
Total
current liabilities |
|
|
|
2,985 |
|
|
|
|
4,603 |
|
Long-term
portion of capital lease obligations |
|
|
|
14 |
|
|
|
|
23 |
|
Total
liabilities |
|
|
|
2,999 |
|
|
|
|
4,626 |
|
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 12,621,205 and 6,313,996 shares, respectively |
|
|
|
13 |
|
|
|
|
6 |
|
Treasury stock, at cost; 70,081 and 48,065 shares,
respectively |
|
(295 |
) |
|
|
|
(263 |
) |
Additional paid-in capital |
|
|
|
200,549 |
|
|
|
|
193,234 |
|
Accumulated deficit |
|
|
|
(190,043 |
) |
|
|
|
(187,370 |
) |
Accumulated other comprehensive loss |
|
|
|
(138 |
) |
|
|
|
(160 |
) |
Total
stockholders' equity |
|
|
|
10,086 |
|
|
|
|
5,447 |
|
Total
liabilities and stockholders’ equity |
|
|
$ |
13,085 |
|
|
|
$ |
10,073 |
|
|
|
|
|
|
|
|
Ocean Power Technologies, Inc. and
Subsidiaries |
Consolidated Statements of
Operations |
(in thousands, except per share
data) |
(Unaudited) |
|
|
|
|
Three months ended July 31, |
|
|
|
|
2017 |
|
|
|
|
2016 |
|
|
Revenues |
|
|
$ |
195 |
|
|
|
$ |
202 |
|
Cost of
revenues |
|
|
|
217 |
|
|
|
|
127 |
|
Gross profit (loss) |
|
|
|
(22 |
) |
|
|
|
75 |
|
|
|
|
|
|
|
|
Operating
expenses: |
|
|
|
|
|
|
Product development costs |
|
|
|
1,102 |
|
|
|
|
1,636 |
|
Selling, general and administrative costs |
|
|
|
1,641 |
|
|
|
|
1,519 |
|
Total operating expenses |
|
|
|
2,743 |
|
|
|
|
3,155 |
|
Operating
loss |
|
|
|
(2,765 |
) |
|
|
|
(3,080 |
) |
|
|
|
|
|
|
|
Change in
fair value of warrant liabilities |
|
|
|
37 |
|
|
|
|
(752 |
) |
Interest
income, net |
|
|
|
3 |
|
|
|
|
- |
|
Foreign
exchange gain |
|
|
|
62 |
|
|
|
|
5 |
|
Net
loss |
|
|
$ |
(2,663 |
) |
|
|
$ |
(3,827 |
) |
Basic and
diluted net loss per share |
|
|
$ |
(0.22 |
) |
|
|
$ |
(1.72 |
) |
Weighted average shares used to compute |
|
|
|
|
|
|
basic and diluted net loss per share |
|
|
|
12,268,683 |
|
|
|
|
2,228,585 |
|
Ocean Power Technologies, Inc. and
Subsidiaries |
Consolidated Statements of Cash
Flows |
(in thousands) |
(Unaudited) |
|
|
|
|
|
|
|
Three months ended July 31, |
|
|
|
2017 |
|
|
|
2016 |
|
|
|
|
|
|
|
|
|
|
Cash flows
from operating activities: |
|
|
|
|
Net loss |
|
$ |
(2,663 |
) |
|
$ |
(3,827 |
) |
Adjustments to reconcile net loss to net cash used in operating
activities: |
|
|
|
|
Foreign exchange gain |
|
|
(62 |
) |
|
|
(5 |
) |
Depreciation and amortization |
|
|
31 |
|
|
|
34 |
|
Loss on disposal of property, plant and equipment |
|
|
4 |
|
|
|
- |
|
Compensation expense related to stock option grants and
restricted stock |
|
|
91 |
|
|
|
218 |
|
Change in fair value of warrant liabilities |
|
|
(37 |
) |
|
|
752 |
|
Changes in operating assets and liabilities: |
|
|
|
|
Accounts receivable |
|
|
(38 |
) |
|
|
(150 |
) |
Unbilled receivable |
|
|
133 |
|
|
|
(13 |
) |
Other assets |
|
|
239 |
|
|
|
(370 |
) |
Accounts payable |
|
|
(405 |
) |
|
|
264 |
|
Accrued expenses |
|
|
(1,531 |
) |
|
|
215 |
|
Unearned revenues |
|
|
- |
|
|
|
(39 |
) |
Net cash
used in operating activities |
|
|
(4,238 |
) |
|
|
(2,921 |
) |
Cash flows
from investing activities: |
|
|
|
|
Purchases of marketable securities |
|
|
- |
|
|
|
(25 |
) |
Purchases of equipment |
|
|
(12 |
) |
|
|
(5 |
) |
Net cash
used in investing activities |
|
|
(12 |
) |
|
|
(30 |
) |
Cash flows
from financing activities: |
|
|
|
|
Proceeds from issuance of common stock, net of costs |
|
|
7,221 |
|
|
|
- |
|
Proceeds from issuance of common stock and related warrants,
net of costs |
|
|
- |
|
|
|
5,261 |
|
Payment of capital lease obligations |
|
|
(9 |
) |
|
|
- |
|
Payment of debt |
|
|
- |
|
|
|
(32 |
) |
Acquisition of treasury stock |
|
|
(32 |
) |
|
|
(4 |
) |
Net cash
provided by financing activities |
|
|
7,180 |
|
|
|
5,225 |
|
Effect of
exchange rate changes on cash and cash equivalents |
|
|
90 |
|
|
|
(13 |
) |
Net
increase in cash, cash equivalents and restricted cash |
|
|
3,020 |
|
|
|
2,261 |
|
Cash, cash
equivalents and restricted cash, beginning of period |
|
|
8,909 |
|
|
|
7,030 |
|
Cash, cash
equivalents and restricted cash, end of period |
|
$ |
11,929 |
|
|
$ |
9,291 |
|
|
|
|
|
|
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
Media Contact:
Marilyn Vollrath
Reputation Partners LLC
Phone: (414) 376-8834
Email: Marilyn@reputationpartners.com
Ocean Power Technologies (NASDAQ:OPTT)
Historical Stock Chart
From Mar 2024 to Apr 2024
Ocean Power Technologies (NASDAQ:OPTT)
Historical Stock Chart
From Apr 2023 to Apr 2024