Ocean Power Technologies, Inc. (Nasdaq:OPTT) today
announced financial results for the second quarter of fiscal 2018
ended October 31, 2017.
"We continue to execute on our strategy to increase sales and
improve financial performance by commercializing our PB3 PowerBuoy.
We believe the capabilities and benefits of the PB3 will provide
distinct advantages where remote offshore power and real-time data
communications are needed,” said George H. Kirby, President and
Chief Executive Officer of OPT.
“Our investments in expanding our sales and marketing
capabilities are enabling us to target and connect with more
potential key customers and end users where we continue to have
actionable discussions. In addition, we attended the SPE Offshore
Europe Conference and Exhibition in September. We are encouraged by
the contacts we made and the meetings we participated in during the
quarter and we plan to pursue a number of those opportunities. We
are working aggressively to share information and potentially
collaborate on further research, development and deployment of our
PB3 PowerBuoy and proprietary wave energy technology for commercial
use,” added Kirby.
Operations Review
Kirby continued, “the original six-month lease with Mitsui
Engineering and Shipbuilding for a PB3 PowerBuoy that was
successfully deployed off the coast of Japan was extended for an
additional month, which ended in September. The PowerBuoy has just
recently arrived back at the Company’s NJ headquarters, where it
will be refurbished and prepared for possible redeployment.”
“Our contract with the U.S. Department of Defense Office of
Naval Research to design a new mass-spring oscillating PowerBuoy
has progressed well, and after multiple extensions for testing
improvements the project’s first phase is now completed.
Additionally, in order to meet anticipated demand, we are building
two new PB3 units that are expected to be available for sale or
lease within the next few months,” said Kirby.
Financial Highlights
Second Quarter Highlights
Revenue for the second quarter of fiscal 2018 ended October 31,
2017 was $94,000, compared to revenue of $170,000 for the second
quarter of fiscal 2017. The decrease in revenues over the prior
year was due to the contracts with Mitsui Engineering and
Shipbuilding and Department of Defense Office of Naval Research
nearing completion during the second quarter of the current
year.
The net loss for the second quarter of fiscal 2018 was $2.6
million, compared to a net loss of $1.0 million for the same period
in the prior year. Excluding the net change in the fair value of
the warrants liability of $2.0 million, the decrease in net loss is
mainly attributable to lower product development costs in the
second quarter of fiscal 2018 compared to the same period in the
prior year.
First Six Months Highlights
Revenue for the first six months of fiscal 2018 was $289,000,
compared to revenue of $372,000 for the first six months of fiscal
2017. The net loss for the first six months of fiscal 2018 was $5.2
million, compared to a net loss of $4.8 million for the same period
in fiscal 2017. Excluding the net change in the fair value of the
warrants liability of $1.2 million, the decrease in net loss
primarily relates to lower product development costs in the current
year as compared to the prior year.
Balance Sheet and Cash
Total cash, cash equivalents, and marketable securities were
$16.3 million as of October 31, 2017, up from $8.4 million on April
30, 2017. During the second quarter of fiscal 2018, the
company completed a best efforts public offering of common stock
that raised $7.4 million of net proceeds. As of both October 31,
2017, and April 30, 2017, restricted cash was $0.5 million. Net
cash used in operating activities was $6.7 million during the six
months ended October 31, 2017. Excluding $1.3 million of cash
payments made in the current fiscal year related to the disposition
of the mooring anchoring system from a prior project in Reedsport,
Oregon, and the PB40 site final closeout off the coast of New
Jersey, net cash used in operating activities was $5.4 million
during the six months ended October 31, 2017 as compared to $6.3
million during the same period in the prior year.
Conclusion
“Our PB3 PowerBuoy offers a differentiated wave energy
technology that can meet the needs of current and potential
customers in growing markets including oil and gas, defense and
security, and ocean observing. We believe our focus on educating
the marketplace, increased sales and marketing activities and
initiatives to develop strategic partnerships and collaborations
will ultimately provide the improved performance we are expecting
as a company. To facilitate our growth, we will move to our new
corporate headquarters and manufacturing facility in Monroe, New
Jersey in mid to late December. The new location will allow us to
expand our manufacturing capabilities, enabling us to support
customers around the globe, while at the same time advancing our
safety and quality programs and improving manufacturing
capabilities,” added Kirby.
Conference Call Details
OPT management will host a conference call and webcast to review
the second quarter financial and operating results on December 13,
2017, at 10:00 a.m. Eastern time. Interested parties may access the
conference call by dialing 1-844-473-0979 (toll free in the U.S.)
or 1-574-990-1390 for international callers and entering passcode
conference ID 7687079. The call will also be webcast live on the
internet through the investor relations section of the company’s
website: www.oceanpowertechnologies.com. A telephone replay
of the conference call will be available from 1:00 p.m. Eastern
time the day of the teleconference until December 20, 2017 by
dialing 1-855-859-2056 and entering the passcode 7687079. 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
(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. For additional information:
www.oceanpowertechnologies.com
https://www.facebook.com/oceanpowertechnologies/?ref=bookmarks
https://www.linkedin.com/company/413774/
https://twitter.com/OceanPowerTech?lang=en
https://www.instagram.com/oceanpowertechnologies/?hl=en
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.
Company Contact:Matthew T.
Shafer Chief Financial Officer of OPT Phone:
609-730-0400
Investor Relations Contact: Andrew
BarwickiBarwicki Investor Relations Inc. Phone:
516-662-9461
Media Contact:Marilyn Vollrath Reputation
Partners LLCPhone: 414-376-8834
Ocean Power Technologies, Inc. and
Subsidiaries |
Consolidated Balance Sheets |
(in thousands, except share
data) |
|
|
|
|
|
|
|
|
|
|
|
October 31, 2017 |
|
April 30, 2017 |
|
|
|
|
(Unaudited) |
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
Current
assets: |
|
|
|
|
|
|
|
|
Cash and
cash equivalents |
$ |
16,318 |
|
|
$ |
8,421 |
|
|
Marketable
securities |
|
25 |
|
|
|
25 |
|
|
Restricted
cash- short-term |
|
358 |
|
|
|
334 |
|
|
Accounts
receivable |
|
- |
|
|
|
48 |
|
|
Unbilled
receivables |
|
2 |
|
|
|
296 |
|
|
Litigation
receivable |
|
350 |
|
|
|
- |
|
|
Other
current assets |
|
723 |
|
|
|
622 |
|
|
Total
current assets |
|
17,776 |
|
|
|
9,746 |
|
Property
and equipment, net |
|
|
177 |
|
|
|
170 |
|
Restricted
cash- long-term |
|
|
154 |
|
|
|
154 |
|
Other
noncurrent assets |
|
|
3 |
|
|
|
3 |
|
|
Total
assets |
$ |
18,110 |
|
|
$ |
10,073 |
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
Current
liabilities: |
|
|
|
|
Accounts
payable |
|
$ |
324 |
|
|
$ |
586 |
|
|
Accrued
expenses |
|
|
1,540 |
|
|
|
3,059 |
|
|
Litigation
payable |
|
|
350 |
|
|
|
- |
|
|
Warrant
liabilities |
|
|
255 |
|
|
|
323 |
|
|
Current
portion of capital lease obligations |
|
36 |
|
|
|
35 |
|
|
Deferred
credits payable current |
|
600 |
|
|
|
600 |
|
|
Total
current liabilities |
|
3,105 |
|
|
|
4,603 |
|
Long-term
portion of capital lease obligations |
|
5 |
|
|
|
23 |
|
|
Total
liabilities |
|
3,110 |
|
|
|
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
18,335,642 and 6,313,996 shares, respectively |
|
18 |
|
|
|
6 |
|
|
Treasury
stock, at cost; 71,764 and 48,065 shares, respectively |
|
(297 |
) |
|
|
(263 |
) |
|
Additional
paid-in capital |
|
208,053 |
|
|
|
193,234 |
|
|
Accumulated
deficit |
|
(192,621 |
) |
|
|
(187,370 |
) |
|
Accumulated
other comprehensive loss |
|
(153 |
) |
|
|
(160 |
) |
|
Total
stockholders' equity |
|
15,000 |
|
|
|
5,447 |
|
|
Total
liabilities and stockholders’ equity |
$ |
18,110 |
|
|
$ |
10,073 |
|
Ocean Power Technologies, Inc. and
Subsidiaries |
Consolidated Statements of
Operations |
(in thousands, except per share
data) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended October 31, |
|
Six months ended October 31, |
|
|
|
|
|
|
2017 |
|
|
|
2016 |
|
|
|
2017 |
|
|
|
2016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
|
$ |
94 |
|
|
$ |
170 |
|
|
$ |
289 |
|
|
$ |
372 |
|
Cost of
revenues |
|
|
(24 |
) |
|
|
125 |
|
|
|
193 |
|
|
|
252 |
|
|
Gross
profit |
|
|
118 |
|
|
|
45 |
|
|
|
96 |
|
|
|
120 |
|
|
|
|
|
|
|
|
|
|
Operating
expenses: |
|
|
|
|
|
|
|
|
|
|
Product
development costs |
|
|
978 |
|
|
|
1,308 |
|
|
|
2,080 |
|
|
|
2,944 |
|
|
Selling,
general and administrative costs |
|
1,747 |
|
|
|
1,723 |
|
|
|
3,388 |
|
|
|
3,242 |
|
|
Total
operating expenses |
|
2,725 |
|
|
|
3,031 |
|
|
|
5,468 |
|
|
|
6,186 |
|
Operating
loss |
|
|
(2,607 |
) |
|
|
(2,986 |
) |
|
|
(5,372 |
) |
|
|
(6,066 |
) |
|
|
|
|
|
|
|
|
|
Change in
fair value of warrant liabilities |
|
|
31 |
|
|
|
2,017 |
|
|
|
68 |
|
|
|
1,265 |
|
Interest
income, net |
|
|
|
6 |
|
|
|
2 |
|
|
|
9 |
|
|
|
2 |
|
Foreign
exchange gain/(loss) |
|
|
|
(7 |
) |
|
|
1 |
|
|
|
55 |
|
|
|
6 |
|
Loss before
income taxes |
|
|
|
(2,577 |
) |
|
|
(966 |
) |
|
|
(5,240 |
) |
|
|
(4,793 |
) |
|
Income tax
benefit |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Net
loss |
|
$ |
(2,577 |
) |
|
$ |
(966 |
) |
|
$ |
(5,240 |
) |
|
$ |
(4,793 |
) |
Basic and
diluted net loss per share |
|
$ |
(0.20 |
) |
|
$ |
(0.25 |
) |
|
$ |
(0.42 |
) |
|
$ |
(1.51 |
) |
|
Weighted
average shares used to compute |
|
|
|
|
|
|
|
basic and diluted net loss per share |
|
12,904,973 |
|
|
|
3,891,512 |
|
|
|
12,586,828 |
|
|
|
3,180,501 |
|
|
|
|
|
|
|
|
|
|
Ocean Power Technologies, Inc. and
Subsidiaries |
Consolidated Statements of Cash
Flows |
(in thousands) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months ended October 31, |
|
|
|
|
|
|
|
2017 |
|
|
|
2016 |
|
|
Cash flows
from operating activities: |
|
Net
loss |
$ |
(5,240 |
) |
|
$ |
(4,793 |
) |
|
Adjustments to reconcile net loss to net cash used in operating
activities: |
|
Foreign
exchange gain |
|
|
(55 |
) |
|
|
(6 |
) |
|
Depreciation and amortization |
|
52 |
|
|
|
68 |
|
|
Loss on
disposal of property, plant and equipment |
|
4 |
|
|
|
- |
|
|
Compensation expense related to stock option grants and restricted
stock |
|
173 |
|
|
|
628 |
|
|
Change in
fair value of warrant liabilities |
|
(68 |
) |
|
|
(1,265 |
) |
|
Changes in
operating assets and liabilities: |
|
|
|
Accounts
receivable |
|
48 |
|
|
|
- |
|
|
Unbilled
receivable |
|
|
294 |
|
|
|
(65 |
) |
|
Other
assets |
|
|
(102 |
) |
|
|
(305 |
) |
|
Accounts
payable |
|
|
(263 |
) |
|
|
(232 |
) |
|
Accrued
expenses |
|
|
(1,523 |
) |
|
|
(275 |
) |
|
Unearned
revenues |
|
|
- |
|
|
|
(39 |
) |
|
Net cash
used in operating activities |
|
(6,680 |
) |
|
|
(6,284 |
) |
Cash flows
from investing activities: |
|
|
|
|
Purchases
of marketable securities |
|
|
(25 |
) |
|
|
- |
|
|
Maturities
of marketable securities |
|
|
25 |
|
|
|
50 |
|
|
Purchases
of equipment |
|
(63 |
) |
|
|
(12 |
) |
|
Net cash
(used in) provided by investing activities |
|
(63 |
) |
|
|
38 |
|
Cash flows
from financing activities: |
|
|
|
|
Proceeds
from issuance of common stock and related warrants, net of
costs |
|
14,647 |
|
|
|
12,152 |
|
|
Payment of
capital lease obligations |
|
(17 |
) |
|
|
(63 |
) |
|
Acquisition
of treasury stock |
|
(34 |
) |
|
|
(37 |
) |
|
Net cash
provided by financing activities |
|
14,596 |
|
|
|
12,052 |
|
Effect of
exchange rate changes on cash, cash equivalents and restricted
cash |
|
68 |
|
|
|
(18 |
) |
|
Net
increase in cash, cash equivalents and restricted cash |
|
7,921 |
|
|
|
5,788 |
|
Cash, cash
equivalents and restricted cash, beginning of period |
|
8,909 |
|
|
|
7,030 |
|
Cash, cash
equivalents and restricted cash, end of period |
$ |
16,830 |
|
|
$ |
12,818 |
|
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