Ocean Power Technologies Announces Fourth Quarter and Full Year Fiscal 2020 Results
June 29 2020 - 4:30PM
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 fourth
quarter and full fiscal year 2020 ended April 30, 2020.
FY2020 Revenue Generation
- Fiscal year 2020 revenues grew to $1.7 million versus $0.6
million in prior year.
FY2020 and Recent Operational Highlights
- Sale of a PB3 PowerBuoy® and turn-key ocean monitoring system
to Enel Green Power to be deployed off the Chilean coast.
- North Sea deployment for Premier Oil.
- PB3 deployment in the Adriatic Sea for Eni extended for
additional 18 months. The PB3 has produced more than 2.6
megawatt-hours of cumulative energy and has operated continuously
for more than 19 months.
Management Commentary“OPT continued its
commercial progress in fiscal year 2020, highlighted by the sale of
a PB3 PowerBuoy® to Enel Green Power, the completed construction of
the hybrid PowerBuoy® prototype, the ongoing success of our
Adriatic Sea deployment with Eni, and the first PB3 PowerBuoy®
deployment in the North Sea with Premier Oil,” said George H.
Kirby, President and Chief Executive Officer of OPT. “These
milestones illustrate commercial progression for the Company and we
believe demonstrate the flexibility and robust viability that OPT
solutions offer a variety of offshore applications.”
“The global COVID-19 pandemic has caused challenges throughout
industry, including for our Company which saw one project delay and
another project revised. Despite these obstacles, our team is
focusing on aggressively expanding our market base for OPT
solutions,” Kirby added. “We are developing and scaling solutions
to meet complex challenges while delivering services on current
commitments even as coronavirus circumstances evolve. I am proud of
our team and excited about the possibilities ahead in the new
fiscal year.”
Fourth Quarter Financial ReviewRevenue for the
fourth quarter of fiscal 2020 was $0.6 million, an increase of
$0.4 million over the prior-year period, which is mainly
attributable to a new contract signed with Enel Green Power. The
net loss for the fourth quarter of fiscal 2020 decreased
by $1.3 million, which is mainly attributable to a decrease in
general and administrative costs and the receipt of New Jersey net
operating loss proceeds in the current year quarter which offset
expenses.
Fiscal Year 2020 Financial ReviewRevenue for
the full twelve months of fiscal 2020 was $1.7 million, which
is an improvement over fiscal 2019, primarily due to a new contract
signed with Enel Green Power. The fiscal 2020 net loss decreased by
$1.8 million to $10.4 million, primarily due to lower spending
on general and administrative costs.
Balance Sheet and Cash FlowTotal cash, cash
equivalents, and restricted cash were $10.9 million as
of April 30, 2020. Net cash used in operating activities
decreased by $1.5 million during the fiscal year ended April
30, 2019 to $10.6 million, which is primarily related to
lower spending on general and administrative costs.
Conference Call & WebcastOPT will host a
conference call and webcast to review its financial and operating
results on Tuesday, June 30, 2020 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 September 30,
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#13694019. The webcast will also be archived on the OPT website
investor relations page.
About Ocean Power TechnologiesHeadquartered in
Monroe Township, New Jersey, OPT aspires to transform the world
through durable, innovative and cost-effective ocean energy
solutions. Its PowerBuoy® solutions 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 StatementsThis 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 FollowAdditional 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, 2020 |
|
April 30, 2019 |
|
|
|
|
|
|
|
ASSETS |
|
|
|
|
Current assets: |
|
|
|
|
|
Cash and cash equivalents |
|
$ |
10,002 |
|
|
$ |
16,660 |
|
|
Restricted cash- short-term |
|
|
707 |
|
|
|
344 |
|
|
Accounts receivable |
|
|
105 |
|
|
|
63 |
|
|
Contract assets |
|
|
251 |
|
|
|
15 |
|
|
Other current assets |
|
|
588 |
|
|
|
537 |
|
|
|
Total
current assets |
|
|
11,653 |
|
|
|
17,619 |
|
Property and equipment, net |
|
|
499 |
|
|
|
592 |
|
Right-of-use asset, net |
|
|
1,165 |
|
|
|
- |
|
Restricted cash- long-term |
|
|
221 |
|
|
|
155 |
|
|
|
Total
assets |
|
$ |
13,538 |
|
|
$ |
18,366 |
|
LIABILITIES AND
STOCKHOLDERS' EQUITY |
|
|
|
|
Current liabilities: |
|
|
|
|
|
Accounts payable |
|
$ |
220 |
|
|
$ |
312 |
|
|
Accrued expenses |
|
|
1,353 |
|
|
|
1,938 |
|
|
Current portion of contract liabilities |
|
|
100 |
|
|
|
188 |
|
|
Warrant liabilities |
|
|
- |
|
|
|
6 |
|
|
Right-of-use liability- current |
|
|
229 |
|
|
|
- |
|
|
|
Total
current liabilities |
|
|
1,902 |
|
|
|
2,444 |
|
Right-of-use liability |
|
|
1,078 |
|
|
|
- |
|
Long term portion of contract liabilities |
|
|
65 |
|
|
|
- |
|
Deferred rent |
|
|
- |
|
|
|
147 |
|
|
|
Total
liabilities |
|
|
3,045 |
|
|
|
2,591 |
|
Commitments and contingencies (Note 15) |
|
|
|
|
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 12,939,420 and 5,425,517 shares, respectively |
|
|
13 |
|
|
|
5 |
|
|
Treasury stock, at cost; 4,251 and 3,770 shares, respectively |
|
(302 |
) |
|
|
(301 |
) |
|
Additional paid-in capital |
|
|
231,101 |
|
|
|
226,026 |
|
|
Accumulated deficit |
|
|
(220,136 |
) |
|
|
(209,784 |
) |
|
Accumulated other comprehensive loss |
|
|
(183 |
) |
|
|
(171 |
) |
|
|
Total
stockholders' equity |
|
|
10,493 |
|
|
|
15,775 |
|
|
|
Total
liabilities and stockholders’ equity |
|
$ |
13,538 |
|
|
$ |
18,366 |
|
|
|
|
|
|
|
|
Ocean Power
Technologies, Inc. and Subsidiaries |
Consolidated
Statements of Operations |
(in
thousands, except per share data) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended April 30, |
|
Twelve months ended April 30, |
|
|
|
|
|
|
2020 |
|
|
|
2019 |
|
|
|
2020 |
|
|
|
2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
|
|
$ |
551 |
|
|
$ |
191 |
|
|
$ |
1,682 |
|
|
$ |
632 |
|
Cost of revenues |
|
|
|
452 |
|
|
|
124 |
|
|
|
1,787 |
|
|
|
1,303 |
|
|
|
Gross
loss |
|
|
|
99 |
|
|
|
67 |
|
|
|
(105 |
) |
|
|
(671 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
Engineering and product development costs |
|
|
|
941 |
|
|
|
879 |
|
|
|
4,344 |
|
|
|
4,984 |
|
|
Selling, general and administrative costs |
|
|
|
1,288 |
|
|
|
1,706 |
|
|
|
6,916 |
|
|
|
7,616 |
|
|
|
Total
operating expenses |
|
|
|
2,229 |
|
|
|
2,585 |
|
|
|
11,260 |
|
|
|
12,600 |
|
Operating loss |
|
|
|
(2,130 |
) |
|
|
(2,518 |
) |
|
|
(11,365 |
) |
|
|
(13,271 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Gain due to the change in fair value of warrant liabilities |
|
- |
|
|
|
12 |
|
|
|
6 |
|
|
|
195 |
|
Interest income, net |
|
|
|
23 |
|
|
|
12 |
|
|
|
124 |
|
|
|
35 |
|
Foreign exchange loss |
|
|
|
(7 |
) |
|
|
(12 |
) |
|
|
(12 |
) |
|
|
(55 |
) |
Loss before income taxes |
|
|
|
(2,114 |
) |
|
|
(2,506 |
) |
|
|
(11,247 |
) |
|
|
(13,096 |
) |
|
Income tax benefit |
|
|
|
895 |
|
|
|
- |
|
|
|
895 |
|
|
|
850 |
|
Net loss |
|
|
$ |
(1,219 |
) |
|
$ |
(2,506 |
) |
|
$ |
(10,352 |
) |
|
$ |
(12,246 |
) |
Basic and diluted net loss per share |
|
|
$ |
(0.13 |
) |
|
$ |
(1.05 |
) |
|
$ |
(1.44 |
) |
|
$ |
(9.52 |
) |
|
Weighted average shares used to compute |
|
|
|
|
|
|
|
|
|
|
basic and diluted net loss per share |
|
|
|
9,679,968 |
|
|
|
2,389,719 |
|
|
|
7,209,732 |
|
|
|
1,286,727 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Ocean Power
Technologies, Inc. and Subsidiaries |
Consolidated
Statements of Cash Flows |
(in
thousands) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve months ended April 30, |
|
|
|
|
|
|
|
2020 |
|
|
|
2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from operating activities: |
|
|
|
|
|
Net loss |
|
$ |
(10,352 |
) |
|
$ |
(12,246 |
) |
|
Adjustments to reconcile net loss to net cash used in operating
activities: |
|
|
|
|
|
|
Foreign exchange loss |
|
|
12 |
|
|
|
55 |
|
|
|
Depreciation of fixed assets |
|
|
158 |
|
|
|
180 |
|
|
|
Amortization of right of use asset |
|
|
197 |
|
|
|
- |
|
|
|
Compensation expense related to stock option grants and restricted
stock |
|
340 |
|
|
|
295 |
|
|
|
Gain due to the change in fair value of warrant liabilities |
|
|
(6 |
) |
|
|
(195 |
) |
|
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
Accounts receivable |
|
|
(42 |
) |
|
|
108 |
|
|
|
|
Unbilled receivables |
|
|
- |
|
|
|
71 |
|
|
|
|
Contract assets |
|
|
(236 |
) |
|
|
(15 |
) |
|
|
|
Other assets |
|
|
251 |
|
|
|
325 |
|
|
|
|
Accounts payable |
|
|
(92 |
) |
|
|
23 |
|
|
|
|
Accrued expenses |
|
|
(585 |
) |
|
|
(316 |
) |
|
|
|
Deferred rent |
|
|
- |
|
|
|
5 |
|
|
|
|
Deferred credit payable |
|
|
- |
|
|
|
(600 |
) |
|
|
|
Unearned revenue |
|
|
- |
|
|
|
(18 |
) |
|
|
|
Change in lease liability |
|
|
(201 |
) |
|
|
- |
|
|
|
|
Contract liabilities |
|
|
(23 |
) |
|
|
188 |
|
|
|
|
|
Net cash
used in operating activities |
|
|
(10,579 |
) |
|
|
(12,140 |
) |
Cash flows from investing activities: |
|
|
|
|
|
Purchases of marketable securities |
|
|
- |
|
|
|
(25 |
) |
|
Maturities of marketable securities |
|
|
- |
|
|
|
50 |
|
|
Purchase of computers, equipment and furniture |
|
|
(65 |
) |
|
|
(54 |
) |
|
|
|
|
Net cash
used in investing activities |
|
|
(65 |
) |
|
|
(29 |
) |
Cash flows from financing activities: |
|
|
|
|
|
Proceeds from issuance of common stock, common and pre-funded
warrants, |
|
|
|
|
|
|
net of issuance costs |
|
|
- |
|
|
|
15,712 |
|
|
Proceeds from issuance of common stock- Aspire financing |
|
|
|
|
|
|
net of issuance costs |
|
|
1,021 |
|
|
|
593 |
|
|
Proceeds from issuance of common stock- AGP At The Market
offering, |
|
|
|
|
|
|
net of issuance costs |
|
|
3,443 |
|
|
|
882 |
|
|
Proceeds (costs) associated with exercise of pre-funded
warrants |
|
|
(16 |
) |
|
|
20 |
|
|
Payment of capital lease obligations |
|
|
- |
|
|
|
(23 |
) |
|
Acquisition of treasury stock |
|
|
(1 |
) |
|
|
(1 |
) |
|
|
|
|
Net cash
provided by financing activities |
|
|
4,447 |
|
|
|
17,183 |
|
Effect of exchange rate changes on cash, cash equivalents and
restricted cash |
|
|
(32 |
) |
|
|
(80 |
) |
|
|
|
|
Net increase/(decrease) in cash, cash equivalents and restricted
cash |
|
(6,229 |
) |
|
|
4,934 |
|
Cash, cash equivalents and restricted cash, beginning of
period |
|
|
17,159 |
|
|
|
12,225 |
|
Cash, cash equivalents and restricted cash, end of period |
|
$ |
10,930 |
|
|
$ |
17,159 |
|
|
|
|
|
|
|
|
|
|
Contact Information
Investors: 609-730-0400 x401 or InvestorRelations@oceanpowertech.com
Media: 609-730-0400 x402 or MediaRelations@oceanpowertech.com
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