Ocean Power Technologies (Nasdaq:OPTT), a leader in innovative
ocean energy solutions today announced financial results for the
fourth quarter and full fiscal year 2018 ended April 30, 2018.
“We believe that we have passed an important
inflection point in our business by achieving fourth quarter
revenues as a result of our business development efforts.” said
George H. Kirby, President and Chief Executive Officer of Ocean
Power Technologies. “So far we have signed two important new
contracts where we will supply PowerBuoys™ to the offshore oil and
gas market, with Eni S.p.A. and with Premier Oil. We believe these
new contracts are just the beginning of building a robust backlog
toward sustainable revenues. With our dynamic product offering,
enhanced infrastructure, and our talented team, we believe we are
positioned to scale and grow our business and we continue to invest
in people and technology to achieve this growth by engaging our
end-markets across the globe.”
Full Year Financial & Operational
Highlights
- Signed contract in June 2018 with Premier Oil to lease a
PowerBuoy™ for deployment in the Huntington Field, one of Premier
Oil’s offshore fields in the Central North Sea;
- Signed contract with Eni S.p.A to lease a PB3 PowerBuoy™ for
subsea oil and gas operations;
- Cash, cash equivalents, restricted cash and marketable
securities of $12.3 million as of April 30, 2018, up from $8.9
million as of April 30, 2017;
- Added key senior leadership with extensive experience in
offshore oil and gas subsea systems, security, defense, engineering
and business development;
- Enhanced infrastructure by relocating corporate and
manufacturing activities to a larger facility in New Jersey;
- Continued to cultivate commercialization opportunities for PB3
PowerBuoy™ for use in remote offshore power and real-time data
communications applications; and,
- Closed most legacy legal matters allowing for full focus on
business growth.
“I’m excited by the progress we’ve made this
past year where we contracted with Eni S.p.A. to lease a PB3
PowerBuoy™ for subsea equipment powering and recently with Premier
Oil to lease a PowerBuoy™ for oil field monitoring and
surveillance.” stated Mr. Kirby. “Our team continues to deliver by
addressing key end-market opportunities in the oil and gas, defense
and security, science and research, and communications industries
that can utilize our unique innovative technology.”
Operations Review
“Our direct engagement with global companies and
large government organizations has driven a number of exciting
opportunities around the world, particularly in the oil and gas
sector where we have expanded our efforts.” commented Mr. Kirby.
“In addition, we have continued to grow our team of talented people
with the addition of Christopher Phebus as our Vice President of
Engineering, and most recently with the addition of Matthew May as
our Vice President of Global Business Development.”
“Over the past year, we have strengthened our
cutting-edge technology by implementing reliability enhancements
and developing an integrated umbilical system to power subsea
equipment in support of the upcoming Eni deployment.” explained Mr.
Phebus. “Additionally, OPT has further developed a next generation
controls logic and enhanced power take-off (PTO) capabilities. We
believe this work will enable us to continue to execute on our
product and technology roadmap and demonstrate our capabilities in
new geographies.”
“From a commercial standpoint, we are ushering
in new sales and marketing processes at OPT from what was a
research and development business, to create a culture of
commercial excellence.” stated Mr. May. “We are seeking to
accelerate commercialization while maintaining OPT as a leader in
offshore ocean wave power by implementing new commercial processes
and formulating new channel strategies.”
“We remain focused on commercializing our PB3
PowerBuoy™, which can meet the demands of current and potential
customers in numerous end-markets. We will continue to innovate,
particularly as we work with our customers to develop new
applications, further differentiating our offering. We continue
building relationships across the globe, and capitalizing on these
relationships will be the key to our long-term success.” remarked
Kirby.
Financial Review
Fourth Quarter Overview
Revenue for the fourth quarter of fiscal 2018
was $222,000, compared to $250,000 for the prior-year period. The
decrease in revenues over the prior year was due to near-year-end
start of work on the Eni contract as compared to the contracts with
Mitsui Engineering and Shipbuilding and Department of Defense
Office of Naval Research that were underway during the fourth
quarter of the prior fiscal year.
The net loss for the fourth quarter of fiscal
2018 was $3.3 million, compared to a net loss of $2.6 million for
the prior-year period. The increase in net loss was mainly
attributable to increased personnel and facility associated costs,
a decrease in gains from the change in the fair value of warrant
liabilities, increased interest income, and foreign currency
exchange impacts.
Results for the Fiscal Year Ended April 30, 2018
Revenue for the full twelve months of fiscal
2018 was $511,000, compared to revenue of $843,000 for the same
period in fiscal 2017. The net loss for the twelve months of fiscal
2018 was $10.2 million, compared to a net loss of $9.5 million for
the same period in fiscal 2017. The increase in net loss primarily
related to the decrease in gains from the change in the fair value
of warrant liabilities and gross margins, partially offset by the
increase in the income tax benefit, interest income and foreign
currency exchange impacts.
Balance Sheet and Cash Flow
Total cash, cash equivalents, restricted cash
and marketable securities were $12.3 million as of April 30, 2018,
up from $8.9 million on April 30, 2017. Net cash used in operating
activities was $10.7 million during the twelve months ended April
30, 2018 as compared to $10.0 million during the prior-year
period.
Conference Call & Webcast Details
Ocean Power Technologies’ management will host a
conference call and webcast to review the fourth quarter financial
and operating results on July 17, 2018 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
5382568.
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.
A replay will be available starting within a few
hours after the conference concludes and will be available until
July 24, 2018. To access the rebroadcast please dial 1 (855)
859-2056 or 1 (404) 537-3406 and use replay access code 5382568.
The webcast will also be archived on the Ocean Power Technologies
investor relations 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, science and research, 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 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.
Investor
Relations Contact: |
|
Steve Calk or Jackie
Marcus |
|
Alpha IR Group |
|
Phone 312 445-2870 |
|
Email:
OPTT@alpha-ir.com |
|
Ocean Power Technologies, Inc. and
Subsidiaries |
Consolidated Balance Sheets |
(in thousands, except share
data) |
|
|
|
|
|
|
|
|
|
|
|
April 30, 2018 |
|
April 30, 2017 |
|
|
|
|
|
|
|
ASSETS |
|
|
|
|
Current
assets: |
|
|
|
|
|
Cash and
cash equivalents |
|
$ |
11,499 |
|
|
$ |
8,421 |
|
|
Marketable
securities |
|
|
25 |
|
|
|
25 |
|
|
Restricted
cash- short-term |
|
|
572 |
|
|
|
334 |
|
|
Accounts
receivable |
|
|
171 |
|
|
|
48 |
|
|
Unbilled
receivables |
|
|
71 |
|
|
|
296 |
|
|
Litigation
receivable |
|
|
350 |
|
|
|
- |
|
|
Other
current assets |
|
|
567 |
|
|
|
622 |
|
|
|
Total current
assets |
|
|
13,255 |
|
|
|
9,746 |
|
Property
and equipment, net |
|
|
712 |
|
|
|
170 |
|
Restricted
cash- long-term |
|
|
154 |
|
|
|
154 |
|
Other
noncurrent assets |
|
|
- |
|
|
|
3 |
|
|
|
Total assets |
|
$ |
14,121 |
|
|
$ |
10,073 |
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
Current
liabilities: |
|
|
|
|
|
Accounts
payable |
|
$ |
290 |
|
|
$ |
586 |
|
|
Accrued
expenses |
|
|
2,261 |
|
|
|
3,059 |
|
|
Litigation
payable |
|
|
350 |
|
|
|
- |
|
|
Warrant
liabilities |
|
|
201 |
|
|
|
323 |
|
|
Current
portion of capital lease obligations |
|
|
23 |
|
|
|
35 |
|
|
Unearned
revenue |
|
|
18 |
|
|
|
- |
|
|
Deferred
credits payable current |
|
|
600 |
|
|
|
600 |
|
|
|
Total current
liabilities |
|
|
3,743 |
|
|
|
4,603 |
|
Long-term
portion of capital lease obligations |
|
|
- |
|
|
|
23 |
|
Deferred
rent |
|
|
142 |
|
|
|
- |
|
|
|
Total liabilities |
|
|
3,885 |
|
|
|
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 18,424,939 and 6,313,996 shares, respectively |
|
|
18 |
|
|
|
6 |
|
|
Treasury
stock, at cost; 74,012 and 48,065 shares, respectively |
|
(300 |
) |
|
|
(263 |
) |
|
Additional
paid-in capital |
|
|
208,216 |
|
|
|
193,234 |
|
|
Accumulated
deficit |
|
|
(197,538 |
) |
|
|
(187,370 |
) |
|
Accumulated
other comprehensive loss |
|
|
(160 |
) |
|
|
(160 |
) |
|
|
Total stockholders'
equity |
|
|
10,236 |
|
|
|
5,447 |
|
|
|
Total liabilities and
stockholders’ equity |
|
$ |
14,121 |
|
|
$ |
10,073 |
|
|
|
|
|
|
|
|
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, |
|
|
|
|
|
|
2018 |
|
|
|
2017 |
|
|
|
2018 |
|
|
|
2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
|
|
$ |
222 |
|
|
$ |
250 |
|
|
$ |
511 |
|
|
$ |
843 |
|
Cost of
revenues |
|
|
|
569 |
|
|
|
324 |
|
|
|
763 |
|
|
|
938 |
|
|
|
Gross loss |
|
|
|
(347 |
) |
|
|
(74 |
) |
|
|
(252 |
) |
|
|
(95 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses: |
|
|
|
|
|
|
|
|
|
|
Product
development costs |
|
|
|
922 |
|
|
|
1,134 |
|
|
|
4,320 |
|
|
|
5,029 |
|
|
Selling,
general and administrative costs |
|
|
|
2,023 |
|
|
|
1,704 |
|
|
|
6,988 |
|
|
|
6,563 |
|
|
|
Total operating
expenses |
|
|
|
2,945 |
|
|
|
2,838 |
|
|
|
11,308 |
|
|
|
11,592 |
|
Operating
loss |
|
|
|
(3,292 |
) |
|
|
(2,912 |
) |
|
|
(11,560 |
) |
|
|
(11,687 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Gain due to
the change in fair value of warrant liabilities |
|
|
|
40 |
|
|
|
330 |
|
|
|
122 |
|
|
|
1,491 |
|
Interest
income, net |
|
|
|
31 |
|
|
|
2 |
|
|
|
83 |
|
|
|
28 |
|
Other
income |
|
|
|
- |
|
|
|
- |
|
|
|
4 |
|
|
|
- |
|
Foreign
exchange gain/(loss) |
|
|
|
(32 |
) |
|
|
5 |
|
|
|
75 |
|
|
|
(16 |
) |
Loss before
income taxes |
|
|
|
(3,253 |
) |
|
|
(2,575 |
) |
|
|
(11,276 |
) |
|
|
(10,184 |
) |
|
Income tax
benefit |
|
|
|
- |
|
|
|
- |
|
|
|
1,119 |
|
|
|
698 |
|
Net
loss |
|
|
$ |
(3,253 |
) |
|
$ |
(2,575 |
) |
|
$ |
(10,157 |
) |
|
$ |
(9,486 |
) |
Basic and
diluted net loss per share |
|
|
$ |
(0.18 |
) |
|
$ |
(0.44 |
) |
|
$ |
(0.66 |
) |
|
$ |
(2.23 |
) |
|
Weighted
average shares used to compute |
|
|
|
|
|
|
|
|
|
|
basic and
diluted net loss per share |
|
|
|
18,153,797 |
|
|
|
5,796,116 |
|
|
|
15,346,602 |
|
|
|
4,259,172 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Ocean Power Technologies, Inc. and
Subsidiaries |
Consolidated Statements of Cash
Flows |
(in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve months ended April 30, |
|
|
|
|
|
|
|
2018 |
|
|
|
2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows
from operating activities: |
|
|
|
|
|
Net
loss |
|
$ |
(10,157 |
) |
|
$ |
(9,486 |
) |
|
Adjustments
to reconcile net loss to net cash used in operating
activities: |
|
|
|
|
|
|
Foreign
exchange (gain)/loss |
|
|
(75 |
) |
|
|
16 |
|
|
|
Depreciation |
|
|
122 |
|
|
|
140 |
|
|
|
Loss on
disposal of property, plant and equipment |
|
|
5 |
|
|
|
- |
|
|
|
Compensation expense related to stock option grants and restricted
stock |
|
|
329 |
|
|
|
1,232 |
|
|
|
Change in
fair value of warrant liabilities |
|
|
(122 |
) |
|
|
(1,491 |
) |
|
|
Payment for
litigation settlement |
|
|
- |
|
|
|
(500 |
) |
|
|
Changes in
operating assets and liabilities: |
|
|
|
|
|
|
|
Accounts
receivable |
|
|
(123 |
) |
|
|
(48 |
) |
|
|
|
Unbilled
receivable |
|
|
225 |
|
|
|
(258 |
) |
|
|
|
Other
receivable |
|
|
(166 |
) |
|
|
- |
|
|
|
|
Other
assets |
|
|
360 |
|
|
|
(212 |
) |
|
|
|
Accounts
payable |
|
|
(296 |
) |
|
|
213 |
|
|
|
|
Accrued
expenses |
|
|
(821 |
) |
|
|
395 |
|
|
|
|
Deferred
rent |
|
|
5 |
|
|
|
- |
|
|
|
|
Unearned
revenues |
|
|
18 |
|
|
|
(39 |
) |
|
|
|
|
Net cash used in
operating activities |
|
|
(10,696 |
) |
|
|
(10,038 |
) |
Cash flows
from investing activities: |
|
|
|
|
|
Purchases
of marketable securities |
|
|
(25 |
) |
|
|
- |
|
|
Maturities
of marketable securities |
|
|
25 |
|
|
|
50 |
|
|
Leasehold
improvements and purchase of equipment |
|
|
(658 |
) |
|
|
(37 |
) |
|
|
|
|
Net cash (used in)
provided by investing activities |
|
|
(658 |
) |
|
|
13 |
|
Cash flows
from financing activities: |
|
|
|
|
|
Proceeds
from issuance of common stock and related warrants, net of
costs |
|
|
14,654 |
|
|
|
12,150 |
|
|
Payment of
capital lease obligations |
|
|
(35 |
) |
|
|
(28 |
) |
|
Payment of
debt |
|
|
- |
|
|
|
(50 |
) |
|
Acquisition
of treasury stock |
|
|
(37 |
) |
|
|
(125 |
) |
|
|
|
|
Net cash provided by
financing activities |
|
|
14,582 |
|
|
|
11,947 |
|
Effect of
exchange rate changes on cash, cash equivalents and restricted
cash |
|
|
88 |
|
|
|
(43 |
) |
|
|
|
|
Net increase in cash,
cash equivalents and restricted cash |
|
|
3,316 |
|
|
|
1,879 |
|
Cash, cash
equivalents and restricted cash, beginning of period |
|
|
8,909 |
|
|
|
7,030 |
|
Cash, cash
equivalents and restricted cash, end of period |
|
$ |
12,225 |
|
|
$ |
8,909 |
|
|
|
|
|
|
|
|
|
|
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