Ocean Power Technologies Announces Fiscal 2019 First Quarter Results
September 12 2018 - 8:45AM
Ocean Power Technologies (Nasdaq: OPTT), a leader in innovative and
cost-effective ocean energy solutions today announced financial
results for the fiscal first quarter of 2019 ended July 31, 2018.
“The strong momentum that OPT saw in our first
fiscal quarter is indicative of our team’s success in its sales and
marketing efforts,” said George H. Kirby, President and Chief
Executive Officer of Ocean Power Technologies. “For the first time,
our company is executing multiple contracts to supply PowerBuoys™
in new markets across multiple applications. Likewise, our new
plant, people and processes position us to deliver high quality
products and services to our customers. We successfully shipped our
PB3 PowerBuoy™ for deployment in the Adriatic Sea, fulfilling a key
milestone with Eni S.p.A. We are also preparing to deliver a PB3
PowerBuoy™ to Premier Oil for our upcoming deployment in the North
Sea. Given our robust pipeline of opportunities, brand recognition
as an innovator in offshore power, and broadening demand for our
solutions, we anticipate securing additional orders to deliver PB3
PowerBuoys™ to prospective partners around the world.”
First Fiscal Quarter Financial & Recent Operational
Highlights
- Shipped PB3 PowerBuoy™ to Eni S.p.A. for deployment in Adriatic
Sea;
- Signed contract in June 2018 with Premier Oil to supply a
PowerBuoy™ for the Huntington Field, one of Premier Oil’s offshore
fields in the Central North Sea;
- Signed agreement with Enel Green Power to evaluate a PowerBuoy™
deployment off the coast of Chile;
- Received an important patent to optimize energy harvesting in
low to moderate sea states;
- Added key senior leadership in business development with
extensive experience in defense, offshore oil and gas, and offshore
communications;
- Entered common stock purchase agreement with Aspire Capital
Fund;
- Continued to build and address increasing demand for the PB3
PowerBuoy™ by responding to multiple requests for proposals,
technical information and pricing, and through expanded branding
and marketing activities.
First Fiscal Quarter Operations
Review“Our highly skilled and talented team is delivering
positive results for customers and prospective partners as we
continue to innovate and address critical needs for our technology
in important end-markets in oil and gas, defense and security,
science and research, and communications. For instance, the
contract with Premier Oil to supply a PowerBuoy™ to their
Huntington Field is a significant opportunity for OPT to provide
critical surveillance services to our oil and gas partners,” Mr.
Kirby added. “The addition of Matthew May as our Vice President of
Global Business Development continues to enable our success in
forging a robust pipeline through new and expanding relationships
as we bring our technology to a broader market. Additionally, we
obtained a new patent which allows us to optimize energy in lower
sea states. The technology can be applied to serve additional
subsea demands and will be highlighted at upcoming conferences and
exhibitions.”
First Fiscal Quarter Financial Review
Income Statement
Revenue for the first quarter of fiscal 2019 was
$31,000, compared to $195,000 for the prior-year period. The
decline in revenue is due to the timing of the new contracts signed
with Eni and Premier Oil in the first quarter of fiscal 2019 and
the MES and ONR contracts being completed in the fiscal 2018.
The net loss for the first quarter of fiscal
2019 was $3.2 million, compared to a net loss of $2.7 million for
the prior-year period. The increase in net loss was a direct result
of costs associated with scaling business development, engineering,
and marketing for focus towards commercial contracts.
Balance Sheet and Cash Flow
Total cash, cash equivalents, restricted cash
and marketable securities were $8.4 million as of July 31, 2018,
down from $12.2 million on April 30, 2018. Net cash used in
operating activities was $3.8 million during the three months ended
July 31, 2018 as compared to $4.2 million during the prior-year
period.
Conference Call & Webcast Details
Ocean Power Technologies’ management will host a
conference call and webcast to review the first quarter financial
and operating results on September 12, 2018 at 10:00 a.m. Eastern
Daylight 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
8585504.
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
September 19, 2018. To access the rebroadcast please dial
1-855-859-2056 or 1-404-537-3406 and use replay access code
8585504. 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) |
|
|
|
|
July 31, 2018 |
|
April 30, 2018 |
|
|
|
(Unaudited) |
|
|
ASSETS |
|
|
|
Current
assets: |
|
|
|
|
Cash and cash equivalents |
$ |
7,644 |
|
|
$ |
11,499 |
|
|
Marketable securities |
|
25 |
|
|
|
25 |
|
|
Restricted cash- short-term |
|
563 |
|
|
|
572 |
|
|
Accounts receivable |
|
102 |
|
|
|
171 |
|
|
Unbilled
receivables |
|
- |
|
|
|
71 |
|
|
Contract assets |
|
8 |
|
|
|
- |
|
|
Litigation receivable |
|
- |
|
|
|
350 |
|
|
Other current assets |
|
581 |
|
|
|
567 |
|
|
|
Total
current assets |
|
8,923 |
|
|
|
13,255 |
|
Property
and equipment, net |
|
706 |
|
|
|
712 |
|
Restricted cash- long-term |
|
155 |
|
|
|
154 |
|
|
|
Total
assets |
$ |
9,784 |
|
|
$ |
14,121 |
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
|
Current
liabilities: |
|
|
|
|
|
|
|
|
Accounts payable |
$ |
354 |
|
|
$ |
290 |
|
|
Accrued expenses |
|
1,851 |
|
|
|
2,261 |
|
|
Litigation payable |
|
- |
|
|
|
350 |
|
|
Unearned revenue |
|
- |
|
|
|
18 |
|
|
Contract liabilities |
|
24 |
|
|
|
- |
|
|
Warrant liabilities |
|
116 |
|
|
|
201 |
|
|
Current portion of capital lease obligations |
|
14 |
|
|
|
23 |
|
|
Deferred
credits payable current |
|
200 |
|
|
|
600 |
|
|
|
Total
current liabilities |
|
2,559 |
|
|
|
3,743 |
|
Deferred
rent |
|
145 |
|
|
|
142 |
|
|
|
Total
liabilities |
|
2,704 |
|
|
|
3,885 |
|
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 18,442,298 and 18,424,939 shares, respectively |
|
18 |
|
|
|
18 |
|
|
Treasury stock, at cost; 74,012 and 74,012 shares,
respectively |
|
(300 |
) |
|
|
(300 |
) |
|
Additional paid-in capital |
|
208,296 |
|
|
|
208,216 |
|
|
Accumulated deficit |
|
(200,778 |
) |
|
|
(197,538 |
) |
|
Accumulated other comprehensive loss |
|
(156 |
) |
|
|
(160 |
) |
|
|
Total
stockholders' equity |
|
7,080 |
|
|
|
10,236 |
|
|
|
Total
liabilities and stockholders’ equity |
$ |
9,784 |
|
|
$ |
14,121 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Ocean Power Technologies, Inc. and
Subsidiaries |
Consolidated Statements of
Operations |
(in thousands, except per share
data) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
Three months ended July 31, |
|
|
|
|
2018 |
|
2017 |
|
|
|
|
|
|
|
|
|
|
|
Revenues |
|
$ |
31 |
|
|
$ |
195 |
|
Cost of
revenues |
|
|
142 |
|
|
|
217 |
|
|
|
Gross
loss |
|
|
(111 |
) |
|
|
(22 |
) |
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses: |
|
|
|
|
|
|
|
|
|
Engineering and product development costs |
|
|
1,149 |
|
|
|
1,102 |
|
|
Selling, general and administrative costs |
|
|
2,052 |
|
|
|
1,641 |
|
|
|
Total
operating expenses |
|
|
3,201 |
|
|
|
2,743 |
|
Operating
loss |
|
|
(3,312 |
) |
|
|
(2,765 |
) |
|
|
|
|
|
|
|
|
|
|
|
Gain due to
the change in fair value of warrant liabilities |
|
|
85 |
|
|
|
37 |
|
Interest
income, net |
|
|
13 |
|
|
|
3 |
|
Foreign
exchange gain/(loss) |
|
|
(26 |
) |
|
|
62 |
|
Net
loss |
|
$ |
(3,240 |
) |
|
$ |
(2,663 |
) |
Basic and
diluted net loss per share |
|
$ |
(0.18 |
) |
|
$ |
(0.22 |
) |
|
Weighted average shares used to compute |
|
|
|
|
|
|
|
|
|
basic and diluted net loss per share |
|
|
18,153,863 |
|
|
|
12,268,683 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ocean Power Technologies, Inc. and
Subsidiaries |
Consolidated Statements of Cash
Flows |
(in thousands) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
Three months ended July 31, |
|
|
|
2018 |
|
2017 |
|
|
|
|
|
|
|
|
|
|
Cash flows
from operating activities: |
|
|
|
|
Net loss |
$ |
(3,240 |
) |
|
$ |
(2,663 |
) |
|
Adjustments to reconcile net loss to net cash used in operating
activities: |
|
|
|
|
|
|
|
|
|
Foreign
exchange loss/(gain) |
|
26 |
|
|
|
(62 |
) |
|
|
Depreciation |
|
45 |
|
|
|
31 |
|
|
|
Loss on
disposal of property, plant and equipment |
|
- |
|
|
|
4 |
|
|
|
Compensation expense related to stock option grants and restricted
stock |
|
80 |
|
|
|
91 |
|
|
|
Gain due to the change
in fair value of warrant liabilities |
|
(85 |
) |
|
|
(37 |
) |
|
|
Changes
in operating assets and liabilities: |
|
|
|
|
|
|
|
|
|
Accounts
receivable |
|
69 |
|
|
|
(38 |
) |
|
|
Unbilled
receivables |
|
71 |
|
|
|
133 |
|
|
|
Contract
assets |
|
(8 |
) |
|
|
- |
|
|
|
Other
assets |
|
(13 |
) |
|
|
239 |
|
|
|
Accounts
payable |
|
65 |
|
|
|
(405 |
) |
|
|
Accrued
expenses |
|
(411 |
) |
|
|
(1,531 |
) |
|
|
Deferred
rent |
|
2 |
|
|
|
- |
|
|
|
Deferred
credit payable |
|
(400 |
) |
|
|
- |
|
|
|
Unearned
revenue |
|
(18 |
) |
|
|
- |
|
|
|
Contract
liabilities |
|
24 |
|
|
|
- |
|
|
|
Net cash
used in operating activities |
|
(3,793 |
) |
|
|
(4,238 |
) |
Cash flows
from investing activities: |
|
|
|
|
|
|
|
|
Purchases of marketable securities |
|
(25 |
) |
|
|
- |
|
|
Maturities of marketable securities |
|
25 |
|
|
|
- |
|
|
Leasehold improvements and purchase of equipment |
|
(30 |
) |
|
|
(12 |
) |
|
Net cash used in investing activities |
|
(30 |
) |
|
|
(12 |
) |
Cash flows
from financing activities: |
|
|
|
|
|
|
|
|
Proceeds from issuance of common stock, net of costs |
|
- |
|
|
|
7,221 |
|
|
Payment of capital lease obligations |
|
(9 |
) |
|
|
(9 |
) |
|
Acquisition of treasury stock |
|
- |
|
|
|
(32 |
) |
|
Net cash (used in) provided by financing activities |
|
(9 |
) |
|
|
7,180 |
|
Effect of
exchange rate changes on cash, cash equivalents and restricted
cash |
|
(31 |
) |
|
|
90 |
|
|
Net (decrease)/increase in cash, cash equivalents and
restricted cash |
|
(3,863 |
) |
|
|
3,020 |
|
Cash, cash
equivalents and restricted cash, beginning of period |
|
12,225 |
|
|
|
8,909 |
|
Cash, cash
equivalents and restricted cash, end of period |
$ |
8,362 |
|
|
$ |
11,929 |
|
|
|
|
|
|
|
|
|
|
|
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