MONROE TOWNSHIP, N.J., Dec. 13, 2023 (GLOBE NEWSWIRE) -- Ocean Power Technologies, Inc. ("OPT" or "the Company") (NYSE American: OPTT), today announced financial results for its fiscal second quarter ended October 31, 2023 (“Q224”), including year-over-year revenue, gross profit, and pipeline growth.
Financial Highlights from the second quarter:
Recent Operational and Other Highlights:
Management Commentary – Philipp Stratmann, OPT's President and Chief Executive Officer
“We continue to make progress with our strategy as evidenced by the continued growth in our backlog, increased opportunity pipeline, and delivery for our customers. Recent contract wins with large government prime contractors to service various U.S. Government Agencies are evidence of the growth of our government related backlog. Approximately 80% of our business is now with national security and defense customers, and our two primary platforms, WAM-V vehicles and PowerBuoys®, continue to see increased demand pull in these markets. Since the end of the quarter, we have substantially completed our research and development efforts, leading to reduced future annualized expenditures. As a result of these changes, combined with increased demand, we believe OPT will be cashflow positive within calendar year 2025. We remain steadfast in our commitment to drive value to our customers and deliver value to our shareholders and will continue to explore opportunities to accelerate value enhancement.”
FINANCIAL HIGHLIGHTS – Q224
Income Statement:
Balance Sheet and Cash Flow
Conference Call & Webcast
As announced on November 21, 2023, a conference call to discuss OPT’s financial results will be held tomorrow morning, Thursday, December 14, 2023, at 9:00 a.m. Eastern Standard Time. Philipp Stratmann, CEO, Bob Powers, CFO, and Joseph DiPietro, Treasurer and Controller, will host the call.
About Ocean Power Technologies
OPT provides intelligent maritime solutions and services that enable safer, cleaner, and more productive ocean operations for the defense and security, oil and gas, science and research, and offshore wind markets. Our PowerBuoy® platforms provide clean and reliable electric power and real-time data communications for remote maritime and subsea applications. We also provide WAM-V® autonomous surface vessels (ASVs) and marine robotics services. The Company’s headquarters is located in Monroe Township, New Jersey and has an additional office in Richmond, California. To learn more, visit www.OceanPowerTechnologies.com.
Non GAAP Measures: Pipeline
Pipeline is not a term recognized under United States generally accepted accounting principles; however, it is a common measurement used in our industry. OPT’s methodology for determining pipeline may not be comparable to the methodologies used by other companies. Pipeline is a representation of the journey potential customers take from the moment they become aware of OPT’s products and service to the moment they become a paying customer. The sales pipeline is divided into a series of phases, each representing a different milestone in the customer journey. It is a tool OPT uses to track sales progress, identify potential roadblocks, and make data-driven decisions to improve its sales performance. Revenue estimates derived from its pipeline can be subject to change due to project accelerations, cancellations or delays due to various factors. These factors can also cause revenue amounts to be realized in periods and at levels different than originally projected.
Forward-Looking Statements
This release contains forward-looking statements that are within the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements in this release include, but are not limited to, those statements relating to OPT’s future operating and financial performance, the impact of OPT’s various initiatives on the enhancement of stockholder value and its future operating and financial performance, OPT’s expectation that it will be cashflow positive in calendar year 2025, the growth in OPT’s backlog and opportunity pipeline, OPT’s ability to monetize such opportunities into actual revenue, OPT’s ability to drive the next phase of its growth and the commercialization of its products, OPT’s ability to achieve commercial success from its suite of products and make meaningful progress in orders, pipeline, and backlog, OPT’s ability to continue its momentum in securing business from U.S. Government national security and defense customers, OPT’s ability to expand commercial opportunities, including with offshore wind companies, OPT’s ability to execute on its strategy and create value for its stockholders, the impact on OPT of substantially completing its research and development phase, other statements relating to OPT’s future economic and operating performance, plans, or objectives, and all other statements contained in this release that are not historical facts. Other 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 OPT’s current expectations about its future performance, plans, and objectives. By their nature, forward-looking statements rely on a number of assumptions and estimates that could be inaccurate and involve risks and uncertainties that could cause actual results to materially differ from those anticipated or expressed in any forward-looking statement. These estimates and assumptions reflect our best judgment based on currently known market conditions and other factors. Although we believe such estimates and assumptions to be reasonable, they are inherently uncertain and involve a number of risks and uncertainties that are beyond our control, including, without limitation risks related to our ability to execute on our strategy, drive growth, and create value for our stockholders; our ability to develop, market, and commercialize our products; our ability to monetize our opportunity pipeline; our ability to achieve and, thereafter, sustain profitability; our ability to win government contracts, including in the defense and national security sectors; the possibility that we may not be able to obtain the necessary facility and personnel clearances to qualify for certain government contracts, including in the defense and security sectors; our ability to continue the development of our proprietary technologies; our expected continued use of cash from operating activities unless or until we achieve positive cash flow from the commercialization of our products and services; our ability to obtain additional funding, as and if needed; our history of operating losses, which we expect to continue for at least the short term and possibly longer; our ability to control our expenses; our ability to attract and retain qualified personnel, including executive management; our ability to manage and mitigate risks associated with our internal cyber security protocols and protection of the data we collect and distribute; our ability to protect our intellectual property portfolio; the impact of inflation related to the U.S. dollar on our business, operations, customers, suppliers and manufacturers, and personnel; our ability to meet product development, manufacturing and customer delivery deadlines; our ability to identify and penetrate markets for our products, services, and solutions; and the risks related to the actions of Paragon Technologies, Inc. in connection with its threatened proxy contest against OPT and the related litigation brought against OPT, including the amount of related costs incurred by OPT and the disruption caused to OPT’s business activities by these actions.
Many of these factors are beyond our ability to control or predict. These factors are not intended to represent a complete list of the general or specific factors that may affect us. Additional factors are described in OPT’s Form 10-K, Form 10-Q, and Form 8-K reports (including all amendments to those reports). Any forward-looking statements speak only as of the date on which such statements are made and OPT undertakes no obligation or intent to update such forward-looking statements to reflect events or circumstances arising after such date. OPT cautions investors not to place undue reliance on any such forward-looking statements. These cautionary statements qualify all forward-looking statements attributable to us or persons acting on our behalf.
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. The Form 10-Q is accessible at www.sec.gov or the Investor Relations section of the Company's website (www.OceanPowerTechnologies.com/investor-relations).
Ocean Power Technologies, Inc. and Subsidiaries | ||||||||
Consolidated Balance Sheets | ||||||||
(in thousands, except share data) | ||||||||
October 31, 2023 | April 30, 2023 | |||||||
(Unaudited) | ||||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 3,292 | $ | 6,883 | ||||
Short term investments | 15,427 | 27,790 | ||||||
Restricted cash, short-term | 219 | 65 | ||||||
Accounts receivable | 516 | 745 | ||||||
Contract assets | 326 | 152 | ||||||
Inventory | 2,546 | 1,044 | ||||||
Other current assets | 1,505 | 994 | ||||||
Total current assets | 23,831 | 37,673 | ||||||
Property and equipment, net | 1,806 | 1,280 | ||||||
Intangibles, net | 3,898 | 3,978 | ||||||
Right-of-use asset, net | 1,550 | 1,751 | ||||||
Restricted cash, long-term | — | 155 | ||||||
Goodwill | 8,537 | 8,537 | ||||||
Total assets | $ | 39,622 | $ | 53,374 | ||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 1,754 | $ | 952 | ||||
Earnout payable | — | 1,500 | ||||||
Accrued expenses | 2,094 | 2,346 | ||||||
Contingent liabilities | 1,117 | 1,202 | ||||||
Right-of-use liabilities, current portion | 579 | 529 | ||||||
Contract liabilities | 1,164 | 1,378 | ||||||
Total current liabilities | 6,708 | 7,907 | ||||||
Deferred tax liability | 203 | 203 | ||||||
Right-of-use liabilities, less current portion | 1,060 | 1,311 | ||||||
Total liabilities | 7,971 | 9,421 | ||||||
Commitments and contingencies (Note 14) | ||||||||
Shareholders’ Equity: | ||||||||
Preferred stock, $0.001 par value; authorized 5,000,000 shares, none issued or outstanding; 100,000 designated as Series A | — | — | ||||||
Common stock, $0.001 par value; authorized 100,000,000 shares, issued 58,833,758 shares and 56,304,642 shares, respectively; outstanding 58,788,770 shares and 56,263,728 shares, respectively | 59 | 56 | ||||||
Treasury stock, at cost; 44,988 shares and 40,914 shares, respectively | (357 | ) | (355 | ) | ||||
Additional paid-in capital | 326,342 | 324,393 | ||||||
Accumulated deficit | (294,348 | ) | (280,096 | ) | ||||
Accumulated other comprehensive loss | (45 | ) | (45 | ) | ||||
Total shareholders’ equity | 31,651 | 43,953 | ||||||
Total liabilities and shareholders’ equity | $ | 39,622 | $ | 53,374 |
Ocean Power Technologies, Inc., and Subsidiaries | ||||||||||||||||
Consolidated Statements of Operations | ||||||||||||||||
(in thousands, except per share data) | ||||||||||||||||
Three months ended October 31, | Six months ended October 31, | |||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||
Revenues | $ | 889 | $ | 303 | $ | 2,161 | $ | 1,017 | ||||||||
Cost of revenues | 401 | 264 | 1,010 | 784 | ||||||||||||
Gross margin | 488 | 39 | 1,151 | 233 | ||||||||||||
Gain from change in fair value of consideration | (23 | ) | (90 | ) | (86 | ) | (221 | ) | ||||||||
Operating expenses | 7,995 | 6,409 | 16,100 | 12,727 | ||||||||||||
Operating loss | (7,484 | ) | (6,280 | ) | (14,863 | ) | (12,273 | ) | ||||||||
Interest income, net | 270 | 234 | 610 | 375 | ||||||||||||
Other income, employee retention credit | — | 1,202 | — | 1,202 | ||||||||||||
Foreign exchange gain | 1 | — | 1 | — | ||||||||||||
Loss before income taxes | (7,213 | ) | (4,844 | ) | (14,252 | ) | (10,696 | ) | ||||||||
Provision for income taxes | — | — | — | — | ||||||||||||
Net loss | $ | (7,213 | ) | $ | (4,844 | ) | $ | (14,252 | ) | $ | (10,696 | ) | ||||
Basic and diluted net loss per share | $ | (0.12 | ) | $ | (0.09 | ) | $ | (0.24 | ) | $ | (0.19 | ) | ||||
Weighted average shares used to compute basic and diluted net loss per common share | 58,781,505 | 55,898,528 | 58,752,291 | 55,894,090 |
OCEAN POWER TECHNOLOGIES, INC., AND SUBSIDIARIES | ||||||||
Consolidated Statements of Cash Flows | ||||||||
(in thousands) | ||||||||
Six months ended October 31, | ||||||||
2023 | 2022 | |||||||
Cash flows from operating activities: | ||||||||
Net loss | $ | (14,252 | ) | $ | (10,696 | ) | ||
Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
Depreciation of fixed assets | 172 | 117 | ||||||
Foreign exchange gain | 1 | — | ||||||
Amortization of intangible assets | 80 | 79 | ||||||
Amortization of right of use asset | 201 | 152 | ||||||
(Accretion of discount)/amortization of premium on investments | (211 | ) | 191 | |||||
Change in contingent consideration liability | (86 | ) | (221 | ) | ||||
Stock based compensation | 673 | 632 | ||||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable | 229 | (105 | ) | |||||
Contract assets | (174 | ) | 85 | |||||
Inventory | (1,502 | ) | (586 | ) | ||||
Other assets | (511 | ) | (2,180 | ) | ||||
Accounts payable | 802 | (316 | ) | |||||
Earnout payable | (500 | ) | — | |||||
Accrued expenses | (2 | ) | 680 | |||||
Change in lease liability | (201 | ) | (166 | ) | ||||
Contract liabilities | (214 | ) | 1,333 | |||||
Net cash used in operating activities | $ | (15,495 | ) | $ | (11,001 | ) | ||
Cash flows from investing activities: | ||||||||
Redemptions of short term investments | 20,600 | 33,433 | ||||||
Purchases of short term investments | (8,026 | ) | (20,108 | ) | ||||
Purchases of property and equipment | (698 | ) | (179 | ) | ||||
Net cash provided by investing activities | $ | 11,876 | $ | 13,146 | ||||
Cash flows from financing activities: | ||||||||
Cash paid for tax withholding related to shares withheld | (2 | ) | — | |||||
Proceeds from issuance of common stock - Cantor At The Market offering, net of issuance costs | $ | 29 | $ | — | ||||
Net cash provided by financing activities | $ | 27 | $ | — | ||||
Net (decrease) / increase in cash, cash equivalents and restricted cash | $ | (3,592 | ) | $ | 2,145 | |||
Cash, cash equivalents and restricted cash, beginning of period | $ | 7,103 | $ | 8,362 | ||||
Cash, cash equivalents and restricted cash, end of period | $ | 3,511 | $ | 10,507 | ||||
Supplemental disclosure of noncash investing and financing activities: | ||||||||
Issuance of common stock for Marine Advanced Robotics earnout | $ | 1,000 | $ | — | ||||
Bonus paid through stock issuance | $ | 250 | $ | — |
Contact Information Investors: 609-730-0400 x401 or [email protected] Media: 609-730-0400 x402 or [email protected]
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