MONROE TOWNSHIP, N.J., July 12, 2023 (GLOBE NEWSWIRE) -- Ocean Power Technologies, Inc. ("OPT" or "the Company") (NYSE American: OPTT), today announced financial results for its fiscal fourth quarter (“4Q23”) and full-year ended April 30, 2023 (“FY23”). Highlights include:
4Q23 HIGHLIGHTS
FY23 HIGHLIGHTS
Management Commentary – Dr. Philipp Stratmann, OPT's President and Chief Executive Officer“Fiscal 2023 was a milestone year for our Company as we put our strategy of becoming a leading provider of autonomous vehicles and Data-as-a-Service for the marine industry in motion. Highlights include significant progress on MDAS platform and expanding the government agencies we work with. In addition, we had our best year of revenue generation since fiscal 2015 and generated a positive gross margin for the first time since fiscal 2016. Most importantly, as we look to the future, we continue to grow our order pipeline, which now stands at approximately $68 million, which gives us confidence that we will meet or exceed $15 million of contracted orders in fiscal 2024. I am pleased with our progress this past year and with the interest that our company is generating.”
4Q23 FINANCIALS
FY23 FINANCIALS
Balance Sheet:
Introduction of Fiscal 2024 Annual Guidance
The Company is also introducing the following select guidance for full-year fiscal 2024:
The Company’s anticipated order growth will be driven primarily by the continued ramp in its DaaS line, WAM-V sales and leases, and its strategic consulting business.
Conference Call & Webcast
As announced on June 15, 2023, a conference call to discuss OPT’s financial results will be held tomorrow morning, Thursday, July 13, 2023, at 9:00 a.m. Eastern time. Philipp Stratmann, CEO, Bob Powers, CFO, and Joseph Dipietro, Treasurer and Controller, will host the call.
About Ocean Power Technologies
Ocean Power Technologies, Inc. provides ocean data collection and reporting, marine power, offshore communications and Domain Awareness Services products, integrated solutions, and consulting services. Our solutions focus on four major service areas: Data as a Service (“DaaS”), which includes data collected by our Wave Adaptive Modular Vessel (WAM-V®) autonomous vehicles or our PowerBuoy® product lines; Robotics as a Service (“RaaS”), which provides a lower cost subscription model for our customers to access use of our WAM-V’s®; Power as a Service (“PaaS”), which includes our PowerBuoy® and subsea battery products; and our Strategic Consulting Services. We offer our products and services to a wide range of customers, including those in government and offshore energy, oil and gas, construction, wind power and other industries. Our solutions are primarily suited to ocean and other offshore environments, and support generation of actionable intelligence on a standalone basis or working with other data sources. The Company is headquartered in Monroe Township, New Jersey. To learn more, visit www.OceanPowerTechnologies.com.
Forward-Looking Statements and Projections
This release contains 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 that could be inaccurate and 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 U.S. Securities and Exchange Commission for 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.
Pipeline projections, and orders included in our backlog, can be subject to change as a result of project accelerations, cancellations or delays due to various factors, including but not limited to commercial issues, regulatory requirements, or general economic conditions impacting our customers. These factors can also cause orders to convert to revenue in periods and at levels different than our original projections. We adjust our pipeline, backlog and orders on an ongoing basis as a result of these developments, and based upon ongoing communication with our customers. There can be no assurance as to our customers’ requirements or that our estimates are accurate.
Financial Tables Follow
Additional information may be found in the Company's Annual Report on Form 10-K that will be filed with the U.S. Securities and Exchange Commission. The Form 10-K 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 SubsidiariesConsolidated Balance Sheets(in thousands, except share data)
April 30, 2023 | April 30, 2022 | ||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 6,883 | $ | 7,885 | |||
Short-term investments | 27,790 | 49,384 | |||||
Restricted cash, short-term | 65 | 258 | |||||
Accounts receivable | 745 | 482 | |||||
Contract assets | 152 | 386 | |||||
Inventory | 1,044 | 442 | |||||
Other current assets | 994 | 467 | |||||
Total current assets | $ | 37,673 | $ | 59,304 | |||
Property and equipment, net | 1,280 | 445 | |||||
Intangibles, net | 3,978 | 4,136 | |||||
Right-of-use assets, net | 1,751 | 752 | |||||
Restricted cash, long-term | 155 | 219 | |||||
Goodwill | 8,537 | 8,537 | |||||
Total assets | $ | 53,374 | $ | 73,393 | |||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 952 | $ | 905 | |||
Earn out payable | 1,500 | — | |||||
Accrued expenses | 2,346 | 877 | |||||
Contract liabilities | 1,378 | 129 | |||||
Right-of-use liabilities, current portion | 529 | 319 | |||||
Contingent liabilities, current portion | 1,202 | 748 | |||||
Total current liabilities | $ | 7,907 | $ | 2,978 | |||
Deferred tax liability | 203 | 203 | |||||
Right-of-use liabilities, less current portion | 1,311 | 538 | |||||
Contingent liabilities, less current portion | — | 843 | |||||
Total liabilities | $ | 9,421 | $ | 4,562 | |||
Commitments and contingencies (Note 16) | |||||||
Shareholders’ 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 56,304,642 and 55,905,213 shares, respectively, and outstanding 56,263,728 and 55,881,861 shares, respectively | 56 | 56 | |||||
Treasury stock, at cost; 40,914 and 23,352 shares, respectively | (355 | ) | (341 | ) | |||
Additional paid-in capital | 324,393 | 322,932 | |||||
Accumulated deficit | (280,096 | ) | (253,770 | ) | |||
Accumulated other comprehensive loss | (45 | ) | (46 | ) | |||
Total shareholders' equity | 43,953 | 68,831 | |||||
Total liabilities and shareholders’ equity | $ | 53,374 | $ | 73,393 |
Ocean Power Technologies, Inc., and SubsidiariesConsolidated Statements of Operations(in thousands, except per share data)
Twelve months ended April 30, | ||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||
Revenues | $ | 980 | $ | 756 | $ | 2,732 | $ | 1,759 | ||||||
Cost of revenues | 1,114 | 800 | 2,496 | 1,860 | ||||||||||
Gross margin (loss) | (134 | ) | (44 | ) | 236 | (101 | ) | |||||||
(Gain)/loss from change in fair value of consideration | 958 | — | 1,112 | (60 | ) | |||||||||
Operating expenses | 8,794 | 5,801 | 28,340 | 21,512 | ||||||||||
Total operating expenses | 9,752 | 5,801 | 29,452 | 21,452 | ||||||||||
Operating loss | $ | (9,886 | ) | $ | (5,845 | ) | $ | (29,216 | ) | $ | (21,553 | ) | ||
Interest income, net | 298 | 68 | 902 | 124 | ||||||||||
Other income, employee retention credit | 49 | — | 1,251 | — | ||||||||||
Other income, proceeds from insurance claim | — | — | 458 | — | ||||||||||
Gain on extinguishment of PPP loan | — | — | — | 890 | ||||||||||
Loss on liquidation of subsidiary | — | (157 | ) | — | (157 | ) | ||||||||
Foreign exchange (loss) / gain | (1 | ) | (1 | ) | 1 | (1 | ) | |||||||
Loss before income taxes | $ | (9,540 | ) | $ | (5,935 | ) | $ | (26,604 | ) | $ | (20,697 | ) | ||
Income tax benefit | — | 782 | 278 | 1,823 | ||||||||||
Net loss | $ | (9,540 | ) | $ | (5,153 | ) | $ | (26,326 | ) | $ | (18,874 | ) | ||
Basic and diluted net loss per share | $ | (0.17 | ) | $ | (0.09 | ) | $ | (0.47 | ) | $ | (0.35 | ) | ||
Weighted average shares used to compute basic and diluted net loss per share | 56,180,000 | 55,834,735 | 55,998,543 | 54,010,233 |
OCEAN POWER TECHNOLOGIES, INC., AND SUBSIDIARIESConsolidated Statements of Cash Flows(in thousands)
Twelve months ended April 30, | |||||||
2023 | 2022 | ||||||
Cash flows from operating activities: | |||||||
Net loss | $ | (26,326 | ) | $ | (18,874 | ) | |
Adjustments to reconcile net loss to net cash used in operating activities: | |||||||
Foreign exchange (gain) / loss | (1 | ) | 1 | ||||
Depreciation of fixed assets | 183 | 144 | |||||
Amortization of intangibles | 158 | 86 | |||||
Amortization of right-of-use asset | 296 | 285 | |||||
Amortization of premium on investments | 113 | 58 | |||||
Change in contingent consideration liability | 1,112 | (60 | ) | ||||
Gain on forgiveness of PPP loan | — | (890 | ) | ||||
Loss on liquidation of subsidiary | (20 | ) | 157 | ||||
Compensation expense related to equity compensation | 1,481 | 1,169 | |||||
Deferred tax liabilities | — | (377 | ) | ||||
Changes in operating assets and liabilities, net of acquisitions: | |||||||
Accounts receivable | (262 | ) | (133 | ) | |||
Contract assets | 234 | (195 | ) | ||||
Inventory | (602 | ) | (292 | ) | |||
Other assets | (581 | ) | 19 | ||||
Accounts payable | 101 | 217 | |||||
Accrued expenses | 1,468 | (1,004 | ) | ||||
Litigation payable | — | (1,224 | ) | ||||
Change in right of use lease liability | (311 | ) | (309 | ) | |||
Contract liabilities | 1,249 | (74 | ) | ||||
Net cash used in operating activities | $ | (21,708 | ) | $ | (21,296 | ) | |
Cash flows from investing activities: | |||||||
Redemptions of short term investments | $ | 63,700 | $ | — | |||
Purchases of short term investments | (42,219 | ) | (49,442 | ) | |||
Purchase of property, plant and equipment | (1,018 | ) | (145 | ) | |||
Payment for MAR acquisition, net of cash acquired | — | (4,444 | ) | ||||
Net cash (used in) provided by investing activities | $ | 20,463 | $ | (54,031 | ) | ||
Cash flows from financing activities: | |||||||
Proceeds from stock option exercises | $ | — | $ | 90 | |||
Acquisition of treasury stock | (14 | ) | (3 | ) | |||
Net cash (used in)/provided by financing activities | $ | (14 | ) | $ | 87 | ||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | $ | — | $ | (32 | ) | ||
Net decrease in cash, cash equivalents and restricted cash | $ | (1,259 | ) | $ | (75,272 | ) | |
Cash, cash equivalents and restricted cash, beginning of year | $ | 8,362 | $ | 83,634 | |||
Cash, cash equivalents and restricted cash, end of year | $ | 7,103 | $ | 8,362 | |||
Supplemental disclosure of noncash investing and financing activities: | |||||||
Issuance of stock for acquisition | $ | — | $ | 5,855 | |||
Operating right of use asset obtained in exchange for operating lease liability | 1,296 | — | |||||
Contingent liability - MAR | — | 1,591 |
Contact Information Investors: 609-730-0400 x401 or InvestorRelations@oceanpowertech.com Media: 609-730-0400 x402 or MediaRelations@oceanpowertech.com Source: Ocean Power Technologies, Inc.