MONROE TOWNSHIP, N.J., Sept. 13, 2023 (GLOBE NEWSWIRE) -- Ocean Power Technologies, Inc. ("OPT" or "the Company") (NYSE American: OPTT), today announced financial results for its fiscal first quarter ended July 31, 2023 (“Q124”), including year over year revenue, gross profit, and pipeline growth. Highlights from the first quarter and recent activity include:
Management Commentary – Philipp Stratmann, OPT's President and Chief Executive Officer
“I am pleased with our quarterly results and the business momentum, which affirms that our strategy is working. The demand signals from the market are clear: our customers are looking for an increasing number of resident, persistent and roaming assets that protect and conserve marine environments, collect ocean data and enhance our national security. We continue to convert our pipeline of considerable opportunities into backlog and revenues, as evidenced by our most recent win with the NOAA IDIQ contract. We believe we are well positioned to capitalize on this momentum to satisfy the growing customer demand for our products and solutions and to deliver profitable growth and meaningful value for our shareholders.”
FINANCIAL HIGHLIGHTS – Q124
Income Statement:
Balance Sheet and Cash Flow
Conference Call & Webcast
As announced on August 14, 2023, a conference call to discuss OPT’s financial results will be held tomorrow morning, Thursday, September 14, 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 TechnologiesOPT, a leader in innovative and cost-effective, low carbon marine data, power, and consulting services, 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 (ASV) and marine robotics services through our wholly owned subsidiary Marine Advanced Robotics and strategic consulting services including simulation engineering, software engineering, concept design and motion analysis through our wholly owned subsidiary 3Dent. We are headquartered in Monroe Township, New Jersey, and have offices in Houston, Texas, and Richmond, California. 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 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.
Financial Tables FollowAdditional 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 SubsidiariesConsolidated Balance Sheets(in thousands, except share data)
July 31, 2023 | April 30, 2023 | ||||||
(Unaudited) | |||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 3,863 | $ | 6,883 | |||
Short term investments | 22,790 | 27,790 | |||||
Restricted cash, short-term | 65 | 65 | |||||
Accounts receivable | 730 | 745 | |||||
Contract assets | 293 | 152 | |||||
Inventory | 1,730 | 1,044 | |||||
Other current assets | 619 | 994 | |||||
Total current assets | 30,090 | 37,673 | |||||
Property and equipment, net | 1,342 | 1,280 | |||||
Intangibles, net | 3,938 | 3,978 | |||||
Right-of-use asset, net | 1,616 | 1,751 | |||||
Restricted cash, long-term | 156 | 155 | |||||
Goodwill | 8,537 | 8,537 | |||||
Total assets | $ | 45,679 | $ | 53,374 | |||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 1,297 | $ | 952 | |||
Earnout payable | — | 1,500 | |||||
Accrued expenses | 1,556 | 2,346 | |||||
Contingent liabilities | 1,140 | 1,202 | |||||
Right-of-use liabilities, current portion | 545 | 529 | |||||
Contract liabilities | 1,207 | 1,378 | |||||
Total current liabilities | 5,745 | 7,907 | |||||
Deferred tax liability | 203 | 203 | |||||
Right-of-use liabilities, less current portion | 1,168 | 1,311 | |||||
Total liabilities | 7,116 | 9,421 | |||||
Commitments and contingencies | |||||||
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 58,776,654 shares and 56,304,642 shares, respectively; outstanding 58,731,974 shares and 56,263,728 shares, respectively | 59 | 56 | |||||
Treasury stock, at cost; 44,680 shares and 40,914 shares, respectively | (357 | ) | (355 | ) | |||
Additional paid-in capital | 326,041 | 324,393 | |||||
Accumulated deficit | (287,135 | ) | (280,096 | ) | |||
Accumulated other comprehensive loss | (45 | ) | (45 | ) | |||
Total shareholders’ equity | 38,563 | 43,953 | |||||
Total liabilities and shareholders’ equity | $ | 45,679 | $ | 53,374 |
Ocean Power Technologies, Inc., and SubsidiariesConsolidated Statements of Operations(in thousands, except per share data)
Three months ended July 31, | |||||||
2023 | 2022 | ||||||
Revenues | $ | 1,272 | $ | 714 | |||
Cost of revenues | 609 | 520 | |||||
Gross margin | 663 | 194 | |||||
Gain from change in fair value of consideration | (62 | ) | (131 | ) | |||
Operating expenses | 8,103 | 6,318 | |||||
Operating loss | (7,378 | ) | (5,993 | ) | |||
Interest income, net | 339 | 141 | |||||
Loss before income taxes | (7,039 | ) | (5,852 | ) | |||
Provision for income taxes | — | — | |||||
Net loss | $ | (7,039 | ) | $ | (5,852 | ) | |
Basic and diluted net loss per share | $ | (0.12 | ) | $ | (0.10 | ) | |
Weighted average shares used to compute basic and diluted net loss per common share | 58,723,076 | 55,889,651 |
OCEAN POWER TECHNOLOGIES, INC., AND SUBSIDIARIESConsolidated Statements of Cash Flows(in thousands)
Three months ended July 31, | |||||||
2023 | 2022 | ||||||
Cash flows from operating activities: | |||||||
Net loss | $ | (7,039 | ) | $ | (5,852 | ) | |
Adjustments to reconcile net loss to net cash used in operating activities: | |||||||
Depreciation of fixed assets | 71 | 43 | |||||
Amortization of intangible assets | 40 | 40 | |||||
Amortization of right of use asset | 135 | 75 | |||||
(Accretion of discount)/amortization of premium on investments | (106 | ) | 220 | ||||
Change in contingent consideration liability | (62 | ) | (131 | ) | |||
Stock based compensation | 401 | 333 | |||||
Changes in operating assets and liabilities: | |||||||
Accounts receivable | 15 | 363 | |||||
Contract assets | (141 | ) | (280 | ) | |||
Inventory | (686 | ) | (146 | ) | |||
Other assets | 375 | (13 | ) | ||||
Accounts payable | 345 | 154 | |||||
Earnout payable | (500 | ) | — | ||||
Accrued expenses | (540 | ) | 212 | ||||
Change in lease liability | (127 | ) | (82 | ) | |||
Contract liabilities | (171 | ) | (28 | ) | |||
Net cash used in operating activities | $ | (7,990 | ) | $ | (5,092 | ) | |
Cash flows from investing activities: | |||||||
Redemptions of short term investments | 11,718 | 17,252 | |||||
Purchases of short term investments | (6,612 | ) | (10,813 | ) | |||
Purchase of property and equipment | (133 | ) | (56 | ) | |||
Net cash provided by investing activities | $ | 4,973 | $ | 6,383 | |||
Cash flows from financing activities: | |||||||
Cash paid for tax withholding related to shares withheld | (2 | ) | — | ||||
Net cash used in financing activities | $ | (2 | ) | $ | — | ||
Net (decrease) / increase in cash, cash equivalents and restricted cash | $ | (3,019 | ) | $ | 1,291 | ||
Cash, cash equivalents and restricted cash, beginning of period | $ | 7,103 | $ | 8,362 | |||
Cash, cash equivalents and restricted cash, end of period | $ | 4,084 | $ | 9,653 | |||
Supplemental disclosure of noncash investing and financing activities: | |||||||
Issuance of common stock for Marine Advanced Robotics earn out | $ | 1,000 | $ | — | |||
Bonus paid through stock issuance | $ | 250 | $ | — |