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MONROE TOWNSHIP, N.J., March 13, 2023 (GLOBE NEWSWIRE) -- Ocean Power Technologies, Inc. ("OPT" or "the Company") (NYSE American: OPTT), today announced financial results for its fiscal third quarter ended January 31, 2023 (“Q323”), including year-to-date revenue growth of over 74.7% and total order growth of 111%. Highlights from the third quarter and recent activity include:
Management Commentary – Philipp Stratmann, OPT's President and Chief Executive Officer
“We continue to make meaningful progress towards our commercial efforts, including increasing our pipeline of feasibility studies, demonstrations, and platform sales activity. This development has been largely driven by our autonomous vehicles and Data-as-a-Service business lines. We are pleased to be well ahead of our order and revenue performance as compared to last year, however, we remain keenly focused on achieving our $9.0 million order target. Our sales team is working diligently to convert our growing pipeline into executed orders. Despite the challenging current macro environment, and our involvement in multi-party contracting, we remain encouraged by the fact that our level of commercial activity is the highest that it has been in our history.”
FINANCIAL HIGHLIGHTS – Q323
Income Statement:
Balance Sheet and Cash Flow:
Conference Call & Webcast
As announced on February 12, 2023, a conference call to discuss OPT’s financial results will be held tomorrow morning, Tuesday, March 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 Technologies
OPT, 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 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 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 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 ).
Contact Information
Investors: 609-730-0400 x401 or InvestorRelations@oceanpowertech.com
Media: 609-730-0400 x402 or MediaRelations@oceanpowertech.com
Ocean Power Technologies, Inc. and Subsidiaries
Consolidated Balance Sheets
(in thousands, except share data)
| January 31, 2023 | April 30, 2022 | ||||||
| (Unaudited) | |||||||
| ASSETS | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 10,920 | $ | 7,885 | |||
| Short term investments | 30,005 | 49,384 | |||||
| Restricted cash, short-term | 65 | 258 | |||||
| Accounts receivable | 706 | 482 | |||||
| Contract assets | 93 | 386 | |||||
| Inventory | 1,436 | 442 | |||||
| Other current assets | 1,997 | 467 | |||||
| Total current assets | 45,222 | 59,304 | |||||
| Property and equipment, net | 591 | 445 | |||||
| Intangibles, net | 4,017 | 4,136 | |||||
| Right-of-use asset, net | 522 | 752 | |||||
| Restricted cash, long-term | 154 | 219 | |||||
| Goodwill | $ | 8,537 | $ | 8,537 | |||
| Total assets | $ | 59,043 | $ | 73,393 | |||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||
| Current liabilities: | |||||||
| Accounts payable | $ | 591 | $ | 905 | |||
| Accrued expenses | 1,626 | 877 | |||||
| Contingent liabilities, current portion | 875 | 748 | |||||
| Right-of-use liability, current portion | 320 | 319 | |||||
| Contract liabilities | 1,334 | 129 | |||||
| Total current liabilities | 4,746 | 2,978 | |||||
| Deferred tax liability | 203 | 203 | |||||
| Right-of-use liability, less current portion | 282 | 538 | |||||
| Contingent liabilities, less current portion | 870 | 843 | |||||
| Total liabilities | 6,101 | 4,562 | |||||
| Commitments and contingencies (Note 15) | |||||||
| 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 56,254,642 shares and 55,905,213 shares, respectively; outstanding 56,213,728 shares and 55,881,861 shares, respectively | 56 | 56 | |||||
| Treasury stock, at cost; 40,914 shares and 23,352 shares, respectively | (355 | ) | (341 | ) | |||
| Additional paid-in capital | 323,843 | 322,932 | |||||
| Accumulated deficit | (270,556 | ) | (253,770 | ) | |||
| Accumulated other comprehensive loss | (46 | ) | (46 | ) | |||
| Total shareholders’ equity | 52,942 | 68,831 | |||||
| Total liabilities and shareholders’ equity | $ | 59,043 | $ | 73,393 | |||
Ocean Power Technologies, Inc., and Subsidiaries
Consolidated Statements of Operations
(in thousands, except per share data)
| Three months ended January 31, | Nine months ended January 31, | ||||||||||||||
| 2023 | 2022 | 2023 | 2022 | ||||||||||||
| Revenues | $ | 734 | $ | 484 | $ | 1,752 | $ | 1,003 | |||||||
| Cost of revenues | 598 | 597 | 1,382 | 1,320 | |||||||||||
| Gross margin (loss) | 136 | (113 | ) | 370 | (317 | ) | |||||||||
| (Gain)/loss from change in fair value of consideration | 373 | (60 | ) | 154 | (60 | ) | |||||||||
| Operating expenses | 6,820 | 5,439 | 19,546 | 15,451 | |||||||||||
| Operating loss | (7,057 | ) | (5,492 | ) | (19,330 | ) | (15,708 | ) | |||||||
| Interest income, net | 229 | 16 | 604 | 56 | |||||||||||
| Other income, proceeds from insurance claim | $ | 458 | $ | — | $ | 458 | $ | — | |||||||
| Other income, employee retention credit | — | — | 1,202 | — | |||||||||||
| Gain on extinguishment of PPP loan | — | — | — | 890 | |||||||||||
| Foreign exchange gain | 2 | 5 | 2 | — | |||||||||||
| Loss before income taxes | (6,368 | ) | (5,471 | ) | (17,064 | ) | (14,762 | ) | |||||||
| Income tax benefit | 278 | — | 278 | 1,041 | |||||||||||
| Net loss | $ | (6,090 | ) | $ | (5,471 | ) | $ | (16,786 | ) | $ | (13,721 | ) | |||
| Basic and diluted net loss per share | $ | (0.11 | ) | $ | (0.10 | ) | $ | (0.30 | ) | $ | (0.26 | ) | |||
| Weighted average shares used to compute basic and diluted net loss per common share | 55,966,672 | 55,308,799 | 55,918,284 | 53,408,998 | |||||||||||
OCEAN POWER TECHNOLOGIES, INC., AND SUBSIDIARIES
Consolidated Statements of Cash Flows
(in thousands)
| Nine months ended January 31, | |||||||
| 2023 | 2022 | ||||||
| Cash flows from operating activities: | |||||||
| Net loss | $ | (16,786 | ) | $ | (13,721 | ) | |
| Adjustments to reconcile net loss to net cash used in operating activities: | |||||||
| Depreciation of fixed assets | 157 | 104 | |||||
| Amortization of intangible assets | 119 | 18 | |||||
| Amortization of right of use asset | 230 | 211 | |||||
| Amortization of premium on short term investments | 198 | — | |||||
| Change in contingent consideration liability | 154 | (60 | ) | ||||
| Gain on extinguishment of PPP Loan | — | (890 | ) | ||||
| Stock based compensation | 911 | 864 | |||||
| Changes in operating assets and liabilities: | |||||||
| Accounts receivable | (224 | ) | 237 | ||||
| Contract assets | 293 | (217 | ) | ||||
| Inventory | (995 | ) | (193 | ) | |||
| Other assets | (1,530 | ) | 51 | ||||
| Accounts payable | (314 | ) | (165 | ) | |||
| Accrued expenses | 747 | (589 | ) | ||||
| Change in lease liability | (254 | ) | (228 | ) | |||
| Contract liabilities | 1,205 | 15 | |||||
| Litigation payable | — | (1,224 | ) | ||||
| Net cash used in operating activities | (16,089 | ) | (15,787 | ) | |||
| Cash flows from investing activities: | |||||||
| Redemptions of short term investments | 49,584 | — | |||||
| Purchases of short term investments | (30,402 | ) | — | ||||
| Payments for MAR acquisition, net of cash acquired | — | (3,544 | ) | ||||
| Purchase of property, plant and equipment | (302 | ) | (319 | ) | |||
| Net cash provided by (used in) investing activities | 18,880 | (3,863 | ) | ||||
| Cash flows from financing activities: | |||||||
| Acquisition of treasury stock for withholding taxes paid on vesting of restricted stock units | (14 | ) | — | ||||
| Proceeds from issuance of common stock | — | 90 | |||||
| Net cash (used in) provided by financing activities | (14 | ) | 90 | ||||
| Effect of exchange rate changes on cash, cash equivalents and restricted cash | — | (14 | ) | ||||
| Net increase / (decrease) in cash, cash equivalents and restricted cash | 2,777 | (19,574 | ) | ||||
| Cash, cash equivalents and restricted cash, beginning of period | $ | 8,362 | $ | 83,634 | |||
| Cash, cash equivalents and restricted cash, end of period | $ | 11,139 | $ | 64,060 | |||