Get Cash Back and $0 Commissions
+ The Power of TradeStation
Globe Newswire 13-Mar-2024 4:15 PM
MONROE TOWNSHIP, N.J., March 13, 2024 (GLOBE NEWSWIRE) -- Ocean Power Technologies, Inc. ("OPT" or "the Company") (NYSE:OPTT), today announced financial results for its fiscal third quarter ended January 31, 2024 ("Q324"), including year over year revenue, gross profit, and pipeline growth.
Financial Highlights from the third quarter:
Recent Operational and Other Highlights:
Management Commentary – Philipp Stratmann, OPT's President and Chief Executive Officer
"We continue to make progress on our path towards profitability as evidenced by the continued growth in our pipeline, revenues, and gross margin. Our efforts to increase our backlog and revenues in the defense and national security industry are paying off. Our recent contract wins with large government prime contractors enable us to provide autonomous vehicles and renewable energy buoys to various U.S. Government Agencies. In addition to these contract wins, we continue to deliver for our commercial customers, especially in the fields of autonomous survey operations, enabling them to lower costs and carbon emissions. Our geographic footprint continues to expand and we are seeing significant opportunities for growth in Latin America. The substantial cessation of our R&D efforts earlier in this quarter, is starting to lead to a reduction in payroll and engineering related expenditures, and the refocusing of the team towards execution is supporting our stated revenue growth. We continue to explore opportunities that will accelerate shareholder value generation as we execute our stated strategy, including cost optimization, accelerated revenue growth, partnerships, or other mechanisms.
FINANCIAL HIGHLIGHTS – Q324
Income Statement:
Balance Sheet and Cash Flow
Conference Call & Webcast
As announced on February 21, 2024, a conference call to discuss OPT's financial results will be held tomorrow morning, Thursday, March 14, 2024, 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. Our 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 our 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 we use to track sales progress, identify potential roadblocks, and make data-driven decisions to improve our sales performance. Revenue estimates derived from our 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 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).
Ocean Power Technologies, Inc., and Subsidiaries Consolidated Balance Sheets (in thousands, except share data) | |||||||
January 31, 2024 | April 30, 2023 | ||||||
(Unaudited) | |||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 4,720 | $ | 6,883 | |||
Short term investments | 4,377 | 27,790 | |||||
Restricted cash, short-term | 154 | 65 | |||||
Accounts receivable | 625 | 745 | |||||
Contract assets | 281 | 152 | |||||
Inventory | 3,460 | 1,044 | |||||
Other current assets | 3,927 | 994 | |||||
Total current assets | 17,544 | 37,673 | |||||
Property and equipment, net | 2,217 | 1,280 | |||||
Intangibles, net | 3,656 | 3,978 | |||||
Right-of-use assets, net | 2,610 | 1,751 | |||||
Restricted cash, long-term | — | 155 | |||||
Goodwill | 8,537 | 8,537 | |||||
Total assets | $ | 34,564 | $ | 53,374 | |||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 1,466 | $ | 952 | |||
Earnout payable | — | 1,500 | |||||
Accrued expenses | 2,991 | 2,346 | |||||
Contingent liabilities | 1,085 | 1,202 | |||||
Right-of-use liabilities, current portion | 625 | 529 | |||||
Contract liabilities | 868 | 1,378 | |||||
Total current liabilities | 7,035 | 7,907 | |||||
Deferred tax liability | 203 | 203 | |||||
Right-of-use liabilities, less current portion | 2,065 | 1,311 | |||||
Total liabilities | 9,303 | 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 59,551,090 shares and 56,304,642 shares, respectively; outstanding 59,463,073 shares and 56,263,728 shares, respectively | 59 | 56 | |||||
Treasury stock, at cost; 88,017 shares and 40,914 shares, respectively | (368 | ) | (355 | ) | |||
Additional paid-in capital | 326,472 | 324,393 | |||||
Accumulated deficit | (300,857 | ) | (280,096 | ) | |||
Accumulated other comprehensive loss | (45 | ) | (45 | ) | |||
Total shareholders' equity | 25,261 | 43,953 | |||||
Total liabilities and shareholders' equity | $ | 34,564 | $ | 53,374 | |||
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, | ||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||
Revenues | $ | 1,792 | $ | 734 | $ | 3,953 | $ | 1,752 | |||||||
Cost of revenues | 979 | 598 | 1,989 | 1,382 | |||||||||||
Gross margin | 813 | 136 | 1,964 | 370 | |||||||||||
Operating expenses | 8,551 | 6,820 | 24,648 | 19,546 | |||||||||||
(Gain)/loss from change in fair value of consideration | (33 | ) | 373 | (117 | ) | 154 | |||||||||
Operating loss | (7,705 | ) | (7,057 | ) | (22,567 | ) | (19,330 | ) | |||||||
Interest income, net | 151 | 229 | 760 | 604 | |||||||||||
Other income, proceeds from insurance claim | — | 458 | — | 458 | |||||||||||
Other income, employee retention credit | — | — | — | 1,202 | |||||||||||
Loss on disposition of assets | (210 | ) | — | (210 | ) | — | |||||||||
Foreign exchange gain | 1 | 2 | 2 | 2 | |||||||||||
Loss before income taxes | (7,763 | ) | (6,368 | ) | (22,015 | ) | (17,064 | ) | |||||||
Income tax benefit | 1,254 | 278 | 1,254 | 278 | |||||||||||
Net loss | (6,509 | ) | (6,090 | ) | (20,761 | ) | (16,786 | ) | |||||||
Basic and diluted net loss per share | $ | (0.11 | ) | $ | (0.11 | ) | $ | (0.35 | ) | $ | (0.30 | ) | |||
Weighted average shares used to compute basic and diluted net loss per common share | 58,865,898 | 55,966,672 | 58,790,160 | 55,918,284 | |||||||||||
Ocean Power Technologies, Inc., and Subsidiaries Consolidated Statements of Cash Flows (in thousands) | |||||||
Nine months ended January 31, | |||||||
2024 | 2023 | ||||||
Cash flows from operating activities: | |||||||
Net loss | $ | (20,761 | ) | $ | (16,786 | ) | |
Adjustments to reconcile net loss to net cash used in operating activities: | |||||||
Depreciation of fixed assets | 286 | 157 | |||||
Foreign exchange gain | 2 | — | |||||
Amortization of intangible assets | 114 | 119 | |||||
Amortization of right of use assets | 388 | 230 | |||||
(Accretion of discount)/amortization of premium on investments | (277 | ) | 198 | ||||
Change in contingent consideration liability | (117 | ) | 154 | ||||
Stock based compensation | 803 | 911 | |||||
Loss on disposition of assets | 210 | — | |||||
Changes in operating assets and liabilities: | |||||||
Accounts receivable | 120 | (224 | ) | ||||
Contract assets | (129 | ) | 293 | ||||
Inventory | (2,416 | ) | (995 | ) | |||
Other assets | (2,933 | ) | (1,530 | ) | |||
Accounts payable | 512 | (314 | ) | ||||
Earnout payable | (500 | ) | — | ||||
Accrued expenses | 894 | 747 | |||||
Right-of-use liabilities | (397 | ) | (254 | ) | |||
Contract liabilities | (510 | ) | 1,205 | ||||
Net cash used in operating activities | $ | (24,711 | ) | $ | (16,089 | ) | |
Cash flows from investing activities: | |||||||
Redemptions of short term investments | 31,625 | 49,584 | |||||
Purchases of short term investments | (7,935 | ) | (30,402 | ) | |||
Purchases of property and equipment | (1,224 | ) | (302 | ) | |||
Net cash provided by investing activities | $ | 22,466 | $ | 18,880 | |||
Cash flows from financing activities: | |||||||
Cash paid for tax withholding related to shares withheld | (13 | ) | (14 | ) | |||
Proceeds from issuance of common stock - Cantor At The Market offering, net of issuance costs | $ | 29 | $ | — | |||
Net cash provided by/(used in) financing activities | $ | 16 | $ | (14 | ) | ||
Net (decrease) / increase in cash, cash equivalents and restricted cash | $ | (2,229 | ) | $ | 2,777 | ||
Cash, cash equivalents and restricted cash, beginning of period | $ | 7,103 | $ | 8,362 | |||
Cash, cash equivalents and restricted cash, end of period | $ | 4,874 | $ | 11,139 | |||
Supplemental disclosure of noncash investing and financing activities: | |||||||
Common stock issued related to bonus and earnout payments | $ | 1,250 | $ | — | |||
Operating right of use asset obtained in exchange for operating lease liability | $ | 1,247 | $ | — |
Contact Information Investors: 609-730-0400 x401 or InvestorRelations@oceanpowertech.com Media: 609-730-0400 x402 or MediaRelations@oceanpowertech.com