Ocean Power Technologies Announces Results for the Fiscal Second Quarter Ended October 31, 2012

Ocean Power Technologies Announces Results for the Fiscal Second Quarter Ended
October 31, 2012

PENNINGTON, N.J., Dec. 14, 2012 (GLOBE NEWSWIRE) -- Ocean Power Technologies,
Inc. (Nasdaq:OPTT) ("OPT" or "the Company") today announced financial results
for its fiscal 2013 second quarter and the six months ended October 31, 2012.

Highlights

  * OPT reported an operating loss of $9.2 million for the six months ended
    October 31, 2012, relatively unchanged from the comparable period in
    fiscal 2012.
     
  * The Company announced the award of a ¥70 million (approximately US $0.9
    million) contract from Mitsui Engineering & Shipbuilding ("MES") for
    further work towards development of wave energy opportunities in
    Japan. Under the terms of the contract, OPT will team with MES to develop
    PowerBuoy® enhancements that, under Japanese wave conditions, would
    provide for improved power capture.
     
  * OPT established a new business unit to assess, target and develop
    opportunities in the large potential markets for OPT's non-grid connected
    PowerBuoys. Dr. Phil Hart, previously Chief Technology Officer, now heads
    the Autonomous PowerBuoy business unit, tasked with accelerating
    commercialization within these markets. OPT's products for this sector
    have been developed for off-grid applications such as defense and homeland
    security, offshore oil and gas operations and oceanographic data
    gathering. The Company believes that the Autonomous PowerBuoy market may
    represent a significant opportunity for profitable growth.
     
  * The Company announced the appointment of Dr. Mike Mekhiche to the position
    of Vice President, Engineering. Dr. Mekhiche joins OPT from BAE Systems,
    where he most recently held the position of Director of Programs. Dr.
    Mekhiche will be responsible for the Company's engineering and advance
    technology development. This will include technology delivery, continuing
    enhancements and development of OPT's wave energy technology portfolio,
    and the development of the next generation of PowerBuoy systems.
     
  * In August 2012, OPT announced that the Company's wholly-owned Oregon
    subsidiary, Reedsport OPT Wave Park, LLC, had received approval from the
    U.S. Federal Energy Regulatory Commission for the build-out of its
    proposed 1.5 megawatt, grid-connected wave power station off the coast of
    Reedsport, Oregon. The Company plans to deploy the first of its PowerBuoys
    off the coast of Reedsport in calendar year 2013. OPT intends to seek
    additional funding for deployment of this first PowerBuoy in view of risks
    associated with weather delays, operations and other contingencies.
     
  * Terence J. Cryan was elected to the OPT Board of Directors at the
    Company's Annual Meeting in October 2012. Mr. Cryan is the co-founder and
    a managing director at Concert Energy Partners, a New York based private
    equity investment firm focused on the alternative energy, power, and
    natural resources industries. Mr. Cryan brings strong experience from the
    energy sector and has worked first-hand with organizations commercializing
    new, groundbreaking technology.

Charles F. Dunleavy, Chief Executive Officer of OPT stated, "This quarter
Ocean Power Technologies took several steps to position the Company for
further growth and expand our opportunities across the globe. With the
appointment of Phil Hart to the new role overseeing our Autonomous PowerBuoy
business unit, we will be better able to proactively address this expanding
market opportunity with greater focus. At the same time, we have brought on
Mike Mekhiche as our Vice President of Engineering with the key task of
managing our many technology development initiatives around the world –
including our work with Mitsui Engineering & Shipbuilding in Japan, Lockheed
Martin in Australia, and the European Union in Spain. We are also very pleased
to have Terry Cryan on our Board of Directors given his experience across
sectors very relevant to OPT's business. This is an extremely busy time for
OPT, and we are excited by the level of interest in our target markets that we
envision for the remainder of fiscal 2013."

Financial Review

OPT's contract backlog as of October 31, 2012 was $5.2 million, compared to
$5.8 million as of July 31, 2012 and $8.8 million as of October 31,
2011. Backlog includes funded amounts and unfunded amounts that are expected
to be funded in the future. The current backlog of $5.2 million is fully
funded. The Company's contract backlog consists largely of orders to support
product development.

Results for the Fiscal Second Quarter Ended October 31, 2012

For the three months ended October 31, 2012, OPT reported revenues of $1.4
million as compared to revenues of $1.5 million for the three months ended
October 31, 2011. This decrease primarily reflects lower revenue tied to the
US Navy's LEAP program on a year-over-year basis, as that project was
successfully completed in fiscal 2012, and lower external funding on the
Company's PB500 development projects. This decline was partially offset by an
increase in revenue from the recently-awarded follow-on contract with MES and
the Company's project in Oregon.

The net loss for the three months ended October 31, 2012 was $4.8 million as
compared to a net loss of $3.9 million for the three months ended October 31,
2011. The increase in net loss year-over-year was due primarily to higher
product development costs for ongoing work across a number of projects and an
increase in selling, general and administrative (SG&A) expenses tied to
heightened business development activity.

Results for the Six Months Ended October 31, 2012

For the six months ended October 31, 2012, OPT reported revenues of $2.3
million as compared to revenues of $3.4 million for the six months ended
October 31, 2011. This decrease primarily reflects the same trends as the
quarterly results. This decline was partially offset by an increase in revenue
from the Company's WavePort project in Spain, the project in Oregon and the
recently-awarded MES contract.

The net loss was $9.2 million for the six months ended October 31, 2012
compared to $8.9 million for the same period in the prior year. This increase
in net loss was due primarily to higher SG&A costs associated with the
Company's increased business development activities, particularly in
Australia, and lower interest income. 

Cash and Investments

On October 31, 2012, total cash, cash equivalents, restricted cash and
investments were $26.4 million, as compared to $29.4 million as of July 31,
2012. The net decrease in cash and investments was $3.0 million for the three
months ended October 31, 2012, compared to $3.2 million for the three months
ended October 31, 2011.

                                  **********

Additional information may be found in the Company's Quarterly Report on Form
10-Q that will be filed with the US Securities and Exchange Commission
("SEC"). The Form 10-Q may be accessed at www.sec.gov or at the Company's
website in the Investor Relations tab.

                                  **********

Conference Call Details

The Company will host a conference call to review these results at 10:00 a.m.
Eastern Time today.  The call will be available by telephone at 800.299.9630
(toll free in the U.S.) or + 617.786.2904 (for international callers), using
passcode 88629196. Investors may also access a webcast by visiting the
Company's website at www.oceanpowertechnologies.com and clicking on the
Investor Relations tab, then Webcasts & Presentations. Recorded replays of the
conference call will be available on the Company's website and by telephone at
888.286.8010 (toll free in the U.S.) or 617.801.6888 (for international
callers), replay passcode 45427788, beginning at 1:00 p.m. Eastern Time on
December 14, 2012.

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.
These forward-looking statements reflect the Company's current expectations
about its future plans and performance, including statements concerning the
impact of marketing strategies, new product introductions and innovation,
deliveries of product, sales, earnings and margins. These forward-looking
statements rely on a number of assumptions and estimates which could be
inaccurate and which are 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 SEC for a
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.

About Ocean Power Technologies

Ocean Power Technologies, Inc. (Nasdaq:OPTT) is a pioneer in wave-energy
technology that harnesses ocean wave resources to generate reliable and clean
and environmentally-beneficial electricity. OPT has a strong track record in
the advancement of wave energy and participates in an estimated $150 billion
annual power generation equipment market. OPT's proprietary PowerBuoy® system
is based on modular, ocean-going buoys that capture and convert predictable
wave energy into clean electricity. The Company is widely recognized as a
leading developer of on-grid and autonomous wave-energy generation systems,
benefiting from 15 years of in-ocean experience. OPT is headquartered in
Pennington, New Jersey, USA with an office in Warwick, UK, and operations in
Melbourne and Perth, Australia. More information can be found at
www.oceanpowertechnologies.com.

Company Contact:                           
                                           
Brian M. Posner, Chief Financial Officer  Telephone: +1 609 730 0400
                                           
Investor Relations Contact:                
                                           
Darrow Associates                         Telephone: +1 646 438 9385
Chris Witty                               Email: cwitty@darrowir.com

Consolidated Balance Sheets as of
October 31, 2012 and April 30, 2012
                                                
ASSETS                                         October 31, 2012 April 30, 2012
                                               (Unaudited)       
Current assets:                                                  
Cash and cash equivalents                      $ 13,446,531     9,353,460
Marketable securities                          11,622,260       22,369,484
Accounts receivable, net                       577,180          1,064,796
Unbilled receivables                           657,140          223,050
Other current assets                           454,435          842,820
Total current assets                           26,757,546       33,853,610
Property and equipment, net                    845,812          682,933
Patents, net                                   1,161,039        1,269,457
Restricted cash                                1,356,392        1,453,712
Other noncurrent assets                        196,025          181,925
Total assets                                   $ 30,316,814     37,441,637
LIABILITIES AND STOCKHOLDERS' EQUITY                             
Current liabilities:                                             
Accounts payable                               $ 489,850        440,773
Accrued expenses                               3,668,319        2,770,094
Deferred credits payable                       —                600,000
Unearned revenues                              1,619,816        1,073,389
Current portion of long-term debt              100,000          100,000
Total current liabilities                      5,877,985        4,984,256
Long-term debt                                 300,000          350,000
Deferred credits                               600,000          —
Total liabilities                              6,777,985        5,334,256
                                                                 
Ocean Power Technologies, Inc. Stockholders'                     
equity:
Preferred stock, $0.001 par value; authorized  —                —
5,000,000 shares, none issued or outstanding
Common stock, $0.001 par value; authorized
105,000,000 shares, issued 10,415,548 and      10,416           10,407
10,407,389 shares, respectively
Treasury stock, at cost; 27,818 and 23,544     (111,510)        (102,388)
shares, respectively
Additional paid-in capital                     158,913,651      158,296,458
Accumulated deficit                            (135,077,067)    (125,989,474)
Accumulated other comprehensive loss           (102,477)        (78,990)
Total Ocean Power Technologies, Inc.           23,633,013       32,136,013
stockholders' equity
Noncontrolling interest in Ocean Power         (94,184)         (28,632)
Technologies (Australasia) Pty Ltd.
Total equity                                   23,538,829       32,107,381
Total liabilities and stockholders' equity     $ 30,316,814     37,441,637
                                                                 

Consolidated Statements of Operations
For the Three and Six Months Ended October 31, 2012 and 2011
(Unaudited)
                                                                    
                           Three Months Ended October Six Months Ended October
                           31,                        31,
                           2012           2011        2012         2011
Revenues                   $ 1,360,299    1,515,437   2,342,695    3,426,289
Cost of revenues           1,246,277      1,483,590   2,226,137    3,385,492
Gross profit               114,022        31,847      116,558      40,797
Operating expenses:                                                 
Product development costs  2,937,567      2,062,540   4,864,994    5,163,127
Selling, general and       2,104,628      2,015,108   4,488,966    4,034,850
administrative costs
Total operating expenses   5,042,195      4,077,648   9,353,960    9,197,977
Operating loss             (4,928,173)    (4,045,801) (9,237,402)  (9,157,180)
Interest income, net       34,888         125,602     90,312       246,370
Foreign exchange gain      102,741        29,334      (5,582)      20,293
(loss)
Net loss                   (4,790,544)    (3,890,865) (9,152,672)  (8,890,517)
Less: Net loss
attributable to the
noncontrolling interest in 39,004         8,508       65,079       13,096
Ocean Power Technologies
(Australasia) Pty Ltd.
Net loss attributable to
Ocean Power Technologies,  $ (4,751,540)  (3,882,357) (9,087,593)  (8,877,421)
Inc.
Basic and diluted net loss $ (0.46)       (0.38)      (0.88)       (0.86)
per share
Weighted average shares
used to compute basic and  10,301,601     10,275,964  10,298,800   10,272,059
diluted net loss per share
                                                                    

Consolidated Statements of Cash Flows
For the Six Months Ended October 31, 2012 and 2011
(Unaudited)
                                                                   
                                                  Six Months Ended October 31,
                                                  2012            2011
                                                                   
Cash flows from operating activities:                              
Net loss                                          $ (9,152,672)   (8,890,517)
Adjustments to reconcile net loss to net cash                      
used in operating activities:
Foreign exchange loss (gain)                      5,582           (20,293)
Depreciation and amortization                     245,382         196,078
Loss on disposals of property, plant and          —               9,614
equipment
Treasury note premium amortization                26,023          27,828
Compensation expense related to stock option      617,200         703,801
grants and restricted stock
Changes in operating assets and liabilities:                       
Accounts receivable                               482,671         588,779
Unbilled receivables                              (434,090)       (108,395)
Other current assets                              387,395         (75,511)
Other noncurrent assets                           (14,121)        67,360
Accounts payable                                  82,601          (605,704)
Accrued expenses                                  910,155         (583,477)
Unearned revenues                                 542,993         801,253
Net cash used in operating activities             (6,300,881)     (7,889,184)
Cash flows from investing activities:                              
Purchases of marketable securities                (10,041,162)    (860,380)
Maturities of marketable securities               20,753,357      10,580,936
Restricted cash                                   75,000          54,470
Purchases of equipment                            (340,248)       (127,975)
Payments of patent costs                          —               (96,039)
Net cash provided by investing activities         10,446,947      9,551,012
Cash flows from financing activities:                              
Repayment of debt                                 (50,000)        (89,378)
Acquisition of treasury stock                     (9,122)         (38,867)
Net cash used in financing activities             (59,122)        (128,245)
Effect of exchange rate changes on cash and cash  6,127           (153,281)
equivalents
Net increase in cash and cash equivalents         4,093,071       1,380,302
Cash and cash equivalents, beginning of period    9,353,460       4,376,136
Cash and cash equivalents, end of period          $ 13,446,531    5,756,438
                                                                   

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