Ocean Power Technologies Announces Results for the Fiscal Fourth Quarter and Full Year Ended April 30, 2013

Ocean Power Technologies Announces Results for the Fiscal Fourth Quarter and
Full Year Ended April 30, 2013

PENNINGTON, N.J., July 12, 2013 (GLOBE NEWSWIRE) -- Ocean Power Technologies,
Inc. (Nasdaq:OPTT) ("OPT" or "the Company") today announced financial results
for its fiscal 2013 fourth quarter and the full year ended April 30, 2013.


  *Ocean Power Technologies reported a net decrease in cash and investments
    of $11.4 million for the twelve months ended April 30, 2013 ("Fiscal
    2013") versus a net decrease of $15.2 million for the twelve months ended
    April 30, 2012 ("Fiscal 2012").
  *The Company's net loss for Fiscal 2013 declined to $14.8 million from
    $15.2 million in Fiscal 2012.
  *During Fiscal 2013, the Company announced several achievements including
    the following:

  —Further progress was made in Australia, where OPT and Lockheed Martin are
  working together on a planned 62.5MW peak generator rated wave power project
  off Portland, Victoria, which would be one of the largest wave projects in
  the world. Professional Diving Services was engaged to conduct a seabed
  survey in connection with this project. In addition, OPT is working with the
  Australian Renewable Energy Agency ("ARENA"), the entity that manages the
  Commonwealth's A$66.5 million grant for the project, on certain variations
  to the funding deed that governs the grant. This funding deed for the
  project sets out the terms of the grant, including the requirement to obtain
  significant additional funding.

  — A contract worth ¥70 million (approximately US$0.7 million) was received
  from Mitsui Engineering & Shipbuilding Co. Ltd. for further work on
  PowerBuoy enhancements that, under Japanese wave conditions, provide for
  improved power capture. The analysis and design work are now complete, and a
  decision is expected to be made on next steps toward ocean trials of a
  demonstration PowerBuoy.

  —The Company's Waveport project in Spain achieved an important milestone.
  Following extensive design, construction and land testing activity during
  Fiscal 2013, OPT shipped its advanced modular power take-off in May, 2013.
  OPT has been working with a consortium of European companies and
  institutions to advance the energy conversion system of the PowerBuoy
  through the development of a new wave prediction model. The system can
  assess the characteristics of incoming waves before they reach the
  PowerBuoy, thereby providing more time for OPT's proprietary electronic
  tuning capability to react. This is expected to boost the power output of
  the PowerBuoy and reduce cost per megawatt hour of energy produced.

  —During Fiscal 2013, the Company completed certain work towards deployment
  of a Mark 3 PowerBuoy off the coast of Oregon, including assembly and land
  testing of the buoy.Deployment and commissioning have been delayed due to
  several factors, including notification received in February, 2013 from
  staff of the Federal Energy Regulatory Commission ("FERC"), that it
  considers this first, non-grid connected Mark 3 to be subject to its
  jurisdiction, thus necessitating further reporting and expenditures. OPT
  intends to seek additional funding specific to this project for deployment
  of this PowerBuoy in view of costs associated with regulatory factors and
  weather delays. Deployment of this initial buoy will depend on resolution of
  these financial and regulatory issues, and such deployment is expected to be
  delayed beyond calendar 2013.

  —OPT established a new business unit to assess, target and develop
  opportunities for the Company's Autonomous PowerBuoys. OPT has developed
  non-grid connected applications of its PowerBuoy for defense and homeland
  security, offshore oil and gas operations, and oceanographic data
  gathering.Further, the Company entered into a Cooperative Research and
  Development Agreement ("CRADA") with the US Department of Homeland Security
  Science & Technology Directorate to demonstrate use of OPT's Autonomous
  PowerBuoy for expanded ocean surveillance capabilities.

  —Two important additions were made to the Company's leadership. Terence J.
  Cryan joined the Company's Board of Directors.He is co-founder and managing
  director of Concert Energy Partners, a New York-based private equity firm
  focused on the alternative energy, power and natural resources industries.
  The Company also announced the appointment of Dr. Mike Mekhiche to the
  position of Vice President, Engineering. Dr. Mekhiche was previously with
  BAE Systems, where he had most recently held the position of Director of
  Programs. In that capacity, he oversaw the design, development, production
  and systems integration of an advanced power management and hybrid
  propulsion product line for various industrial and defense applications.

  —OPT has changed the nomenclature of its Utility and Autonomous PowerBuoy
  products to focus on product classes. Among the utility PowerBuoy products,
  the Mark 3 PowerBuoy, previously called the PB150, drives a peak rated
  generator with a maximum power output of 0.86MW. The Mark 4 PowerBuoy,
  previously called the PB500, currently is planned to drive a peak rated
  generator with a maximum power output of 2.4MW. This method of power rating
  is more closely aligned with that utilized by other renewable energy sources
  such as wind and solar.Among the Autonomous PowerBuoy products, the LEAP
  system will be called the APB 350, and the OPT MicroBuoy will be called the
  APB 10.

"Fiscal 2013 was one of continued technology development and attainment of
important milestones at Ocean Power Technologies," said Charles F. Dunleavy,
Chief Executive Officer of OPT."We marked further progress across a number of
fronts both in North America and abroad, as we sharpened our focus and
executed on an operating plan meant to expedite commercialization of our
groundbreaking technology. We strengthened our presence in Australia and are
working with key team members such as Lockheed in our efforts to bring a
multi-megawatt wave power station to Victoria, leveraging the commitment of
the Australian government and local interest in power purchase agreements for
the project.We have recently engaged a firm to conduct a detailed survey for
the location of our proposed wave power station and are actively involved in
pursuing funding to complement the funds expected to be provided by the

"We are also moving toward deployment of a next-generation Autonomous
PowerBuoy off the coast of New Jersey, under our relationship with the US
Department of Homeland Security, and are pleased to report significant work
with our partner in Japan, Mitsui Engineering & Shipbuilding, towards
commercialization there as well. Overall, we are concentrating on near-term
results and managing expenses as we prepare for our next stage of growth.I'd
like to personally thank all our employees for their hard work at Ocean Power
Technologies and our investors for their continued support as we look to
reporting further progress in these areas of focus."

Financial Review

OPT's contract backlog as of April 30, 2013 was $3.8 million, compared to $4.3
million as of January 31, 2013 and $6.8 million as of April 30, 2012.Backlog
includes funded amounts and unfunded amounts that are expected to be funded in
the future. The current backlog of $3.8 million is fully funded. The Company's
contract backlog consists largely of orders to support product development.

Results for the Fiscal Fourth Quarter Ended April 30, 2013

For the three months ended April 30, 2013, OPT reported revenue of $0.4
million as compared to revenue of $1.4 million for the three months ended
April 30, 2012. This decrease relates primarily to lower external funding for
the Company's Mark 4 PowerBuoy development project and its WavePort project
off the coast of Spain. In addition, there was a decline in revenue tied to
OPT's planned PowerBuoy deployment off Reedsport, Oregon, which is delayed
pending receipt of further project-specific funding and the resolution of
regulatory issues.

The net loss for the three months ended April 30, 2013 was $4.2 million as
compared to a net loss of $4.1 million for the three months ended April 30,
2012. The unfavorable increase in the Company's net loss year-over-year
reflects slightly higher product development costs offset by lower SG&A
expenses. The increase in product development costs was due primarily to a
higher level of activity for OPT's project in Oregon and for the project in
Spain.SG&A decreased due to cost-cutting initiatives implemented during
Fiscal 2013.

Results for the Twelve Months Ended April 30, 2013

For the twelve months ended April 30, 2013, OPT reported revenue of $3.6
million as compared to revenue of $5.7 million for the twelve months ended
April 30, 2012. The revenue decline primarily reflects the completion in
Fiscal 2012 of the Company's LEAP project with the US Navy for coastal
security and maritime surveillance; OPT also saw a decrease in revenue related
to its Mark 4 next-generation PowerBuoy and its project off the coast of
Spain. These declines were partially offset by an increase in revenue from the
Company's work in Oregon and in Japan with Mitsui Engineering & Shipbuilding
during Fiscal 2013.

The net loss was $14.8 million for the twelve months ended April 30, 2013
compared to $15.2 million for the same period in the prior year. The decrease
in OPT's net loss was due to higher gross profit and lower product development
costs, offset by an increase in SG&A costs.Product development costs declined
year-over-year due to the completion of the project in Scotland during Fiscal
2012, slightly offset by higher expenses tied to OPT's WavePort project in
Spain and its Oregon project. SGA increased due to an increase in business
development-related professional fees and site development expenses related to
the planned VWP wave power station in Australia. In the Fiscal 2013, OPT also
reported lower interest income, slightly lower foreign exchange losses, and a
higher recorded income tax benefit due to the sale of New Jersey net operating
tax losses.

Cash and Investments

On April 30, 2013, total cash, cash equivalents, restricted cash and
investments were $21.7 million. The net decrease in cash and investments was
$11.4 million for the twelve months ended April 30, 2013 compared to $15.2
million for the twelve months ended April 30, 2012. OPT received approximately
$1.5 million and $1.1 million in connection with the sale of New Jersey net
operating tax losses during the twelve months ended April 30, 2013 and 2012,
respectively. The net decrease in cash and investments was lower in Fiscal
2013 relative to Fiscal 2012 due to lower product development expenses and an
increase in accrued expenses.

Additional information may be found in the Company's Annual Report on Form
10-K that will be filed with the US Securities and Exchange Commission
("SEC"). The Form 10-K 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 877.415.3177
(toll free in the U.S.) or 857.244.7320 (for international callers), using
passcode 14542982. 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 13559432, beginning at 1:00 p.m. Eastern on July 12,

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 over 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

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.

Consolidated Balance Sheets as of
April 30, 2013 and April 30, 2012
ASSETS                                           April 30, 2013 April 30, 2012
Current assets:                                                
Cash and cash equivalents                        $6,372,788   9,353,460
Marketable securities                            13,996,705     22,369,484
Accounts receivable, net                         796,332        1,064,796
Unbilled receivables                             127,598        223,050
Other current assets                             152,962        842,820
Total current assets                             21,446,385     33,853,610
Property and equipment, net                      700,968        682,933
Patents, net                                     1,044,902      1,269,457
Restricted cash                                  1,366,256      1,453,712
Other noncurrent assets                          272,548        181,925
Total assets                                     $24,831,059  37,441,637
Current liabilities:                                           
Accounts payable                                 $510,031     440,773
Accrued expenses                                 3,900,623      2,770,094
Deferred credits payable                         —              600,000
Unearned revenues                                1,117,115      1,073,389
Current portion of long-term debt                100,000        100,000
Total current liabilities                        5,627,769      4,984,256
Long-term unearned revenues                      232,033        —
Long-term debt                                   250,000        350,000
Deferred credits payable-noncurrent              600,000        —
Total liabilities                                6,709,802      5,334,256
Ocean Power Technologies, Inc. Stockholders'                   
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 10,403,215 and        10,403         10,407
10,407,389 shares, respectively
Treasury stock, at cost; 33,771 and 23,544       (123,893)      (102,388)
shares, respectively
Additional paid-in capital                       159,155,365    158,296,458
Accumulated deficit                              (140,671,311)  (125,989,474)
Accumulated other comprehensive loss             (79,786)       (78,990)
Total Ocean Power Technologies, Inc.             18,290,778     32,136,013
stockholders' equity
Noncontrolling interest in Ocean Power           (169,521)      (28,632)
Technologies (Australasia) Pty Ltd.
Total equity                                     18,121,257     32,107,381
Total liabilities and stockholders' equity       $24,831,059  37,441,637

Consolidated Statements of Operations
For the Three and Twelve Months Ended April 30, 2013 and 2012
                         Three Months Ended         Twelve Months Ended
                          April 30,                  April 30,
                         2013           2012        2013         2012
Revenues                  $407,881     1,388,598   3,616,129    5,738,506
Cost of revenues          364,633        1,364,097   3,480,821    5,683,731
Gross profit              43,248         24,501      135,308      54,775
Operating expenses:                                            
Product development costs 1,861,024      1,785,917   7,327,766    8,337,424
Selling, general and      2,269,942      2,416,440   9,126,757    8,274,096
administrative costs
Total operating expenses  4,130,966      4,202,357   16,454,523   16,611,520
Operating loss            (4,087,718)    (4,177,856) (16,319,215) (16,556,745)
Interest income, net      14,261         76,421      126,377      418,052
Foreign exchange loss     (99,612)       (11,659)    (83,416)     (104,739)
Loss before income taxes  (4,173,069)    (4,113,094) (16,276,254) (16,243,432)
Income tax benefit        ―              ―           1,453,243    1,053,427
Net loss                  (4,173,069)    (4,113,094) (14,823,011) (15,190,005)
Less: Net loss
attributable to the
noncontrolling            44,596         16,699      141,174      49,503
interestin Ocean Power
(Australasia) Pty Ltd.
Net loss attributable to
Ocean Power Technologies, $(4,128,473) (4,096,395) (14,681,837) (15,140,502)
Basic and diluted net     $(0.40)      (0.40)     (1.42)      (1.47)
loss per share
Weighted average shares
used to compute basic and 10,314,642     10,290,005  10,304,044   10,277,661
diluted net loss per

Consolidated Statements of Cash Flows
For the Twelve Months Ended April 30, 2013 and 2012

                                                 Year Ended April 30,
                                                 2013            2012
Cash flows from operating activities:                            
Net loss                                          $(14,823,011) (15,190,005)
Adjustments to reconcile net loss to net cash                    
used in operating activities:
Foreign exchange loss                             83,416          104,739
Depreciation and amortization                     502,099         436,062
Loss on disposals of property, plant and          44,067          52,128
Impairment of long-lived assets                   7,718           358,447
Provision for doubtful accounts                   —               298,534
Treasury note discount amortization               (12,191)        (33,353)
Compensation expense related to stock option      858,902         1,121,528
grants and restricted stock
Changes in operating assets and liabilities:                     
Accounts receivable                               264,077         (126,722)
Unbilled receivables                              95,451          226,840
Other current assets                              685,523         (17,291)
Other noncurrent assets                           (93,700)        43,504
Accounts payable                                  105,036         (546,709)
Accrued expenses                                  1,158,481       (1,371,912)
Unearned revenues-ST                              46,451          729,367
Unearned revenues-LT                              232,033         —
Net cash used in operating activities             (10,845,648)    (13,914,843)
Cash flows from investing activities:                            
Purchases of marketable securities                (16,678,329)    (18,574,454)
Maturities of marketable securities               25,055,534      38,559,110
Restricted cash                                   75,000          53,936
Purchases of equipment                            (394,632)       (547,252)
Payments of patent costs                          —               (180,011)
Net cash provided by investing activities         8,057,573       19,311,329
Cash flows from financing activities:                            
Repayment of debt                                 (100,000)       (139,378)
Acquisition of treasury stock                     (21,505)        (59,654)
Net cash used in financing activities             (121,505)       (199,032)
Effect of exchange rate changes on cash and cash  (71,092)        (220,130)
Net (decrease) increase in cash and cash          (2,980,672)     4,977,324
Cash and cash equivalents, beginning of period    9,353,460       4,376,136
Cash and cash equivalents, end of period          $6,372,788    9,353,460

CONTACT: Company Contact:
         Brian M. Posner, Chief Financial Officer
         Telephone: +1 609 730 0400

company logo
Press spacebar to pause and continue. Press esc to stop.