Ocean Power Technologies Announces Results for the Fiscal First Quarter Ended July 31, 2013

Ocean Power Technologies Announces Results for the Fiscal First Quarter Ended
July 31, 2013

PENNINGTON, N.J., Sept. 13, 2013 (GLOBE NEWSWIRE) -- Ocean Power Technologies,
Inc. (Nasdaq:OPTT) ("OPT" or "the Company") today announced financial results
for its Fiscal 2014 first quarter ended July 31, 2013.


  *The Company's net loss for first quarter of Fiscal 2014 declined to $3.8
    million from $4.4 million in the first quarter of Fiscal 2013.
  *OPT also recently announced the following developments:

  — Deployment of the Company's enhanced Autonomous PowerBuoy® ("APB-350") 35
  miles off the coast of New Jersey in 140 feet of water. This project is part
  of the previously-announced Cooperative Research and Development Agreement
  ("CRADA") with the U.S. Department of Homeland Security ("DHS") Science &
  Technology Directorate. Under this program, the Company has performed
  in-ocean tests on its proprietary APB-350 to further validate the
  technology's capacity for expanded ocean surveillance. The system deployed
  includes a new acoustic sonar system, in addition to the existing HF radar,
  to allow detection of sub-surface and surface activity. This round of
  systems testing has been completed, with very good data received on energy
  output and on the sonar system's sub-surface detection of vessel acoustic

  — Award of two grants from the U.S. Department of Energy. The first was made
  under the Small Business Innovation Research program as a Phase I grant for
  approximately $150,000. This project is for the study of advanced control
  technologies for optimizing OPT's next-generation PowerBuoy. Separately, the
  Company won a $1.0 million award for work to optimize design of the
  PowerBuoy's float and spar, subject to negotiation of the final contract.
  This effort will include consideration of materials used and the geometry of
  the systems to maximize power-to-weight output ratios and to reduce overall
  installed capital costs.

  — Final assembly has begun in Spain by OPT and its WavePort consortium
  partners of a PowerBuoy that features an enhanced energy conversion system
  utilizing a new wave prediction model. Significant progress continues,
  including land testing. The buoy features an advanced modular power

"We are very excited to have received two awards from the U.S. Department of
Energy, and appreciate this new opportunity to be part of their initiatives in
support of the marine hydrokinetic industry," said Charles F. Dunleavy, Chief
Executive Officer of OPT. "In addition, I am happy to report that we have
received positive feedback to the news of this deployment and the expanded
mission capability of the APB-350 from several market sectors which we are
pursuing. Under this Department of Homeland Security program, we are pleased
with the initial results of our APB-350 in terms of power generation and the
performance of our new on-board ocean surveillance sonar system. We expect to
conduct further tests of the system going forward, building on these initial
results and after we implement some planned improvements to the APB-350. At
the same time, we are continuing to develop other potential projects in the
U.S. and overseas, and we anticipate further progress in the current fiscal
year towards commercialization in both our utility and autonomous PowerBuoy
end markets."

Financial Review

OPT's contract backlog as of July 31, 2013 was $3.5 million, compared to $3.8
million as of April 30, 2013 and $5.8 million as of July 31, 2012.We
anticipate that the majority of our backlog will be recognized as revenues
over a period exceeding 12 months.Approximately $1.2 million of our July 31,
2013 backlog is for our Oregon project; the realization of that backlog
depends on resolution of regulatory matters and our decision to seek
additional funding to enable completion of this project.Backlog includes
funded amounts and unfunded amounts that are expected to be funded in the
future. The current backlog is fully funded. The Company's contract backlog
consists largely of cost-sharing contracts to support product development.

Results for the Fiscal First Quarter Ended July 31, 2013

For the three months ended July 31, 2013, OPT reported revenue of $0.5 million
as compared to revenue of $1.0 million for the three months ended July 31,
2012. This decrease relates primarily to a lower level of external funding for
the Company's Mark 4 PowerBuoy development project and a decline in revenue
tied to OPT's prospective PowerBuoy deployment off Reedsport, Oregon, which
has been delayed pending resolution of regulatory, financial and other
matters.OPT also completed the current phase of the Company's project with
Mitsui Engineering & Shipbuilding in the prior fiscal year.

The net loss for the three months ended July 31, 2013 was $3.8 million as
compared to a net loss of $4.4 million for the three months ended July 31,
2012. The favorable decrease in the Company's net loss year-over-year reflects
lower product development costs, with the decline primarily due to a lower
level of activity for OPT's project in Oregon.

Cash and Investments

On July 31, 2013 total cash, cash equivalents, restricted cash and investments
were $18.6 million, as compared to $21.7 million as of April 30, 2013. Net
cash used in operating activities was $3.1 million and $3.4 million for the
three months ended July 31, 2013 and 2012, respectively. Net cash used was
lower in the Fiscal 2014 first quarter relative to the corresponding prior
year period due to lower expenses related to the Company's Oregon project.

Additional information may be found in the Company's Quarterly Report on Form
10-Q that will be filed with the U.S. 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 877-703-6106
(toll free in the U.S.) or 857-244-7305 (for international callers), using
passcode 94964242. 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 66111918, beginning at 1:00 p.m. Eastern on
September 13, 2013.

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 more than 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.

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
July 31, 2013 and April 30, 2013

ASSETS                                            July 31, 2013 April 30, 2013
Current assets:                                                
Cash and cash equivalents                         $7,337,651    6,372,788
Marketable securities                             9,996,250     13,996,705
Accounts receivable, net                          323,852       796,332
Unbilled receivables                              89,722        127,598
Other current assets                              373,905       152,962
Total current assets                              18,121,380    21,446,385
Property and equipment, net                       662,713       700,968
Patents, net                                      992,124       1,044,902
Restricted cash                                   1,279,864     1,366,256
Other noncurrent assets                           305,693       272,548
Total assets                                      $21,361,774   24,831,059
Current liabilities:                                           
Accounts payable                                  $1,068,379    510,031
Accrued expenses                                  3,766,394     3,900,623
Unearned revenues                                 533,825       1,117,115
Current portion of long-term debt                 100,000       100,000
Total current liabilities                         5,468,598     5,627,769
Long-term debt                                    225,000       250,000
Long-term unearned revenues                       516,782       232,033
Deferred credits                                  600,000       600,000
Total liabilities                                 6,810,380     6,709,802
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 10,394,798 and         10,395        10,403
10,403,215 shares, respectively
Treasury stock, at cost; 37,852 and 33,771        (130,707)     (123,893)
shares, respectively
Additional paid-in capital                        159,385,020   159,155,365
Accumulated deficit                               (144,421,281) (140,671,311)
Accumulated other comprehensive loss              (98,576)      (79,786)
Total Ocean Power Technologies, Inc.              14,744,851    18,290,778
stockholders' equity
Noncontrolling interest in Ocean Power            (193,457)     (169,521)
Technologies (Australasia) Pty Ltd.
Total equity                                      14,551,394    18,121,257
Total liabilities and stockholders' equity        $21,361,774   24,831,059

Consolidated Statements of Operations
For the Three Months Ended July 31, 2013 and 2012

                                                     July 31,     July 31,
                                                     2013         2012
Revenues                                              $460,927     982,396
Cost of revenues                                      460,376      979,860
Gross profit                                          551          2,536
Operating expenses:                                               
Product development costs                             1,270,945    1,927,427
Selling, general and administrative costs             2,547,759    2,384,338
Total operating expenses                              3,818,704    4,311,765
Operating loss                                        (3,818,153)  (4,309,229)
Interest income, net                                  358          55,424
Foreign exchange gain (loss)                          21,770       (108,323)
Net loss                                              (3,796,025)  (4,362,128)
Less: Net loss attributable to the noncontrolling
interest in Ocean Power Technologies (Australasia)    46,055       26,075
Pty Ltd.
Net loss attributable to Ocean Power Technologies,    $(3,749,970) (4,336,053)
Basic and diluted net loss per share                  $(0.36)      (0.42)
Weighted average shares used to compute basic and     10,321,457   10,295,999
diluted net loss per share

Consolidated Statements of Cash Flows
For the Three Months Ended July 31, 2013 and 2012

                                                     July 31,     July 31,
                                                     2013         2012
Cash flows from operating activities:                             
Net loss                                              $(3,796,025) (4,362,128)
Adjustments to reconcile net loss to net cash used in             
operating activities:
Foreign exchange (gain) loss                          (21,770)     108,323
Depreciation and amortization                         107,237      116,492
Treasury note premium amortization                    5,392        7,734
Compensation expense related to stock option grants   229,655      386,550
and restricted stock
Changes in operating assets and liabilities:                      
Accounts receivable                                   472,480      (99,302)
Unbilled receivables                                  37,877       (12,443)
Other current assets                                  (224,240)    120,649
Other noncurrent assets                               (35,344)     (13,252)
Accounts payable                                      562,092      230,884
Accrued expenses                                      (118,537)    369,247
Unearned revenues                                     (581,096)    (226,967)
Long-term unearned revenues                           284,749      —
Net cash used in operating activities                 (3,077,530)  (3,374,213)
Cash flows from investing activities:                             
Purchases of marketable securities                    (6,998,108)  (9,833,736)
Maturities of marketable securities                   10,993,172   9,171,233
Restricted cash                                       100,000      75,000
Purchases of equipment                                (14,522)     (224,891)
Net cash provided by (used in) investing activities   4,080,542    (812,394)
Cash flows from financing activities:                             
Repayment of debt                                     (25,000)     (25,000)
Acquisition of treasury stock                         (6,814)      (9,122)
Net cash used in financing activities                 (31,814)     (34,122)
Effect of exchange rate changes on cash and cash      (6,335)      (43,074)
Net increase (decrease) in cash and cash equivalents  964,863      (4,263,803)
Cash and cash equivalents, beginning of period        6,372,788    9,353,460
Cash and cash equivalents, end of period              $7,337,651   5,089,657

CONTACT: Company Contact:
         Charles F. Dunleavy, Chief Executive Officer of OPT
         Telephone: +1 609 730 0400

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