Market Snapshot
  • U.S.
  • Europe
  • Asia
Ticker Volume Price Price Delta
DJIA 16,408.54 -16.31 -0.10%
S&P 500 1,864.85 2.54 0.14%
NASDAQ 4,095.52 9.29 0.23%
Ticker Volume Price Price Delta
STOXX 50 3,155.81 16.55 0.53%
FTSE 100 6,625.25 41.08 0.62%
DAX 9,409.71 91.89 0.99%
Ticker Volume Price Price Delta
NIKKEI 14,512.38 -3.89 -0.03%
TOPIX 1,171.40 -1.97 -0.17%
HANG SENG 22,760.24 64.23 0.28%

Ocean Power Technologies Announces Results for the Fiscal Second Quarter Ended October 31, 2013



Ocean Power Technologies Announces Results for the Fiscal Second Quarter Ended
October 31, 2013

PENNINGTON, N.J., Dec. 13, 2013 (GLOBE NEWSWIRE) -- Ocean Power Technologies,
Inc. (Nasdaq:OPTT) ("OPT" or "the Company") today announced financial results
for its Fiscal 2014 second quarter and the six months ended October 31, 2013.

Highlights

* OPT recently announced the following developments related to Mitsui
Engineering & Shipbuilding ("MES"), its partner in Japan:

  * In October, the Company signed a new agreement with MES for further
    collaboration towards the development and commercialization of OPT's
    technology. Specifically, MES was granted a license to sell OPT's
    PowerBuoys for both grid-connected utility and autonomous applications in
    Japan, the Philippines, Malaysia, Vietnam, Mozambique, South Africa and
    Namibia. This license has a renewable ten-year term under which MES has
    the exclusive right to sell PowerBuoys in its territory and for which OPT
    will receive royalty payments. OPT will sell to MES the Power Take-Off
    ("PTO") systems to be integrated in all PowerBuoys sold. Furthermore, MES
    will receive a commission for any customers outside its territory referred
    to OPT, and MES also has a right of first refusal with regard to
    manufacturing PowerBuoys sold in certain areas outside its territory.
     
  * Further, the Company received a $2.6 million contract from MES to supply
    the final design and key components of a PowerBuoy system intended for
    deployment off the coast of Japan. OPT will work with MES to finalize and
    test the spar – the PowerBuoy's main structural element – which is to be
    fabricated in Japan by MES; OPT will design and supply the PTO. Optimized
    for Japanese wave conditions, the PowerBuoy, when completed, is expected
    to be suitable for ocean trials to demonstrate the potential for
    commercial-scale utility wave power stations in Japan.

* During the quarter, OPT announced the deployment of the Company's latest
Autonomous PowerBuoy ("APB-350") off the coast of New Jersey. The project,
tied to a Cooperative Research and Development Agreement with the U.S.
Department of Homeland Security Science & Technology Directorate, included
in-ocean tests to validate OPT's technology for expanded ocean surveillance
capability. The APB-350 provided power for sophisticated vessel detection and
tracking sensors, enabling persistent off-shore maritime security in
near-shore, harbors and littoral zones. The integrated sensor suite included
sonar, an over-the-horizon high frequency radar system and an Automated
Identification System receiver. The Company noted significant improvement
versus prior in-ocean testing and identified further areas to optimize mission
longevity and enhance performance as well as the power-to-weight ratio of the
device.

* OPT's contract backlog grew to $5.8 million as of October 31, 2013 compared
to $3.5 million as of July 31, 2013, reflecting a recent contract award by
MES.

* During the quarter ended October 31, 2013 and in November 2013, the Company
strengthened its balance sheet through the sale of $4.7 million of common
stock under its existing At the Market ("ATM") offering facility with
Ascendiant Capital Markets.

* Mark A. Featherstone has joined the Company as Chief Financial Officer. Mark
brings to the Company significant experience as a senior finance and
accounting officer at private and public companies, including Heat Transfer
Products Group, Quaker Chemical Corporation, Coty Inc., and Scott Paper
Company.

"We saw several exciting developments this quarter," said Charles F. Dunleavy,
Chief Executive Officer of OPT. "OPT signed a comprehensive agreement with our
partner in Japan, Mitsui Engineering & Shipbuilding, for commercialization of
our proprietary technology in their home market of Japan and several nations
in Asia and Africa. By teaming with MES, we believe we have significantly
bolstered the prospects for PowerBuoy sales and strengthened our relationship
with an international leader in manufacturing and sales of capital equipment.
We are honored by their commitment to our company and encouraged by their
interest in wave-driven energy technology."

"We also received an order from MES for the design and delivery of key
components of a PowerBuoy for deployment off the coast of Japan. This is
another crucial step towards the demonstration of a prospective wave power
station in a nation clearly dedicated to developing clean alternatives for
power generation. In addition, during this past quarter we achieved a
successful demonstration of the enhanced maritime surveillance capability of
our autonomous PowerBuoy APB-350 off the coast of New Jersey. We believe that
these tangible accomplishments have improved the Company's growth prospects."

Financial Review

OPT's contract backlog as of October 31, 2013 was $5.8 million, compared to
$3.5 million as of July 31, 2013 and $5.2 million as of October 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 backlog
at October 31, 2013, is for our Oregon project; our continuation of work on
this project and the prospective realization of that backlog as revenues would
depend on certain factors, including the resolution of regulatory matters, the
availability of additional funding to specifically enable completion of this
project and the result of discussions with key project stakeholders. Backlog
includes funded amounts and unfunded amounts that are expected to be funded in
the future, but 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 Second Quarter Ended October 31, 2013

For the three months ended October 31, 2013, OPT reported revenue of $0.5
million as compared to revenue of $1.4 million for the three months ended
October 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 suspended pending resolution of regulatory, financial
and other matters. OPT also completed a project with Mitsui Engineering &
Shipbuilding in the prior fiscal year.

The net loss for the three months ended October 31, 2013 was $3.3 million as
compared to a net loss of $4.8 million for the three months ended October 31,
2012. The favorable decrease in the Company's net loss year-over-year reflects
lower product development costs, with the decline due primarily to a lower
level of activity for OPT's project in Oregon.

Results for the Six Months Ended October 31, 2013

For the six months ended October 31, 2013, OPT reported revenues of $0.9
million as compared to revenues of $2.3 million for the six months ended
October 31, 2012. This decrease primarily reflects a decline in revenue
related to the suspension of the Company's Mark 3 PowerBuoy project off the
coast of Oregon, decreased billable work for OPT's Mark 4 PowerBuoy
development project, and the completion of a project work with Mitsui
Engineering & Shipbuilding in the prior fiscal year. These decreases were
partially offset by an increase in revenue related to the company's project
off the coast of Spain and work performed under its new contract received in
October 2013 from MES.

The net loss was $7.0 million for the six months ended October 31, 2013
compared to $9.1 million for the same period in the prior year. This decrease
in net loss was due primarily to a decline in product development costs
associated with OPT's project in Oregon.

Cash and Investments

On October 31, 2013, total cash, cash equivalents, restricted cash and
marketable securities were $18.7 million, as compared to $21.7 million as of
April 30, 2013. Net cash used in operating activities was $6.5 million and
$6.3 million for the six months ended October 31, 2013 and 2012, respectively.
Net cash used was higher in the current six month period relative to the
corresponding prior year period due to a decrease in operating assets and
liabilities, offset by lower expenses related to the Company's Oregon project.
In addition, the Company raised $4.7 million during the Fiscal 2014 second
quarter and in November 2013 through the sale of stock under its ATM facility
with Ascendiant Capital Markets.

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 866-383-8009
(toll free in the U.S.) or 617-597-5342 (for international callers), using
passcode 52870763. 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 44636166, beginning at 2:00 p.m. Eastern on December
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
October 31, 2013 and April 30, 2013
                                                                 
ASSETS                                         October 31, 2013 April 30, 2013
                                               (Unaudited)       
Current assets:                                                  
Cash and cash equivalents                       $ 10,032,284    6,372,788
Marketable securities                          6,498,171        13,996,705
Accounts receivable, net                       —                796,332
Unbilled receivables                           178,083          127,598
Other current assets                           274,812          152,962
Total current assets                           16,983,350       21,446,385
Property and equipment, net                    612,612          700,968
Patents, net                                   938,402          1,044,902
Accounts receivable                            212,018          —
Restricted cash                                2,159,856        1,366,256
Other noncurrent assets                        418,551          272,548
Total assets                                    $ 21,324,789    24,831,059
LIABILITIES AND STOCKHOLDERS' EQUITY                             
Current liabilities:                                             
Accounts payable                                $ 502,439       510,031
Accrued expenses                               4,328,550        3,900,623
Unearned revenues                              783,062          1,117,115
Current portion of long-term debt              100,000          100,000
Total current liabilities                      5,714,051        5,627,769
Long-term debt                                 200,000          250,000
Long-term unearned revenues                    51,276           232,033
Deferred credits                               600,000          600,000
Total liabilities                              6,565,327        6,709,802
                                                                 
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 11,726,883 and      11,727           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                     162,961,343      159,155,365
Accumulated deficit                            (147,691,838)    (140,671,311)
Accumulated other comprehensive loss           (151,476)        (79,786)
Total Ocean Power Technologies, Inc.           14,999,049       18,290,778
stockholders' equity
Noncontrolling interest in Ocean Power         (239,587)        (169,521)
Technologies (Australasia) Pty Ltd.
Total equity                                   14,759,462       18,121,257
Total liabilities and stockholders' equity      $ 21,324,789    24,831,059

 
Consolidated Statements of Operations
For the Three and Six Months Ended October 31, 2013 and 2012
(Unaudited)
                                                                    
                       Three Months Ended October 31, Six Months Ended October
                                                      31,
                       2013             2012          2013         2012
Revenues                $ 463,608       1,360,299     924,535      2,342,695
Cost of revenues       462,336          1,246,277     922,712      2,226,137
Gross profit           1,272            114,022       1,823        116,558
Operating expenses:                                                 
Product development    1,610,089        2,937,567     2,881,034    4,864,994
costs
Selling, general and   1,808,892        2,104,628     4,356,651    4,488,966
administrative costs
Total operating        3,418,981        5,042,195     7,237,685    9,353,960
expenses
Operating loss         (3,417,709)      (4,928,173)   (7,235,862)  (9,237,402)
Interest income, net   2,879            34,888        3,237        90,312
Foreign exchange gain  107,357          102,741       129,127      (5,582)
(loss)
Net loss               (3,307,473)      (4,790,544)   (7,103,498)  (9,152,672)
Less: Net loss
attributable to the
noncontrolling         36,916           39,004        82,971       65,079
interest in Ocean
Power Technologies
(Australasia) Pty Ltd.
Net loss attributable
to Ocean Power          $ (3,270,557)   (4,751,540)   (7,020,527)  (9,087,593)
Technologies, Inc.
Basic and diluted net   $ (0.31)        (0.46)        (0.67)       (0.88)
loss per share
Weighted average
shares used to compute 10,510,214       10,301,601    10,416,021   10,298,800
basic and diluted net
loss per share

 
Consolidated Statements of Cash Flows
For the Six Months Ended October 31, 2013 and 2012
(Unaudited)
                                                                   
                                                  Six Months Ended October 31,
                                                  2013            2012
                                                                   
Cash flows from operating activities:                              
Net loss                                           $ (7,103,498)  (9,152,672)
Adjustments to reconcile net loss to net cash used in operating    
activities:
Foreign exchange (gain) loss                      (129,127)       5,582
Depreciation and amortization                     217,079         245,382
Treasury note premium amortization                5,391           26,023
Compensation expense related to stock option      369,503         617,200
grants and restricted stock
Changes in operating assets and liabilities:                       
Accounts receivable                               357,244         482,671
Long-term receivables                             212,018         ―
Unbilled receivables                              (50,484)        (434,090)
Other current assets                              (122,169)       387,395
Other noncurrent assets                           (138,734)       (14,121)
Accounts payable                                  (7,040)         82,601
Accrued expenses                                  421,744         910,155
Unearned revenues                                 (334,630)       542,993
Long-term unearned revenues                       (180,757)       —
Net cash used in operating activities             (6,483,460)     (6,300,881)
Cash flows from investing activities:                              
Purchases of marketable securities                (9,497,707)     (10,041,162)
Maturities of marketable securities               16,990,850      20,753,357
Restricted cash                                   (745,000)       75,000
Purchases of equipment                            (21,191)        (340,248)
Net cash provided by investing activities         6,726,952       10,446,947
Cash flows from financing activities:                              
Proceeds from the sale of common stock, net of    3,429,799       ―
issuance costs
Proceeds from the exercise of stock options       8,000           ―
Repayment of debt                                 (50,000)        (50,000)
Acquisition of treasury stock                     (6,814)         (9,122)
Net cash provided by (used in) financing          3,380,985       (59,122)
activities
Effect of exchange rate changes on cash and cash  35,019          6,127
equivalents
Net increase in cash and cash equivalents         3,659,496       4,093,071
Cash and cash equivalents, beginning of period    6,372,788       9,353,460
Cash and cash equivalents, end of period           $ 10,032,284   13,446,531

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

company logo
Sponsored Links
Advertisement
Advertisements
Sponsored Links
Advertisement