Ocean Power Technologies Announces Fiscal 2018 Fourth Quarter and Full Year Results
“We believe that we have passed an important inflection point in our business by achieving fourth quarter revenues as a result of our business development efforts.” said
Full Year Financial & Operational Highlights
- Signed contract in
June 2018 withPremier Oil to lease a PowerBuoy™ for deployment in the Huntington Field, one of Premier Oil’s offshore fields in theCentral North Sea ; - Signed contract with
Eni S.p.A to lease a PB3 PowerBuoy™ for subsea oil and gas operations; - Cash, cash equivalents, restricted cash and marketable securities of
$12.3 million as ofApril 30, 2018 , up from$8.9 million as ofApril 30, 2017 ; - Added key senior leadership with extensive experience in offshore oil and gas subsea systems, security, defense, engineering and business development;
- Enhanced infrastructure by relocating corporate and manufacturing activities to a larger facility in
New Jersey ; - Continued to cultivate commercialization opportunities for PB3 PowerBuoy™ for use in remote offshore power and real-time data communications applications; and,
- Closed most legacy legal matters allowing for full focus on business growth.
“I’m excited by the progress we’ve made this past year where we contracted with
Operations Review
“Our direct engagement with global companies and large government organizations has driven a number of exciting opportunities around the world, particularly in the oil and gas sector where we have expanded our efforts.” commented Mr. Kirby. “In addition, we have continued to grow our team of talented people with the addition of
“Over the past year, we have strengthened our cutting-edge technology by implementing reliability enhancements and developing an integrated umbilical system to power subsea equipment in support of the upcoming Eni deployment.” explained Mr. Phebus. “Additionally, OPT has further developed a next generation controls logic and enhanced power take-off (PTO) capabilities. We believe this work will enable us to continue to execute on our product and technology roadmap and demonstrate our capabilities in new geographies.”
“From a commercial standpoint, we are ushering in new sales and marketing processes at OPT from what was a research and development business, to create a culture of commercial excellence.” stated Mr. May. “We are seeking to accelerate commercialization while maintaining OPT as a leader in offshore ocean wave power by implementing new commercial processes and formulating new channel strategies.”
“We remain focused on commercializing our PB3 PowerBuoy™, which can meet the demands of current and potential customers in numerous end-markets. We will continue to innovate, particularly as we work with our customers to develop new applications, further differentiating our offering. We continue building relationships across the globe, and capitalizing on these relationships will be the key to our long-term success.” remarked Kirby.
Financial Review
Fourth Quarter Overview
Revenue for the fourth quarter of fiscal 2018 was
The net loss for the fourth quarter of fiscal 2018 was
Results for the Fiscal Year Ended
Revenue for the full twelve months of fiscal 2018 was
Balance Sheet and Cash Flow
Total cash, cash equivalents, restricted cash and marketable securities were
Conference Call & Webcast Details
Ocean Power Technologies’ management will host a conference call and webcast to review the fourth quarter financial and operating results on
Investors, analysts and members of the media interested in listening to the live presentation are encouraged to join a webcast of the call available on the investor relations section of the Company’s website at https://www.oceanpowertechnologies.com.
A replay will be available starting within a few hours after the conference concludes and will be available until
About
Headquartered in New Jersey, Ocean Power Technologies aspires to transform the world through durable, innovative and cost-effective ocean energy solutions. Our PB3 PowerBuoy™ uses ocean waves to provide clean, reliable and persistent electric power and real-time communications for remote offshore applications in markets such as oil and gas, defense, security, science and research, and communications. To learn more, visit 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. 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 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
Financial Tables Follow
Additional information may be found in the company's Quarterly Report on Form 10-Q that has been filed with the
| Investor Relations Contact: | |
| Steve Calk or Jackie Marcus | |
| Alpha IR Group | |
| Phone 312 445-2870 | |
| Email: OPTT@alpha-ir.com |
| Ocean Power Technologies, Inc. and Subsidiaries | ||||||||||
| Consolidated Balance Sheets | ||||||||||
| (in thousands, except share data) | ||||||||||
| April 30, 2018 | April 30, 2017 | |||||||||
| ASSETS | ||||||||||
| Current assets: | ||||||||||
| Cash and cash equivalents | $ | 11,499 | $ | 8,421 | ||||||
| Marketable securities | 25 | 25 | ||||||||
| Restricted cash- short-term | 572 | 334 | ||||||||
| Accounts receivable | 171 | 48 | ||||||||
| Unbilled receivables | 71 | 296 | ||||||||
| Litigation receivable | 350 | - | ||||||||
| Other current assets | 567 | 622 | ||||||||
| Total current assets | 13,255 | 9,746 | ||||||||
| Property and equipment, net | 712 | 170 | ||||||||
| Restricted cash- long-term | 154 | 154 | ||||||||
| Other noncurrent assets | - | 3 | ||||||||
| Total assets | $ | 14,121 | $ | 10,073 | ||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||
| Current liabilities: | ||||||||||
| Accounts payable | $ | 290 | $ | 586 | ||||||
| Accrued expenses | 2,261 | 3,059 | ||||||||
| Litigation payable | 350 | - | ||||||||
| Warrant liabilities | 201 | 323 | ||||||||
| Current portion of capital lease obligations | 23 | 35 | ||||||||
| Unearned revenue | 18 | - | ||||||||
| Deferred credits payable current | 600 | 600 | ||||||||
| Total current liabilities | 3,743 | 4,603 | ||||||||
| Long-term portion of capital lease obligations | - | 23 | ||||||||
| Deferred rent | 142 | - | ||||||||
| Total liabilities | 3,885 | 4,626 | ||||||||
| Commitments and contingencies | ||||||||||
| 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 50,000,000 shares, | ||||||||||
| issued 18,424,939 and 6,313,996 shares, respectively | 18 | 6 | ||||||||
| Treasury stock, at cost; 74,012 and 48,065 shares, respectively | (300 | ) | (263 | ) | ||||||
| Additional paid-in capital | 208,216 | 193,234 | ||||||||
| Accumulated deficit | (197,538 | ) | (187,370 | ) | ||||||
| Accumulated other comprehensive loss | (160 | ) | (160 | ) | ||||||
| Total stockholders' equity | 10,236 | 5,447 | ||||||||
| Total liabilities and stockholders’ equity | $ | 14,121 | $ | 10,073 | ||||||
| Ocean Power Technologies, Inc. and Subsidiaries | |||||||||||||||||||
| Consolidated Statements of Operations | |||||||||||||||||||
| (in thousands, except per share data) | |||||||||||||||||||
| Three months ended April 30, | Twelve months ended April 30, | ||||||||||||||||||
| 2018 | 2017 | 2018 | 2017 | ||||||||||||||||
| Revenues | $ | 222 | $ | 250 | $ | 511 | $ | 843 | |||||||||||
| Cost of revenues | 569 | 324 | 763 | 938 | |||||||||||||||
| Gross loss | (347 | ) | (74 | ) | (252 | ) | (95 | ) | |||||||||||
| Operating expenses: | |||||||||||||||||||
| Product development costs | 922 | 1,134 | 4,320 | 5,029 | |||||||||||||||
| Selling, general and administrative costs | 2,023 | 1,704 | 6,988 | 6,563 | |||||||||||||||
| Total operating expenses | 2,945 | 2,838 | 11,308 | 11,592 | |||||||||||||||
| Operating loss | (3,292 | ) | (2,912 | ) | (11,560 | ) | (11,687 | ) | |||||||||||
| Gain due to the change in fair value of warrant liabilities | 40 | 330 | 122 | 1,491 | |||||||||||||||
| Interest income, net | 31 | 2 | 83 | 28 | |||||||||||||||
| Other income | - | - | 4 | - | |||||||||||||||
| Foreign exchange gain/(loss) | (32 | ) | 5 | 75 | (16 | ) | |||||||||||||
| Loss before income taxes | (3,253 | ) | (2,575 | ) | (11,276 | ) | (10,184 | ) | |||||||||||
| Income tax benefit | - | - | 1,119 | 698 | |||||||||||||||
| Net loss | $ | (3,253 | ) | $ | (2,575 | ) | $ | (10,157 | ) | $ | (9,486 | ) | |||||||
| Basic and diluted net loss per share | $ | (0.18 | ) | $ | (0.44 | ) | $ | (0.66 | ) | $ | (2.23 | ) | |||||||
| Weighted average shares used to compute | |||||||||||||||||||
| basic and diluted net loss per share | 18,153,797 | 5,796,116 | 15,346,602 | 4,259,172 | |||||||||||||||
| Ocean Power Technologies, Inc. and Subsidiaries | ||||||||||||
| Consolidated Statements of Cash Flows | ||||||||||||
| (in thousands) | ||||||||||||
| Twelve months ended April 30, | ||||||||||||
| 2018 | 2017 | |||||||||||
| Cash flows from operating activities: | ||||||||||||
| Net loss | $ | (10,157 | ) | $ | (9,486 | ) | ||||||
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||||||
| Foreign exchange (gain)/loss | (75 | ) | 16 | |||||||||
| Depreciation | 122 | 140 | ||||||||||
| Loss on disposal of property, plant and equipment | 5 | - | ||||||||||
| Compensation expense related to stock option grants and restricted stock | 329 | 1,232 | ||||||||||
| Change in fair value of warrant liabilities | (122 | ) | (1,491 | ) | ||||||||
| Payment for litigation settlement | - | (500 | ) | |||||||||
| Changes in operating assets and liabilities: | ||||||||||||
| Accounts receivable | (123 | ) | (48 | ) | ||||||||
| Unbilled receivable | 225 | (258 | ) | |||||||||
| Other receivable | (166 | ) | - | |||||||||
| Other assets | 360 | (212 | ) | |||||||||
| Accounts payable | (296 | ) | 213 | |||||||||
| Accrued expenses | (821 | ) | 395 | |||||||||
| Deferred rent | 5 | - | ||||||||||
| Unearned revenues | 18 | (39 | ) | |||||||||
| Net cash used in operating activities | (10,696 | ) | (10,038 | ) | ||||||||
| Cash flows from investing activities: | ||||||||||||
| Purchases of marketable securities | (25 | ) | - | |||||||||
| Maturities of marketable securities | 25 | 50 | ||||||||||
| Leasehold improvements and purchase of equipment | (658 | ) | (37 | ) | ||||||||
| Net cash (used in) provided by investing activities | (658 | ) | 13 | |||||||||
| Cash flows from financing activities: | ||||||||||||
| Proceeds from issuance of common stock and related warrants, net of costs | 14,654 | 12,150 | ||||||||||
| Payment of capital lease obligations | (35 | ) | (28 | ) | ||||||||
| Payment of debt | - | (50 | ) | |||||||||
| Acquisition of treasury stock | (37 | ) | (125 | ) | ||||||||
| Net cash provided by financing activities | 14,582 | 11,947 | ||||||||||
| Effect of exchange rate changes on cash, cash equivalents and restricted cash | 88 | (43 | ) | |||||||||
| Net increase in cash, cash equivalents and restricted cash | 3,316 | 1,879 | ||||||||||
| Cash, cash equivalents and restricted cash, beginning of period | 8,909 | 7,030 | ||||||||||
| Cash, cash equivalents and restricted cash, end of period | $ | 12,225 | $ | 8,909 | ||||||||
Source: Ocean Power Technologies, Inc.