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News Release Details

Ocean Power Technologies Announces Results for the Fiscal Third Quarter Ended January 31, 2016

Mar 11, 2016 at 8:22 AM EST

PENNINGTON, N.J., March 11, 2016 (GLOBE NEWSWIRE) -- Ocean Power Technologies, Inc. (Nasdaq:OPTT) today announced financial results for its Fiscal 2016 third quarter ended January 31, 2016.

George H. Kirby, President and Chief Executive Officer of OPT, stated, "During the third quarter, we continued to develop our APB350 PowerBuoy and achieved progress on both the technical and commercial fronts. Our cumulative deployment time for the APB350 (A1) exceeded 125 days, and the PowerBuoy achieved two performance records including generating greater than 1,000 kWh (1MWh) of energy  and generating 32 kWh of energy for a 24-hour period.   We retrieved the APB350 (A1) in January to repair a component part and we expect to redeploy the A1 and resume sea trials in the near future following completion of repairs. Our Accelerated Life Testing (“ALT”) has provided important data on buoy reliability and life as it validates the PTO design. Our Technical Advisory Panel (“TAP”) has also continued to provide valuable market feedback as we progress toward our goal of 2016 commercialization. We are progressing our work with Gardline Environmental Ltd., one of our TAP members, to jointly investigate innovative ocean observing monitoring and maritime security systems.”

Recent developments at OPT include the partnering with the National Data Buoy Center (“NDBC”) under a Cooperative Research and Development Agreement (“CRADA”) to conduct ocean demonstrations of its innovative Self-Contained Ocean Observing Payload (“SCOOP”) monitoring system integrated into OPT’s APB350 PowerBuoy®. In addition, OPT has entered into a Letter of Intent with Mitsui Engineering and Shipbuilding (MES) to conduct funded pre-work tasks and to negotiate a definitive agreement that would allow for the lease of the APB350 PowerBuoy for a project off the coast of Kozu-island in Japan.

Mr. Kirby continued, "Our next generation APB350 has also shown considerable progress and is expected to feature an enhanced electrical storage system (ESS), a higher efficiency power management system, and "plug and play" capability, making it more flexible for end-user payloads. The enhanced ESS is particularly advantageous for applications that have varying power requirements, including continuous and larger peak loads. Assembly and component testing of portions of the next generation APB350 are currently underway. We anticipate product commercialization to occur in calendar year 2016."

Results for the Third Fiscal Quarter Ended January 31, 2016

For the three months ended January 31, 2016, OPT reported revenue of $5,000, as compared to revenue of $0.3 million for the three months ended January 31, 2015. The decrease in revenues compared with the prior year was primarily related to decreased billable costs on our project with Mitsui Engineering & Shipbuilding ("MES") and with our contract with the U.S. Department of Energy ("DOE"), reflecting our focus on the APB350. A stage-gate review of the MES project was conducted and is discussed more fully in the MD&A section of our quarterly report on Form 10-Q for the third fiscal 2016 quarter ended January 31, 2016.

The net loss for the three months ended January 31, 2016 was $2.0 million as compared to a net loss of $2.2 million for the three months ended January 31, 2015. The decrease in net loss is primarily due to an increase in income tax benefits and lower selling, general and administrative expenses, and offset in part by higher product development costs. Selling, general and administrative costs were lower due to reduced third party consulting, certain employee-related and patent amortization costs.

Results for the Nine Months Ended January 31, 2016

For the nine months ended January 31, 2016, OPT reported revenue of $0.6 million, as compared to revenue of $3.6 million for the nine months ended January 31, 2015. The decrease in revenue is primarily related to decreased billable work for the DOE, WavePort and MES.

The net loss for the nine months ended January 31, 2016 was $9.1 million, as compared to a net loss of $9.9 million for the nine months ended January 31, 2015. The decrease in the Company's net loss year-over-year primarily reflects increased income tax benefits and lower selling, general and administrative costs in the period, offset in part by higher product development costs. In addition, the prior year period includes a loss related to estimated future project costs associated with our contract with MES. Lower selling, general and administrative costs in the current period were due to reduced legal, third party consulting, site development costs and patent amortization expenses.

Balance Sheet and Available Cash

As of January 31, 2016, total cash, cash equivalents, and marketable securities were $9.5 million, down from $17.4 million on April 30, 2015. As of January 31, 2016 and April 30, 2015, restricted cash was $0.4 million and $0.5 million, respectively. Net cash used in operating activities was $8.1 million during the nine months ended January 31, 2016, compared with $14.8 million for the nine months ended January 31, 2015. The prior year period reflects the return of $4.7 million related to an advance payment received from Australian Renewable Energy Agency while the current year period reflects costs related to increased deployment activity.


Mr. Kirby concluded, "As we progress toward commercialization, we are encouraged by the positive market feedback that we are receiving. We continue to believe that our PowerBuoys will be cost-effective alternatives to incumbent solutions that generally use less reliable and more costly sources of power. We also believe that our PowerBuoy will enable new applications given its ability to generate and make available power in remote offshore locations where it hasn’t been previously available. We continue to discuss new opportunities to partner on new projects and applications with potential customers, and we believe these opportunities are the key to achieving first sales or leases leading to sustainable revenues in the future.”

Conference Call Details

The Company will host a conference call and webcast to review financial and operating results. The call will be held on Friday, March 11, 2016 at 2:00 pm eastern time. Please call (844) 864-2538 and enter pass code 67375951. Additionally, the call will be webcast live at the Company's website at A telephonic replay will be available from 5:00 p.m. eastern time the day of the teleconference until March 18, 2016. To listen to the archived call, dial (800) 585-8367 and enter pass code 67375951, or access the webcast replay via the Company website at, where a transcript will be posted once available.

About Ocean Power Technologies

Headquartered in Pennington, New Jersey, Ocean Power Technologies (Nasdaq:OPTT) is a pioneer in ocean wave energy conversion. OPT’s proprietary PowerBuoy® technology is based on a scalable and modular design. OPT specializes in cost-effective and environmentally sound ocean wave based power generation and management technology.

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 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


Additional information may be found in the Company’s Quarterly Report on Form 10-Q that has been filed with the U.S. Securities and Exchange Commission (“SEC”). The Form 10-Q may be accessed at or at the Company’s website in the Investor Relations section.

Consolidated Balance Sheets as of
January 31, 2016 and April 30, 2015
ASSETS   January 31, 2016     April 30, 2015
Current assets:            
  Cash and cash equivalents $ 9,413,258     $ 17,335,734  
  Marketable securities   50,000       75,000  
  Restricted cash   377,101       438,561  
  Accounts receivable   14,534       103,470  
  Unbilled receivables   37,465       81,658  
  Other current assets   214,828       186,641  
          Total current assets   10,107,186       18,221,064  
Property and equipment, net   206,580       263,898  
Restricted cash   -       50,000  
Other noncurrent assets   295,912       335,924  
          Total assets $ 10,609,678     $ 18,870,886  
Current liabilities:          
  Accounts payable $ 451,446     $ 352,827  
  Accrued expenses   2,718,518       2,507,119  
  Current portion of long-term debt   75,000       100,000  
          Total current liabilities   3,244,964       2,959,946  
Long-term debt   -       50,000  
Deferred credits   600,000       600,000  
          Total liabilities   3,844,964       3,609,946  
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 authorized as of January 31, 2016, and 105,000,000 shares authorized as of April 30, 2015; issued 1,924,234 and 1,838,720 shares, respectively   1,924       1,839  
  Treasury stock, at cost; 5,705 and 3,866 shares, respectively   (135,938 )     (132,016 )
  Additional paid-in capital   180,951,755       180,803,339  
  Accumulated deficit   (173,901,826 )     (164,755,055 )
  Accumulated other comprehensive loss   (151,201 )     (229,915 )
          Total Ocean Power Technologies, Inc. stockholders’ equity   6,764,714       15,688,192  
Noncontrolling interest in Ocean Power Technologies (Australasia) Pty Ltd.   -       (427,252 )
  Total equity   6,764,714       15,260,940  
          Total liabilities and stockholders’ equity $ 10,609,678     $ 18,870,886  


Consolidated Statements of Operations
For the Three and Nine Months Ended January 31, 2016 and 2015
        Three Months Ended   Nine Months Ended
        January 31,   January 31,
          2016         2015       2016         2015  
$   5,203     $   328,511       605,281     $   3,616,827  
Cost of revenues   5,203         379,106       605,281         4,344,346  
    Gross loss     -         (50,595 )     -         (727,519 )
Operating expenses:
  Product development costs   1,752,001         1,082,628       5,412,445         2,227,060  
  Selling, general and administrative costs   1,690,420         1,956,702       5,419,358         7,788,552  
    Total operating expenses   3,442,421         3,039,330       10,831,803         10,015,612  
Operating loss   (3,442,421 )       (3,089,925 )     (10,831,803 )       (10,743,131 )
Interest income (expense), net   1,128         6,793       9,963         (48,403 )
Other Income (expense), net     (3,114 )       -       239,813         185,000  
Foreign exchange loss     (188,424 )       (246,002 )     (194,266 )       (467,909 )
Loss before income taxes     (3,632,831 )       (3,329,134 )     (10,776,293 )       (11,074,443 )
Income tax benefit     1,674,862         1,137,872       1,674,862         1,137,872  
Net loss     (1,957,969 )       (2,191,262 )     (9,101,431 )       (9,936,571 )
  Less: Net (profit) loss attributable to the noncontrolling interest in Ocean Power Technologies (Australasia) Pty Ltd.     -         5,291       (45,340 )       98,154  
Net loss attributable to Ocean Power Technologies, Inc. $   (1,957,969 )   $   (2,185,971 )     (9,146,771 )   $   (9,838,417 )
Basic and diluted net loss per share $   (1.05 )   $   (1.25 )     (5.07 )   $   (5.63 )
Weighted average shares used to compute basic and diluted net loss per share   1,865,464         1,750,827       1,803,559         1,748,484  


Consolidated Statements of Cash Flows
For the Nine Months Ended January 31, 2016 and 2015
                Nine Months Ended January 31,
                  2016         2015  
Cash flows from operating activities:          
  Net loss $   (9,101,431 )   $   (9,936,571 )
  Adjustments to reconcile net loss to net cash used in operating activities:          
      Foreign exchange (gain) loss     194,266         467,909  
      Depreciation and amortization     83,874         727,188  
      Loss on disposals of property, plant and equipment     -         3,771  
      Compensation expense related to stock option grants and restricted stock     298,169         238,657  
      Changes in operating assets and liabilities:          
        Accounts receivable     88,936         289,740  
        Unbilled receivables     44,193         (151,855 )
        Other current assets     (29,704 )       229,910  
        Other noncurrent assets   26,560         (134,126 )
        Accounts payable     97,743         (348,795 )
        Accrued expenses     221,373         (435,950 )
        Advance payment received from ARENA     -         (4,709,055 )
        Unearned revenues     -         (992,447 )
          Net cash used in operating activities     (8,076,021 )       (14,751,624 )
Cash flows from investing activities:          
  Purchases of marketable securities     -         (13,796,959 )
  Maturities of marketable securities     25,000         28,240,840  
  Restricted cash     111,460         6,787,329  
  Purchases of equipment     (23,524 )       (54,466 )
          Net cash provided by (used in) investing activities     112,936         21,176,744  
Cash flows from financing activities:          
  Repayment of debt     (75,000 )       (75,000 )
  Proceeds from the sale of common stock, net of issuance costs     204,923         650  
  Acquisition of treasury stock     (3,922 )       (1,309 )
          Net cash (used in) provided by financing activities     126,001         (75,659 )
Effect of exchange rate changes on cash and cash equivalents     (85,392 )       (339,214 )
          Net increase in cash and cash equivalents     (7,922,476 )       6,010,247  
Cash and cash equivalents, beginning of period     17,335,734         13,858,659  
Cash and cash equivalents, end of period $   9,413,258     $   19,868,906  

Company Contact:
Mark A. Featherstone
Chief Financial Officer of OPT

Investor Relations Contact:
Andrew Barwicki
Barwicki Investor Relations Inc.

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