Ocean Power Technologies Announces Second Quarter Fiscal 2020 Results
Landmark PB3 PowerBuoy® Sale
Investor Conference Call and Webcast on
- First PB3 PowerBuoy® Sale – Two new contracts signed with Enel Green Power Chile for a spring 2020 installation of a turn-key ocean-based laboratory solution using a PB3 PowerBuoy® power and communications platform off the coast of
Chile with anticipated FY20 revenues of nearly$2 million . - Gulf of
Mexico front-end engineering design study – OPT autonomous power and communications system solution approved for operational use by leading offshore oil and gas customer to monitor deep water wells during decommissioning in the Gulf ofMexico . - North Sea Deployment - Exclusion Zone Monitoring™ surveillance solution deployed in August for
Premier Oil relaying real-time video, radar, and data to customer operations inAberdeen , Scotland. - One-Year Milestone in
Adriatic Sea - PB3 PowerBuoy® leased byEni, S.p.A . and deployed in theAdriatic Sea marked a full year of continuous operation aligning with our customer’s goal to decarbonize its operations through renewable technologies.
Management Commentary on Recent Operational Highlights
“As we deliver on our first PowerBuoy® sale, our current showcase deployments are providing baseline opportunities for strategic growth and further capability expansion into these and other new markets,” said
Second Quarter FY 2020 Financial Review
Revenue for the second quarter of fiscal 2020 was $204,000, an increase of
Fiscal First Half 2020 Financial Review
Revenue for the first six months of fiscal 2020 was $406,000, an increase of
Balance Sheet and Cash Flow
Total cash, cash equivalents, and restricted cash were
Conference Call & Webcast
Ocean Power Technologies’ management will host a conference call and webcast to review its 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/investor-relations.
A digital replay will be available by telephone approximately two hours after the completion of the call and until
About
Headquartered in Monroe Township, New Jersey, Ocean Power Technologies aspires to transform the world through durable, innovative and cost-effective ocean energy solutions. Its PB3 PowerBuoy® solution platform provides clean and reliable electric power and real-time data communications for remote offshore and subsea applications in markets such as offshore oil and gas, defense and 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 Annual Report on Form 10-K that has been filed with the U.S. 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 section.
| Ocean Power Technologies, Inc. and Subsidiaries | ||||||||||
| Consolidated Balance Sheets | ||||||||||
| (in thousands, except share data) | ||||||||||
| October 31, 2019 | April 30, 2019 | |||||||||
| (Unaudited) | ||||||||||
| ASSETS | ||||||||||
| Current assets: | ||||||||||
| Cash and cash equivalents | $ | 10,495 | $ | 16,660 | ||||||
| Restricted cash- short-term | 707 | 344 | ||||||||
| Accounts receivable | 997 | 63 | ||||||||
| Contract assets | 111 | 15 | ||||||||
| Other current assets | 904 | 537 | ||||||||
| Total current assets | 13,214 | 17,619 | ||||||||
| Property and equipment, net | 559 | 592 | ||||||||
| Right-of-use asset, net | 1,265 | - | ||||||||
| Restricted cash- long-term | 220 | 155 | ||||||||
| Total assets | $ | 15,258 | $ | 18,366 | ||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||
| Current liabilities: | ||||||||||
| Accounts payable | $ | 177 | $ | 312 | ||||||
| Accrued expenses | 1,930 | 1,938 | ||||||||
| Contract liabilities | 990 | 188 | ||||||||
| Warrant liabilities | - | 6 | ||||||||
| Right-of-use liability- current | 215 | - | ||||||||
| Total current liabilities | 3,312 | 2,444 | ||||||||
| Right-of-use liability | 1,198 | - | ||||||||
| Deferred rent | - | 147 | ||||||||
| Total liabilities | 4,510 | 2,591 | ||||||||
| 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 100,000,000 shares, | ||||||||||
| issued 6,489,668 and 5,425,517 shares, respectively | 7 | 5 | ||||||||
| Treasury stock, at cost; 4,251 and 3,770 shares, respectively | (302 | ) | (301 | ) | ||||||
| Additional paid-in capital | 227,214 | 226,026 | ||||||||
| Accumulated deficit | (215,998 | ) | (209,784 | ) | ||||||
| Accumulated other comprehensive loss | (173 | ) | (171 | ) | ||||||
| Total stockholders' equity | 10,748 | 15,775 | ||||||||
| Total liabilities and stockholders’ equity | $ | 15,258 | $ | 18,366 | ||||||
| Ocean Power Technologies, Inc. and Subsidiaries | |||||||||||||||||||
| Consolidated Statements of Operations | |||||||||||||||||||
| (in thousands, except per share data) | |||||||||||||||||||
| (Unaudited) | |||||||||||||||||||
| Three months ended October 31, | Six months ended October 31, | ||||||||||||||||||
| 2019 | 2018 | 2019 | 2018 | ||||||||||||||||
| Revenues | $ | 204 | $ | 141 | $ | 406 | $ | 172 | |||||||||||
| Cost of revenues | 288 | 637 | 655 | 780 | |||||||||||||||
| Gross loss | (84 | ) | (496 | ) | (249 | ) | (608 | ) | |||||||||||
| Operating expenses: | |||||||||||||||||||
| Engineering and product development costs | 1,309 | 1,574 | 2,507 | 2,722 | |||||||||||||||
| Selling, general and administrative costs | 1,838 | 1,849 | 3,534 | 3,902 | |||||||||||||||
| Total operating expenses | 3,147 | 3,423 | 6,041 | 6,624 | |||||||||||||||
| Operating loss | (3,231 | ) | (3,919 | ) | (6,290 | ) | (7,232 | ) | |||||||||||
| Gain due to the change in fair value of warrant liabilities | - | 51 | 6 | 136 | |||||||||||||||
| Interest income, net | 32 | 7 | 74 | 21 | |||||||||||||||
| Foreign exchange gain/(loss) | 10 | (29 | ) | (4 | ) | (55 | ) | ||||||||||||
| Net loss | $ | (3,189 | ) | $ | (3,890 | ) | $ | (6,214 | ) | $ | (7,130 | ) | |||||||
| Basic and diluted net loss per share | $ | (0.51 | ) | $ | (4.20 | ) | $ | (1.01 | ) | $ | (7.78 | ) | |||||||
| Weighted average shares used to compute | |||||||||||||||||||
| basic and diluted net loss per share | 6,259,655 | 926,175 | 6,150,061 | 916,934 | |||||||||||||||
| Ocean Power Technologies, Inc. and Subsidiaries | ||||||||||||
| Consolidated Statements of Cash Flows | ||||||||||||
| (in thousands) | ||||||||||||
| (Unaudited) | ||||||||||||
| Six months ended October 31, | ||||||||||||
| 2019 | 2018 | |||||||||||
| Cash flows from operating activities: | ||||||||||||
| Net loss | $ | (6,214 | ) | $ | (7,130 | ) | ||||||
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||||||
| Foreign exchange loss | 4 | 55 | ||||||||||
| Depreciation and amortization | 173 | 90 | ||||||||||
| Compensation expense related to stock option grants and restricted stock | 168 | 135 | ||||||||||
| Gain due to the change in fair value of warrant liabilities | (6 | ) | (136 | ) | ||||||||
| Changes in operating assets and liabilities: | ||||||||||||
| Accounts receivable | (934 | ) | (296 | ) | ||||||||
| Unbilled receivables | - | 71 | ||||||||||
| Contract assets | (96 | ) | (23 | ) | ||||||||
| Other assets | (6 | ) | (109 | ) | ||||||||
| Accounts payable | (138 | ) | 24 | |||||||||
| Accrued expenses | (75 | ) | (56 | ) | ||||||||
| Deferred rent | - | 5 | ||||||||||
| Deferred credit payable | - | (600 | ) | |||||||||
| Unearned revenue | - | (18 | ) | |||||||||
| Change in lease liability | (96 | ) | - | |||||||||
| Contract liabilities | 802 | 373 | ||||||||||
| Net cash used in operating activities | (6,418 | ) | (7,615 | ) | ||||||||
| Cash flows from investing activities: | ||||||||||||
| Purchases of marketable securities | - | (25 | ) | |||||||||
| Maturities of marketable securities | - | 50 | ||||||||||
| Purchase of computers, equipment and furniture | (41 | ) | (52 | ) | ||||||||
| Net cash used in investing activities | (41 | ) | (27 | ) | ||||||||
| Cash flows from financing activities: | ||||||||||||
| Proceeds from issuance of common stock, net of issuance costs | - | 68 | ||||||||||
| Proceeds from issuance of common stock- AGP At The Market offering, | ||||||||||||
| net of issuance costs | 746 | - | ||||||||||
| Costs associated with exercise of pre-funded warrants | (18 | ) | - | |||||||||
| Payment of capital lease obligations | - | (19 | ) | |||||||||
| Acquisition of treasury stock | (1 | ) | (1 | ) | ||||||||
| Net cash provided by financing activities | 727 | 48 | ||||||||||
| Effect of exchange rate changes on cash, cash equivalents and restricted cash | (5 | ) | (75 | ) | ||||||||
| Net decrease in cash, cash equivalents and restricted cash | (5,737 | ) | (7,669 | ) | ||||||||
| Cash, cash equivalents and restricted cash, beginning of period | 17,159 | 12,225 | ||||||||||
| Cash, cash equivalents and restricted cash, end of period | $ | 11,422 | $ | 4,556 | ||||||||
Investor Relations Contact:
Porter, LeVay & Rose
Email: ocean@plrinvest.com
Phone: 212-564-4700
Source: Ocean Power Technologies, Inc.