Ocean Power Technologies Announces Third Quarter Fiscal 2018 Results
Fiscal Third Quarter Highlights
- Signed contract with
Premier Oil for a feasibility study regarding deployment of a PowerBuoy™ for site decommissioning operations in theNorth Sea ; - Added key leadership with extensive experience in subsea systems and engineering;
- Completed relocation to expanded corporate headquarters and manufacturing operations;
- Established presence based in
Norway as we work with potential customers in the region; - Additional PowerBuoy™ unit builds approved;
- Continued to cultivate commercialization opportunities for PB3 PowerBuoy™ for use in remote offshore power and real-time data communications applications;
- Cash and equivalents of
$14.4 million , up from$8.4 million atApril 30, 2017 .
“The third fiscal quarter was an opportunity for further investment in our organization, as we took several strategic steps to ensure that we can meet the emerging demand for our technology,” said
Operations Review
Mr. Kirby added, “Our initial work with companies and national and international governments has helped us develop a variety of new opportunities around the world, and has also led to expansion, both in our facilities and on our management team. During the quarter, management authorized the construction of two additional PowerBuoys™ and we completed our move to a new facility, expanding both our corporate headquarters and our manufacturing operations. This new facility will support the completion of the four additional PB3 units, two of which we announced last quarter. In addition, we added
“We remain excited and encouraged that our PB3 PowerBuoy™ offers a unique technology that can meet the needs of current and potential customers in growing markets including oil and gas, defense and security, communications, and ocean observing. We have made significant investments in increased sales and marketing activities, along with initiatives to partner with others and bring about continuous performance improvements, which we believe are critical to our long-term success, and can result in a robust pipeline of potential customers,” concluded Kirby.
Financial Review
Third Quarter Overview
No revenue was recorded for the third quarter of fiscal 2018 ended
The net loss for the third quarter of fiscal 2018 was
First Nine Months Overview
Revenue for the first nine months of fiscal 2018 was
Balance Sheet and Cash Flow
Total cash, cash equivalents, and marketable securities were
Conclusion
Mr. Kirby closed by stating “We are very excited about where we are now in our product commercialization and business development efforts. We believe that we have a unique product, a great strategy, and an exceptional team. We intend to continue our work to bring this technology to the marketplace and build relationships with quality customers around the globe.”
Conference Call & Webcast Details
Ocean Power Technologies’ management will host a conference call and webcast to review the third 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 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, ocean observing, 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:
Alpha IR Group
Phone 312 445-2870
| Ocean Power Technologies, Inc. and Subsidiaries | ||||||||||
| Consolidated Balance Sheets | ||||||||||
| (in thousands, except share data) | ||||||||||
| January 31, 2018 | April 30, 2017 | |||||||||
| (Unaudited) | ||||||||||
| ASSETS | ||||||||||
| Current assets: | ||||||||||
| Cash and cash equivalents | $ | 14,369 | $ | 8,421 | ||||||
| Marketable securities | 25 | 25 | ||||||||
| Restricted cash- short-term | 382 | 334 | ||||||||
| Accounts receivable | - | 48 | ||||||||
| Unbilled receivables | 2 | 296 | ||||||||
| Litigation receivable | 350 | - | ||||||||
| Other current assets | 767 | 622 | ||||||||
| Total current assets | 15,895 | 9,746 | ||||||||
| Property and equipment, net | 657 | 170 | ||||||||
| Restricted cash- long-term | 154 | 154 | ||||||||
| Other noncurrent assets | 3 | 3 | ||||||||
| Total assets | $ | 16,709 | $ | 10,073 | ||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||
| Current liabilities: | ||||||||||
| Accounts payable | $ | 234 | $ | 586 | ||||||
| Accrued expenses | 1,689 | 3,059 | ||||||||
| Litigation payable | 350 | - | ||||||||
| Warrant liabilities | 241 | 323 | ||||||||
| Current portion of capital lease obligations | 31 | 35 | ||||||||
| Deferred credits payable current | 600 | 600 | ||||||||
| Total current liabilities | 3,145 | 4,603 | ||||||||
| Long-term portion of capital lease obligations | 1 | 23 | ||||||||
| Deferred rent | 140 | - | ||||||||
| Total liabilities | 3,286 | 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 | 208,130 | 193,234 | ||||||||
| Accumulated deficit | (194,284 | ) | (187,370 | ) | ||||||
| Accumulated other comprehensive loss | (141 | ) | (160 | ) | ||||||
| Total stockholders' equity | 13,423 | 5,447 | ||||||||
| Total liabilities and stockholders’ equity | $ | 16,709 | $ | 10,073 | ||||||
| Ocean Power Technologies, Inc. and Subsidiaries | |||||||||||||||
| Consolidated Statements of Operations | |||||||||||||||
| (in thousands, except per share data) | |||||||||||||||
| (Unaudited) | |||||||||||||||
| Three months ended January 31, | Nine months ended January 31, | ||||||||||||||
| 2018 | 2017 | 2018 | 2017 | ||||||||||||
| Revenues | $ | - | $ | 221 | $ | 289 | $ | 593 | |||||||
| Cost of revenues | - | 363 | 193 | 615 | |||||||||||
| Gross profit/(loss) | - | (142) | 96 | (22) | |||||||||||
| Operating expenses: | |||||||||||||||
| Product development costs | 1,318 | 950 | 3,398 | 3,894 | |||||||||||
| Selling, general and administrative costs | 1,576 | 1,617 | 4,964 | 4,859 | |||||||||||
| Total operating expenses | 2,894 | 2,567 | 8,362 | 8,753 | |||||||||||
| Operating loss | (2,894) | (2,709) | (8,266) | (8,775) | |||||||||||
| Gain/(loss) due to the change in fair value of warrant liabilities | 14 | (104) | 82 | 1,161 | |||||||||||
| Interest income, net | 42 | 24 | 51 | 26 | |||||||||||
| Other income | 4 | - | 4 | - | |||||||||||
| Foreign exchange gain/(loss) | 52 | (26) | 107 | (20) | |||||||||||
| Loss before income taxes | (2,782) | (2,815) | (8,022) | (7,608) | |||||||||||
| Income tax benefit | 1,119 | 698 | 1,119 | 698 | |||||||||||
| Net loss | $ | (1,663) | $ | (2,117) | $ | (6,903) | $ | (6,910) | |||||||
| Basic and diluted net loss per share | $ | (0.09) | $ | (0.37) | $ | (0.48) | $ | (1.84) | |||||||
| Weighted average shares used to compute | |||||||||||||||
| basic and diluted net loss per share | 18,150,494 | 5,783,494 | 14,441,383 | 3,763,564 | |||||||||||
| Ocean Power Technologies, Inc. and Subsidiaries | ||||||||||||
| Consolidated Statements of Cash Flows | ||||||||||||
| (in thousands) | ||||||||||||
| (Unaudited) | ||||||||||||
| Nine months ended January 31, | ||||||||||||
| 2018 | 2017 | |||||||||||
| Cash flows from operating activities: | ||||||||||||
| Net loss | $ | (6,903 | ) | $ | (6,910 | ) | ||||||
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||||||
| Foreign exchange (gain)/loss | (107 | ) | 20 | |||||||||
| Depreciation | 79 | 104 | ||||||||||
| Loss on disposal of property, plant and equipment | 5 | - | ||||||||||
| Compensation expense related to stock option grants and restricted stock | 250 | 998 | ||||||||||
| Change in fair value of warrant liabilities | (82 | ) | (1,161 | ) | ||||||||
| Payment for litigation settlement | - | (500 | ) | |||||||||
| Changes in operating assets and liabilities: | ||||||||||||
| Accounts receivable | 48 | - | ||||||||||
| Unbilled receivable | 294 | (286 | ) | |||||||||
| Other assets | (8 | ) | (53 | ) | ||||||||
| Accounts payable | (356 | ) | (186 | ) | ||||||||
| Accrued expenses | (1,399 | ) | 461 | |||||||||
| Deferred rent | 2 | - | ||||||||||
| Unearned revenues | - | (39 | ) | |||||||||
| Net cash used in operating activities | (8,177 | ) | (7,552 | ) | ||||||||
| Cash flows from investing activities: | ||||||||||||
| Purchases of marketable securities | (25 | ) | (25 | ) | ||||||||
| Maturities of marketable securities | 25 | 75 | ||||||||||
| Leasehold improvements and purchase of equipment | (554 | ) | (22 | ) | ||||||||
| Net cash (used in) provided by investing activities | (554 | ) | 28 | |||||||||
| Cash flows from financing activities: | ||||||||||||
| Proceeds from issuance of common stock and related warrants, net of costs | 14,647 | 12,150 | ||||||||||
| Payment of capital lease obligations | (26 | ) | (70 | ) | ||||||||
| Acquisition of treasury stock | (37 | ) | (122 | ) | ||||||||
| Net cash provided by financing activities | 14,584 | 11,958 | ||||||||||
| Effect of exchange rate changes on cash, cash equivalents and restricted cash | 143 | (55 | ) | |||||||||
| Net increase in cash, cash equivalents and restricted cash | 5,996 | 4,379 | ||||||||||
| Cash, cash equivalents and restricted cash, beginning of period | 8,909 | 7,030 | ||||||||||
| Cash, cash equivalents and restricted cash, end of period | $ | 14,905 | $ | 11,409 | ||||||||
Source: Ocean Power Technologies, Inc.