Ocean Power Technologies, Inc. Announces First Quarter Fiscal 2023 Results
- Revenues increased to
$714,000in 1Q23, as compared to $272,000in 1Q22.
- Selected by the
U.S. Departmentof Energy (DOE) for the Phase II development of a next-generation wave energy converter. In the DOE’s recently published awards for clean energy Small Business Innovation Research (SBIR) projects, OPT will receive up to $1.1 million over the next 18-24 months to develop and test a modular and scalable Mass-on-Spring Wave Energy Converter (MOSWEC) PowerBuoy.
- Continued second round of field testing of a proprietary next-generation Maritime Domain Awareness ("MDA") solution, which is scheduled to be completed in 3Q23.
- Advanced the plans to start manufacturing WAM-Vs at our
Management Commentary –
"I was pleased with our results this quarter, particularly with the progress within business development, and I remain encouraged with our ability to achieve our
FINANCIAL HIGHLIGHTS – 1Q23
- Revenues increased to
$714,000in 1Q23, driven by WAM-V sales and leases and growth of Strategic Consulting Services.
- Engineering and product development costs were
$2.2 millionfor the 1Q23, which were in line with recent levels, as the trailing four-quarter average in FY22 was $2.3 million.
- Selling, general, and administrative (SG&A) costs increased
$166,000sequentially from the 4Q22 to $4.1 millionfor the 1Q23. This increase is mainly related to increased payroll related expenses in the quarter.
- Net loss was
$5.9 millionfor 1Q23, as compared to a net loss of $3.1 millionfor the 1Q22.
Balance Sheet and Cash Flow:
- Combined cash, unrestricted cash, cash equivalents and short-term investments at
July 31, 2022and 2021 was $52.4 millionand $77.7 million, respectively.
- Bank debt was
$0at both July 31, 2022and July 31, 2021.
- Net cash used in operating activities for 1Q23 was
$5.1 million, which was comparable to the 1Q22.
Conference Call & Webcast
As announced on
- The dial-in numbers for the conference call are 877-407-8291 or 201-689-8345.
- Live webcast: Link to 1Q23 Webcast for OPTT
A replay will be available by telephone approximately two hours after the call's completion until
OPT provides intelligent maritime solutions and services that enable safer, cleaner, and more productive ocean operations for the defense and security, oil and gas, science and research, and offshore wind markets. Our PowerBuoy® platforms provide clean and reliable electric power and real-time data communications for remote maritime and subsea applications. We also provide WAM-V® autonomous surface vessels (ASV) and marine robotics services through our wholly owned subsidiary Marine Advanced Robotics and strategic consulting services including simulation engineering, software engineering, concept design and motion analysis through our wholly owned subsidiary 3Dent. We are headquartered in
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 that could be inaccurate and 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
Consolidated Balance Sheets
(in thousands, except share data)
|Cash and cash equivalents||$||9,176||$||7,885|
|Restricted cash, short-term||258||258|
|Other current assets||480||467|
|Total current assets||54,011||59,304|
|Property and equipment, net||458||445|
|Right-of-use asset, net||677||752|
|Restricted cash, long-term||219||219|
|LIABILITIES AND SHAREHOLDERS’ EQUITY|
|Right-of-use liability, current portion||328||319|
|Contingent liabilities, current portion||640||748|
|Total current liabilities||3,217||2,978|
|Deferred tax liability||203||203|
|Contingent liabilities, less current portion||820||843|
|Right-of-use liability, less current portion||446||538|
|Commitments and contingencies (Note 13)|
|Additional paid-in capital||323,265||322,932|
|Accumulated other comprehensive loss||(46||)||(46||)|
|Total shareholders’ equity||63,312||68,831|
|Total liabilities and shareholders’ equity||$||67,998||$||73,393|
Consolidated Statements of Operations
(in thousands, except per share data)
|Three months ended
|Cost of revenues||520||423|
|Gross margin (loss)||194||(151||)|
|Change in fair value of contingent consideration||(131||)||—|
|Interest income, net||141||20|
|Gain on extinguishment of PPP loan||—||891|
|Loss before income taxes||(5,852||)||(4,120||)|
|Income tax benefit||—||1,041|
|Basic and diluted net loss per share||$||(0.10||)||$||(0.06||)|
|Weighted average shares used to compute basic and diluted net loss per share||55,889,651||52,458,011|
Consolidated Statements of Cash Flows
|Three months ended
|Cash flows from operating activities:|
|Adjustments to reconcile net loss to net cash used in operating activities:|
|Depreciation of fixed assets||43||40|
|Amortization of intangible assets||40||6|
|Amortization of right of use asset||75||69|
|Amortization of premium on marketable securities||220||—|
|Gain on extinguishment of PPP Loan||—||(891||)|
|Compensation expense related to equity compensation||333||390|
|Change in contingent liability consideration||(131||)||—|
|Changes in operating assets and liabilities:|
|Change in right of use lease liability||(82||)||(75||)|
|Net cash used in operating activities||(5,092||)||(5,287||)|
|Cash flows from investing activities:|
|Redemptions of marketable securities||17,252||—|
|Purchase of marketable securities||(10,813||)||—|
|Purchase of property, plant and equipment||(56||)||(7||)|
|Net cash provided by (used in) investing activities||6,383||(7||)|
|Cash flows from financing activities:|
|Proceeds from issuance of common stock||—||—|
|Net cash provided by financing activities||—||—|
|Effect of exchange rate changes on cash, cash equivalents and restricted cash||—||(14||)|
|Net increase / (decrease) in cash, cash equivalents and restricted cash||1,291||(5,308||)|
|Cash, cash equivalents and restricted cash, beginning of period||8,362||83,634|
|Cash, cash equivalents and restricted cash, end of period||$||9,653||$||78,326|
Source: Ocean Power Technologies, Inc.