Ocean Power Technologies, Inc. Announces Fourth Quarter Fiscal 2023 Results
- Total orders for the 4Q23 were
$2.3 million, as compared to $0.7 millionfor the fourth quarter ended April 30, 2022(“4Q22”).
- Revenues for the 4Q23 of
$1.0 milliongrew 29.5% over 4Q22 revenues.
April 2023, OPT completed a $0.5Mextension of its lease contract to continue providing their WAM-V® 22 Autonomous Surface Vehicle asset to a U.S.Government Agency Overseas for ongoing autonomous maritime activities.
March 2023, OPT deployed the scalable Mass-on-Spring Wave Energy Converter (MOSWEC) PowerBuoy® off the coast of New Jerseyas part of the U.S. Department of Energy (DOE) Phase IIdevelopment project, which is a $1.1 millionfollow-on project.
- Total orders for FY23 were
$6.3 million, a 250% increase when compared to total orders of $1.8 millionfor full year ended April 30, 2022(“FY22”).
- Revenues for FY23 increased 55.3% to
$2.7 million, over FY22.
- Gross profit for FY23 was
$0.2 million, as compared to a gross loss of $(0.1) millionin FY22.
- Partnered with
Task Force59 of the U.S. Navyon a new project in Bahrainto support the Digital Horizon exercise for use of Unmanned Surface Vehicles which was completed in January 2023.
- Awarded a minimum
$0.4 millionfollow-on new contract with Task Force59 in Bahrainto provide WAM-V’s to support the International Maritime Exercise 2023 (IMX23) because of the successful demonstrations during Digital Horizon.
- Obtained final acceptance for the buoy deployed at Enel Green Power Chile (EGP).
- Deployed the first WAM-V 16 leased to
Sulmara Subsea, Inc.(Sulmara) and obtained follow on orders for additional WAM-V leases from Sulmara. The initial lease to Sulmara was noteworthy as it was the first WAM-V sale using our leasing model.
- Awarded contract for
$0.5 millionwith Department of Homeland Security Science and Technology Directorate on Maritime Domain Awareness– Sensors (MDA-S) Initiative which is expected to be completed during fiscal 2024.
- Made considerable progress on the development of Maritime Domain Awareness Services (MDAS) platform.
- Completed Phase I for
$0.2 millionon the National Oceanic and Atmospheric Administration(NOAA) SBIR Dynamic Swarming of unmanned surface vehicles (USV’s) for Hydrographic Surveys in Disaster Recovery Project. The goal of the project is to design a command-and-control infrastructure to optimize sonar data and USV survey lines to facilitate many USV’s to autonomously survey a disaster area, such as those created by hurricanes.
- Entered final phase of integration of Marine Advanced Robotics (MAR), including the start of manufacturing WAM-Vs at our
Management Commentary – Dr.
“Fiscal 2023 was a milestone year for our Company as we put our strategy of becoming a leading provider of autonomous vehicles and Data-as-a-Service for the marine industry in motion. Highlights include significant progress on MDAS platform and expanding the government agencies we work with. In addition, we had our best year of revenue generation since fiscal 2015 and generated a positive gross margin for the first time since fiscal 2016. Most importantly, as we look to the future, we continue to grow our order pipeline, which now stands at approximately
- Revenues for the 4Q23 were
$1.0 million, 29.5% growth over 4Q22 revenues.
- Gross loss for 4Q23 was
$133 thousand, as compared to a gross loss of $44 thousandin Q422.
- Operating expenses were
$8.8 millionin the 4Q23, up sequentially from $7.2 millionin 3Q23, due to timing of projects and programs.
- Net loss was
($9.5) millionfor 4Q23, as compared to a net loss of ($5.1) millionfor the 4Q22.
- Revenues for FY23 increased to
$2.7 million, a 55.3% increase over FY22. This growth has been driven by sales of WAM-V autonomous vehicles and an increase in strategic consulting services during the year.
- Gross profit for FY23 was
$0.2 million, as compared to a gross loss of $(0.1) millionfor FY22.
- Operating expenses were
$28.3 millionin FY23, as compared to $21.5 millionin FY22, primarily due to the inclusion of a full year of activity related to our MAR acquisition, and strategic increases in bonus and headcount, including additional resource needs in the areas of sales and marketing.
- Net loss was
($26.3) millionfor FY23, as compared to a net loss of ($18.9) millionfor FY22 which included non-cash equity compensation expense of $1.5 millionand $1.2 millionfor FY23 and FY22, respectively.
- Backlog was
$4.0 millionas of April 30, 2023. Our backlog includes unfilled firm written orders for our products and services from commercial or governmental customers, which we call orders. We believe the disclosure of orders is a useful metric for investors, as it helps support our future revenue expectations and adds validity to our strategic growth plan. Company management uses orders as a tool to manage expected growth, budget and cash requirements, and to monitor the success of our sales and marketing efforts. If any of our orders were to be terminated, delayed or revised downward, our orders and our backlog would be reduced by the expected value of the remaining terms of such contract.
- Combined cash, unrestricted cash, cash equivalents and short-term investments as of
April 30, 2023, was $34.7 million, which compares to $40.9 millionas of January 31, 2023, and $57.3 millionat the beginning of the fiscal year.
- The Company continues to have no bank debt as of
April 30, 2023.
- Net cash used in operating activities for FY23 was approximately
$21.7 million, compared to $21.3 millionFY22.
Introduction of Fiscal 2024 Annual Guidance
The Company is also introducing the following select guidance for full-year fiscal 2024:
- Contracted orders for FY24 are expected to be approximately
$15 million. This represents growth of more than 2x over FY23.
The Company’s anticipated order growth will be driven primarily by the continued ramp in its DaaS line, WAM-V sales and leases, and its strategic consulting business.
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 Webcast - OPT Q4 23 Earnings
- Call Replay: Will be available by telephone approximately two hours after the call's completion until
August 13, 2023. You may access the replay by dialing 877-660-6853 from the U.S.or 201-612-7415 for international callers and using the Conference ID 1373 8942.
- Webcast Replay: The archived webcast will also be available on the OPT investor relations section of its website.
Forward-Looking Statements and Projections
This release contains 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
Pipeline projections, and orders included in our backlog, can be subject to change as a result of project accelerations, cancellations or delays due to various factors, including but not limited to commercial issues, regulatory requirements, or general economic conditions impacting our customers. These factors can also cause orders to convert to revenue in periods and at levels different than our original projections. We adjust our pipeline, backlog and orders on an ongoing basis as a result of these developments, and based upon ongoing communication with our customers. There can be no assurance as to our customers’ requirements or that our estimates are accurate.
Financial Tables Follow
Additional information may be found in the Company's Annual Report on Form 10-K that will be filed with the
Consolidated Balance Sheets
(in thousands, except share data)
|Cash and cash equivalents||$||6,883||$||7,885|
|Restricted cash, short-term||65||258|
|Other current assets||994||467|
|Total current assets||$||37,673||$||59,304|
|Property and equipment, net||1,280||445|
|Right-of-use assets, net||1,751||752|
|Restricted cash, long-term||155||219|
|LIABILITIES AND SHAREHOLDERS' EQUITY|
|Earn out payable||1,500||—|
|Right-of-use liabilities, current portion||529||319|
|Contingent liabilities, current portion||1,202||748|
|Total current liabilities||$||7,907||$||2,978|
|Deferred tax liability||203||203|
|Right-of-use liabilities, less current portion||1,311||538|
|Contingent liabilities, less current portion||—||843|
|Commitments and contingencies (Note 16)|
|Additional paid-in capital||324,393||322,932|
|Accumulated other comprehensive loss||(45||)||(46||)|
|Total shareholders' equity||43,953||68,831|
|Total liabilities and shareholders’ equity||$||53,374||$||73,393|
Consolidated Statements of Operations
(in thousands, except per share data)
|Twelve months ended
|Cost of revenues||1,114||800||2,496||1,860|
|Gross margin (loss)||(134||)||(44||)||236||(101||)|
|(Gain)/loss from change in fair value of consideration||958||—||1,112||(60||)|
|Total operating expenses||9,752||5,801||29,452||21,452|
|Interest income, net||298||68||902||124|
|Other income, employee retention credit||49||—||1,251||—|
|Other income, proceeds from insurance claim||—||—||458||—|
|Gain on extinguishment of PPP loan||—||—||—||890|
|Loss on liquidation of subsidiary||—||(157||)||—||(157||)|
|Foreign exchange (loss) / gain||(1||)||(1||)||1||(1||)|
|Loss before income taxes||$||(9,540||)||$||(5,935||)||$||(26,604||)||$||(20,697||)|
|Income tax benefit||—||782||278||1,823|
|Basic and diluted net loss per share||$||(0.17||)||$||(0.09||)||$||(0.47||)||$||(0.35||)|
|Weighted average shares used to compute basic and diluted net loss per share||56,180,000||55,834,735||55,998,543||54,010,233|
Consolidated Statements of Cash Flows
|Twelve months ended
|Cash flows from operating activities:|
|Adjustments to reconcile net loss to net cash used in operating activities:|
|Foreign exchange (gain) / loss||(1||)||1|
|Depreciation of fixed assets||183||144|
|Amortization of intangibles||158||86|
|Amortization of right-of-use asset||296||285|
|Amortization of premium on investments||113||58|
|Change in contingent consideration liability||1,112||(60||)|
|Gain on forgiveness of PPP loan||—||(890||)|
|Loss on liquidation of subsidiary||(20||)||157|
|Compensation expense related to equity compensation||1,481||1,169|
|Deferred tax liabilities||—||(377||)|
|Changes in operating assets and liabilities, net of acquisitions:|
|Change in right of use lease liability||(311||)||(309||)|
|Net cash used in operating activities||$||(21,708||)||$||(21,296||)|
|Cash flows from investing activities:|
|Redemptions of short term investments||$||63,700||$||—|
|Purchases of short term investments||(42,219||)||(49,442||)|
|Purchase of property, plant and equipment||(1,018||)||(145||)|
|Payment for MAR acquisition, net of cash acquired||—||(4,444||)|
|Net cash (used in) provided by investing activities||$||20,463||$||(54,031||)|
|Cash flows from financing activities:|
|Proceeds from stock option exercises||$||—||$||90|
|Acquisition of treasury stock||(14||)||(3||)|
|Net cash (used in)/provided by financing activities||$||(14||)||$||87|
|Effect of exchange rate changes on cash, cash equivalents and restricted cash||$||—||$||(32||)|
|Net decrease in cash, cash equivalents and restricted cash||$||(1,259||)||$||(75,272||)|
|Cash, cash equivalents and restricted cash, beginning of year||$||8,362||$||83,634|
|Cash, cash equivalents and restricted cash, end of year||$||7,103||$||8,362|
|Supplemental disclosure of noncash investing and financing activities:|
|Issuance of stock for acquisition||$||—||$||5,855|
|Operating right of use asset obtained in exchange for operating lease liability||1,296||—|
|Contingent liability - MAR||—||1,591|
Contact Information Investors: 609-730-0400 x401 or InvestorRelations@oceanpowertech.com Media: 609-730-0400 x402 or MediaRelations@oceanpowertech.com
Source: Ocean Power Technologies, Inc.