Ocean Power Technologies, Inc. Announces Second Quarter Fiscal 2023 Results
- Total orders for the 2Q23 were
$2.3 million, as compared to $0.1 millionfor the second quarter ended October 31, 2021(“2Q22”). Total orders for the six months ended 2Q23 were $2.9 million, comparing favorably to total orders of $0.6 millionfor the 2Q22.
- Delivered gross margin of
$0.2 millionthrough the six months ended October 31, 2022as compared to a gross loss of $(0.2) millionthrough the six months ended October 31, 2021
- Revenues of
$0.3 millionfor the 2Q23 increased 23% over 2Q22 revenues, while revenues for the six months ended October 31, 2022, increased to $1.0 million, compared to $0.5 millionfor the same period in the prior year.
- 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. This is expected to be completed by December 31, 2022.
- Awarded a
$0.5 millioncontract to assist a U.S.government agency with land, air, space, port and costal surveillance activities.
$1.1 millionpayment in advance for the planned Phase II development and test of a modular and scalable Mass-on-Spring Wave Energy Converter (MOSWEC) PowerBuoy, a next-generation wave energy converter. This project is expected to be completed over the next 18-24 months.
- Continued second round of field testing of a proprietary next-generation Maritime Domain Awareness ("MDA") solution. Remained on plan for completion during the quarter ended
January 31, 2023.
- Entered final phase of integration of MAR, including the start of manufacturing WAM-Vs at our
Management Commentary –
“We continue to believe we will meet our estimate for
FINANCIAL HIGHLIGHTS – 2Q23
- Revenues for the 2Q23 were
$0.3 million, as compared to $0.2 millionin 2Q22. Revenues increased to $1.0 millionfor the six months ended 2Q23, as compared to $0.5 millionfor the same period in the six month period, reflecting growth of 96.0%. This growth has been driven by sales of WAM-V’s and an increase in Strategic Consulting Services during the first six months ended 2Q23.
- Engineering and product development costs were
$1.8 millionin the 2Q23, down slightly from the $2.2 millionin 1Q23 due to timing of projects and programs.
- Selling, general, and administrative (SG&A) costs were
$4.6 million for the 2Q23, reflecting an increase over $4.1 millionfor 1Q23. This increase is mainly related to increased payroll related expenses in the quarter.
- Net loss was
$4.8 millionfor the 2Q23, as compared to $5.2 millionfor the 2Q22. Net loss was $10.7 millionfor the six months ended 2Q23, as compared to a net loss of $8.3 millionfor the same period 2Q22.
Balance Sheet and Cash Flow:
- Combined cash, unrestricted cash, cash equivalents and short-term investments at October 31, 2022 was
- Bank debt remained at
$0at October 31, 2022.
- Net cash used in operating activities for the six months ended 2Q23 was
$11.0 million, compared to $10.4 million for the same period in the prior year.
Conference Call & Webcast
As announced on
- The dial-in numbers for the conference call are 877-407-8291 or 1-201-689-8345.
- Live Webcast: Link to 2Q23 Webcast for OPTT
- Call Replay: Will be available by telephone approximately two hours after the call's completion until
March 15, 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 3908.
- Webcast Replay: The archived webcast will also be available on the OPT investor relations section of its website.
The Company also announced that it will participate in a fireside chat hosted by
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
Investors: 609-730-0400 x401 or InvestorRelations@oceanpowertech.com
Media: 609-730-0400 x402 or MediaRelations@oceanpowertech.com
Consolidated Balance Sheets
(in thousands, except share data)
|Cash and cash equivalents||$||10,030||$||7,885|
|Restricted cash, short-term||258||258|
|Other current assets||2,647||467|
|Total current assets||50,719||59,304|
|Property and equipment, net||506||445|
|Right-of-use asset, net||600||752|
|Restricted cash, long-term||219||219|
|LIABILITIES AND SHAREHOLDERS’ EQUITY|
|Contingent liabilities, current portion||540||748|
|Right-of-use liability, current portion||324||319|
|Total current liabilities||4,472||2,978|
|Deferred tax liability||203||203|
|Right-of-use liability, less current portion||367||538|
|Contingent liabilities, less current portion||829||843|
|Commitments and contingencies|
|Additional paid-in capital||323,564||322,932|
|Accumulated other comprehensive loss||(46||)||(46||)|
|Total shareholders’ equity||58,767||68,831|
|Total liabilities and shareholders’ equity||$||64,638||$||73,393|
Consolidated Statements of Operations
(in thousands, except per share data)
|Three months ended
||Six months ended
|Cost of revenues||264||300||784||723|
|Gross margin (loss)||39||(53||)||233||(204||)|
|Change in fair value of contingent consideration||(90||)||—||(221||)|
|Interest income, net||234||19||375||38|
|Gain on extinguishment of PPP loan||—||—||—||891|
|Other income (expense), net||1,202||—||1,202||—|
|Foreign exchange loss||—||(5||)||—||(5||)|
|Loss before income taxes||(4,844||)||(5,171||)||(10,696||)||(9,291||)|
|Income tax benefit||—||—||—||1,041|
|Basic and diluted net loss per share||$||(0.09||)||$||(0.10||)||$||(0.19||)||$||(0.16||)|
|Weighted average shares used to compute basic and diluted net loss per share||55,898,528||52,460,233||55,894,090||52,459,122|
Consolidated Statements of Cash Flows
|Six months ended
|Cash flows from operating activities:|
|Adjustments to reconcile net loss to net cash used in operating activities:|
|Foreign exchange loss (gain)||—||5|
|Depreciation of fixed assets||117||70|
|Amortization of intangible assets||79||12|
|Amortization of right of use asset||152||139|
|Amortization of premium on marketable securities||191||—|
|Gain on extinguishment of PPP Loan||—||(891||)|
|Compensation expense related to equity compensation||632||547|
|Changes in operating assets and liabilities:|
|Changes in operating assets and liabilities:|
|Change in lease liability||(166||)||(147||)|
|Change in contingent consideration liability||(221||)||—|
|Net cash used in operating activities||(11,001||)||(10,375||)|
|Cash flows from investing activities:|
|Redemptions of marketable securities||33,150||—|
|Purchases of marketable securities||(20,108||)||—|
|Dividends and interest on investments||283||—|
|Purchase of property, plant and equipment||(179||)||(24||)|
|Net cash provided by (used in) investing activities||13,146||(24||)|
|Cash flows from financing activities:|
|Proceeds from stock option exercises||—||21|
|Net cash provided by financing activities||—||21|
|Effect of exchange rate changes on cash, cash equivalents and restricted cash||—||(20||)|
|Net increase / (decrease) in cash, cash equivalents and restricted cash||2,145||(10,398||)|
|Cash, cash equivalents and restricted cash, beginning of period||8,362||83,634|
|Cash, cash equivalents and restricted cash, end of period||$||10,507||$||73,236|
Source: Ocean Power Technologies, Inc.