Ocean Power Technologies, Inc. Announces Third Quarter Fiscal 2022 Results
- As previously announced, the Company completed its acquisition of Marine Advanced Robotics (MAR) on
November 15, 2021, expanding OPT's commercial offering into autonomous vehicles for maritime data services. MAR is expected to contribute approximately $2.0 millionto revenue for Fiscal Year 2023. In the 3Q22, the Company recognized $257,000of revenue related to MAR.
- Revenues grew 53% to
$484,000in the third quarter of Fiscal Year 2022 compared to $317,000for the third quarter of Fiscal Year 2021, driven by MAR and the growth of Strategic Consulting Services.
- OPT continued development of its proprietary next-generation Maritime Domain Awareness ("MDA") software, configured to provide cyber-secure autonomous monitoring of large ocean areas, such as windfarms, marine protected areas, and areas of interest to national security, suitable for installation on buoys and vehicles.
- The Company continued its offshore testing off the coast of
New Jerseyfor OPT's continued development of this leading-edge MDA solution.
- Subsequent to quarter-end,
Matthew Burdyny, a seasoned marine technology sales and strategy executive, joined OPT as Vice President, Global Sales & Marketing.
Management Commentary –
"Our third quarter was headlined by our largest acquisition to date – Marine Advanced Robotics (MAR), a manufacturer of autonomous surface vehicles, that brings new customers, revenue, and an excellent team to OPT, all of which further support our mission to become the recognized leader for Marine Domain Awareness. The addition of roaming platforms enables us to deploy our ocean data as a service solution to a more expansive customer base and allows us to expand further into the subsea data market, such as for infrastructure surveys.
"Through the continued development of our Data-as-a-Service and Power-as-a-Service business models, in combination with our Consulting Services offerings, we are attracting a broader customer group and expanding our revenue opportunities. I am excited that Matt is joining OPT. His experience in selling marine technology services and solutions will further drive our growth. We are optimistic about the direction we are heading and the momentum we are starting to feel."
- Revenues – increased to
$484,000for the 3Q22, compared to $317,000for the 3Q21, due to $257,000as contributed by MAR in addition to $120,000of growth in Strategic Consulting Services. This increase was partially offset by $210,000of project-based work, recognized in the 3Q21 and not repeated due to contract completion.
- Engineering and product development costs – were down sequentially
$617,000from the 2Q22 as a result of lower project costs. Compared to 3Q21, engineering and product development costs increased by $1.5 million, mainly due to OPT's investment in MDA software development.
- Selling, general, and administrative (SG&A) costs – increased by
$925,000from the 2Q22 due primarily to approximately $700,000of acquisition costs related to MAR and an increase of approximately $225,000for share-based compensation. SG&A was up approximately $1.2 millionfrom the 3Q21 due to the aforementioned items plus an increase in recruiting fees and an increase in costs related to the OPT annual general meeting of shareholders.
- Net loss – based on the above activity, the Company had a net loss of
$5.5 millionfor the 3Q22 compared to a net loss of $3.1 millionfor the 3Q21.
Balance Sheet and Cash Flow
- Total unrestricted cash and cash equivalents were $63.9 million as of January 31, 2022.
- The Company has no bank debt.
- Net cash used in operating activities for the first nine months of Fiscal Year 2022 was
$15.8 million, compared to $8.5 millionfor the first nine months of Fiscal Year 2021, primarily due to increase program expenses, acquisition expenses, and headcount.
Employment Inducement Grant
The Company granted an inducement award to
The Compensation Committee of the Company's Board of Directors granted the inducement award pursuant to Section 711 of the NYSE American Company Guide, consisting of 50,000 restricted shares of the Company's common stock vesting equally over three years. The award is subject to the same terms and conditions as the equity awards to other officers under the Company's 2015 Omnibus Incentive Plan. This award was made as an inducement, material to obtain the employee's acceptance of employment with the Company.
Conference Call & Webcast
As announced on
- 877-407-8291 (toll-free in the
- 201-689-8345 for international callers
- Webcast link via the Company's website at www.OceanPowerTechnologies.com/investor-relations
A digital replay will be available by telephone approximately two hours after the call's completion and 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 (ASVs) and marine robotics services through our wholly owned subsidiary Marine Advanced Robotics. 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 Annual Report on Form 10-K that has been filed with the
|Consolidated Balance Sheets|
|(in thousands, except share data)|
|Cash and cash equivalents||$||63,454||$||83,028|
|Restricted cash, short-term||384||384|
|Other current assets||436||487|
|Total current assets||64,987||84,439|
|Property and equipment, net||365||406|
|Right-of-use asset, net||825||1,036|
|Restricted cash, long-term||222||222|
|LIABILITIES AND STOCKHOLDERS' EQUITY|
|Contract liabilities, current portion||15||-|
|Right-of-use liability, current portion||323||347|
|Advance payable - MAR||456||-|
|Paycheck protection program loan- current||-||495|
|Total current liabilities||4,199||4,694|
|Paycheck protection program loan, less current portion||-||396|
|Right-of-use liability, less current portion||615||819|
|Commitments and contingencies (Note 15)|
|issued and outstanding 55,894,213 and 52,478,011 shares||56||52|
|Additional paid-in capital||322,626||315,821|
|Accumulated other comprehensive loss||(185||)||(171||)|
|Total stockholders' equity||73,542||80,468|
|Total liabilities and stockholders’ equity||$||78,356||$||86,377|
|Consolidated Statements of Operations|
|(in thousands, except per share data)|
|Three months ended
||Nine months ended
|Cost of revenues||597||698||1,320||1,248|
|Engineering and product development costs||2,465||1,019||7,518||3,334|
|Selling, general and administrative costs||2,974||1,763||7,933||5,591|
|Total operating expenses||5,439||2,782||15,451||8,925|
|Interest income, net||16||25||56||45|
|Other income (expense), net||60||(16||)||60||(49||)|
|Gain on extinguishment of PPP loan||-||-||890||-|
|Foreign exchange gain||5||3||-||13|
|Loss before income taxes||(5,471||)||(3,151||)||(14,762||)||(9,560||)|
|Income tax benefit||-||-||1,041||-|
|Basic and diluted net loss per share||$||(0.10||)||$||(0.09||)||$||(0.26||)||$||(0.41||)|
|Weighted average common shares used to compute|
|basic and diluted net loss per share||55,308,799||33,715,334||53,408,998||23,160,885|
|Consolidated Statements of Cash Flows|
|Nine months ended
|Cash flows from operating activities:|
|Adjustments to reconcile net loss to net cash used in operating activities:|
|Foreign exchange gain||-||(13||)|
|Depreciation of fixed assets||104||106|
|Amortization of intangible assets||18||-|
|Amortization of right of use asset||211||159|
|Gain on extinguishment of PPP Loan||(890||)||-|
|Performance obligation shares compensation||(60||)||-|
|Loss on disposal of property, plant and equipment||-||2|
|Changes in operating assets and liabilities net of acquisition:|
|Change in lease liability||(228||)||(169||)|
|Net cash used in operating activities||(15,787||)||(8,525||)|
|Cash flows from investing activities:|
|Purchase of property, plant and equipment||(319||)||(17||)|
|Payments for MAR acquisition||(3,544||)||-|
|Net cash used in investing activities||(3,863||)||(17||)|
|Cash flows from financing activities:|
|Proceeds from Paycheck Protection Program Loan||-||890|
|Proceeds from loan payable||-||467|
|Payment of loan payable||-||(292||)|
|Proceeds from stock option exercises||90||40|
|Proceeds from issuance of common stock- Aspire financing||-||9,983|
|Proceeds from issuance of common stock- AGP At The Market offering,||-||66,166|
|Proceeds associated with exercise of common stock warrants||-||769|
|Acquisition of treasury stock||-||(36||)|
|Net cash provided by financing activities||90||77,987|
|Effect of exchange rate changes on cash, cash equivalents and restricted cash||(14||)||32|
|Net (decrease)/increase in cash, cash equivalents and restricted cash||(19,574||)||69,477|
|Cash, cash equivalents and restricted cash, beginning of period||83,634||10,930|
|Cash, cash equivalents and restricted cash, end of period||$||64,060||$||80,407|
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.