Ocean Power Technologies, Inc. Announces Third Quarter Fiscal 2023 Results
- Total orders for the Q323 were
$0.8 million, as compared to $0.7 millionfor the third quarter ended January 31, 2022(“Q322”). Total orders for the nine months ended Q323 increased 111% to $3.8 million, from total orders of $1.8 millionfor the same period in the prior year.
- Revenues for the Q323 were
$0.7 million, reflecting a growth of 51.7% over Q322 revenues. Revenues of $1.8 millionfor the nine months ended Q323, increased 74.7%, over revenues of $1.0 millionfor the same timeframe in the prior year.
- Gross margin for the Q323 was
$0.1 million, compared to a gross loss of $(0.1) millionin Q322. For the nine months ended Q323, gross margin was $0.4 million, compared to a gross loss of $(0.3) millionin the same period Q322. Gross margin rate was 18.5% and 21.1% for the Q323 and for the nine months ended, respectively.
- 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. Digital Horizon was completed in January 2023and is already leading to follow on deployments as noted below.
- Awarded a minimum
$0.4 millionfollow-on contract with Task Force59 in Bahrainto provide WAM-V’s to support the International Maritime Exercise 2023 (IMX23) as a result 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). In February 2023we received an order for the lease of a second WAM-V 16 to Sulmara. These are noteworthy as they were the first two WAM-V sales using our leasing model.
- Began work on Phase I of 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. This is intended to facilitate a large number of USV’s to autonomously survey a disaster area, such as those created by hurricanes.
- Commenced work on the
U.S. Department of Energy (DOE) Phase IIdevelopment of a next-generation wave energy converter program award. As previously announced, OPT will receive up to $1.1 millionto develop and test a modular and scalable Mass-on-Spring Wave Energy Converter (MOSWEC) PowerBuoy® for reliable powering of autonomous ocean monitoring systems, bringing an entirely new PowerBuoy® into our offering.
Management Commentary –
“We continue to make meaningful progress towards our commercial efforts, including increasing our pipeline of feasibility studies, demonstrations, and platform sales activity. This development has been largely driven by our autonomous vehicles and Data-as-a-Service business lines. We are pleased to be well ahead of our order and revenue performance as compared to last year, however, we remain keenly focused on achieving our
FINANCIAL HIGHLIGHTS – Q323
- Revenues for Q323 were
$0.7 million, as compared to $0.5 millionin Q322. Revenues increased 75% to $1.8 millionfor the nine months ended Q323, as compared to $1.0 millionfor the same period in the nine-month period. This growth during the first nine months ended Q323 has been driven by sales of WAM-V autonomous vehicles and an increase in strategic consulting services.
- Gross profit for the Q323 was
$0.1 million, as compared to a gross loss of $(0.1) millionin Q322. Gross profit for the nine-month period ended Q323 was $0.4 million, as compared to a gross loss of $(0.3) millionin the same period Q322. Gross margin for the Q323 was 18.5% and for the nine months ended Q323 was 21.1%. The improvement in gross margin has been driven by the MAR business and our higher margin strategic consulting services.
- Operating expenses were
$6.8 millionin the Q323, up sequentially from $6.4 millionin 2Q23, due to the timing of projects and programs. Operating expenses were $19.5 millionin the nine-month period ended Q323, as compared to $15.5 millionfor the nine-month period ended Q322, due to incremental investments in people and systems to support our growth.
- Net loss was
$6.1 millionfor the Q323, as compared to a net loss of $5.5 millionfor the Q322. Net loss was $16.8 million for the nine-month period ended Q323, as compared to a net loss of $13.7 millionfor the same period Q322.
Balance Sheet and Cash Flow:
- Combined cash, unrestricted cash, cash equivalents and short-term investments as of
January 31, 2023, was $41.1 million, compared to $57.7 million at the beginning of the year.
- Bank debt remained at
$0as of January 31, 2023.
- Net cash used in operating activities for the nine months ended Q323 was
$16.1 million, compared to $15.8 millionfor 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 201-689-8345.
- Live Webcast: Link to Q323 Webcast for OPT
- Call Replay: Will be available by telephone approximately two hours after the call's completion until
June 14, 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 6523.
- Webcast Replay: The archived webcast will also be available on the OPT investor relations section of its website.
OPT, a leader in innovative and cost-effective, low carbon marine data, power, and consulting services, 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||$||10,920||$||7,885|
|Short term investments||30,005||49,384|
|Restricted cash, short-term||65||258|
|Other current assets||1,997||467|
|Total current assets||45,222||59,304|
|Property and equipment, net||591||445|
|Right-of-use asset, net||522||752|
|Restricted cash, long-term||154||219|
|LIABILITIES AND SHAREHOLDERS’ EQUITY|
|Contingent liabilities, current portion||875||748|
|Right-of-use liability, current portion||320||319|
|Total current liabilities||4,746||2,978|
|Deferred tax liability||203||203|
|Right-of-use liability, less current portion||282||538|
|Contingent liabilities, less current portion||870||843|
|Commitments and contingencies (Note 15)|
|Additional paid-in capital||323,843||322,932|
|Accumulated other comprehensive loss||(46||)||(46||)|
|Total shareholders’ equity||52,942||68,831|
|Total liabilities and shareholders’ equity||$||59,043||$||73,393|
Consolidated Statements of Operations
(in thousands, except per share data)
|Three months ended
||Nine months ended
|Cost of revenues||598||597||1,382||1,320|
|Gross margin (loss)||136||(113||)||370||(317||)|
|(Gain)/loss from change in fair value of consideration||373||(60||)||154||(60||)|
|Interest income, net||229||16||604||56|
|Other income, proceeds from insurance claim||$||458||$||—||$||458||$||—|
|Other income, employee retention credit||—||—||1,202||—|
|Gain on extinguishment of PPP loan||—||—||—||890|
|Foreign exchange gain||2||5||2||—|
|Loss before income taxes||(6,368||)||(5,471||)||(17,064||)||(14,762||)|
|Income tax benefit||278||—||278||1,041|
|Basic and diluted net loss per share||$||(0.11||)||$||(0.10||)||$||(0.30||)||$||(0.26||)|
|Weighted average shares used to compute basic and diluted net loss per common share||55,966,672||55,308,799||55,918,284||53,408,998|
Consolidated Statements of Cash Flows
|Nine months ended
|Cash flows from operating activities:|
|Adjustments to reconcile net loss to net cash used in operating activities:|
|Depreciation of fixed assets||157||104|
|Amortization of intangible assets||119||18|
|Amortization of right of use asset||230||211|
|Amortization of premium on short term investments||198||—|
|Change in contingent consideration liability||154||(60||)|
|Gain on extinguishment of PPP Loan||—||(890||)|
|Stock based compensation||911||864|
|Changes in operating assets and liabilities:|
|Change in lease liability||(254||)||(228||)|
|Net cash used in operating activities||(16,089||)||(15,787||)|
|Cash flows from investing activities:|
|Redemptions of short term investments||49,584||—|
|Purchases of short term investments||(30,402||)||—|
|Payments for MAR acquisition, net of cash acquired||—||(3,544||)|
|Purchase of property, plant and equipment||(302||)||(319||)|
|Net cash provided by (used in) investing activities||18,880||(3,863||)|
|Cash flows from financing activities:|
|Acquisition of treasury stock for withholding taxes paid on vesting of restricted stock units||(14||)||—|
|Proceeds from issuance of common stock||—||90|
|Net cash (used in) provided by financing activities||(14||)||90|
|Effect of exchange rate changes on cash, cash equivalents and restricted cash||—||(14||)|
|Net increase / (decrease) in cash, cash equivalents and restricted cash||2,777||(19,574||)|
|Cash, cash equivalents and restricted cash, beginning of period||$||8,362||$||83,634|
|Cash, cash equivalents and restricted cash, end of period||$||11,139||$||64,060|
Source: Ocean Power Technologies, Inc.