Ocean Power Technologies, Inc. ("OPT" or "the Company") (NYSE
American: OPTT), today announced financial results for its fiscal
second quarter ended October 31, 2023 (“Q224”), including
year-over-year revenue, gross profit, and pipeline growth.
Financial Highlights from the second
quarter:
- OPT’s pipeline at October 31,
2023 (“Q224”) was approximately $93 million, representing a 221%
year-over-year increase over the pipeline of approximately $42
million at October 31, 2022. The pipeline continues to grow,
reflecting a significant increase in defense and security activity
as well as an expansion of commercial opportunities.
- Revenues of $0.9 million for Q224
grew $0.6 million over revenues of $0.3 million for the fiscal
quarter ended October 31, 2022 (“Q223”). Revenue for the six
months ended October 31, 2023, was $2.2 million, an increase
of $1.2 million over the six months ended October 31, 2022, of
$1.0 million.
- Gross profit for Q224 was $0.5
million, compared to gross profit of $39 thousand in Q223. Gross
profit was $1.2 million for the six months ended October 31,
2023, compared to a gross profit of $0.2 million for the six months
ended October 31, 2022.
- The gross margin rate was 54.9% and
12.9%, for the quarters ended Q224 and Q223, respectively. The
gross margin rate was 53.3% and 22.9%, for the six months ended
October 31, 2023, and 2022, respectively.
- In October 2023 OPT was awarded a
volume order from Sulmara, a prominent player in offshore services,
of WAM-V 16 uncrewed surface vehicles making this the largest
single order of WAM-Vs to date. The order, valued at $1.6 million,
underscores the recognition by customers of OPT’s ability to
provide innovative and sustainable solutions for the offshore
industry. Due to demand, production is already underway to fulfill
the order in alignment with the delivery schedule and will allow
for revenue recognition this fiscal year.
- In October 2023 OPT was awarded a
contract in support of foreign law enforcement. This collaboration
aims to protect vital marine species and combat illegal,
unreported, and unregulated fishing activities in critical
habitats. It uses OPT’s state-of-the-art uncrewed technologies and
demonstrates unprecedented, networked surveillance capabilities and
evidence collection. This allows authorities to gather critical
information and support legal actions while keeping personnel
safely out of harm's way until the precise time and conditions
favor interdiction efforts.
Recent Operational and Other Highlights:
- In November 2023 OPT announced that
it retained Rear Admiral Victorino “Vic” G. Mercado (Retired) as a
special advisor to the Company’s Board of Directors. OPT plans to
leverage Admiral Mercado's (Ret) experience, expertise, and
networks as OPT builds on its momentum in providing intelligent
maritime solutions to the U.S. Government and defense and security
sectors, and carefully navigate the challenges of securing access
to and protecting highly sensitive and confidential
information.
- In November 2023 OPT announced that
it had substantially completed its research and development phase
and is now primarily focused on commercial activities. OPT has
built a suite of products (more fully described below) that it
believes will be the basis for its current and future commercial
success resulting in meaningful progress in orders, pipeline, and
backlog, with backlog increasing from $3.1 million on July 31,
2023, to $4.5 million at October 31, 2023. This pivot to
commercial activities has enabled a reduction and reallocation of
headcount and a material reduction in third-party expenditures. As
a result, the majority of OPT’s employees are now dedicated to
customer delivery. We expect that recent meaningful contract wins,
the growth in our commercial pipeline, and the corresponding
savings noted above will enable us to reach profitability during
calendar year 2025 using current capital resources. This
expectation does not account for extraordinary expenses such as
those related to the Paragon litigation that could cause OPT to
seek additional capital from financing sources.
- In November 2023 OPT appointed Matt
Burdyny, its previous Vice President, Sales & Marketing, to the
newly created role of Chief Commercial Officer. Matt will drive the
next phase of OPT’s growth and the commercialization of its
cutting-edge products, particularly for the national security and
defense markets.
- In December 2023 OPT announced the
receipt of a letter subcontract for up to $6.5 million from a U.S.
based prime contractor for multiple maritime domain awareness buoys
advancing its commitment to national security and intelligence.
This collaboration between OPT and the prime contractor will focus
on providing multidomain marine solutions in support of U.S.
government agencies. OPT’s PowerBuoy’s® will play a pivotal role in
enhancing surveillance capabilities above and below the waterline,
contributing significantly to maritime domain awareness
initiatives.
Management Commentary – Philipp
Stratmann, OPT's President and Chief Executive Officer
“We continue to make progress with our strategy
as evidenced by the continued growth in our backlog, increased
opportunity pipeline, and delivery for our customers. Recent
contract wins with large government prime contractors to service
various U.S. Government Agencies are evidence of the growth of our
government related backlog. Approximately 80% of our business is
now with national security and defense customers, and our two
primary platforms, WAM-V vehicles and PowerBuoys®, continue to see
increased demand pull in these markets. Since the end of the
quarter, we have substantially completed our research and
development efforts, leading to reduced future annualized
expenditures. As a result of these changes, combined with increased
demand, we believe OPT will be cashflow positive within calendar
year 2025. We remain steadfast in our commitment to drive value to
our customers and deliver value to our shareholders and will
continue to explore opportunities to accelerate value
enhancement.”
FINANCIAL HIGHLIGHTS –
Q224
Income Statement:
- Revenues for Q224
were $0.9 million, compared to $0.3 million in Q223. Revenues for
the six months ended October 31, 2023, were $2.2 million,
compared to $1.0 million for the six months ended October 31,
2022. This growth was driven by sales of WAM-V autonomous vehicles,
revenue from OPT’s previously announced contract with the
Department of Energy (“DOE”) and strategic consulting
services.
- Gross profit for
Q224 was $0.5 million, as compared to a gross profit of $39
thousand in Q223. Gross profit for the six months ended
October 31, 2023, was $1.2 million, as compared to a gross
profit of $0.2 million for the six months ended October 31,
2022. The improvement in gross margin has been driven by the
Autonomous Vehicles business, primarily through an increase in
OPT’s higher margin WAM-V leasing business, and its strategic
consulting services.
- Operating expenses
were $8.0 million in Q224, down 1.4% sequentially from the previous
quarter, however, up from $6.4 million in Q223. Operating expenses
were $16.1 million for the six months ended October 31, 2023,
up from $12.7 million for the six months ended October 31,
2022, reflecting disciplined investments to support long-term value
creation. As noted above, OPT’s recent pivot to commercial
activities has enabled a reduction in headcount and third-party
expenditures, which OPT expects to materially decrease operating
expenses going forward.
- Net loss was $7.2
million for the Q224, as compared to a net loss of $4.8 million for
the Q223. Net loss was $14.3 million for the six months ended
October 31, 2023, compared to a net loss of $10.7 million for
the six months ended October 31, 2022. The year over year
increases in net loss was primarily driven by the incremental
increases in operating expenses to support our growth in revenue,
pipeline, and contract as noted above.
Balance Sheet and Cash Flow
- Combined cash, restricted cash,
cash equivalents and short-term investments as of October 31,
2023, was $18.9 million, compared to $46.4 million on
October 31, 2022.
- Bank debt remained at $0 as of
October 31, 2023.
- Net cash used in operating
activities for the six months ended Q224 was $15.5 million,
compared to $11.0 million for the same period in the prior year.
This reflects the net loss noted above, payment of the earnout
related to OPT’s autonomous vehicles business as a result of this
business exceeding expectations, investment in inventory to satisfy
growing backlog, and payment of employment bonuses that were
accrued during fiscal year 2023.
Conference Call &
Webcast
As announced on November 21, 2023, a conference
call to discuss OPT’s financial results will be held tomorrow
morning, Thursday, December 14, 2023, at 9:00 a.m. Eastern Standard
Time. Philipp Stratmann, CEO, Bob Powers, CFO, and Joseph DiPietro,
Treasurer and Controller, will host the call.
- The dial-in numbers for the
conference call are 877-407-8291 or 201-689-8345.
- Live Webcast: Webcast | Ocean Power
Technologies FY2024 Q2 Earnings Conference Call
(choruscall.com)
- Call Replay: Will be available by
telephone approximately two hours after the call’s completion.
- 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 13742581.
About Ocean Power
TechnologiesOPT 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. The Company’s headquarters is located
in Monroe Township, New Jersey and has an additional
office in Richmond, California. To learn more,
visit www.OceanPowerTechnologies.com.
Non GAAP Measures: Pipeline
Pipeline is not a term recognized under United
States generally accepted accounting principles; however, it is a
common measurement used in our industry. OPT’s methodology for
determining pipeline may not be comparable to the methodologies
used by other companies. Pipeline is a representation of the
journey potential customers take from the moment they become aware
of OPT’s products and service to the moment they become a paying
customer. The sales pipeline is divided into a series of phases,
each representing a different milestone in the customer journey. It
is a tool OPT uses to track sales progress, identify potential
roadblocks, and make data-driven decisions to improve its sales
performance. Revenue estimates derived from its pipeline can be
subject to change due to project accelerations, cancellations or
delays due to various factors. These factors can also cause revenue
amounts to be realized in periods and at levels different than
originally projected.
Forward-Looking StatementsThis
release contains forward-looking statements that are within the
safe harbor provisions of the Private Securities Litigation Reform
Act of 1995. Such forward-looking statements in this release
include, but are not limited to, those statements relating to OPT’s
future operating and financial performance, the impact of OPT’s
various initiatives on the enhancement of stockholder value and its
future operating and financial performance, OPT’s expectation that
it will be cashflow positive in calendar year 2025, the growth in
OPT’s backlog and opportunity pipeline, OPT’s ability to monetize
such opportunities into actual revenue, OPT’s ability to drive the
next phase of its growth and the commercialization of its products,
OPT’s ability to achieve commercial success from its suite of
products and make meaningful progress in orders, pipeline, and
backlog, OPT’s ability to continue its momentum in securing
business from U.S. Government national security and defense
customers, OPT’s ability to expand commercial opportunities,
including with offshore wind companies, OPT’s ability to execute on
its strategy and create value for its stockholders, the impact on
OPT of substantially completing its research and development phase,
other statements relating to OPT’s future economic and operating
performance, plans, or objectives, and all other statements
contained in this release that are not historical facts. Other
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 OPT’s current expectations about its future performance,
plans, and objectives. By their nature, forward-looking statements
rely on a number of assumptions and estimates that could be
inaccurate and involve risks and uncertainties that could cause
actual results to materially differ from those anticipated or
expressed in any forward-looking statement. These estimates and
assumptions reflect our best judgment based on currently known
market conditions and other factors. Although we believe such
estimates and assumptions to be reasonable, they are inherently
uncertain and involve a number of risks and uncertainties that are
beyond our control, including, without limitation risks related to
our ability to execute on our strategy, drive growth, and create
value for our stockholders; our ability to develop, market, and
commercialize our products; our ability to monetize our opportunity
pipeline; our ability to achieve and, thereafter, sustain
profitability; our ability to win government contracts, including
in the defense and national security sectors; the possibility that
we may not be able to obtain the necessary facility and personnel
clearances to qualify for certain government contracts, including
in the defense and security sectors; our ability to continue the
development of our proprietary technologies; our expected continued
use of cash from operating activities unless or until we achieve
positive cash flow from the commercialization of our products and
services; our ability to obtain additional funding, as and if
needed; our history of operating losses, which we expect to
continue for at least the short term and possibly longer; our
ability to control our expenses; our ability to attract and retain
qualified personnel, including executive management; our ability to
manage and mitigate risks associated with our internal cyber
security protocols and protection of the data we collect and
distribute; our ability to protect our intellectual property
portfolio; the impact of inflation related to the U.S. dollar on
our business, operations, customers, suppliers and manufacturers,
and personnel; our ability to meet product development,
manufacturing and customer delivery deadlines; our ability to
identify and penetrate markets for our products, services, and
solutions; and the risks related to the actions of Paragon
Technologies, Inc. in connection with its threatened proxy contest
against OPT and the related litigation brought against OPT,
including the amount of related costs incurred by OPT and the
disruption caused to OPT’s business activities by these
actions.
Many of these factors are beyond our ability to
control or predict. These factors are not intended to represent a
complete list of the general or specific factors that may affect
us. Additional factors are described in OPT’s Form 10-K, Form 10-Q,
and Form 8-K reports (including all amendments to those reports).
Any forward-looking statements speak only as of the date on which
such statements are made and OPT undertakes no obligation or intent
to update such forward-looking statements to reflect events or
circumstances arising after such date. OPT cautions investors not
to place undue reliance on any such forward-looking statements.
These cautionary statements qualify all forward-looking statements
attributable to us or persons acting on our behalf.
Financial Tables
FollowAdditional information may be found in the Company's
Quarterly Report on Form 10-Q that has been filed with the U.S.
Securities and Exchange Commission. The Form 10-Q is accessible at
www.sec.gov or the Investor Relations section of the Company's
website (www.OceanPowerTechnologies.com/investor-relations).
|
Ocean Power Technologies, Inc. and
Subsidiaries |
Consolidated Balance Sheets |
(in thousands, except share data) |
|
|
|
October 31, 2023 |
|
April 30, 2023 |
|
|
(Unaudited) |
|
|
ASSETS |
|
|
|
|
Current assets: |
|
|
|
|
Cash and cash equivalents |
|
$ |
3,292 |
|
|
$ |
6,883 |
|
Short term investments |
|
|
15,427 |
|
|
|
27,790 |
|
Restricted cash, short-term |
|
|
219 |
|
|
|
65 |
|
Accounts receivable |
|
|
516 |
|
|
|
745 |
|
Contract assets |
|
|
326 |
|
|
|
152 |
|
Inventory |
|
|
2,546 |
|
|
|
1,044 |
|
Other current assets |
|
|
1,505 |
|
|
|
994 |
|
Total current assets |
|
|
23,831 |
|
|
|
37,673 |
|
Property and equipment,
net |
|
|
1,806 |
|
|
|
1,280 |
|
Intangibles, net |
|
|
3,898 |
|
|
|
3,978 |
|
Right-of-use asset, net |
|
|
1,550 |
|
|
|
1,751 |
|
Restricted cash,
long-term |
|
|
— |
|
|
|
155 |
|
Goodwill |
|
|
8,537 |
|
|
|
8,537 |
|
Total assets |
|
$ |
39,622 |
|
|
$ |
53,374 |
|
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
|
|
|
Current liabilities: |
|
|
|
|
Accounts payable |
|
$ |
1,754 |
|
|
$ |
952 |
|
Earnout payable |
|
|
— |
|
|
|
1,500 |
|
Accrued expenses |
|
|
2,094 |
|
|
|
2,346 |
|
Contingent liabilities |
|
|
1,117 |
|
|
|
1,202 |
|
Right-of-use liabilities, current portion |
|
|
579 |
|
|
|
529 |
|
Contract liabilities |
|
|
1,164 |
|
|
|
1,378 |
|
Total current liabilities |
|
|
6,708 |
|
|
|
7,907 |
|
Deferred tax liability |
|
|
203 |
|
|
|
203 |
|
Right-of-use liabilities, less
current portion |
|
|
1,060 |
|
|
|
1,311 |
|
Total liabilities |
|
|
7,971 |
|
|
|
9,421 |
|
Commitments and contingencies
(Note 14) |
|
|
|
|
Shareholders’ Equity: |
|
|
|
|
Preferred stock, $0.001 par value; authorized 5,000,000 shares,
none issued or outstanding; 100,000 designated as Series A |
|
|
— |
|
|
|
— |
|
Common stock, $0.001 par value; authorized 100,000,000 shares,
issued 58,833,758 shares and 56,304,642 shares, respectively;
outstanding 58,788,770 shares and 56,263,728 shares,
respectively |
|
|
59 |
|
|
|
56 |
|
Treasury stock, at cost; 44,988 shares and 40,914 shares,
respectively |
|
|
(357 |
) |
|
|
(355 |
) |
Additional paid-in capital |
|
|
326,342 |
|
|
|
324,393 |
|
Accumulated deficit |
|
|
(294,348 |
) |
|
|
(280,096 |
) |
Accumulated other comprehensive loss |
|
|
(45 |
) |
|
|
(45 |
) |
Total shareholders’ equity |
|
|
31,651 |
|
|
|
43,953 |
|
Total liabilities and shareholders’ equity |
|
$ |
39,622 |
|
|
$ |
53,374 |
|
Ocean Power Technologies, Inc., and
Subsidiaries |
Consolidated Statements of Operations |
(in thousands, except per share data) |
|
|
|
Three months ended October 31, |
|
Six months ended October 31, |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
|
$ |
889 |
|
|
$ |
303 |
|
|
$ |
2,161 |
|
|
$ |
1,017 |
|
Cost of revenues |
|
|
401 |
|
|
|
264 |
|
|
|
1,010 |
|
|
|
784 |
|
Gross margin |
|
|
488 |
|
|
|
39 |
|
|
|
1,151 |
|
|
|
233 |
|
|
|
|
|
|
|
|
|
|
|
|
Gain from change in fair value
of consideration |
|
|
(23 |
) |
|
|
(90 |
) |
|
|
(86 |
) |
|
|
(221 |
) |
Operating expenses |
|
|
7,995 |
|
|
|
6,409 |
|
|
|
16,100 |
|
|
|
12,727 |
|
Operating loss |
|
|
(7,484 |
) |
|
|
(6,280 |
) |
|
|
(14,863 |
) |
|
|
(12,273 |
) |
|
|
|
|
|
|
|
|
|
|
|
Interest income, net |
|
|
270 |
|
|
|
234 |
|
|
|
610 |
|
|
|
375 |
|
Other income, employee
retention credit |
|
|
— |
|
|
|
1,202 |
|
|
|
— |
|
|
|
1,202 |
|
Foreign exchange gain |
|
|
1 |
|
|
|
— |
|
|
|
1 |
|
|
|
— |
|
Loss before income taxes |
|
|
(7,213 |
) |
|
|
(4,844 |
) |
|
|
(14,252 |
) |
|
|
(10,696 |
) |
Provision for income taxes |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Net loss |
|
$ |
(7,213 |
) |
|
$ |
(4,844 |
) |
|
$ |
(14,252 |
) |
|
$ |
(10,696 |
) |
Basic and diluted net loss per
share |
|
$ |
(0.12 |
) |
|
$ |
(0.09 |
) |
|
$ |
(0.24 |
) |
|
$ |
(0.19 |
) |
Weighted average shares used to compute basic and diluted net loss
per common share |
|
|
58,781,505 |
|
|
|
55,898,528 |
|
|
|
58,752,291 |
|
|
|
55,894,090 |
|
OCEAN POWER TECHNOLOGIES, INC., AND
SUBSIDIARIES |
Consolidated Statements of Cash Flows |
(in thousands) |
|
|
|
Six months ended October 31, |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
|
|
|
Cash flows from operating
activities: |
|
|
|
|
Net loss |
|
$ |
(14,252 |
) |
|
$ |
(10,696 |
) |
Adjustments to reconcile net loss to net cash used in operating
activities: |
|
|
|
|
Depreciation of fixed assets |
|
|
172 |
|
|
|
117 |
|
Foreign exchange gain |
|
|
1 |
|
|
|
— |
|
Amortization of intangible assets |
|
|
80 |
|
|
|
79 |
|
Amortization of right of use asset |
|
|
201 |
|
|
|
152 |
|
(Accretion of discount)/amortization of premium on investments |
|
|
(211 |
) |
|
|
191 |
|
Change in contingent consideration liability |
|
|
(86 |
) |
|
|
(221 |
) |
Stock based compensation |
|
|
673 |
|
|
|
632 |
|
Changes in operating assets and liabilities: |
|
|
|
|
Accounts receivable |
|
|
229 |
|
|
|
(105 |
) |
Contract assets |
|
|
(174 |
) |
|
|
85 |
|
Inventory |
|
|
(1,502 |
) |
|
|
(586 |
) |
Other assets |
|
|
(511 |
) |
|
|
(2,180 |
) |
Accounts payable |
|
|
802 |
|
|
|
(316 |
) |
Earnout payable |
|
|
(500 |
) |
|
|
— |
|
Accrued expenses |
|
|
(2 |
) |
|
|
680 |
|
Change in lease liability |
|
|
(201 |
) |
|
|
(166 |
) |
Contract liabilities |
|
|
(214 |
) |
|
|
1,333 |
|
Net cash used in operating activities |
|
$ |
(15,495 |
) |
|
$ |
(11,001 |
) |
Cash flows from investing
activities: |
|
|
|
|
Redemptions of short term investments |
|
|
20,600 |
|
|
|
33,433 |
|
Purchases of short term investments |
|
|
(8,026 |
) |
|
|
(20,108 |
) |
Purchases of property and equipment |
|
|
(698 |
) |
|
|
(179 |
) |
Net cash provided by investing activities |
|
$ |
11,876 |
|
|
$ |
13,146 |
|
Cash flows from financing
activities: |
|
|
|
|
Cash paid for tax withholding related to shares withheld |
|
|
(2 |
) |
|
|
— |
|
Proceeds from issuance of common stock - Cantor At The Market
offering, net of issuance costs |
|
$ |
29 |
|
|
$ |
— |
|
Net cash provided by financing activities |
|
$ |
27 |
|
|
$ |
— |
|
Net (decrease) / increase in cash, cash equivalents and restricted
cash |
|
$ |
(3,592 |
) |
|
$ |
2,145 |
|
Cash, cash equivalents and
restricted cash, beginning of period |
|
$ |
7,103 |
|
|
$ |
8,362 |
|
Cash, cash equivalents and
restricted cash, end of period |
|
$ |
3,511 |
|
|
$ |
10,507 |
|
|
|
|
|
|
Supplemental disclosure of
noncash investing and financing activities: |
|
|
|
|
Issuance of common stock for Marine Advanced Robotics earnout |
|
$ |
1,000 |
|
|
$ |
— |
|
Bonus paid through stock issuance |
|
$ |
250 |
|
|
$ |
— |
|
Contact Information
Investors: 609-730-0400 x401 or InvestorRelations@oceanpowertech.com
Media: 609-730-0400 x402 or MediaRelations@oceanpowertech.com
Ocean Power Technologies (AMEX:OPTT)
Graphique Historique de l'Action
De Avr 2024 à Mai 2024
Ocean Power Technologies (AMEX:OPTT)
Graphique Historique de l'Action
De Mai 2023 à Mai 2024