Ocean Power Technologies Announces Fiscal Second Quarter 2019 Financial Results
Mr. Kirby continued, "Our new facility and scaled operations allow us to better deliver high-quality products and services to our customers. In addition to the lease of our PB3 PowerBuoy™ for use in the
Finally, Mr. Kirby highlighted "We believe that the expansion of our suite of complimentary products that leverage the core technology of the PowerBuoy™, including new subsea battery solutions and a hybrid PowerBuoy™, provides us further opportunities to monetize these existing technologies. This expansion will enable our industry recognition as an innovator in offshore power to continue to grow."
Second Fiscal Quarter Financial & Recent Operational Highlights
- Progressed contracts with
Eni S.p.A . andPremier Oil ; - Executed agreement with
Enel Green Power to evaluate a potential PowerBuoy™ deployment off the coast ofChile ; - Expanded our suite of complimentary products that leverages our PB3 PowerBuoy™ to include lithium ion subsea battery solutions and a hybrid, liquid-fueled PowerBuoy™;
- Continued to build and address increasing demand for the PB3 PowerBuoy™ by responding to multiple requests for proposals, technical information and pricing, and through new marketing initiatives.
Second Quarter Operations Review
In discussing the company's operational progress in the second quarter, Mr. Kirby stated, "OPT has made continued commercial and operational progress during the second quarter. Our new complimentary products, which will include subsea battery solutions and a hybrid PowerBuoy™, along with our existing PB3 PowerBuoy™ existing support services, provide more comprehensive solutions that can meet the needs of more customers requiring reliable power and communications in their subsea work across the globe."
Mr. Kirby continued, "We strengthened our Board with the addition of
Second Quarter 2019 Financial Results
Revenue for the second quarter of fiscal 2019 ended
Fiscal First Half 2019 Financial Results
Revenue for the first six months of fiscal 2019 was
Balance Sheet and Cash
Total cash, cash equivalents, marketable securities, and restricted cash were
Conference Call & Webcast Details
Investors, analysts and members of the media interested in listening to the live presentation are encouraged to join a webcast of the call available on the investor relations section of the Company's website at https://www.oceanpowertechnologies.com.
A digital replay will be available by telephone approximately two hours after the completion of the call until
About
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Forward-Looking Statements
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 which could be inaccurate and which are 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
Investor Relations Contact:
Porter, LeVay & Rose
Email: ocean@plrinvest.com
Phone: 212-564-4700
(FINANCIAL TABLES TO FOLLOW)
| Ocean Power Technologies, Inc. and Subsidiaries | ||||||||||
| Consolidated Balance Sheets | ||||||||||
| (in thousands, except share data) | ||||||||||
| October 31, 2018 | April 30, 2018 | |||||||||
| (Unaudited) | ||||||||||
| ASSETS | ||||||||||
| Current assets: | ||||||||||
| Cash and cash equivalents | $ | 3,851 | $ | 11,499 | ||||||
| Marketable securities | - | 25 | ||||||||
| Restricted cash- short-term | 550 | 572 | ||||||||
| Accounts receivable | 467 | 171 | ||||||||
| Unbilled receivables | - | 71 | ||||||||
| Contract assets | 23 | - | ||||||||
| Litigation receivable | - | 350 | ||||||||
| Other current assets | 972 | 567 | ||||||||
| Total current assets | 5,863 | 13,255 | ||||||||
| Property and equipment, net | 676 | 712 | ||||||||
| Restricted cash- long-term | 155 | 154 | ||||||||
| Total assets | $ | 6,694 | $ | 14,121 | ||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||
| Current liabilities: | ||||||||||
| Accounts payable | $ | 313 | $ | 290 | ||||||
| Accrued expenses | 2,192 | 2,261 | ||||||||
| Litigation payable | - | 350 | ||||||||
| Unearned revenue | - | 18 | ||||||||
| Contract liabilities | 373 | - | ||||||||
| Warrant liabilities | 65 | 201 | ||||||||
| Current portion of capital lease obligations | 5 | 23 | ||||||||
| Deferred credits payable current | - | 600 | ||||||||
| Total current liabilities | 2,948 | 3,743 | ||||||||
| Deferred rent | 147 | 142 | ||||||||
| Total liabilities | 3,095 | 3,885 | ||||||||
| Commitments and contingencies | ||||||||||
| Ocean Power Technologies, Inc. stockholders’ equity: | ||||||||||
| Preferred stock, $0.001 par value; authorized 5,000,000 shares, | ||||||||||
| none issued or outstanding | - | - | ||||||||
| Common stock, $0.001 par value; authorized 50,000,000 shares, | ||||||||||
| issued 19,067,868 and 18,424,939 shares, respectively | 19 | 18 | ||||||||
| Treasury stock, at cost; 75,782 and 74,012 shares, respectively | (301 | ) | (300 | ) | ||||||
| Additional paid-in capital | 208,714 | 208,216 | ||||||||
| Accumulated deficit | (204,668 | ) | (197,538 | ) | ||||||
| Accumulated other comprehensive loss | (165 | ) | (160 | ) | ||||||
| Total stockholders' equity | 3,599 | 10,236 | ||||||||
| Total liabilities and stockholders’ equity | $ | 6,694 | $ | 14,121 | ||||||
| Ocean Power Technologies, Inc. and Subsidiaries | |||||||||||||||||||
| Consolidated Statements of Operations | |||||||||||||||||||
| (in thousands, except per share data) | |||||||||||||||||||
| (Unaudited) | |||||||||||||||||||
| Three months ended October 31, | Six months ended October 31, | ||||||||||||||||||
| 2018 | 2017 | 2018 | 2017 | ||||||||||||||||
| Revenues | $ | 141 | $ | 94 | $ | 172 | $ | 289 | |||||||||||
| Cost of revenues | 637 | (24 | ) | 780 | 193 | ||||||||||||||
| Gross profit/(loss) | (496 | ) | 118 | (608 | ) | 96 | |||||||||||||
| Operating expenses: | |||||||||||||||||||
| Engineering and product development costs | 1,574 | 978 | 2,722 | 2,080 | |||||||||||||||
| Selling, general and administrative costs | 1,849 | 1,747 | 3,902 | 3,388 | |||||||||||||||
| Total operating expenses | 3,423 | 2,725 | 6,624 | 5,468 | |||||||||||||||
| Operating loss | (3,919 | ) | (2,607 | ) | (7,232 | ) | (5,372 | ) | |||||||||||
| Gain due to the change in fair value of warrant liabilities | 51 | 31 | 136 | 68 | |||||||||||||||
| Interest income, net | 7 | 6 | 21 | 9 | |||||||||||||||
| Foreign exchange gain/(loss) | (29 | ) | (7 | ) | (55 | ) | 55 | ||||||||||||
| Net loss | $ | (3,890 | ) | $ | (2,577 | ) | $ | (7,130 | ) | $ | (5,240 | ) | |||||||
| Basic and diluted net loss per share | $ | (0.21 | ) | $ | (0.20 | ) | $ | (0.39 | ) | $ | (0.42 | ) | |||||||
| Weighted average shares used to compute | |||||||||||||||||||
| basic and diluted net loss per share | 18,523,493 | 12,904,973 | 18,338,678 | 12,586,828 | |||||||||||||||
| Ocean Power Technologies, Inc. and Subsidiaries | ||||||||||||
| Consolidated Statements of Cash Flows | ||||||||||||
| (in thousands) | ||||||||||||
| (Unaudited) | ||||||||||||
| Six months ended October 31, | ||||||||||||
| 2018 | 2017 | |||||||||||
| Cash flows from operating activities: | ||||||||||||
| Net loss | $ | (7,130 | ) | $ | (5,240 | ) | ||||||
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||||||
| Foreign exchange loss/(gain) | 55 | (55 | ) | |||||||||
| Depreciation | 90 | 52 | ||||||||||
| Loss on disposal of property, plant and equipment | - | 4 | ||||||||||
| Compensation expense related to stock option grants and restricted stock | 135 | 173 | ||||||||||
| Gain due to the change in fair value of warrant liabilities | (136 | ) | (68 | ) | ||||||||
| Changes in operating assets and liabilities: | ||||||||||||
| Accounts receivable | (296 | ) | 48 | |||||||||
| Unbilled receivables | 71 | 294 | ||||||||||
| Contract assets | (23 | ) | - | |||||||||
| Other assets | (109 | ) | (102 | ) | ||||||||
| Accounts payable | 24 | (263 | ) | |||||||||
| Accrued expenses | (56 | ) | (1,523 | ) | ||||||||
| Deferred rent | 5 | - | ||||||||||
| Deferred credit payable | (600 | ) | - | |||||||||
| Unearned revenue | (18 | ) | - | |||||||||
| Contract liabilities | 373 | - | ||||||||||
| Net cash used in operating activities | (7,615 | ) | (6,680 | ) | ||||||||
| Cash flows from investing activities: | ||||||||||||
| Purchases of marketable securities | (25 | ) | (25 | ) | ||||||||
| Maturities of marketable securities | 50 | 25 | ||||||||||
| Leasehold improvements and purchase of equipment | (52 | ) | (63 | ) | ||||||||
| Net cash used in investing activities | (27 | ) | (63 | ) | ||||||||
| Cash flows from financing activities: | ||||||||||||
| Proceeds from issuance of common stock, net of costs | 68 | 14,647 | ||||||||||
| Payment of capital lease obligations | (19 | ) | (17 | ) | ||||||||
| Acquisition of treasury stock | (1 | ) | (34 | ) | ||||||||
| Net cash provided by financing activities | 48 | 14,596 | ||||||||||
| Effect of exchange rate changes on cash, cash equivalents and restricted cash | (75 | ) | 68 | |||||||||
| Net (decrease)/increase in cash, cash equivalents and restricted cash | (7,669 | ) | 7,921 | |||||||||
| Cash, cash equivalents and restricted cash, beginning of period | 12,225 | 8,909 | ||||||||||
| Cash, cash equivalents and restricted cash, end of period | $ | 4,556 | $ | 16,830 | ||||||||
Source: Ocean Power Technologies, Inc.