Ocean Power Technologies Announces Results for the Fiscal Fourth Quarter and Full Year Ended April 30, 2014
"Over the last several months, we announced the termination of both the
On
Mr. Keller continued, "Looking ahead, many companies and funding agencies recognize that the nascent wave energy segment of the renewable energy market is worthy of research, development and continued advancement. We acknowledge that the inherent potential of wave power energy capture is accompanied by significant engineering challenges at both the component and system levels. Nonetheless, we are continuing to advance certain promising technologies that justify additional development. This includes advanced controls that would enable an increase in electric power output and further optimization of our modular, direct-drive Power Take-Off (PTO) technology."
Strategic Focus on Smaller Scale Devices
The Company has shifted its immediate focus to smaller-scale devices, such as the PB-40, intended to be deployed off the coast of
Commenting on the strategic shift from large, utility-scale projects, Mr. Keller noted, "We believe that we can move faster to optimize our technology on smaller-scale power outputs which are more economical to manufacture and deploy than larger buoys."
Financial Review
OPT's fully-funded contract backlog as of
Fourth Quarter Fiscal 2014
Revenue for the quarter was
Fiscal 2014
OPT had revenue of
Net loss was
Balance Sheet and Available Cash
As of
Conclusion
"On a final note, our Board has been significantly strengthened over the past two years by the addition of experienced financial and operating executives. We have actively engaged in strengthening our corporate governance, our control environment and our reporting processes. The Board has also actively participated with management in formulating our current strategy and will conduct a search for a permanent CEO over the next few months. When combined with recent employee additions to various executive, business and engineering functions over the past several months, I am confident that we are addressing critical skills and talent that are necessary to help focus the company strategy and ensure efficient business conduct and execution," concluded Mr. Keller.
Conference Call Details
The Company will host a conference call and webcast to review financial and operating results. The call will be held on
About
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. These forward-looking statements reflect the Company's current expectations about its future plans and performance, including statements concerning the impact of strategies, plans, project implementation, fundraising, new product introductions and innovation, deliveries of product, sales, earnings and margins. 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
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 as of | ||
| April 30, 2014 and April 30, 2013 | ||
| April 30, | ||
| ASSETS | 2014 | 2013 |
| Current assets: | ||
| Cash and cash equivalents | $ 13,858,659 | $ 6,372,788 |
| Marketable securities | 14,493,881 | 13,996,705 |
| Restricted cash | 6,124,960 | — |
| Accounts receivable, net | 308,731 | 796,332 |
| Unbilled receivables | 37,410 | 127,598 |
| Other current assets | 568,377 | 152,962 |
| Total current assets | 35,392,018 | 21,446,385 |
| Property and equipment, net | 317,513 | 700,968 |
| Patents, net | 828,298 | 1,044,902 |
| Restricted cash | 1,221,696 | 1,366,256 |
| Other noncurrent assets | 325,310 | 272,548 |
| Total assets | $ 38,084,835 | $ 24,831,059 |
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||
| Current liabilities: | ||
| Accounts payable | $ 501,397 | $ 510,031 |
| Accrued expenses | 2,931,239 | 3,900,623 |
| Advance payment received from customer | 4,709,055 | — |
| Unearned revenues | 992,447 | 1,117,115 |
| Current portion of long-term debt | 100,000 | 100,000 |
| Total current liabilities | 9,234,138 | 5,627,769 |
| Long-term debt | 150,000 | 250,000 |
| Long-term unearned revenues | — | 232,033 |
| Deferred credits payable-noncurrent | 600,000 | 600,000 |
| Total liabilities | 9,984,138 | 6,709,802 |
| 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 105,000,000 shares, issued 17,593,637 and 10,403,215 shares, respectively | 17,594 | 10,403 |
| Treasury stock, at cost; 37,852 and 33,771 shares, respectively | (130,707) | (123,893) |
| Additional paid-in capital | 180,454,341 | 159,155,365 |
| Accumulated deficit | (151,640,503) | (140,671,311) |
| Accumulated other comprehensive loss | (225,733) | (79,786) |
| Total Ocean Power Technologies, Inc. stockholders' equity | 28,474,992 | 18,290,778 |
| Noncontrolling interest in Ocean Power Technologies (Australasia) Pty Ltd | (374,295) | (169,521) |
| Total equity | 28,100,697 | 18,121,257 |
| Total liabilities and stockholders' equity | $ 38,084,835 | $ 24,831,059 |
| Consolidated Statements of Operations | ||||
| For the Three and Twelve Months Ended April 30, 2014 and 2013 | ||||
| Three Months Ended | Twelve Months Ended | |||
| April 30, | April 30, | |||
| 2014 | 2013 | 2014 | 2013 | |
| Revenues | $ 374,735 | $ 407,881 | $ 1,498,892 | $ 3,616,129 |
| Cost of revenues | 394,411 | 364,633 | 1,510,336 | 3,480,821 |
| Gross (loss) profit | (19,676) | 43,248 | (11,444) | 135,308 |
| Operating expenses: | ||||
| Product development costs | 897,918 | 1,861,024 | 4,564,898 | 7,327,766 |
| Change in contract loss reserve | (785,000) | -- | (785,000) | -- |
| Selling, general and administrative costs | 3,230,756 | 2,269,942 | 9,358,967 | 9,126,757 |
| Total operating expenses | 3,343,674 | 4,130,966 | 13,138,865 | 16,454,523 |
| Operating loss | (3,363,350) | (4,087,718) | (13,150,309) | (16,319,215) |
| Interest income, net | 23,083 | 14,261 | 29,656 | 126,377 |
| Foreign exchange gain (loss) | 31,129 | (99,612) | 183,704 | (83,416) |
| Loss before income taxes | (3,309,138) | (4,173,069) | (12,936,949) | (16,276,254) |
| Income tax benefit | -- | -- | 1,745,895 | 1,453,243 |
| Net loss | (3,309,138) | (4,173,069) | (11,191,054) | (14,823,011) |
| Less: Net loss attributable to the noncontrolling interest in Ocean Power Technologies (Australasia) Pty Ltd. | 100,263 | 44,596 | 221,862 | 141,174 |
| Net loss attributable to Ocean Power Technologies, Inc. | $ (3,208,875) | $ (4,128,473) | $ (10,969,192.00) | $ (14,681,837) |
| Basic and diluted net loss per share | $ (0.21) | $ (0.40) | $ (0.91) | $ (1.42) |
| Weighted average shares used to compute basic and diluted net loss per share | 15,286,526 | 10,314,642 | 12,041,824 | 10,304,044 |
| Consolidated Statements of Cash Flows | ||
| For the Twelve Months Ended April 30, 2014 and 2013 | ||
| Year Ended April 30, | ||
| 2014 | 2013 | |
| Cash flows from operating activities: | ||
| Net loss | $ (11,191,054) | $ (14,823,011) |
| Adjustments to reconcile net loss to net cash used in operating activities: | ||
| Foreign exchange (gain) loss | (183,704) | 83,416 |
| Depreciation and amortization | 421,836 | 502,099 |
| Loss on disposals of property, plant and equipment | 195,977 | 44,067 |
| Impairment of long-lived assets | 2,658 | 7,718 |
| Provision for doubtful accounts | (299,958) | — |
| Treasury note discount amortization | 5,391 | (12,191) |
| Compensation expense related to stock option grants and restricted stock | 771,646 | 858,902 |
| Changes in operating assets and liabilities: | ||
| Accounts receivable | 787,601 | 264,077 |
| Unbilled receivables | 90,188 | 95,451 |
| Other current assets | (413,901) | 685,523 |
| Other noncurrent assets | (34,214) | (93,700) |
| Accounts payable | (12,363) | 105,036 |
| Accrued expenses | (983,835) | 1,158,481 |
| Advance payment received from customer | 4,709,055 | — |
| Unearned revenues-ST | (130,368) | 46,451 |
| Unearned revenues-LT | (232,033) | 232,033 |
| Net cash used in operating activities | (6,497,078) | (10,845,648) |
| Cash flows from investing activities: | ||
| Purchases of marketable securities | (23,982,431) | (16,678,329) |
| Maturities of marketable securities | 23,489,021 | 25,055,534 |
| Restricted cash | (5,924,960) | 75,000 |
| Purchases of equipment | (27,268) | (394,632) |
| Net cash (used in) provided by investing activities | (6,445,638) | 8,057,573 |
| Cash flows from financing activities: | ||
| Repayment of debt | (100,000) | (100,000) |
| Proceeds from the exercise of stock options | 8,533 | — |
| Proceeds from the sale of common stock, net of costs | 20,525,988 | — |
| Acquisition of treasury stock | (6,814) | (21,505) |
| Net cash provided by (used in) financing activities | 20,427,707 | (121,505) |
| Effect of exchange rate changes on cash and cash equivalents | 880 | (71,092) |
| Net increase (decrease) in cash and cash equivalents | 7,485,871 | (2,980,672) |
| Cash and cash equivalents, beginning of period | 6,372,788 | 9,353,460 |
| Cash and cash equivalents, end of period | $ 13,858,659 | $ 6,372,788 |
CONTACT: Company Contact:
Mark A. Featherstone ,
Chief Financial Officer
Phone: 609.730.0400
Investor Relations and Media Contact:
Deborah K. Pawlowski ,
Kei Advisors LLC
Phone: 716.843.3908
Email: dpawlowski@keiadvisors.com
