PENNINGTON, N.J., Sept. 08, 2017 (GLOBE NEWSWIRE) -- Ocean Power Technologies, Inc. (Nasdaq:OPTT) today
announced financial results for the first quarter of fiscal year 2018 ended July 31, 2017.
"Our first quarter results were in line with our expectations, and we continued to make progress on our strategic initiatives to
commercialize the PB3 PowerBuoy and position the company for future growth,” said George H. Kirby, President and Chief Executive
Officer of OPT.
Operations Review
Kirby added, “Production is underway on two new commercial PB3 PowerBuoys. These will be our third and fourth units and they are
being built to meet anticipated demand from potential new customers. We are continuing to pursue additional opportunities to
identify markets and applications for the PB3 PowerBuoy that could contribute to increased sales and financial performance for OPT.
As part of that initiative, we announced our presence in Houston, Texas during the quarter to support our offshore oil and gas
business development activities. In May, we exhibited our PB3 commercial unit to customers and end users at the Offshore Technology
Conference, which is one of the largest global offshore oil and gas events in the world, and were pleased with the response from
attendees. In April, the Company announced the relocation of its corporate headquarters and manufacturing center to Monroe,
NJ. The new facility will more than double the size of the existing OPT facility. The move is on track to be completed later
in this calendar year.”
Financial Highlights
Revenue for the first quarter of fiscal year 2018 was $195,000, which was relatively flat compared to revenue of $202,000 for
the first quarter of fiscal year 2017. Revenue for the first quarter of fiscal year 2018 came from contracts with Mitsui
Engineering and Shipbuilding and the Department of Defense Office of Naval Research while revenue for first quarter of fiscal year
2017 came from the contract with Mitsui Engineering and Shipbuilding.
The net loss for the first quarter of fiscal year 2018 was $2.7 million, compared to a net loss of $3.8 million for the first
quarter of fiscal year 2017. The decrease in net loss for the first quarter of fiscal year 2018 is primarily attributable to lower
product development costs and the decline in the fair value of the company’s warrants liability, partially offset by slightly
higher selling, general, and administrative expenses.
Total cash, cash equivalents, restricted cash and marketable securities were $12.0 million at July 31, 2017, up from $8.9
million on April 30, 2017. Restricted cash was $515,000 as of July 31, 2017, compared to $488,000 as of April 30, 2017. Net
cash used in operating activities was $4.2 million for the first quarter of fiscal year 2018, compared with $2.9 million for the
first quarter of fiscal year 2017.
The company closed on a public offering of its common stock on May 2, 2017, which raised $7.2 million. “The additional capital
strengthens our financial position and will support the continued execution of our business plan,” added Kirby.
Summary
"We remain committed to developing long-term partnerships and generating revenues as quickly as possible. We are focused on
establishing new strategic relationships, as well as pursuing unique opportunities with our current partners and potential
customers. Our emphasis for the remainder of the fiscal year will be on maximizing our sales and marketing activities as well as
improving overall operational execution,” said Kirby.
Conference Call Details
OPT management will host a conference call to review the first quarter financial and operating results on Tuesday, September 12,
2017 at 10:00 a.m. Eastern time. Interested parties may listen to the call live on the internet through the investor relations
section of the company’s website: www.oceanpowertechnologies.com, or by dialing 844-473-0979 and entering the passcode 79960581. A
telephone replay of the conference call will be available from 1:00 p.m. Eastern time the day of the teleconference until September
19, 2017 by dialing 855-859-2056 and entering the passcode 79960581. A replay of the webcast and transcript of the call will be
archived on the company’s website.
About Ocean Power Technologies
Headquartered in New Jersey, Ocean Power Technologies aspires to transform the world through durable, innovative
and cost-effective ocean energy solutions. Our PB3 PowerBuoy uses ocean waves to provide clean, reliable and persistent
electric power and real-time communications for remote offshore applications in markets such as oil and gas, defense, security,
ocean observing, and communications. To learn more, visit www.oceanpowertechnologies.com.
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 SEC for a further
discussion of these risks and uncertainties. The Company disclaims any obligation or intent to update the forward-looking
statements in order to reflect events or circumstances after the date of this release.
FINANCIAL TABLES FOLLOW
Additional information may be found in the Company's Annual Report on Form 10-K that has been filed with the U.S. Securities and
Exchange Commission ("SEC"). The Form 10-K may be accessed at www.sec.gov or at the Company's website in the Investor Relations section.
| |
| Ocean Power Technologies, Inc. and
Subsidiaries |
| Consolidated Balance Sheets |
| (in thousands, except share
data) |
| |
|
|
|
|
|
|
| |
|
|
July 31, 2017 |
|
|
April 30, 2017 |
| |
|
|
(Unaudited) |
|
|
|
| ASSETS |
|
|
|
|
|
|
| Current assets: |
|
|
|
|
|
|
| Cash and cash equivalents |
|
|
$ |
11,414 |
|
|
|
$ |
8,421 |
|
| Marketable securities |
|
|
|
25 |
|
|
|
|
25 |
|
| Restricted cash- short-term |
|
|
|
361 |
|
|
|
|
334 |
|
| Accounts Receivable |
|
|
|
86 |
|
|
|
|
48 |
|
| Unbilled receivables |
|
|
|
163 |
|
|
|
|
296 |
|
| Litigation receivable |
|
|
|
350 |
|
|
|
|
- |
|
| Other current assets |
|
|
|
383 |
|
|
|
|
622 |
|
| Total current assets |
|
|
|
12,782 |
|
|
|
|
9,746 |
|
| Property and equipment, net |
|
|
|
146 |
|
|
|
|
170 |
|
| Restricted cash- long-term |
|
|
|
154 |
|
|
|
|
154 |
|
| Other noncurrent assets |
|
|
|
3 |
|
|
|
|
3 |
|
| Total assets |
|
|
$ |
13,085 |
|
|
|
$ |
10,073 |
|
| LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
| Current liabilities: |
|
|
|
|
|
|
| Accounts payable |
|
|
$ |
183 |
|
|
|
$ |
586 |
|
| Accrued expenses |
|
|
|
1,530 |
|
|
|
|
3,059 |
|
| Litigation payable |
|
|
|
350 |
|
|
|
|
- |
|
| Warrant liabilities |
|
|
|
286 |
|
|
|
|
323 |
|
| Current portion of capital lease obligations |
|
|
|
36 |
|
|
|
|
35 |
|
| Deferred credits payable current |
|
|
|
600 |
|
|
|
|
600 |
|
| Total current liabilities |
|
|
|
2,985 |
|
|
|
|
4,603 |
|
| Long-term portion of capital lease obligations |
|
|
|
14 |
|
|
|
|
23 |
|
| Total liabilities |
|
|
|
2,999 |
|
|
|
|
4,626 |
|
| 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 12,621,205 and 6,313,996 shares, respectively |
|
|
|
13 |
|
|
|
|
6 |
|
| Treasury stock, at cost; 70,081 and 48,065 shares,
respectively |
|
(295 |
) |
|
|
|
(263 |
) |
| Additional paid-in capital |
|
|
|
200,549 |
|
|
|
|
193,234 |
|
| Accumulated deficit |
|
|
|
(190,043 |
) |
|
|
|
(187,370 |
) |
| Accumulated other comprehensive loss |
|
|
|
(138 |
) |
|
|
|
(160 |
) |
| Total stockholders' equity |
|
|
|
10,086 |
|
|
|
|
5,447 |
|
| Total liabilities and stockholders’ equity |
|
|
$ |
13,085 |
|
|
|
$ |
10,073 |
|
| |
|
|
|
|
|
|
| Ocean Power Technologies, Inc. and
Subsidiaries |
| Consolidated Statements of
Operations |
| (in thousands, except per share
data) |
| (Unaudited) |
| |
| |
|
|
Three months ended July
31, |
| |
|
|
|
2017 |
|
|
|
|
2016 |
|
| |
| Revenues |
|
|
$ |
195 |
|
|
|
$ |
202 |
|
| Cost of revenues |
|
|
|
217 |
|
|
|
|
127 |
|
| Gross profit (loss) |
|
|
|
(22 |
) |
|
|
|
75 |
|
| |
|
|
|
|
|
|
| Operating expenses: |
|
|
|
|
|
|
| Product development costs |
|
|
|
1,102 |
|
|
|
|
1,636 |
|
| Selling, general and administrative costs |
|
|
|
1,641 |
|
|
|
|
1,519 |
|
| Total operating expenses |
|
|
|
2,743 |
|
|
|
|
3,155 |
|
| Operating loss |
|
|
|
(2,765 |
) |
|
|
|
(3,080 |
) |
| |
|
|
|
|
|
|
| Change in fair value of warrant liabilities |
|
|
|
37 |
|
|
|
|
(752 |
) |
| Interest income, net |
|
|
|
3 |
|
|
|
|
- |
|
| Foreign exchange gain |
|
|
|
62 |
|
|
|
|
5 |
|
| Net loss |
|
|
$ |
(2,663 |
) |
|
|
$ |
(3,827 |
) |
| Basic and diluted net loss per share |
|
|
$ |
(0.22 |
) |
|
|
$ |
(1.72 |
) |
| Weighted average shares used to compute |
|
|
|
|
|
|
| basic and diluted net loss per share |
|
|
|
12,268,683 |
|
|
|
|
2,228,585 |
|
| Ocean Power Technologies, Inc. and
Subsidiaries |
| Consolidated Statements of Cash
Flows |
| (in thousands) |
| (Unaudited) |
| |
|
|
|
|
| |
|
Three months ended
July 31, |
| |
|
|
2017 |
|
|
|
2016 |
|
| |
|
|
|
|
|
|
|
|
| Cash flows from operating activities: |
|
|
|
|
| Net loss |
|
$ |
(2,663 |
) |
|
$ |
(3,827 |
) |
| Adjustments to reconcile net loss to net cash used in
operating activities: |
|
|
|
|
| Foreign exchange gain |
|
|
(62 |
) |
|
|
(5 |
) |
| Depreciation and amortization |
|
|
31 |
|
|
|
34 |
|
| Loss on disposal of property, plant and equipment |
|
|
4 |
|
|
|
- |
|
| Compensation expense related to stock option grants and
restricted stock |
|
|
91 |
|
|
|
218 |
|
| Change in fair value of warrant liabilities |
|
|
(37 |
) |
|
|
752 |
|
| Changes in operating assets and liabilities: |
|
|
|
|
| Accounts receivable |
|
|
(38 |
) |
|
|
(150 |
) |
| Unbilled receivable |
|
|
133 |
|
|
|
(13 |
) |
| Other assets |
|
|
239 |
|
|
|
(370 |
) |
| Accounts payable |
|
|
(405 |
) |
|
|
264 |
|
| Accrued expenses |
|
|
(1,531 |
) |
|
|
215 |
|
| Unearned revenues |
|
|
- |
|
|
|
(39 |
) |
| Net cash used in operating activities |
|
|
(4,238 |
) |
|
|
(2,921 |
) |
| Cash flows from investing activities: |
|
|
|
|
| Purchases of marketable securities |
|
|
- |
|
|
|
(25 |
) |
| Purchases of equipment |
|
|
(12 |
) |
|
|
(5 |
) |
| Net cash used in investing activities |
|
|
(12 |
) |
|
|
(30 |
) |
| Cash flows from financing activities: |
|
|
|
|
| Proceeds from issuance of common stock, net of costs |
|
|
7,221 |
|
|
|
- |
|
| Proceeds from issuance of common stock and related
warrants, net of costs |
|
|
- |
|
|
|
5,261 |
|
| Payment of capital lease obligations |
|
|
(9 |
) |
|
|
- |
|
| Payment of debt |
|
|
- |
|
|
|
(32 |
) |
| Acquisition of treasury stock |
|
|
(32 |
) |
|
|
(4 |
) |
| Net cash provided by financing activities |
|
|
7,180 |
|
|
|
5,225 |
|
| Effect of exchange rate changes on cash and cash equivalents |
|
|
90 |
|
|
|
(13 |
) |
| Net increase in cash, cash equivalents and restricted cash |
|
|
3,020 |
|
|
|
2,261 |
|
| Cash, cash equivalents and restricted cash, beginning of period |
|
|
8,909 |
|
|
|
7,030 |
|
| Cash, cash equivalents and restricted cash, end of period |
|
$ |
11,929 |
|
|
$ |
9,291 |
|
| |
|
|
|
|
Company Contact: Matthew T. Shafer Chief Financial Officer of OPT Phone: 609-730-0400 Investor Relations Contact: Andrew Barwicki Barwicki Investor Relations Inc. Phone: 516-662-9461 Media Contact: Marilyn Vollrath Reputation Partners LLC Phone: (414) 376-8834 Email: Marilyn@reputationpartners.com
