Ocean Power Technologies, Inc. Announces Fourth Quarter and Full-Year Fiscal 2022 Results
14 July 2022 - 6:15AM
Ocean Power Technologies, Inc. ("OPT" or "the Company") (NYSE
American: OPTT), a leader in innovative and cost-effective
low-carbon marine data, power, and consulting service solutions,
today announced financial results for its fourth quarter and
full-year ended April 30, 2022.
Q4 HIGHLIGHTS:
- Revenues increased to $756,000 in
Q422, driven by growth of Strategic Consulting Services.
- Continued development of its
proprietary next-generation Maritime Domain Awareness ("MDA")
solution, configured to provide cyber-secure autonomous monitoring
of large ocean areas, such as windfarms, marine protected areas,
and areas of interest to national security, suitable for
installation on buoys and vehicles. This MDA solution, initially
field tested in October 2021, is undergoing a planned second round
of field testing, which commenced during Q1 of Fiscal 2023.
- Partnered with the Naval Surface Warfare Center’s Port Hueneme
Division for its Advanced Naval Technology Exercise Coastal Trident
demonstration, where OPT will be deploying a single PowerBuoy
equipped with its MDA platform. The demonstration is intended
to help provide data and monitoring of several offshore threats,
including dark ship tracking, drug and human trafficking, and
illegal fishing.
FY22 HIGHLIGHTS:
- Completed its acquisition of Marine
Advanced Robotics (MAR) , which expanded OPT's commercial offering
into autonomous vehicles for maritime data services. MAR is
expected to contribute approximately $2.0 million to revenue for
Fiscal Year 2023.
- Revenues increased to $1.76 million
in Fiscal 2022, due primarily to MAR and the growth of Strategic
Consulting Services.
- Was notified of a pre-award for a
DOE Small Business Innovation Research program (“SBIR”) to support
the development of the next generation of our wave energy
conversion systems. The project began in August 2021 and was
completed in April 2022.
- Partnered with Sulmara Subsea, a
global provider of innovative survey and inspection services to the
offshore energy sector, to develop advanced uses for OPT’s WAM-V®
autonomous surface vehicles.
- Received an award for its WAM-V
unmanned surface vehicle from the Australian Defense Engineering
Group (ADEG) of the Royal Australian Navy via our local partner
Blue Zone Group. This will be used as a research and development
test bed for the ADEG.
- Set the path for future growth by
strengthening its senior management team with a number of key
changes and additions, including Philipp Stratmann as CEO (June
2021), Maria Force as Vice President of Human Resources (November
2021), Bob Powers as CFO (December 2021), Matt Burdyny as Vice
President of Sales and Marketing (March 2022), and Ethan Butler as
Vice President of Engineering and Operations (May 2022).
Management Commentary – Philipp
Stratmann, OPT's President and Chief Executive
Officer"Fiscal 2022 was a year of significant progress for
our company. We implemented a robust strategy that expanded our
revenue generation capability, as reflected in our meaningful
growth in revenue for the year. We broadened our strategic
partnership base, grew our consulting services, and completed our
acquisition of Marine Advanced Robotics. I am pleased with the
continued integration of MAR. We expect execution of our strategy
to deliver a record $9.0 million in orders in fiscal 2023, much of
which should be revenue in the year. I am pleased with the progress
we have made and remain keenly focused on becoming the technology
leader for offshore Data-as-a-Service and Power-as-a-Service.”
FINANCIAL HIGHLIGHTS – Q422
- Revenues –
increased to $756,000 for 4Q22, due to growth in Strategic
Consulting Services.
- Engineering and product
development costs – decreased by $377,000 from 3Q22 but
remain elevated from FY21, mainly due to OPT's investment in its
proprietary MDA platform.
- Selling, general, and
administrative (SG&A) costs – increased from 3Q22 and
4Q21 due primarily to increased equity compensation, expenses
related to the acquisition of MAR, and recruiting expenses.
- Net loss – the
Company’s net loss of $5.2 million for Q422 compared to a net loss
of $5.2 million for the Q421.
Balance Sheet and Cash Flow
- We had $57.5 million of combined
cash, unrestricted cash, cash equivalents and short-term
investments as of April 30, 2022.
- The Company has no bank debt.
- Net cash used in operating
activities for Fiscal Year 2022 was $21.3 million, compared to
$11.7 million for Fiscal Year 2021, primarily due to increase
program expenses, acquisition expenses, and associated
headcount.
Conference Call & Webcast
As announced on June 14, 2022, OPT will host a
conference call and webcast to review its financial and operating
results on Thursday, July 14, 2022, at 9:00 A.M. Eastern Time.
Investors, analysts, and other interested parties may access the
conference call by:
- 877-407-8291 (U.S.)
- 201-689-8345 (International)
- Webcast link via the Company's
website at www.OceanPowerTechnologies.com/investor-relations
A digital replay will be available by telephone
approximately two hours after the call's completion and until
October 14, 2022. Access by dialing 877-660-6853 (U.S.) or
201-612-7415 (International) and using the Conference ID# 13730472.
The archived webcast will also be available on the OPT website
investor relations page.
About Ocean Power Technologies
OPT 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. We are headquartered in Monroe Township, New Jersey, and
have offices in Houston, Texas, and Richmond, California. 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 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 U.S. Securities
and Exchange Commission for 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. The Form 10-K is
accessible at www.sec.gov or the Investor Relations section of the
Company's website
(www.OceanPowerTechnologies.com/investor-relations).
Contact InformationInvestors: 609-730-0400 x401
or InvestorRelations@oceanpowertech.com Media: 609-730-0400 x402 or
MediaRelations@oceanpowertech.com
Ocean Power Technologies, Inc. and
SubsidiariesConsolidated Balance
Sheets(in thousands, except share
data)
|
April 30, 2022 |
|
April 30, 2021 |
ASSETS |
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
$ |
7,885 |
|
|
$ |
83,028 |
|
Short-term investments |
|
49,384 |
|
|
|
— |
|
Restricted cash, short-term |
|
258 |
|
|
|
384 |
|
Accounts receivable |
|
482 |
|
|
|
350 |
|
Contract assets |
|
386 |
|
|
|
190 |
|
Inventory |
|
442 |
|
|
|
— |
|
Other current assets |
|
467 |
|
|
|
487 |
|
Total current assets |
$ |
59,304 |
|
|
$ |
84,439 |
|
Property and equipment,
net |
|
445 |
|
|
|
406 |
|
Intangibles, net |
|
4,136 |
|
|
|
274 |
|
Right-of-use asset, net |
|
752 |
|
|
|
1,036 |
|
Restricted cash,
long-term |
|
219 |
|
|
|
222 |
|
Goodwill |
|
8,537 |
|
|
|
— |
|
Total assets |
$ |
73,393 |
|
|
$ |
86,377 |
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|
Current liabilities: |
|
|
|
Accounts payable |
$ |
905 |
|
|
$ |
687 |
|
Accrued expenses |
|
877 |
|
|
|
1,881 |
|
Contract liabilities |
|
129 |
|
|
|
— |
|
Right-of-use liability, current portion |
|
319 |
|
|
|
347 |
|
Contingent liabilities, current portion |
|
748 |
|
|
|
— |
|
Litigation payable |
|
— |
|
|
|
1,224 |
|
Liability classified stock awards |
|
— |
|
|
|
60 |
|
Paycheck protection program loan, current portion |
|
— |
|
|
|
495 |
|
Total current liabilities |
$ |
2,978 |
|
|
$ |
4,694 |
|
Deferred tax liability |
|
203 |
|
|
|
— |
|
Contingent liabilities, less
current portion |
|
843 |
|
|
|
— |
|
Paycheck protection program
loan, less current portion |
|
— |
|
|
|
396 |
|
Right-of-use liability, less
current portion |
|
538 |
|
|
|
819 |
|
Total liabilities |
$ |
4,562 |
|
|
$ |
5,909 |
|
Commitments and
contingencies |
|
|
|
Shareholders’ Equity: |
|
|
|
Preferred stock, $0.001 par value; authorized 5,000,000 shares,
none issued or outstanding |
$ |
— |
|
|
$ |
— |
|
Common stock, $0.001 par value; authorized 100,000,000 shares,
issued and outstanding 55,905,213 and 52,479,051 shares,
respectively |
|
56 |
|
|
|
52 |
|
Treasury stock, at cost; 23,331 and 21,040 shares,
respectively |
|
(341 |
) |
|
|
(338 |
) |
Additional paid-in capital |
|
322,932 |
|
|
|
315,820 |
|
Accumulated deficit |
|
(253,770 |
) |
|
|
(234,895 |
) |
Accumulated other comprehensive loss |
|
(46 |
) |
|
|
(171 |
) |
Total shareholders' equity |
|
68,831 |
|
|
|
80,468 |
|
Total liabilities and shareholders’ equity |
$ |
73,393 |
|
|
$ |
86,377 |
|
Ocean Power Technologies, Inc. and
SubsidiariesConsolidated Statements of
Operations(in thousands, except per share
data)
|
Three months ended April 30, |
|
Twelve months ended April 30, |
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
Revenues |
$ |
756 |
|
|
$ |
601 |
|
|
$ |
1,759 |
|
|
$ |
1,206 |
|
Cost of revenues |
|
800 |
|
|
|
1,031 |
|
|
|
1,860 |
|
|
|
2,279 |
|
Gross loss |
$ |
(44 |
) |
|
$ |
(430 |
) |
|
$ |
(101 |
) |
|
$ |
(1,073 |
) |
Operating expenses |
|
|
|
|
|
|
|
Engineering and product development costs |
$ |
1,828 |
|
|
$ |
1,413 |
|
|
$ |
9,606 |
|
|
$ |
4,747 |
|
Selling, general and administrative costs |
$ |
3,973 |
|
|
$ |
2,179 |
|
|
$ |
11,906 |
|
|
$ |
7,772 |
|
Total operating expenses |
$ |
5,801 |
|
|
$ |
3,592 |
|
|
$ |
21,512 |
|
|
$ |
12,519 |
|
Operating loss |
$ |
(5,845 |
) |
|
$ |
(4,022 |
) |
|
$ |
(21,613 |
) |
|
$ |
(13,592 |
) |
Litigation settlement |
$ |
— |
|
|
$ |
(1,224 |
) |
|
$ |
— |
|
|
$ |
(1,224 |
) |
Interest income, net |
|
68 |
|
|
|
79 |
|
|
|
124 |
|
|
|
124 |
|
Other income |
|
— |
|
|
|
— |
|
|
|
60 |
|
|
|
— |
|
Gain on forgiveness of PPP
loan |
|
— |
|
|
|
— |
|
|
|
890 |
|
|
|
— |
|
Loss on liquidation of
subsidiary |
|
(157 |
) |
|
|
— |
|
|
|
(157 |
) |
|
|
— |
|
Other expense, net |
|
— |
|
|
|
(34 |
) |
|
|
— |
|
|
|
(83 |
) |
Foreign exchange (loss) /
gain |
|
(1 |
) |
|
|
1 |
|
|
|
(1 |
) |
|
|
15 |
|
Loss before income taxes |
$ |
(5,935 |
) |
|
$ |
(5,200 |
) |
|
$ |
(20,697 |
) |
|
$ |
(14,760 |
) |
Income tax benefit |
|
782 |
|
|
|
— |
|
|
|
1,823 |
|
|
|
— |
|
Net loss |
$ |
(5,153 |
) |
|
$ |
(5,200 |
) |
|
$ |
(18,874 |
) |
|
$ |
(14,760 |
) |
Basic and diluted net loss per
share |
$ |
(0.09 |
) |
|
$ |
(0.10 |
) |
|
$ |
(0.35 |
) |
|
$ |
(0.49 |
) |
Weighted average shares used to compute basic and diluted net loss
per share |
|
55,834,735 |
|
|
|
51,286,196 |
|
|
|
54,010,233 |
|
|
|
30,018,838 |
|
OCEAN POWER TECHNOLOGIES, INC. AND
SUBSIDIARIESConsolidated Statements of Cash
Flows(in thousands)
|
Twelve months ended April 30, |
|
|
2022 |
|
|
|
2021 |
|
Cash flows from operating
activities: |
|
|
|
Net loss |
$ |
(18,874 |
) |
|
$ |
(14,760 |
) |
Adjustments to reconcile net loss to net cash used in operating
activities: |
|
|
|
Foreign exchange (gain) / loss |
|
1 |
|
|
|
(15 |
) |
Depreciation of fixed assets |
|
144 |
|
|
|
143 |
|
Amortization of intangibles |
|
86 |
|
|
|
6 |
|
Amortization of right of use asset |
|
285 |
|
|
|
223 |
|
Amortization of premium on investments |
|
58 |
|
|
|
— |
|
Gain on forgiveness of PPP loan |
|
(890 |
) |
|
|
— |
|
Loss on liquidation of subsidiary |
|
157 |
|
|
|
— |
|
Compensation expense related to equity compensation |
|
1,169 |
|
|
|
721 |
|
Deferred tax liabilities |
|
(377 |
) |
|
|
— |
|
Performance obligation shares compensation |
|
(60 |
) |
|
|
60 |
|
Net effect from disposal of property, plant and equipment |
|
— |
|
|
|
2 |
|
Changes in operating assets and liabilities, net of
acquisitions: |
|
|
|
Accounts receivable |
|
(133 |
) |
|
|
(245 |
) |
Contract assets |
|
(195 |
) |
|
|
61 |
|
Inventory |
|
(292 |
) |
|
|
— |
|
Other assets |
|
19 |
|
|
|
106 |
|
Accounts payable |
|
217 |
|
|
|
441 |
|
Accrued expenses |
|
(1,004 |
) |
|
|
761 |
|
Litigation payable |
|
(1,224 |
) |
|
|
1,224 |
|
Change in right of use lease liability |
|
(309 |
) |
|
|
(237 |
) |
Contract liabilities |
|
(74 |
) |
|
|
(165 |
) |
Net cash used in operating activities |
$ |
(21,296 |
) |
|
$ |
(11,674 |
) |
Cash flows from investing
activities: |
|
|
|
Cash acquired in acquisition |
$ |
— |
|
|
$ |
100 |
|
Purchase of short-term investments |
|
(49,442 |
) |
|
|
— |
|
Purchase of property, plant and equipment |
|
(145 |
) |
|
|
(26 |
) |
Payment for MAR acquisition, net of cash acquired |
|
(4,444 |
) |
|
|
Net cash (used in) provided by investing activities |
$ |
(54,031 |
) |
|
$ |
74 |
|
Cash flows from financing
activities: |
|
|
|
Proceeds from Paycheck Protection Program Loan |
$ |
— |
|
|
$ |
890 |
|
Proceeds from loan payable |
|
— |
|
|
|
467 |
|
Payment of loan payable |
|
— |
|
|
|
(467 |
) |
Proceeds from stock option exercises |
|
90 |
|
|
|
184 |
|
Payment of payroll taxes related to stock option exercises |
|
— |
|
|
|
(245 |
) |
Proceeds from issuance of common stock- Aspire financing net of
issuance costs |
|
— |
|
|
|
14,393 |
|
Proceeds from issuance of common stock- AGP At The Market offering,
net of issuance costs |
|
— |
|
|
|
66,166 |
|
Proceeds associated with exercise of common stock warrants |
|
— |
|
|
|
2,818 |
|
Acquisition of treasury stock |
|
(3 |
) |
|
|
(36 |
) |
Net cash provided by financing activities |
$ |
87 |
|
|
$ |
84,170 |
|
Effect of exchange rate
changes on cash, cash equivalents and restricted cash |
$ |
(32 |
) |
|
$ |
134 |
|
Net (decrease) / increase in cash, cash equivalents and restricted
cash |
$ |
(75,272 |
) |
|
$ |
72,704 |
|
Cash, cash equivalents and
restricted cash, beginning of year |
$ |
83,634 |
|
|
$ |
10,930 |
|
Cash, cash equivalents and
restricted cash, end of year |
$ |
8,362 |
|
|
$ |
83,634 |
|
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