PENNINGTON, N.J., Dec. 09, 2016 (GLOBE NEWSWIRE) -- Ocean Power Technologies, Inc. (Nasdaq:OPTT) today announced financial results for its Fiscal 2017 second quarter ended October 31, 2016.
George H. Kirby, President and Chief Executive Officer of OPT, stated, "We continue to make measurable progress towards executing on our strategic business plan, and we are pleased with the developments throughout the second quarter and to date. Our accomplishments include successfully completing a pre-requisite stage gate review with MES and securing a new contract with the U.S. Department of Defense Office of Naval Research to conduct the design of a new mass-spring oscillating PowerBuoy for mission critical sensors. In October we completed a public offering of common stock with net proceeds of approximately $6.9 million. In early November we secured a joint marketing agreement with Sonalysts Inc., received court approval of the class action settlement, and received nearly $700,000 through New Jersey’s Technology Business Tax Certificate Transfer Program.”
Mr. Kirby continued, “We have continued our aggressive market outreach through direct discussions with potential partners and end-users in our target markets as an essential element of our product launch and commercialization strategy. We also had two PowerBuoys operating simultaneously off the coast of New Jersey through October 2016. We retrieved our pre-commercial buoy in October for updating to commercial status, while our commercial buoy was retrieved in early December, upon completing all intended testing and validation, to then be prepped and subsequently shipped to MES in Japan. We believe these achievements provide us with strong momentum going into our second half of the fiscal year."
Results for the Second Fiscal Quarter Ended October 31, 2016
For the three months ended October 31, 2016, OPT reported revenue of $0.2 million, as compared to revenue of $0.5 million for the three months ended October 31, 2015. The decrease in revenues over the prior year was primarily related to lower revenue from MES during the three months ended October 31, 2016 as compared to the three months ended October 31, 2015, which included revenue from our WavePort contract and billable work under our prior contracts with the U.S. Department of Energy.
The net loss for the three months ended October 31, 2016 was $1.0 million as compared to a net loss of $3.0 million for the three months ended October 31, 2015. The decrease in net loss is mainly attributable to lower selling, general, and administrative costs and the decline in the fair market value of the common stock warrants liability. These were partially offset by higher product development costs.
Results for the Six Months Ended October 31, 2016
For the six months ended October 31, 2016, OPT reported revenue of $0.4 million, as compared to revenue of $0.6 million for the six months ended October 31, 2015. The net loss for the six months ended October 31, 2016 was $4.8 million, as compared to a net loss of $7.2 million for the six months ended October 31, 2015. The decrease in net loss is due to lower product development costs and selling, general, and administrative costs as well as the decline in the fair market value of the common stock warrants liability.
Balance Sheet and Available Cash
As of October 31, 2016, total cash, cash equivalents, and marketable securities were $12.5 million, up from $6.8 million on April 30, 2016. As of October 31, 2016 and April 30, 2016, restricted cash was $0.3 million for each period. Net cash used in operating activities was $6.3 million during the six months ended October 31, 2016, which includes $0.7 million of costs related to the litigation settlement of $0.5 million and additional legal costs of $0.2 million, compared with $7.0 million for the six months ended October 31, 2015. Excluding these items, net cash used in operating activities was $5.6 million. During the quarter ended October 31, 2016, OPT completed a public offering of common stock wherein $6.9 million net proceeds were raised.
Mr. Kirby concluded, "We believe our combined ocean deployments, aggressive market outreach to key stakeholders in our target markets, and our utmost focus on achieving a reliable product with a clear value proposition have strongly contributed to advancing our commercialization efforts. We remain focused on progressing our commercialization strategy by building strategic partnerships to accelerate market access, expanding our product delivery and support capabilities, and advancing application demonstrations for early adopters.”
Conference Call Details
The Company will host a conference call and webcast to review financial and operating results. The call will be held on Tuesday, December 13, 2016, at 9:00 a.m. eastern time. Please call 1-844-473-0979 (toll free in the U.S.) or 574-990-1390 (for international callers) and enter pass code 27058843. Additionally, the call will be webcast live at the Company's website at www.oceanpowertechnologies.com. A telephonic replay will be available from 12:00 p.m. eastern time the day of the teleconference until December 20, 2016. To listen to the archived call, dial 1-855-859-2056 and enter pass code 27058843, or access the webcast replay via the Company website at www.oceanpowertechnologies.com, where a transcript will be posted once available.
About Ocean Power Technologies
Headquartered in Pennington, New Jersey, Ocean Power Technologies (Nasdaq:OPTT) is a pioneer in renewable wave-energy technology that converts ocean wave energy into electricity. OPT has developed and is seeking to commercialize its proprietary PowerBuoy® technology, which is based on a modular design and has undergone periodic ocean testing since 1997. OPT specializes in designing cost-effective, and environmentally sound ocean wave based power generation and management technology.
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 Quarterly Report on Form 10-Q that has been filed with the U.S. Securities and Exchange Commission ("SEC"). The Form 10-Q 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|
|ASSETS||Oct 31, 2016||Apr 30, 2016|
|Cash and cash equivalents||$||12,512,185||$||6,729,814|
|Other current assets||385,308||116,805|
|Total current assets||15,830,913||9,758,627|
|Property and equipment, net||220,180||273,049|
|Other noncurrent assets||320,599||319,450|
|LIABILITIES AND STOCKHOLDERS' EQUITY|
|Current portion of long-term debt and capital lease obligations||33,796||81,541|
|Total current liabilities||6,106,464||6,168,228|
|Long-term debt and capital lease obligations||41,167||54,567|
|Deferred credits payable non-current||600,000||600,000|
|Commitments and contingencies|
|Ocean Power Technologies, Inc. Stockholders’ equity:|
|Common stock, $0.001 par value; authorized 50,000,000 shares,|
|issued 6,321,040 and 2,352,100 shares, respectively||6,321||2,352|
|Treasury stock, at cost; 13,254 and 6,894 shares, respectively||(174,894||)||(137,766||)|
|Additional paid-in capital||192,632,350||181,670,121|
|Accumulated other comprehensive loss||(163,174||)||(122,365||)|
|Total liabilities and stockholders’ equity||$||16,371,692||$||10,351,126|
|Ocean Power Technologies, Inc. and Subsidiaries|
|Consolidated Statements of Operations|
|Three Months Ended October 31,||Six Months Ended October 31,|
|Cost of revenues||125,146||494,412||252,431||600,078|
|Product development costs||1,307,734||1,177,656||2,944,106||3,660,444|
|Selling, general and administrative costs||1,723,737||1,821,993||3,242,296||3,728,938|
|Total operating expenses||3,031,471||2,999,649||6,186,402||7,389,382|
|Change in fair value of warrant liabilities||2,017,557||-||1,265,488||-|
|Interest income, net||2,232||3,712||2,046||8,835|
|Other (expense) income, net||-||(8,080||)||-||242,927|
|Foreign exchange gain (loss)||1,780||(24,801||)||6,415||(5,842||)|
|Less: Net (profit) loss attributable to the non-controlling interest|
|in Ocean Power Technologies (Australasia) Pty Ltd.||-||2,057||-||(45,340||)|
|Net loss attributable to Ocean Power Technologies, Inc.||$||(965,084||)||$||(3,026,761||)||$||(4,792,531||)||$||(7,188,802||)|
|Basic and diluted net loss per share||$||(0.25||)||$||(1.71||)||$||(1.51||)||$||(4.08||)|
|Weighted average shares used to compute basic and|
|diluted net loss per share||3,891,512||1,773,978||3,180,501||1,762,805|
|OCEAN POWER TECHNOLOGIES, INC. AND SUBSIDIARIES|
|Consolidated Statements of Cash Flows|
|Six Months Ended October 31,|
|Cash flows from operating activities:|
|Adjustments to reconcile net loss to net cash used in operating activities:|
|Foreign exchange (loss) gain||(6,415||)||5,842|
|Depreciation and amortization||68,475||55,629|
|Compensation expense related to stock option grants & restricted stock||628,304||276,912|
|Change in fair value of warrant liabilities||(1,265,488||)||-|
|Changes in operating assets and liabilities:|
|Other current assets||(269,157||)||(144,364||)|
|Other noncurrent assets||(35,690||)||51,718|
|Net cash used in operating activities||(6,283,538||)||(6,984,705||)|
|Cash flows from investing activities:|
|Maturities of marketable securities||50,000||50,000|
|Purchases of equipment||(11,500||)||(11,130||)|
|Net cash provided by investing activities||32,353||89,699|
|Cash flows from financing activities:|
|Proceeds from issuance of common stock and related warrants, net of costs||12,151,764||4,798|
|Repayment of debt||(63,401||)||(50,000||)|
|Acquisition of treasury stock||(37,128||)||(1,724||)|
|Net cash provided by (used in) financing activities||12,051,235||(46,926||)|
|Effect of exchange rate changes on cash and cash equivalents||(17,679||)||(54,480||)|
|Net increase (decrease) in cash and cash equivalents||5,782,371||(6,996,412||)|
|Cash and cash equivalents, beginning of period||6,729,814||17,335,734|
|Cash and cash equivalents, end of period||$||12,512,185||$||10,339,322|
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
Source:Ocean Power Technologies Inc.