17th Sep 2007 17:40
Ocean Power Technologies Inc17 September 2007 ------------------------------------------------------ NEWS RELEASE------------------------------------------------------ Ocean Power Technologies Inc. 1590 Reed Road Pennington, New Jersey 08534 USA September 17, 2007 OCEAN POWER TECHNOLOGIES ANNOUNCES RESULTS FOR THE THREE MONTHS ENDED JULY 31, 2007 Ocean Power Technologies, Inc. (Nasdaq: OPTT and London Stock Exchange AIM: OPT)("OPT" or the "Company") announced today its results for the first quarter ofits fiscal year ending April 30, 2008. Revenues for the three months ended July31, 2007 were $556,000 compared with $305,000 in the three months ended July 31,2006. The Company incurred a net loss of $2.4 million in the first quarter offiscal 2008 compared with a net loss of $1.7 million in the first quarter offiscal 2007. The first quarter basic and diluted net loss per share was $0.24 infiscal 2008 compared with $0.32 in fiscal 2007. Contract backlog for the Companywas $6.9 million as of July 31, 2007, as compared to $5.2 million as of April30, 2007. Highlights •Order backlog at July 31, 2007: $6.9 million (April 30, 2007: $5.2 million) •Revenues for the first quarter ended July 31, 2007 were $556,000, up $251,000 from the first quarter of fiscal 2007 ($305,000) •PowerBuoy grid connection certified as compliant with international standards •Awarded $1.7 million contract with U.S. Navy for ocean data gathering program •Mark R. Draper appointed Chief Operating Officer •Cash, cash equivalents and certificates of deposit of $112 million at July 31, 2007 (April 30, 2007: $115.9 million) Commenting on the results, George W. Taylor, Chief Executive Officer of OPT,said "OPT is off to a very good start in the first quarter of our fiscal yearending April 30, 2008. Order backlog is at an all-time high of $6.9 million andwe expect further new contracts as the year progresses. Engineering work on ourPB150 PowerBuoy system is well underway, and we are very pleased that ourtechnology achieved grid certification from an internationally recognizedtesting agency. Three new PowerBuoys are now under construction, and we expectto begin manufacturing more shortly." Operational review During the three months ended July 31, 2007, OPT built on the strong progress ofthe previous twelve months, achieving further milestones on the path towards itslong-term goal of fully commercializing the PowerBuoy wave energy system. In early June, the Company expanded its long-term relationship with the U.S.Navy when it was awarded a $1.7 million contract to provide an autonomousPowerBuoy in connection with an ocean data gathering system. The Navy's DeepWater Acoustic Detection System (DWADS), which has prospective applicationsincluding vessel tracking for homeland security, uses wide-area unattendedsensor networks. Under the terms of this contract, which is expected to run for18 months, the Navy will test OPT's autonomous PowerBuoy as an energy source forDWADS. In accordance with the Company's goal of providing energy from the ocean intothe electrical utility power grid, the connection interface for the PowerBuoywas certified as compliant with designated national and international standards,a prerequisite for utility grid connections. OPT also made significant progress in a number of other ongoing projects: - SPAIN - The construction of the Company's PB40 system being built for Iberdola, the Spanish utility, is proceeding. The buoy is expected to be ready for deployment by the end of 2007, and will undergo system testing in the latter part of this calendar year. - FRANCE - OPT is continuing to work under a contract with Total and Iberdrola to develop a wave power station on the Atlantic coast of France. Potential grid connection points are currently being assessed. - SCOTLAND - OPT has been awarded $1.8 million by the Scottish Executive for the construction, installation and in-ocean demonstration in the Orkney Islands of OPT's most advanced PowerBuoy system, the 150kW-rated PB150. During the first quarter of fiscal 2008, OPT initiated the construction of portions of this system and the buoy is expected to be ready for deployment in the first half of calendar 2008. - OREGON, US - Development of the Company's first commercial U.S. mainland wave project, which will be located off the coast of Oregon near Reedsport, is also progressing. OPT has filed a Notice of Intent (NOI) to file a licence application and Pre-Application Document (PAD) with the Federal Energy Regulatory Commission (FERC) for its Reedsport project. The Company believes this is the first NOI and PAD to be filed with FERC for a wave power project. Surveys of the wave park are now underway and local partnerships are being forged with suppliers. Subsequent to July 31, 2007, OPT signed a contract with PNGC Power, the Oregon-based power cooperative, for funding toward the first buoy, a PB150, to be deployed at the site. - HAWAII, US - Work is well underway for the construction of a 40kW PowerBuoy expected to be ready for deployment at the U.S. Marine Corps Base in Oahu by the end of 2007. The performance of the previous buoy deployed in Hawaii is currently being assessed against hydrodynamic model predictions. To date, this analysis has been positive, and power generated during the period of operation was in accord with expectations for the Hawaii wave climate. - CORNWALL, UK - The Southwest of England Regional Development Agency is making progress in obtaining the necessary permits for its Wave Hub off Cornwall, England. OPT has been meeting local suppliers and identifying sites for staging system integration, assembly and test. - NEW JERSEY, US - OPT's New Jersey demonstration buoy, which was removed from the ocean for maintenance, has now been redeployed at a site five miles east of Tuckerton, New Jersey. The growth of the Company's business has necessitated an expansion of themanagement team and other staff resources. In late June 2007, Mark Draper, thechief executive of OPT's European subsidiary, and who has been instrumental inthe Company's success in Europe, was appointed Chief Operating Officer of OPT. OPT has continued to make significant investments in its technology over theperiod and has achieved substantial progress with the design of 150kWPowerBuoys. The Company has also completed the development of advanced controlsystems for PowerBuoys from the PB150 through to 500kW-rated PB500 PowerBuoys,which the Company expects to have developed by 2010. Financial review Revenues increased by $0.3 million in the three months ended July 31, 2007 to $0.6 million, as compared to $0.3 million in the three months ended July 31, 2006.The revenue increase primarily reflected work on the first phase of construction of a 1.39MW wave power station off the coast of Spain, and work that commenced on the design, manufacture and installation of a PB150 PowerBuoy device in Orkney, Scotland. The Company recognized a gross loss of $0.2 million in the three months ended July 31, 2007, compared to a gross profit of $0.1 million in the three months ended July 31, 2006. The decrease in gross profit in the current period primarily reflects a $0.1 million increase in compensation expense recognized under SFAS 123(R) related to stock-based payments to employees, and a $0.1 million decrease in gross profit recorded in connection with our U.S. Navy project in Hawaii, due to higher expected costs atcompletion of the project. Net loss for the three months ended July 31, 2007 was $2.4 million, compared toa net loss of $1.7 million in the quarter ended July 31, 2006. This increase was attributable to the gross loss for the period, a 73% increase in product development costs primarily reflecting work to increase the power output of the Company's utility PowerBuoy, and a 44% increase in selling, general and administrative costs. These were partially offset by a $1.1 million increase ininterest income. The Company finished the quarter with very strong liquidity. At July 31, 2007, total cash, cash equivalents and certificates of deposit were $112 million, compared to $115.9 million at April 30, 2007. Long-term debt of $189,000 represents amounts due to the State of New Jersey under a non-interest bearing loan which must be repaid no later than January 2012. Stockholders' equity and common shares outstanding reflect the receipt of proceeds on April 30, 2007 from the U.S. initial public offering and listing on the Nasdaq Global Market. The Company raised a net amount of approximately $90 million through the sale of 5 million common shares. **********Additional information may be found in the Company's Quarterly Report on Form10-Q filed with the U.S. Securities and Exchange Commission. The Form 10-Q maybe accessed at www.sec.gov or at the Company's website in the Investor Relationstab. **********Forward-Looking StatementsThis release contains "forward-looking statements" which reflect the Company'scurrent expectations about its future plans and performance, includingstatements concerning the impact of marketing strategies, new productintroductions and innovation, deliveries of product, sales, earnings, andmargins. These forward-looking statements rely on a number of assumptions andestimates which could be inaccurate and which are subject to risks anduncertainties. Actual results could vary materially from those anticipated orexpressed in any forward-looking statement made by the Company. Please refer tothe Company's most recent Form 10-K and subsequent filings for a furtherdiscussion of these risks and uncertainties. The Company disclaims anyobligation or intent to update the forward-looking statements in order toreflect events or circumstances after the date of this release. About Ocean Power Technologies Ocean Power Technologies, Inc. develops and is commercializing proprietarysystems that generate electricity by harnessing the renewable energy of oceanwaves. The Company's PowerBuoy(R) system is based on modular, ocean-going buoys,which have been ocean tested for nearly a decade. The waves move the buoy-likestructure, creating mechanical energy that the Company's proprietarytechnologies convert into electricity. For further information, please contact: Ocean Power Technologies, Inc. Dr. George W. Taylor, Chief Executive Officer Telephone: +1 609 730 0400Charles F. Dunleavy, Chief Financial Officer Telephone: +1 609 730 0400 Corfin Communications Telephone: +44 20 7977 0020Ben Hunt, Neil Thapar Collins Stewart Europe Limited Telephone: +44 20 7523 8353Adrian Hadden ****** Consolidated Balance Sheets as ofApril 30, 2007 and July 31, 2007ASSETS April 30, July 31, 2007 2007 $ $ (Unaudited)Cash and cash equivalents 107,505,473 102,227,435 Certificates of deposit 8,390,146 9,739,322Accounts receivable 865,081 78,000Unbilled receivables 313,080 594,958Other current assets 441,342 1,160,172 Total current assets 117,515,122 113,799,887 Property and equipment, net 387,923 385,338 Patents, net ofaccumulated amortization of$176,840 and $181,789, respectively 597,280 609, 269Restricted cash 983,376 983,304Other noncurrent assets 227,845 227,764 TOTAL ASSETS 119,711,546 116,005,562 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES:Accounts payable 1,708,408 1,187,395Accrued expenses 4,593,413 2,852,929Unearned revenues - 240,954Other currentliabilities 26,106 26,106 Total current liabilities 6,327,927 4,307,384 LONG-TERM DEBT 231,585 188,784 DEFERRED RENT 10,825 12,178 DEFERRED CREDITS 600,000 600,000 Total liabilities 7,170,337 5,108,346 SHAREHOLDERS' EQUITY:Preferred stock, $0.001 par value, - -authorized 5,000,000 shares; noneissued or outstanding Common stock, $0.001par value; authorized 105,000,000 shares;issued and outstanding 10,186,254 and10,190,604 shares respectively 10,186 10,191Additional paid-in capital 150,842,671 151,631,189Accumulated deficit (38,270,918) (40,708,762)Accumulated other comprehensive loss (40,730) (35,402) Total stockholders'equity 112,541,209 110,897,216 TOTAL LIABILITIES ANDSTOCKHOLDERS' EQUITY 119,711,546 116,005,562 Consolidated Statements ofOperationsFor the quarters ended July 31, 2006and 2007 (Unaudited) July 31, 2006 July 31, 2007 $ $REVENUES 305,186 555,704COST OF REVENUES 225,965 804,992Gross profit (loss) 79,221 (249,288)PRODUCT DEVELOPMENT COSTS 1,052,126 1,815,734SELLING, GENERAL AND 1,388,045 1,996,602ADMINISTRATIVE COSTS Operating loss (2,360,950) (4,061,624)INTEREST INCOME, NET 362,367 1,444,286FOREIGN EXCHANGE GAIN 337,629 179,494NET LOSS (1,660,954) (2,437,844)Basic and diluted net loss per share (0.32) (0.24) Weighted average shares used tocompute basic and diluted net loss per share 5,171,527 10,189,354 Consolidated Statements of Cash FlowsFor the quarters ended July 31, 2006and 2007 (Unaudited) July 31 2006 July 31 2007 $ $CASH FLOWS FROM OPERATINGACTIVITIES:Net loss (1,660,954) (2,437,844)Adjustments to reconcile net lossto net cash used in operatingactivities:Foreign exchange gain (337,629) (179,494)Depreciation and amortization 65,671 63,909Compensation expense related to 445,553 752,552stock option grantsDeferred rent 6,765 1,353Changes in operating assets and liabilities:Accounts receivable (7,614) 788,136Unbilled receivables 52,145 (276,397)Other current assets (16,818) (715,277)Accounts payable (86,159) (382,287)Accrued expenses (16,273) 1,109,675)Unearned revenues (14,405) 240,954Other current liabilities (24,420) - Net cash used in operating (1,594,138) (3,254,070)activities CASH FLOWS FROM INVESTINGACTIVITIES Purchases of certificates of deposit (29,123,293) (9,030,855)Maturities of certificates of deposit - 7,681,679Purchase of equipment (15,836) (9,632)Payments of patent cost (18,432) (16,938)Investments in joint ventures andother noncurrent assets (19,469) - Net cash used in investing (29,177,030) (1,375,746)activities CASH FLOWS FROM FINANCINGACTIVITIES:Common stock issuance costs - (870,116)Proceeds from exercise of stock 7,700 35,971options Net cash provided by (used in) 7,700 (834,145)financing activities EFFECTS OF EXCHANGE RATE CHANGESON CASH AND CASH EQUIVALENTS 336,798 185,923 NET DECREASE IN CASH AND CASH (30,426,670) (5,278,038)EQUIVALENTS CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 31,957,209 107,505,473 CASH AND CASH EQUIVALENTS, END OF PERIOD 1,530,539 102,227,435 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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