17th Sep 2007 18:47
Ocean Power Technologies, Inc. (Nasdaq: OPTT and London StockExchange AIM: OPT) ("OPT" or the "Company") announced today itsresults for the first quarter of its fiscal year ending April 30,2008. Revenues for the three months ended July 31, 2007 were $556,000compared with $305,000 in the three months ended July 31, 2006. TheCompany 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 firstquarter of fiscal 2007. The first quarter basic and diluted net lossper share was $0.24 in fiscal 2008 compared with $0.32 in fiscal 2007.Contract backlog for the Company was $6.9 million as of July 31, 2007,as compared to $5.2 million as of April 30, 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 ExecutiveOfficer of OPT, said "OPT is off to a very good start in the firstquarter of our fiscal year ending April 30, 2008. Order backlog is atan all-time high of $6.9 million and we expect further new contractsas the year progresses. Engineering work on our PB150 PowerBuoy systemis well underway, and we are very pleased that our technology achievedgrid certification from an internationally recognized testing agency.Three new PowerBuoys are now under construction, and we expect tobegin manufacturing more shortly." £ Operational review £ During the three months ended July 31, 2007, OPT built on thestrong progress of the previous twelve months, achieving furthermilestones on the path towards its long-term goal of fullycommercializing the PowerBuoy wave energy system. £ In early June, the Company expanded its long-term relationshipwith the U.S. Navy when it was awarded a $1.7 million contract toprovide an autonomous PowerBuoy in connection with an ocean datagathering system. The Navy's Deep Water Acoustic Detection System(DWADS), which has prospective applications including vessel trackingfor homeland security, uses wide-area unattended sensor networks.Under the terms of this contract, which is expected to run for 18months, the Navy will test OPT's autonomous PowerBuoy as an energysource for DWADS. £ In accordance with the Company's goal of providing energy from theocean into the electrical utility power grid, the connection interfacefor the PowerBuoy was certified as compliant with designated nationaland international standards, a prerequisite for utility gridconnections. £ OPT also made significant progress in a number of other ongoingprojects: £ -- 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 expansionof the management team and other staff resources. In late June 2007,Mark Draper, the chief executive of OPT's European subsidiary, and whohas been instrumental in the Company's success in Europe, wasappointed Chief Operating Officer of OPT. £ OPT has continued to make significant investments in itstechnology over the period and has achieved substantial progress withthe design of 150kW PowerBuoys. The Company has also completed thedevelopment of advanced control systems for PowerBuoys from the PB150through to 500kW-rated PB500 PowerBuoys, which the Company expects tohave developed by 2010. £ Financial review £ Revenues increased by $0.3 million in the three months ended July31, 2007 to $0.6 million, as compared to $0.3 million in the threemonths ended July 31, 2006. The revenue increase primarily reflectedwork on the first phase of construction of a 1.39MW wave power stationoff 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 thethree months ended July 31, 2007, compared to a gross profit of $0.1million in the three months ended July 31, 2006. The decrease in grossprofit in the current period primarily reflects a $0.1 millionincrease in compensation expense recognized under SFAS 123(R) relatedto stock-based payments to employees, and a $0.1 million decrease ingross profit recorded in connection with our U.S. Navy project inHawaii, due to higher expected costs at completion of the project. £ Net loss for the three months ended July 31, 2007 was $2.4million, compared to a net loss of $1.7 million in the quarter endedJuly 31, 2006. This increase was attributable to the gross loss forthe period, a 73% increase in product development costs primarilyreflecting work to increase the power output of the Company's utilityPowerBuoy, and a 44% increase in selling, general and administrativecosts. These were partially offset by a $1.1 million increase ininterest income. £ The Company finished the quarter with very strong liquidity. AtJuly 31, 2007, total cash, cash equivalents and certificates ofdeposit were $112 million, compared to $115.9 million at April 30,2007. Long-term debt of $189,000 represents amounts due to the Stateof New Jersey under a non-interest bearing loan which must be repaidno later than January 2012. Stockholders' equity and common sharesoutstanding reflect the receipt of proceeds on April 30, 2007 from theU.S. initial public offering and listing on the Nasdaq Global Market.The Company raised a net amount of approximately $90 million throughthe sale of 5 million common shares. £ Additional information may be found in the Company's QuarterlyReport on Form 10-Q filed with the U.S. Securities and ExchangeCommission. The Form 10-Q may be accessed at www.sec.gov or at theCompany's website in the Investor Relations tab. £ Forward-Looking Statements £ This release contains "forward-looking statements" which reflectthe Company's current expectations about its future plans andperformance, including statements concerning the impact of marketingstrategies, new product introductions and innovation, deliveries ofproduct, sales, earnings, and margins. These forward-lookingstatements rely on a number of assumptions and estimates which couldbe inaccurate and which are subject to risks and uncertainties. Actualresults could vary materially from those anticipated or expressed inany forward-looking statement made by the Company. Please refer to theCompany'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 orderto reflect events or circumstances after the date of this release. £ About Ocean Power Technologies £ Ocean Power Technologies, Inc. develops and is commercializingproprietary systems that generate electricity by harnessing therenewable energy of ocean waves. The Company's PowerBuoy(R) system isbased on modular, ocean-going buoys, which have been ocean tested fornearly a decade. The waves move the buoy-like structure, creatingmechanical energy that the Company's proprietary technologies convertinto electricity. ****** \* TConsolidated Balance Sheets as ofApril 30, 2007 and July 31, 2007 April 30, July 31, 2007 2007 $ $ (Unaudited)ASSETSCash and cash equivalents 107,505,473 102,227,435Certificates 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 387,923 385,338Patents, net of accumulated 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 current liabilities 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 STOCKHOLDERS' EQUITY:Preferred stock, $0.001 par value;authorized 5,000,000 shares; none issued oroutstanding - -Common stock, $0.001 par value; authorized105,000,000 shares; issued and outstanding10,186,254 and 10,190,604 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 AND STOCKHOLDERS' EQUITY 119,711,546 116,005,562\* T \* TConsolidated Statements of OperationsFor the quarters ended July 31, 2006 and 2007(Unaudited) July 31, July 31, 2006 2007 $ $ REVENUES 305,186 555,704COST OF REVENUES 225,965 804,992 Gross profit (loss) 79,221 (249,288)PRODUCT DEVELOPMENT COSTS 1,052,126 1,815,734SELLING, GENERAL AND ADMINISTRATIVE COSTS 1,388,045 1,996,602 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 to computebasic and diluted net loss per share 5,171,527 10,189,354\* T \* TConsolidated Statements of Cash FlowsFor the quarters ended July 31, 2006 and 2007(Unaudited) July 31 July 31 2006 2007CASH FLOWS FROM OPERATING ACTIVITIES: $ $Net loss (1,660,954) (2,437,844)Adjustments to reconcile net loss to netcash used in operating activities:Foreign exchange gain (337,629) (179,494)Depreciation and amortization 65,671 63,909Compensation expense related to stock optiongrants 445,553 752,552Deferred 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 activities (1,594,138) (3,254,070) CASH FLOWS FROM INVESTING ACTIVITIES: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 costs (18,432) (16,938)Investments in joint ventures and othernoncurrent assets (19,469) - Net cash used in investing activities (29,177,030) (1,375,746) CASH FLOWS FROM FINANCING ACTIVITIES:Common stock issuance costs - (870,116)Proceeds from exercise of stock options 7,700 35,971 Net cash provided by (used in) financing activities 7,700 (834,145) EFFECTS OF EXCHANGE RATE CHANGES ON CASH ANDCASH EQUIVALENTS 336,798 185,923 NET DECREASE IN CASH AND CASH EQUIVALENTS (30,426,670) (5,278,038) CASH AND CASH EQUIVALENTS, BEGINNING OFPERIOD 31,957,209 107,505,473 CASH AND CASH EQUIVALENTS, END OF PERIOD 1,530,539 102,227,435\* T Copyright Business Wire 2007Related Shares:
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