30th Jul 2007 07:00
Ocean Power Technologies, Inc. (Nasdaq: OPTT and London StockExchange AIM: OPT) ("OPT" or the "Company") announced today itsresults for the year ended April 30, 2007. Revenues in fiscal 2007were $2.5 million compared with $1.7 million in fiscal 2006. TheCompany incurred a net loss of $9.6 million in fiscal 2007 comparedwith a net loss of $7.1 million in the prior year. Contract backlogfor the Company was $5.2 million as of April 30, 2007, as compared to$2.6 million as of April 30, 2006. £ Highlights £ -- Order backlog at April 30, 2007: $5.2 million (April 30, 2006: $2.6 million) £ -- $90 million net raised in US IPO and Nasdaq listing £ -- Signed a $3.2 million contract for the second phase of construction of a wave power station in Santona, Spain £ -- OPT awarded its first operations and maintenance contract for a wave power station £ -- Mark R. Draper appointed Chief Operating Officer £ -- Cash of $115.9 million at year end (2006: $32.4 million) £ Operational review £ The twelve months ended April 30, 2007 represented a landmark yearin the development of the Company. £ OPT achieved significant operational progress and experienceduring the period towards its long-term goal of fully commercializingthe PowerBuoy wave energy system. The completion of the US IPO meansthe Company has the capital base and the credibility of a listing ontwo of the world's premier stock exchanges to build on thoseachievements in the future and benefit from the growth in demand forrenewable energy in the global markets. £ That progress is evident in the projects OPT has ongoing in fourcountries, including: £ -- The Company's largest contract ($3.2 million) of the year was won in Spain for the second phase of construction of the wave power station OPT is building in partnership with Iberdrola, the Spanish utility. £ -- OPT is continuing to work under contract from Total and Iberdrola in France to develop a wave power station on the Atlantic coast of France. £ -- In the US, the Company signed an agreement with the Oregon-based electric power group PNGC Power to work cooperatively on OPT's development of an initial 2MW demonstration station in Reedsport on the coast of Oregon. OPT has been granted a preliminary permit for this project from the Federal Energy Regulatory Commission (FERC). OPT also has applied for FERC permits to build two other wave parks off the coast of Oregon. In total, the permit applications submitted to FERC for Oregon are to build three wave parks with a total capacity of up to 250MW. £ -- In February 2007, OPT was awarded $1.2 million by the Scottish Executive for the construction, installation and in-ocean demonstration in the Orkney Islands of our most advanced 150kW PowerBuoy system. £ -- Since the fiscal year end, OPT has expanded its relationship with the US Navy with the award of a $1.7 million contract to power a deep water acoustic detection system. £ The expansion of the Company's activities has necessitated thegrowth and reorganization of staff. Six new employees have been addedat the New Jersey headquarters and at the headquarters of OPT'sEuropean subsidiary, Ocean Power Technologies Ltd. ("OPT Ltd."), inWarwick, England. Subsequent to April 30, 2007, Mark Draper, the chiefexecutive of OPT Ltd. and who has been instrumental in the Company'ssuccess in Europe, has been appointed Chief Operating Officer of OceanPower Technologies, Inc. £ OPT has continued to make significant investments in itstechnology over the period and has achieved substantial progress withthe design of 150kW PowerBuoys, the largest system yet, and progressis being made towards the goal of developing a 500kW PowerBuoy by2010. This progress includes completing the design and testing of thecontrol system to be used in the 150kW, 250kW and 500kW PowerBuoysystems. £ Financial review £ Revenues increased by $0.8 million in fiscal 2007, or 45%, to $2.5million as compared to $1.7 million in fiscal 2006. The increase inrevenues was primarily attributable to the following factors: £ -- Revenues relating to the utility PowerBuoy system increased by approximately $1.1 million due to work that commenced on the first phase of construction of a 1.39MW wave power station off the coast of Spain, increased revenues relating to the US Navy project in Hawaii from a higher activity level; and work that commenced on the design, manufacture and installation of an OPT wave power station consisting of a single PB150 (150kW) PowerBuoy device in Orkney, Scotland. £ -- Revenues relating to the autonomous PowerBuoy system decreased by approximately $0.3 million primarily as a result of the completion of a development and construction contract with Lockheed Martin in the fiscal year ended April 30, 2006. The Company was awarded a $1.7 million contract in July 2007 from the US Navy for the use of the autonomous PowerBuoy system in connection with a deep water ocean sensing application. £ Net loss for the year ended April 30, 2007 was $9.6 million,compared to a net loss of $7.1 million in the prior year. This changewas attributable in part to a 47% increase in product developmentcosts, including efforts to increase the output of PowerBuoy systems,and a 53% increase in selling, general and administrative costs. Thesewere partially offset by a $1.5 million foreign exchange gain in theyear ended April 30, 2007, compared to a $1.0 million foreign exchangeloss in the year ended April 30, 2006. £ The Company finished the year with very strong liquidity. At April30, 2007, total cash, cash equivalents and certificates of depositwere $115.9 million. Non-US dollar denominated certificates of depositand cash accounts had a balance of $16.6 million as of April 30, 2007,or 14% of the total. Long-term debt of $232,000 represents amounts dueto the State of New Jersey under a non-interest bearing loan whichmust be repaid no later than January 2012. Stockholders' equity andcommon shares outstanding reflect the closing in late April 2007 ofthe US IPO and listing on the Nasdaq Global Market. The Company raiseda net amount of approximately $90 million through the sale of 5million common shares. £ Outlook £ OPT has made progress on all fronts in fiscal year 2007, improvingthe technology of the PowerBuoys, strengthening our team and signingsignificant contracts with world-class partners. The completion of theUS IPO and listing on Nasdaq, and the approximately $90 million netraised in that transaction has given OPT the resources to build onthose achievements in fiscal 2008, and the Company expects to makecontinued progress in commercializing the technology in the targetmarkets of North America, Europe, Japan and Australia. £ Additional information may be found in the Company's Annual Reporton Form 10-K filed with the US Securities and Exchange Commission. TheForm 10-K may be accessed at www.sec.gov or at the Company's websitein the Investor Relations tab. £ 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, 2006 and April 30, 2007 Apr 30, Apr 30, 2006 2007 $ $ASSETSCash and cash equivalents 31,957,209 107,505,473Certificates of deposit 482,156 8,390,146Accounts receivable -- 865,081Unbilled receivables 211,000 313,080Other current assets 331,139 441,342 Total current assets 32,981,504 117,515,122 Property and equipment, net 544,285 387,923Patents, net of accumulated amortization of $157,451 and $176,840, respectively 372,448 597,280Restricted cash -- 983,376Other noncurrent assets 97,901 227,845 TOTAL ASSETS 33,996,138 119,711,546 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES:Accounts payable 242,624 1,708,408Accrued expenses 1,726,870 4,593,413Unearned revenues 14,405 --Other current liabilities 111,576 26,106 Total current liabilities 2,095,475 6,327,927 LONG-TERM DEBT 233,959 231,585 DEFERRED RENT -- 10,825 DEFERRED CREDITS 600,000 600,000 Total liabilities 2,929,434 7,170,337 COMMITMENTS AND CONTINGENCIES STOCKHOLDERS' EQUITY:Preferred stock, $0.001 par value; authorized 5,000,000 shares; none issued or outstanding -- --Common stock, $0.001 par value; authorized 105,000,000 shares; issued and outstanding 5,171,119 and 10,186,254 shares, respectively 5,171 10,186Additional paid-in capital 59,725,777 150,842,671Accumulated deficit (28,632,153) (38,270,918)Accumulated other comprehensive loss (32,091) (40,730) Total stockholders' equity 31,066,704 112,541,209 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY 33,996,138 119,711,546\* T \* TConsolidated Statements of OperationsFor the years ended April 30, 2006 and 2007 Apr 30, Apr 30, 2006 2007 $ $REVENUES 1,747,715 2,531,315COST OF REVENUES 2,059,318 3,983,742Gross loss (311,603) (1,452,427)PRODUCT DEVELOPMENT COSTS 4,224,997 6,219,893SELLING, GENERAL AND ADMINISTRATIVE COSTS 3,190,687 4,893,580Operating loss (7,727,287) (12,565,900) INTEREST INCOME, NET 1,408,361 1,389,702OTHER INCOME, NET 218,257 13,906FOREIGN EXCHANGE (LOSS) GAIN (978,242) 1,523,527 Loss before income taxes (7,222,874) (9,638,765)INCOME TAX BENEFIT 143,963 -NET LOSS (7,078,911) (9,638,765)Basic and diluted net loss per share (1.37) (1.83)Weighted average shares used tocompute basic and diluted net loss per share 5,162,340 5,260,794\* T \* TConsolidated Statements of Cash FlowsFor the years ended April 30, 2006 and 2007 Apr 30, Apr 30, 2006 2007CASH FLOWS FROM OPERATING ACTIVITIES: $ $Net loss (7,078,911) (9,638,765)Adjustments to reconcile net loss to net cash used inoperating activities:Foreign exchange loss (gain) 978,242 (1,523,527)Depreciation and amortization 233,132 269,075Loss on disposal of equipment -- 24,572Compensation expense related to stock option grants 129,139 1,152,416Realization of deferred credits (75,000) --Deferred rent -- 10,825Changes in operating assets and liabilities:Accounts receivable 668,424 (827,287)Unbilled receivables 611,037 (95,896)Other current assets 161,505 (99,436)Accounts payable (632,778) 1,233,484Accrued expenses (121,840) 2,126,616Unearned revenues (2,383) (14,405)Other current liabilities 57,803 (85,470) Net cash used in operating activities (5,071,630) (7,467,798) CASH FLOWS FROM INVESTING ACTIVITIES:Purchases of certificates of deposit (62,677,400) (55,187,304)Maturities of certificates of deposit 87,397,606 47,279,314Restricted cash -- (983,376)Purchases of equipment (330,047) (107,271)Payments of patent costs (57,396) (217,763)Investments in joint ventures and other noncurrent assets (30,747) (122,001) Net cash provided by (used in) investing activities 24,302,016 (9,338,401) CASH FLOWS FROM FINANCING ACTIVITIES:Sale of common stock, net of issuance costs -- 90,773,935Proceeds from exercise of stock options 122,703 65,674 Net cash provided by financing activities 122,703 90,839,609 EFFECT OF EXCHANGE RATE CHANGES ON CASH ANDCASH EQUIVALENTS (980,694) 1,514,854 NET INCREASE IN CASH AND CASH EQUIVALENTS 18,372,395 75,548,264 CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 13,584,814 31,957,209 CASH AND CASH EQUIVALENTS, END OF PERIOD 31,957,209 107,505,473\* T Copyright Business Wire 2007Related Shares:
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