Ocean Power Technologies Announces Financial Results (USA)

 

Ocean Power Technologies, Inc.today announces financial results for its fiscal 2012 first quarter ended July 31, 2011.

Recent Highlights

*Revenue for the quarter was $1.9 million, compared to $1.4 million for the prior year, reflecting an increase in revenue from OPT’s project with the US Navy for maritime security and funding for the development of the Company’s next-generation PowerBuoy, the PB500.

*Contract backlog as of July 31, 2011 was $7.1 million compared to $6.5 million as of July 31, 2010.

*Reported positive results from the ocean trials of OPT’s first PB150 PowerBuoy deployed off the coast of Scotland. Power levels and system performance for this utility-scale system outperformed engineering expectations. The Company believes the capacity factor represented by these results exceeds that experienced by most other renewable energy sources.

*On August 11, 2011, OPT deployed off the coast of New Jersey a unique autonomous wave energy device for sea trials as part of the US Navy’s Littoral Expeditionary Autonomous PowerBuoy (LEAP) program for coastal security and maritime surveillance. The Company’s proprietary power management techniques and on-board energy storage capability are key innovations of this system, and enable operation even in extended zero-wave sea conditions. The LEAP PowerBuoy successfully withstood the severe wave conditions experienced during Hurricane Irene and continued to generate power according to design.

In the past few months, Ocean Power Technologies has continued to make strides towards the commercialization of its PowerBuoy technology in our target markets around the globe,” said Charles F. Dunleavy, Chief Executive Officer of OPT. “The positive results from our 150 kW-rated utility PowerBuoy deployed off the coast of Scotland as well as the recent deployment of our grid-independent, autonomous PowerBuoy for the US Navy’s LEAP program were major milestones for OPT’s two product lines. These achievements point to growing potential for OPT’s technology across a multitude of commercial opportunities for large, grid-connected power stations and for autonomous applications such as maritime security, offshore oil and gas platforms, aquaculture and desalination.”

Financial Review

OPT’s contract backlog as of July 31, 2011 was $7.1 million compared to $8.9 million as of April 30, 2011 and $6.5 million as of July 31, 2010. Backlog includes funded and unfunded amounts that are expected to be funded in the future. Funded backlog as of July 31, 2011 and 2010 was $5.1 million and $5.9 million respectively, and $6.9 million as of April 30, 2011.

For the three months ended July 31, 2011, OPT reported revenues of $1.9 million as compared to revenue of $1.4 million for the three months ended July 31, 2010. This increase primarily reflects revenue recorded for the US Navy’s LEAP program and for the development of the Company’s next-generation PB500.

The operating loss for the three months ended July 31, 2011 was $5.1 million as compared to an operating loss of $6.3 million for the three months ended July 31, 2010. The reduction in operating loss for the three months ended July 31, 2011 was due primarily to a decrease in product development costs, principally for the PB150 system off the coast of Scotland, and an increase in gross profit. Gross profit for the three months ended July 31, 2010 was negatively impacted by a reduction in revenue of $231,000 due to a change in the Company’s estimated revenue recognized in connection with OPT’s project off the coast of Spain.

The net loss was $5.0 million for the three months ended July 31, 2011 compared to $6.3 million for the same period in the prior year. This decrease in net loss was due primarily to the decline in operating loss and lower foreign exchange losses, partially offset by a decrease in interest income.

Cash and Investments

On July 31, 2011, total cash, cash equivalents, restricted cash and investments were $43.1 million. Net cash used in operating activities was $4.9 million for the three months ended July 31, 2011, compared to $6.1 million for the same period last year. As previously stated, OPT expects the rate of its cash outflows to decrease in fiscal 2012, reflecting completion of significant milestones associated with the construction of its PB150 system for Oregon and the deployment of its PB150 off the coast of Scotland.

About Ocean Power Technologies

Ocean Power Technologies, Inc.  is a pioneer in wave-energy technology that harnesses ocean wave resources to generate reliable and clean and environmentally-beneficial electricity. OPT has a strong track record in the advancement of wave energy and participates in an estimated $150 billion annual power generation equipment market. OPT’s proprietary PowerBuoy(R) system is based on modular, ocean-going buoys that capture and convert predictable wave energy into clean electricity. The Company is widely recognized as a leading developer of on-grid and autonomous wave-energy generation systems, benefiting from 15 years of in-ocean experience. OPT is headquartered in Pennington, New Jersey, USA with an office in Warwick, UK.

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Source: OPT , September 09, 2011;