OPT Narrows Quarterly Loss; Full-Year Loss Widens
Ocean Power Technologies (OPT) has reported net loss for the fourth quarter of fiscal 2019 of $2.5 million, compared to a net loss of $3.3 million for the prior-year period.
The decrease in net loss was mainly attributable to lower cost of revenue as a result of timing on new contracts and the decrease in selling, general and administrative costs.
Revenue for the fourth quarter of fiscal 2019 was $191,000, which was relatively unchanged as compared to $222,000 for the prior-year period.
Revenue for the full twelve months of fiscal 2019 was $632,000, compared to revenue of $511,000 for the same period in fiscal 2018. The increase over 2018 was attributable to higher revenue on new contracts signed and started at the end of fiscal year 2018 and the beginning of fiscal year 2019 relating to Eni, Premier Oil, Enel Green Power, and the U.S. Navy SBIR.
The net loss for the twelve months of fiscal 2019 was $12.2 million, compared to a net loss of $10.2 million for the same period in fiscal 2018. The increase in net loss primarily related to the higher cost of revenues, new products and buoy builds for future customer contracts versus fiscal year 2018.
George H. Kirby, president and chief executive officer of OPT, stated: “I am pleased with the progress that’s been made at OPT throughout fiscal year 2019. We have built a strong opportunity pipeline, and we are further establishing our credibility in our key addressable markets. In addition, we continuously innovate and create more efficient solutions to address challenges in subsea environments. This allows us to expand our entry points into these markets, in order to continue to successfully commercialize our technology.”
“While we have additional work to achieve our desired commercial results, I’m very excited with the state of OPT’s position today versus one year ago. As I outlined during our commercialization call in May 2019 we have roughly 80 opportunities in the pipeline at varying stages of development with a potential value that is greater than $50 million.
“With the enthusiastic interest we are seeing in the market for the PB3 PowerBuoy technology and our new complimentary products and services, we believe OPT has the necessary foundation for growth,” concluded Mr. Kirby.