MONROE TOWNSHIP, N.J., Dec. 14, 2022 (GLOBE NEWSWIRE) — Ocean Power Technologies, Inc. (“OPT” or “the Company”) (NYSE American: OPTT), a leader in innovative and cost-effective low-carbon marine data, power, and consulting service solutions, today announced financial results for its second quarter ended October 31, 2022 (“2Q23”).

2Q23 HIGHLIGHTS:

• Total orders for the 2Q23 were $2.3 million, as compared to $0.1 million for the second quarter ended October 31, 2021 (“2Q22”). Total orders for the six months ended 2Q23 were $2.9 million, comparing favorably to total orders of $0.6 million for the 2Q22.
• Delivered gross margin of $0.2 million through the six months ended October 31, 2022 as compared to a gross loss of $(0.2) million through the six months ended October 31, 2021
• Revenues of $0.3 million for the 2Q23 increased 23% over 2Q22 revenues, while revenues for the six months ended October 31, 2022, increased to $1.0 million, compared to $0.5 million for the same period in the prior year.
• Partnered with Task Force 59 of the U.S. Navy on a new project in Bahrain to support the Digital Horizon exercise for use of Unmanned Surface Vehicles. This is expected to be completed by December 31, 2022.
• Awarded a $0.5 million contract to assist a U.S. government agency with land, air, space, port and costal surveillance activities.
• Collected $1.1 million payment in advance for the planned Phase II development and test of a modular and scalable Mass-on-Spring Wave Energy Converter (MOSWEC) PowerBuoy, a next-generation wave energy converter. This project is expected to be completed over the next 18-24 months.
• Continued second round of field testing of a proprietary next-generation Maritime Domain Awareness (“MDA”) solution. Remained on plan for completion during the quarter ended January 31, 2023.
• Entered final phase of integration of MAR, including the start of manufacturing WAM-Vs at our New Jersey facility.

Management Commentary – Philipp Stratmann, OPT’s President and Chief Executive Officer


“We continue to believe we will meet our estimate for $9.0 million in orders for the fiscal year, which is a testament to our entire organization. We are nearly six times where we were with orders as compared to last year and our pipeline of feasibility studies, demonstrations, and commercial orders continues to grow. Most recently, we have been conducting a demonstration in Bahrain for the U.S. Navy. We are showing how effective we are when our autonomous vehicles are used in combination with a PowerBuoy and our proprietary MDA software. We look forward to sharing with you the results of continued execution on our strategy in the second half of fiscal 2023.”

FINANCIAL HIGHLIGHTS – 2Q23

Income Statement:

• 
  Revenues
  
  for the 2Q23 were $0.3 million, as compared to $0.2 million in 2Q22. Revenues increased to $1.0 million for the six months ended 2Q23, as compared to $0.5 million for the same period in the six month period, reflecting growth of 96.0%. This growth has been driven by sales of WAM-V’s and an increase in Strategic Consulting Services during the first six months ended 2Q23.
• 
  Engineering and product development costs
  
  were $1.8 million in the 2Q23, down slightly from the $2.2 million in 1Q23 due to timing of projects and programs.
• 
  Selling, general, and administrative (SG&A) costs
  
  were $4.6 million for the 2Q23, reflecting an increase over $4.1 million for 1Q23. This increase is mainly related to increased payroll related expenses in the quarter.
• 
  Net loss
  
  was $4.8 million for the 2Q23, as compared to $5.2 million for the 2Q22. Net loss was $10.7 million for the six months ended 2Q23, as compared to a net loss of $8.3 million for the same period 2Q22.

Balance Sheet and Cash Flow:

• Combined cash, unrestricted cash, cash equivalents and short-term investments at October 31, 2022 was $46.4 million.
• Bank debt remained at $0 at October 31, 2022.
• Net cash used in operating activities for the six months ended 2Q23 was $11.0 million, compared to $10.4 million for the same period in the prior year.
  

Conference Call & Webcast


As announced on November 10, 2022, OPT will host a conference call and webcast to review its financial and operating results tomorrow morning, Thursday, December 15, 2022, at 9:00 a.m. Eastern time. Philipp Stratmann, CEO, Bob Powers, CFO, and Joseph DiPietro, Treasurer and Controller, will host the call.

• The dial-in numbers for the conference call are 877-407-8291 or 1-201-689-8345.

• Live Webcast:
  
  
  Link to 2Q23 Webcast for OPTT
  
  

• Call Replay: Will be available by telephone approximately two hours after the call’s completion until March 15, 2023. You may access the replay by dialing 877-660-6853 from the U.S. or 201-612-7415 for international callers and using the Conference ID 1373 3908.

• Webcast Replay: The archived webcast will also be available on the OPT investor relations section of its website.

The Company also announced that it will participate in a fireside chat hosted by Water Tower Research at 2:00 p.m. ET on December 16, 2022, where Chief Executive Officer Philipp Stratmann will discuss its business in more detail, including recent deployments and other publicly announced customer projects in more detail. Register to participate in this event here:


https://us06web.zoom.us/webinar/register/WN_hKNXcdVJSBOfD69aZ0jqnA

About Ocean Power Technologies


OPT provides intelligent maritime solutions and services that enable safer, cleaner, and more productive ocean operations for the defense and security, oil and gas, science and research, and offshore wind markets. Our PowerBuoy® platforms provide clean and reliable electric power and real-time data communications for remote maritime and subsea applications. We also provide WAM-V® autonomous surface vessels (ASV) and marine robotics services through our wholly owned subsidiary Marine Advanced Robotics and strategic consulting services including simulation engineering, software engineering, concept design and motion analysis through our wholly owned subsidiary 3Dent. We are headquartered in Monroe Township, New Jersey, and have offices in Houston, Texas, and Richmond, California. To learn more, visit


www.OceanPowerTechnologies.com


.

Forward-Looking Statements


This release may contain forward-looking statements that are within the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are identified by certain words or phrases such as “may”, “will”, “aim”, “will likely result”, “believe”, “expect”, “will continue”, “anticipate”, “estimate”, “intend”, “plan”, “contemplate”, “seek to”, “future”, “objective”, “goal”, “project”, “should”, “will pursue” and similar expressions or variations of such expressions. These forward-looking statements reflect the Company’s current expectations about its future plans and performance. These forward-looking statements rely on a number of assumptions and estimates that could be inaccurate and subject to risks and uncertainties. Actual results could vary materially from those anticipated or expressed in any forward-looking statement made by the Company. Please refer to the Company’s most recent Forms 10-Q and 10-K and subsequent filings with the U.S. Securities and Exchange Commission for further discussion of these risks and uncertainties. The Company disclaims any obligation or intent to update the forward-looking statements in order to reflect events or circumstances after the date of this release.

Financial Tables Follow


Additional information may be found in the Company’s Quarterly Report on Form 10-Q that has been filed with the U.S. Securities and Exchange Commission. The Form 10-Q is accessible at www.sec.gov or the Investor Relations section of the Company’s website (


www.OceanPowerTechnologies.com/investor-relations


).

Contact Information


Investors: 609-730-0400 x401 or


[email protected]



Media: 609-730-0400 x402 or


[email protected]

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