Ocean Power Technologies, Inc. ("OPT" or "the Company"), a leader in innovative and cost-effective low-carbon marine data, power, and consulting service solutions, announced financial results for its first quarter ended July 31, 2022.
1Q23 HIGHLIGHTS:
- Revenues increased to $714,000 in 1Q23, as compared to $272,000 in 1Q22.
- Selected by the U.S. Department of Energy (DOE) for the Phase II development of a next-generation wave energy converter. In the DOE’s recently published awards for clean energy Small Business Innovation Research (SBIR) projects, OPT will receive up to $1.1 million over the next 18-24 months to develop and test a modular and scalable Mass-on-Spring Wave Energy Converter (MOSWEC) PowerBuoy.
- Continued second round of field testing of a proprietary next-generation Maritime Domain Awareness ("MDA") solution, which is scheduled to be completed in 3Q23.
- Advanced the plans to start manufacturing WAM-Vs at our New Jersey facility.
Management Commentary – Philipp Stratmann, OPT's President and Chief Executive Officer
"I was pleased with our results this quarter, particularly with the progress within business development, and I remain encouraged with our ability to achieve our $9.0 million bookings target for fiscal 2023. An example of our success was winning the DOE award for Phase II development of next generation technologies, which further advances our leading ocean energy generation capabilities and supports US Government led Energy Transition efforts. Additionally, we are experiencing increased demand for our WAM-V based solutions, from new and recurring customers, as well as continued traction within Strategic Consulting Services. We look forward to sharing our continued progress in the coming quarters.”
FINANCIAL HIGHLIGHTS – 1Q23
Income Statement:
- Revenues increased to $714,000 in 1Q23, driven by WAM-V sales and leases and growth of Strategic Consulting Services.
- Engineering and product development costs were $2.2 million for the 1Q23, which were in line with recent levels, as the trailing four-quarter average in FY22 was $2.3 million.
- Selling, general, and administrative (SG&A) costs increased $166,000 sequentially from the 4Q22 to $4.1 million for the 1Q23. This increase is mainly related to increased payroll related expenses in the quarter.
- Net loss was $5.9 million for 1Q23, as compared to a net loss of $3.1 million for the 1Q22.
Balance Sheet and Cash Flow:
- Combined cash, unrestricted cash, cash equivalents and short-term investments at July 31, 2022 and 2021 was $52.4 million and $77.7 million, respectively.
- Bank debt was $0 at both July 31, 2022 and July 31, 2021.
- Net cash used in operating activities for 1Q23 was $5.1 million, which was comparable to the 1Q22.
