Ocean Power Technologies Announces Third Quarter FY2021 Results

MONROE TOWNSHIP, N.J., March 05, 2021 (GLOBE NEWSWIRE) —  Ocean Power Technologies, Inc. (“OPT” or “the Company”) (Nasdaq: OPTT), a leader in innovative and cost-effective ocean energy solutions, today announced financial results for the third quarter of fiscal year 2021 ended January 31, 2021.
Recent Operational HighlightsAcquired 3Dent Technology, adding offshore engineering and design services and an established project and customer base.Planned first OPT PowerBuoy® remote deployment.Strengthened its liquidity position with an increase in total cash of $80.4 million.
Management Commentary
“OPT’s third quarter brought dramatic change to our company,” said George H. Kirby, OPT’s President and Chief Executive Officer. “We acquired 3Dent Technology, which we believe is an important step for our long-term growth strategy and for expanding our offerings of autonomous clean ocean energy and data solutions. Additionally, we planned our first remote installation of a turnkey wave energy-powered subsea data collection system in Chile, which we believe offers flexibility and cost-reduction to our customers. We also welcomed three new directors to our board who bring valuable expertise in offshore energy, safety, finance and governance.”Kirby further said, “A key goal for us this year was to bolster our financial position, improve our liquidity and reduce our capital risk, and we believe that we’ve made great strides towards those efforts. During the fiscal year, the Company has generated $76.1 million in net proceeds through utilization of its ATM Facilities and Equity Line Common Stock Purchase Agreements, including $66.7 in net proceeds raised during the third quarter, during which we saw an increase in share price. Additionally, the Company’s liquidity position has improved due to cost-cutting measures that were put in place at the beginning of the year. We believe that the Company’s unrestricted cash balance of approximately $79.8 million as of January 31, 2021, in addition to continued prudent cost management, will provide us with the capital necessary to fund ongoing operations as well as the financial flexibility to execute on our growth strategy, consisting of market expansion, sales cycle acceleration, development of new products and solutions, and strategic acquisitions.”Third Quarter and First Nine Months Fiscal Year 2021 Financial Review
Revenue for the third quarter of fiscal year 2021 was $0.3 million compared to $0.7 million for the same period in the prior year, and the net loss for the third quarter of fiscal 2021 increased by $0.3 million as compared to the third quarter of fiscal 2020. Revenue for the first nine months of fiscal year 2021 was $0.6 million compared to $1.1 million for the same period in the prior year, and the net loss for the first nine months of fiscal 2021 increased by $0.5 million as compared to the same period in the prior year. The decrease in revenue and increase in net loss for the third quarter and first nine months of fiscal 2021 were mainly attributable to pandemic-related delays of the Company’s revenue-generating projects.Balance Sheet and Cash Flow
Total cash, cash equivalents, and restricted cash was $80.4 million as of January 31, 2021. Net cash used in operating activities decreased by $0.1 million during the first nine months of fiscal 2021 to $8.5 million, as compared to the first nine months of fiscal 2020. This decrease is mainly the result of lower cash spending on customer projects and product development costs in the current fiscal year period as compared to the same period in the prior fiscal year. During the nine months ended January 31, 2021, the Company’s At-The-Market agreements and equity line agreements with Aspire Capital generated net proceeds of $76.1 million.Conference Call & Webcast
OPT will host a conference call and webcast to review its financial and operating results on Tuesday, March 9, 2021, at 11:00 A.M. Eastern Time. Interested parties may access the conference call by dialing 877-407-8291 (toll-free in the U.S.) or 201-689-8345 for international callers.Investors, analysts, and members of the media interested in listening to the live presentation are encouraged to join a webcast of the call available on the Company’s website at https://www.oceanpowertechnologies.com/investor-relations.A digital replay will be available by telephone approximately two hours after the completion of the call and until June 9, 2021. Access by dialing 877-660-6853 from the U.S. or 201-612-7415 for international callers and using the Conference ID#13694019. The archived webcast will also be available on the OPT website investor relations page.About Ocean Power Technologies
Headquartered in Monroe Township, New Jersey, OPT aspires to transform the world through durable, innovative, and cost-effective ocean energy solutions. Its PowerBuoy® solutions platform provides clean and reliable electric power and real-time data communications for remote offshore and subsea applications in markets such as offshore oil and gas, defense and security, science and research, and communications. 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 which could be inaccurate and which are 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 a 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 Annual Report on Form 10-K that has been filed with the U.S. Securities and Exchange Commission. The Form 10-K may be accessed on www.sec.gov or the Company’s website in the Investor Relations section.