By late morning, shares had plummeted 14.5% to $4.36.
The wave-energy specialist reported revenue of $200,000 in the three months to January, a 77.8% year-on-year decrease compared to the year-ago quarter.
"This decrease related primarily to a lower level of external funding for the Company's PowerBuoy development projects, a decline in revenue tied to OPT's prospective PowerBuoy deployment off Reedsport, Oregon, which has been suspended pending resolution of regulatory, financial and other matters, and a decline in revenue from the Company's project off the coast of Spain," the company said in a statement.
Analysts surveyed by Thomson Reuters had expected revenue of $920,000.
The Pennington, N.J.-based business managed to limit its net loss over the quarter due to lower selling, general and administrative costs, particularly employee-related costs. The company also reported a higher income tax benefit due to the sale of New Jersey net operating tax losses and research and development tax credits.
Net losses of 6 cents a share were narrower than analysts' estimates for a 31-cent net loss.
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TheStreet Ratings team rates OCEAN POWER TECHNOLOGIES INC as a Sell with a ratings score of D. The team has this to say about their recommendation:
"We rate OCEAN POWER TECHNOLOGIES INC (OPTT) a SELL. This is driven by some concerns, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity, weak operating cash flow and poor profit margins."