On Tuesday, shares dropped -34.00% to $1.63 after the company announced that it had terminated CEO Charles F. Dunleavy.
Dunleavy also removed from his position as chairman of the board, and will not receive any severance payments according to a recent filing with the SEC.
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Ocean Power is also s conducting an internal investigation into the agreement between Victorian Wave Partners, which is wholly-owned subsidiary in Australia and the Australian Renewable Energy Agency, and any related public statements concerning that project.
The company does not anticipate restating any of its financial statements.
TheStreet Ratings team rates OCEAN POWER TECHNOLOGIES INC as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate OCEAN POWER TECHNOLOGIES INC (OPTT) a SELL. This is driven by several weaknesses, 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. Among the areas we feel are negative, one of the most important has been an overall disappointing return on equity."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Electrical Equipment industry and the overall market, OCEAN POWER TECHNOLOGIES INC's return on equity significantly trails that of both the industry average and the S&P 500.
- OPTT, with its very weak revenue results, has greatly underperformed against the industry average of 6.2%. Since the same quarter one year prior, revenues plummeted by 77.0%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
- The gross profit margin for OCEAN POWER TECHNOLOGIES INC is rather high; currently it is at 55.28%. It has increased significantly from the same period last year. Regardless of the strong results of the gross profit margin, the net profit margin of -371.35% is in-line with the industry average.
- Net operating cash flow has increased to -$1.57 million or 17.98% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -5.90%.
- OPTT's debt-to-equity ratio is very low at 0.02 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 3.82, which clearly demonstrates the ability to cover short-term cash needs.
- You can view the full analysis from the report here: OPTT Ratings Report