PENNINGTON, N.J., Dec. 09, 2016 (GLOBE NEWSWIRE) -- Ocean Power Technologies, Inc. (Nasdaq:OPTT) today announced financial results for its Fiscal 2017 second quarter ended October 31, 2016.

George H. Kirby, President and Chief Executive Officer of OPT, stated, "We continue to make measurable progress towards executing on our strategic business plan, and we are pleased with the developments throughout the second quarter and to date. Our accomplishments include successfully completing a pre-requisite stage gate review with MES and securing a new contract with the U.S. Department of Defense Office of Naval Research to conduct the design of a new mass-spring oscillating PowerBuoy for mission critical sensors. In October we completed a public offering of common stock with net proceeds of approximately $6.9 million. In early November we secured a joint marketing agreement with Sonalysts Inc., received court approval of the class action settlement, and received nearly $700,000 through New Jersey's Technology Business Tax Certificate Transfer Program."

Mr. Kirby continued, "We have continued our aggressive market outreach through direct discussions with potential partners and end-users in our target markets as an essential element of our product launch and commercialization strategy. We also had two PowerBuoys operating simultaneously off the coast of New Jersey through October 2016. We retrieved our pre-commercial buoy in October for updating to commercial status, while our commercial buoy was retrieved in early December, upon completing all intended testing and validation, to then be prepped and subsequently shipped to MES in Japan. We believe these achievements provide us with strong momentum going into our second half of the fiscal year."

Results for the Second Fiscal Quarter Ended October 31, 2016

For the three months ended October 31, 2016, OPT reported revenue of $0.2 million, as compared to revenue of $0.5 million for the three months ended October 31, 2015. The decrease in revenues over the prior year was primarily related to lower revenue from MES during the three months ended October 31, 2016 as compared to the three months ended October 31, 2015, which included revenue from our WavePort contract and billable work under our prior contracts with the U.S. Department of Energy.

The net loss for the three months ended October 31, 2016 was $1.0 million as compared to a net loss of $3.0 million for the three months ended October 31, 2015. The decrease in net loss is mainly attributable to lower selling, general, and administrative costs and the decline in the fair market value of the common stock warrants liability.  These were partially offset by higher product development costs. 

Results for the Six Months Ended October 31, 2016

For the six months ended October 31, 2016, OPT reported revenue of $0.4 million, as compared to revenue of $0.6 million for the six months ended October 31, 2015.  The net loss for the six months ended October 31, 2016 was $4.8 million, as compared to a net loss of $7.2 million for the six months ended October 31, 2015. The decrease in net loss is due to lower product development costs and selling, general, and administrative costs as well as the decline in the fair market value of the common stock warrants liability.

Balance Sheet and Available Cash

As of October 31, 2016, total cash, cash equivalents, and marketable securities were $12.5 million, up from $6.8 million on April 30, 2016. As of October 31, 2016 and April 30, 2016, restricted cash was $0.3 million for each period. Net cash used in operating activities was $6.3 million during the six months ended October 31, 2016, which includes $0.7 million of costs related to the litigation settlement of $0.5 million and additional legal costs of $0.2 million, compared with $7.0 million for the six months ended October 31, 2015.  Excluding these items, net cash used in operating activities was $5.6 million.  During the quarter ended October 31, 2016, OPT completed a public offering of common stock wherein $6.9 million net proceeds were raised.

Conclusion

Mr. Kirby concluded, "We believe our combined ocean deployments, aggressive market outreach to key stakeholders in our target markets, and our utmost focus on achieving a reliable product with a clear value proposition have strongly contributed to advancing our commercialization efforts. We remain focused on progressing our commercialization strategy by building strategic partnerships to accelerate market access, expanding our product delivery and support capabilities, and advancing application demonstrations for early adopters." 

Conference Call Details

The Company will host a conference call and webcast to review financial and operating results. The call will be held on Tuesday, December 13, 2016, at 9:00 a.m. eastern time. Please call 1-844-473-0979 (toll free in the U.S.) or 574-990-1390 (for international callers) and enter pass code 27058843. Additionally, the call will be webcast live at the Company's website at www.oceanpowertechnologies.com. A telephonic replay will be available from 12:00 p.m. eastern time the day of the teleconference until December 20, 2016. To listen to the archived call, dial 1-855-859-2056 and enter pass code 27058843, or access the webcast replay via the Company website at www.oceanpowertechnologies.com, where a transcript will be posted once available.

About Ocean Power Technologies

Headquartered in Pennington, New Jersey, Ocean Power Technologies (Nasdaq:OPTT) is a pioneer in renewable wave-energy technology that converts ocean wave energy into electricity. OPT has developed and is seeking to commercialize its proprietary PowerBuoy® technology, which is based on a modular design and has undergone periodic ocean testing since 1997. OPT specializes in designing cost-effective, and environmentally sound ocean wave based power generation and management technology.

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 SEC 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 Quarterly Report on Form 10-Q that has been filed with the U.S. Securities and Exchange Commission ("SEC"). The Form 10-Q may be accessed at www.sec.gov or at the Company's website in the Investor Relations section.
 
OCEAN POWER TECHNOLOGIES, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
                 
ASSETS   Oct 31, 2016   Apr 30, 2016
                (unaudited)    
Current assets:        
  Cash and cash equivalents   $   12,512,185     $   6,729,814  
  Marketable securities       25,000         75,000  
  Restricted cash       305,690         299,543  
  Unbilled receivables       102,730         37,465  
  Litigation receivable       2,500,000         2,500,000  
  Other current assets       385,308         116,805  
          Total current assets       15,830,913         9,758,627  
Property and equipment, net       220,180         273,049  
Other noncurrent assets       320,599         319,450  
          Total assets   $   16,371,692     $   10,351,126  
LIABILITIES AND STOCKHOLDERS' EQUITY        
Current liabilities:        
  Accounts payable   $   142,781     $   372,700  
  Accrued expenses       2,881,505         2,674,841  
  Litigation payable       2,500,000         3,000,000  
  Unearned revenue       -          39,146  
  Warrant liabilities       548,382         -   
  Current portion of long-term debt and capital lease obligations       33,796         81,541  
          Total current liabilities       6,106,464         6,168,228  
Long-term debt and capital lease obligations       41,167         54,567  
Deferred credits payable non-current       600,000         600,000  
          Total liabilities       6,747,631         6,822,795  
Commitments and contingencies         
Ocean Power Technologies, Inc. Stockholders' equity:        
  Common stock, $0.001 par value; authorized 50,000,000 shares,        
    issued 6,321,040 and 2,352,100 shares, respectively       6,321         2,352  
  Treasury stock, at cost; 13,254 and 6,894 shares, respectively       (174,894 )       (137,766 )
  Additional paid-in capital       192,632,350         181,670,121  
  Accumulated deficit       (182,676,542 )       (177,884,011 )
  Accumulated other comprehensive loss       (163,174 )       (122,365 )
  Total equity       9,624,061         3,528,331  
          Total liabilities and stockholders' equity   $   16,371,692     $   10,351,126  
                     

 
  Ocean Power Technologies, Inc. and Subsidiaries
  Consolidated Statements of Operations
  (Unaudited)
           
                Three Months Ended October 31, Six Months Ended October 31,
                    2016       2015       2016       2015  
  Revenues     $   169,964     $   494,412     $   372,353     $   600,078  
  Cost of revenues         125,146         494,412         252,431         600,078  
      Gross profit       44,818         -          119,922         -   
  Operating expenses:                
    Product development costs       1,307,734         1,177,656         2,944,106         3,660,444  
    Selling, general and administrative costs       1,723,737         1,821,993         3,242,296         3,728,938  
      Total operating expenses       3,031,471         2,999,649         6,186,402         7,389,382  
  Operating loss         (2,986,653 )       (2,999,649 )       (6,066,480 )       (7,389,382 )
  Change in fair value of warrant liabilities       2,017,557         -          1,265,488         -   
  Interest income, net       2,232         3,712         2,046         8,835  
  Other (expense) income, net        -          (8,080 )       -          242,927  
  Foreign exchange gain (loss)       1,780         (24,801 )       6,415         (5,842 )
  Net loss             (965,084 )       (3,028,818 )       (4,792,531 )       (7,143,462 )
    Less: Net (profit) loss attributable to the non-controlling interest             
      in Ocean Power Technologies (Australasia) Pty Ltd.        -          2,057         -          (45,340 )
  Net loss attributable to Ocean Power Technologies, Inc.   $   (965,084 )   $   (3,026,761 )   $   (4,792,531 )   $   (7,188,802 )
  Basic and diluted net loss per share   $   (0.25 )   $   (1.71 )   $   (1.51 )   $   (4.08 )
  Weighted average shares used to compute basic and                 
    diluted net loss per share       3,891,512         1,773,978         3,180,501         1,762,805  
                               

 
OCEAN POWER TECHNOLOGIES, INC. AND SUBSIDIARIES
Consolidated Statements of Cash Flows
(Unaudited)
                     
                Six Months Ended October 31,
                  2016       2015  
                     
Cash flows from operating activities:        
  Net loss   $   (4,792,531 )   $   (7,143,462 )
  Adjustments to reconcile net loss to net cash used in operating activities:        
      Foreign exchange (loss) gain       (6,415 )       5,842  
      Depreciation and amortization       68,475         55,629  
      Compensation expense related to stock option grants & restricted stock       628,304         276,912  
      Change in fair value of warrant liabilities        (1,265,488 )       -   
      Changes in operating assets and liabilities:        
        Accounts receivable       -          (1,357 )
        Unbilled receivables       (65,265 )       34,862  
        Other current assets       (269,157 )       (144,364 )
        Other noncurrent assets       (35,690 )       51,718  
        Accounts payable       (231,572 )       (92,077 )
        Accrued expenses       (275,053 )       (28,408 )
        Unearned revenues       (39,146 )       -   
          Net cash used in operating activities       (6,283,538 )       (6,984,705 )
Cash flows from investing activities:        
  Maturities of marketable securities       50,000         50,000  
  Restricted cash       (6,147 )       50,829  
  Purchases of equipment       (11,500 )       (11,130 )
          Net cash provided by investing activities       32,353         89,699  
Cash flows from financing activities:        
  Proceeds from issuance of common stock and related warrants, net of costs        12,151,764         4,798  
  Repayment of debt       (63,401 )       (50,000 )
  Acquisition of treasury stock       (37,128 )       (1,724 )
          Net cash provided by (used in) financing activities       12,051,235         (46,926 )
Effect of exchange rate changes on cash and cash equivalents       (17,679 )       (54,480 )
          Net increase (decrease) in cash and cash equivalents       5,782,371         (6,996,412 )
Cash and cash equivalents, beginning of period       6,729,814         17,335,734  
Cash and cash equivalents, end of period   $   12,512,185     $   10,339,322  

Company Contact:Matthew T. ShaferChief Financial Officer of OPTPhone: 609-730-0400Investor Relations Contact:Andrew BarwickiBarwicki Investor Relations Inc.Phone: 516-662-9461

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