Ocean Power Technologies Announces Results for the Year Ended April 30, 2008
Monday July 14, 2:00 am ET
PENNINGTON, N.J.--(BUSINESS WIRE)--Ocean Power Technologies, Inc. (Nasdaq: OPTT and London Stock Exchange AIM: OPT) ("OPT" or the "Company") today announced its financial results for the year ended April 30, 2008.
Fiscal Year 2008 Highlights
Revenues increased by 89% to $4.8 million, compared to $2.5 million for the prior fiscal year
Contract order backlog at April 30, 2008 increased to $5.5 million (April 30, 2007: $5.2 million)
Net loss for fiscal 2008 was $14.7 million (fiscal 2007: $9.6 million net loss)
Cash, cash equivalents and investments of $101.1 million at year end (April 30, 2007: $115.9 million)
OPT and Griffin Energy recently announced a Joint Development Agreement to explore the development of a wave power station off the coast of Western Australia
Shipment of PowerBuoy® power take-off and control system from New Jersey production facility to Spain, under contract with an affiliate of Iberdrola
PowerBuoy installed off coast of New Jersey has completed 22 months of in-ocean deployment to date
Signed $0.5 million contract with PNGC Power for an Oregon wave energy project in Reedsport
Awarded a $1.7 million contract with U.S. Navy for ocean data gathering program
Received $1.9 million in additional funding from the U.S. Navy in connection with an on-going contract to install PowerBuoy systems in Hawaii
Agreement signed with Converteam for the development of advanced linear generators for use in OPT PowerBuoys
PowerBuoy grid connection third-party certified and compliant with international standards
Mark R. Draper appointed Chief Operating Officer and Herbert T. Nock appointed to the position of Vice President, Business Development and Marketing
OPT continued to make good progress during fiscal year 2008, as evidenced by our strong revenue growth mainly due to projects in Hawaii, Spain and Scotland. We have also improved the technology of the PowerBuoys; achieved a significant product certification milestone; increased our global footprint by partnering with world-class companies; and have made significant strides in the development of our next generation 150 kW system. Over the past year, we have also enhanced our capabilities with key additions to our management team. This has helped us bolster our overall combined experience and knowledge as a leading wave energy company, said Dr. George W. Taylor, OPTs Chief Executive Officer.
We are also delighted to announce that we have begun production of what we believe to be the first utility-grade underwater substation, or pod, for wave power. The pod will serve as the point at which energy generated by multiple PowerBuoys is aggregated prior to being transmitted ashore. OPT is now exceptionally well-positioned, including having a strong cash position, to spearhead the commercial adoption of wave power as an economically viable renewable energy source, with the potential of competing head-on with fossil fuel, Dr. Taylor concluded.
OPT has made significant investments to scale up its technology over the last year and has achieved substantial progress with the design of the 150 kW PowerBuoys. The Company expects the PB150 product design to be completed by the end of 2008, and to be ready for ocean testing in 2009. The present schedule for development of the 150 kW PowerBuoy reflects managements decision to enhance the system design to allow for survivability in 100-year storm wave conditions, and to work with a third-party engineering group to attain independent certification of the 150 kW PowerBuoy design. In addition, the Company believes that direct transition to the 500 kW from the 150 kW PowerBuoy system will be accelerated by the measures now being undertaken in connection with the 150kW design. OPT also continues to advance the development of the 500 kW PowerBuoy with its design expected to be complete by the end of 2010. This progress includes completion of the design and testing of the control systems that will be used in the 150 kW and 500 kW PowerBuoy systems.
Further, six new patents were issued during fiscal 2008.
The year ended April 30, 2008 represented another landmark year for OPT. The Company has diligently worked on its international expansion strategy while focusing on its long-term energy projects with strategic customers. OPT has made steady advances in a number of ongoing projects, including:
REEDSPORT, OREGON, U.S. The development of a 150 kW PowerBuoy with support from Pacific Northwest Generating Cooperative (PNGC Power) near Reedsport, Oregon is in progress and the PowerBuoy is expected to be ready for deployment in 2009.
HAWAII, U.S. A new PowerBuoy under contract with the U.S. Navy has undergone 150,000 cycles of on-land testing, and has been shipped to Hawaii and is now ready to be deployed.
SPAIN The 40 kW PowerBuoy for OPTs project with Iberdrola in Spain is in final stages of testing and is expected to be ready for deployment in August 2008.
FRANCE OPT continues work under the current phase of the development agreement with affiliates of Total and Iberdrola to study and assess the feasibility of a 2 to 5 MW wave power station off the coast of France.
ORKNEY ISLANDS, UK OPT has continued to make progress on the development of a 150 kW PowerBuoy for deployment at the Orkney Islands European Marine Energy Center for the Scottish Government. The PowerBuoy is expected to be ready for deployment in 2009.
CORNWALL, UK OPT is in the process of planning and developing a project for the South West of England Regional Development Agency (SWRDA) to install a 5 MW demonstration wave power station off the coast of Cornwall, England. This is part of SWRDAs Wave Hub project, for which OPT was selected.
U.S. NAVY DEEP OCEAN APPLICATION In June 2007, OPT was awarded a $1.7 million contract by the U.S. Navy to provide autonomous PowerBuoy technology for its Deep Water Acoustic Detection System (DWADS) for ocean data gathering. Construction and fitting is now well underway on an initial demonstration buoy, as well as assembly of the power take-off and control systems. In an innovative decision, OPT and the U.S. Navy have decided to utilize in the DWADS project the same PowerBuoy that was tested in Hawaii in June 2007. This re-usability highlights the flexibility and modularity of the core PowerBuoy design. The PowerBuoy is expected to be ready for deployment by the end of 2008.
NEW JERSEY, U.S. The New Jersey PowerBuoy is now in its second year of in-ocean operation off the coast of Tuckerton. The system has withstood hurricane storm-driven waves, and the Company believes this to be a record-breaking achievement for any off-shore wave energy conversion system.
WESTERN AUSTRALIA OPT has partnered with Griffin Energy, a leading Western Australian diversified energy supplier, to explore the development of a wave power station in Western Australia. This joint development agreement paves the way for the development of a wave power station capable of producing up to 10 MW, with potential expansion to 100 MW.
Revenues increased by $2.2 million in fiscal 2008, or 89%, to $4.8 million as compared to $2.5 million in fiscal 2007. The increase in revenues was primarily attributable to the growth experienced through projects which include the on-going work on the Hawaii project for the U.S. Navy, work on the first phase of construction of a 1.39 MW wave power station off the coast of Spain, and work on the design, manufacture and installation of an OPT wave power station consisting of a single 150 kW PowerBuoy device in Orkney, Scotland. The autonomous PowerBuoy system constructed for the U.S. Navy for a program that gathers data in the ocean also contributed to the increase in revenue.
Net loss for the year ended April 30, 2008 was $14.7 million, compared to a net loss of $9.6 million in the prior year. This change takes into account the higher level of activity on revenue-bearing contracts, and the recognition of an additional $2.4 million of anticipated loss at completion on the contract for a wave power station off the coast of Spain. The net loss is also reflective of the increase in product development costs attributable to the efforts to increase the power output of the utility PowerBuoy system and the increase in selling, general and administrative expenses which relate to the expansion of sales and marketing capabilities and expenses related to being a public company, in line with the planned use of proceeds from the U.S. initial public offering completed in April 2007.
The Company finished the year with very strong liquidity. On April 30, 2008, total cash, cash equivalents and long-term investments were $101.1 million. Non-U.S. dollar denominated certificates of deposit and cash accounts had a balance of $9.6 million as of April 30, 2008, or 9.5% of the total. Long-term debt of $0.2 million represents amounts due to the State of New Jersey under a non-interest bearing loan which must be repaid no later than January 2012.
Additional information may be found in the Companys Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission. The Form 10-K may be accessed at www.sec.gov or at the Companys website in the Investor Relations tab.
OPT will host an audio webcast to review its results, on Tuesday, July 15, 2008, at 11:00 a.m. Eastern Time (4:00 p.m. GMT). Dr. George W. Taylor, Chief Executive Officer, Mark R. Draper, Chief Operating Officer and Charles F. Dunleavy, Chief Financial Officer, will host the webcast. Investors and other interested parties may access the webcast by visiting the Company's website at www.oceanpowertechnologies.com and clicking on the Investor Relations tab, then Webcasts and Presentations.
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