Ocean Power Technologies (OPT), a leading provider of wave energy solutions, recently announced their financial results for the first quarter of fiscal year 2024. The company reported significant revenue growth, marking their highest quarterly revenue figure in over seven years.
According to Dr. Philipp Stratmann, President and CEO of OPT, the market demand for marine conservation assets, ocean data collection, and national security enhancement is increasing. OPT has been successful in converting their pipeline of opportunities into backlog and revenues. This is evident through recent contract wins, such as the National Oceanic and Atmospheric Administration (NOAA) contracts expected to be valued in the millions of dollars.
In addition, OPT recently opened a Marine Robotics Production Facility in Richmond, California, which emphasizes their dedication to innovation in autonomous vehicles and wave energy buoys. This facility will support America’s energy independence and national security efforts.
During the first quarter, OPT also achieved a milestone by demonstrating the capabilities of their Wave Adaptive Modular Vessel (WAM-V) attaching itself remotely to a buoy. This demonstration showcased their advanced autonomous capabilities and opened doors to various maritime applications.
The company continues to work with U.S. Government Agencies, supporting autonomous vehicle demonstrations and collaborating with the Department of Energy on the MOSWEC System. OPT is enthusiastic about future partnerships and the growth potential in both the commercial and security sectors.
Financial Highlights for Q1 Fiscal Year 2024
In terms of financial performance, OPT reported revenues of $1.3 million for the first quarter, a significant increase compared to $700,000 in the same quarter last year. This marks the highest quarterly revenue figure for the company in over seven years.
The gross profit for Q1 fiscal year 2024 stood at $700,000, a substantial improvement compared to $200,000 in Q1 fiscal year 2023. This improvement can be attributed to the strong performance in WAM-V sales, revenue from their DOE contract, and strategic consulting services.
Operating expenses for the quarter amounted to $8.1 million, reflecting investments in personnel and systems to support their growth strategy. OPT reported a net loss of $7 million for Q1 fiscal year 2024, compared to a net loss of $5.9 million in the same period last year.
OPT’s balance sheet remains strong, with a combined cash, cash equivalents, and short-term investments totaling $26.7 million as of July 31, 2023. The company maintains a debt-free balance sheet with no bank debt.
Ocean Power Technologies is confident in their strategy and sees additional opportunities for multi-system orders in the future. With their strong revenue growth and increasing gross profit margins, OPT is well positioned for continued growth and value creation for their shareholders.
Sources:
– Ocean Power Technologies, Inc. Q1 2024 Earnings Call Transcript
– SEC filings