Currently viewing and reading

Ocean Power Technologies Announces Results for the Quarter and Six Months Ended October 31, 2009

Posted by Dana in December 12th 2009

Ocean Power Technologies, Inc. (Nasdaq: OPTT and London Stock Exchange AIM: OPT) (“OPT” or the “Company”) announces its financial results for the second quarter and six months ended October 31, 2009 of its fiscal year ending on April 30, 2010.

Second Quarter and Six Month Highlights

* Cash, cash equivalents, restricted cash, and marketable securities of $76.7 million at October 31, 2009 (April 30, 2009: $82.7 million)
* Contract order backlog increased to $7.1 million at October 31, 2009 compared to $6.4 million at July 31, 2009
* Gross Profit from contracts for the six months ended October 31, 2009 was $0.3 million compared to gross loss of $0.9 million for the six months ended October 31, 2008
* Decline in net loss to $7.3 million for the six months ended October 31, 2009 compared to a $10.0 million net loss for the six months ended October 31, 2008
* Signed exclusive agreement to develop demonstration wave power station in Japan with consortium of three leading Japanese companies including Mitsui Engineering and Shipbuilding
* Awarded new $2.4 million contract to provide PowerBuoy systems to the US Navy’s Littoral Expeditionary Autonomous PowerBuoy program for homeland security
* Re-deployed PowerBuoy off the coast of New Jersey. Soon after deployment, the system successfully weathered hurricane-driven storm waves by automatically locking down and restarting power generation after the storm passed
* Strengthened relationship with Lockheed Martin with the signing of a commercial engineering services agreement under which Lockheed will provide its expertise to enhance OPT’s PowerBuoy technology to utility scale
* Successful completion of trials of OPT’s proprietary Underwater Substation Pod in Spain
* First PB150 PowerBuoy on track for deployment at European Marine Energy Centre, Scotland in mid-calendar year 2010

Operational Review

OPT maintained excellent operational momentum during the second quarter of fiscal 2010 with several major achievements that have significantly increased the level of the Company’s commercial activities. As a result, OPT is now actively engaged on projects in Asia, Australia, Europe and North America. The Company also remained focused on its near-term goal to complete the construction of the first of its latest wave generation device, the PB150, for deployment in the Orkney Islands off the coast of Scotland during the middle of calendar year 2010.

During the second quarter of fiscal year 2010, OPT strengthened its strategic partnership with Lockheed Martin by signing a commercial engineering services agreement to develop OPT’s wave energy systems for future utility-scale power generation projects in North America.

Contract backlog increased to $7.1 million at October 31, 2009, from $6.4 million at July 31, 2009, with a significant proportion relating to the PB150 device.

OPT’s patent portfolio continued to grow as one new US patent was issued during the second quarter of fiscal year 2010. The Company’s technology base now includes a total of 41 issued US patents, with 16 US patent applications pending.

These achievements come against a backdrop of increasing global commitment to tackle climate change, as evidenced by this week’s international summit in Copenhagen to reduce carbon emissions and foster renewable energy. As a result, OPT is very optimistic about the long-term fundamentals of the Company’s business.