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Ocean Power Technologies Inc. (OPTT) filed Quarterly Report for the period ended 2011-07-31.
Ocean Power Technologies Inc. has a market cap of $36.9 million; its shares were traded at around $3.5399 with and P/S ratio of 5.5.
This is the annual revenues and earnings per share of OPTT over the last 10 years. For detailed 10-year financial data and charts, go to 10-Year Financials of OPTT.
Highlight of Business Operations:
At July 31, 2011, our total negotiated backlog was $7.1 million compared with $6.5 million at July 31, 2010. We anticipate that a majority of our backlog will be recognized as revenue over the next 12 months. Our backlog includes both funded amounts, which are unfilled firm orders for our products and services for which funding has been both authorized and appropriated by the customer (Congress, in the case of US Government agencies) and unfunded amounts, which are unfilled firm orders from the US Department of Energy for which funding has not been appropriated. If any of our contracts were to be terminated, our backlog would be reduced by the expected value of the remaining terms of such contracts. Funded backlog was $5.1 million and $5.9 million at July 31, 2011 and 2010, respectively.
For the three months ended July 31, 2011, we generated revenues of $1.9 million and incurred a net loss attributable to Ocean Power Technologies, Inc. of $5.0 million, compared to revenues of $1.4 million and a net loss attributable to Ocean Power Technologies, Inc. of $6.3 million for the three months ended July 31, 2010. As of July 31, 2011, our accumulated deficit was $115.8 million. We have not been profitable since inception, and we do not know whether or when we will become profitable because of the significant uncertainties with respect to our ability to successfully commercialize our PowerBuoy systems in the emerging renewable energy market. Since fiscal 2002, the US Navy has accounted for a significant portion of our revenues. We expect that, over time, revenues derived from utilities and other non-government commercial customers will increase more rapidly than sales to government customers and may, over time, represent the majority of our revenues.
Cost of revenues increased by $0.3 million, or 20%, to $1.9 million in the three months ended July 31, 2011, as compared to $1.6 million in the three months ended July 31, 2010. This increase in the cost of revenues reflected the increased activity related to our PB500 PowerBuoy development project and the US Navy’s LEAP program. This was partially offset by a lower level of activity on our 150kW PowerBuoy project off the coast of Scotland and the US Navy’s DWADS project, as these projects neared completion.
We operated at a break-even gross profit in the three months ended July 31, 2011 and a gross loss of $0.2 million for the three months ended July 31, 2010. Certain of our projects in the three months ended July 31, 2011 and 2010 were under cost sharing contracts. Under cost sharing contracts, we receive a fixed amount agreed upon with the customer that is only intended to fund a portion of the costs on a specific project. We fund the remainder of the costs as part of our product development efforts. Revenue is typically recorded using percentage-of-completion applied to the contractual amount agreed upon with the customer. An equal amount corresponding to the revenue is recorded in cost of revenues resulting in gross profit on these contracts of zero. Our share of the costs is considered to be product development expense. Our ability to generate a gross profit will depend on the nature of future contracts, our success at increasing sales of our PowerBuoy systems and on our ability to manage costs incurred on our fixed price commercial contracts. During the three months ended July 31, 2010, revenue was reduced by $0.2 million due to a change in estimate of revenue to be recognized in connection with our Spain construction agreement. There was no corresponding reduction in cost of revenue. This resulted in a $0.2 million gross loss being recognized on the Spain project during the three months ended July 31, 2010.
Net cash used in operating activities was $4.9 million and $6.1 million for the three months ended July 31, 2011 and 2010, respectively. The change was the result of a decrease in net loss of $1.3 million and in cash used by operating assets and liabilities of $0.2 million, offset by a decrease in non-cash charges of $0.3 million.
Net cash used in financing activities was $0.1 million in the three months ended July 31, 2011 and net cash provided by financing activities was $0.2 million in the three months ended July 31, 2010. During the three months ended July 31, 2011, we repaid $0.1 million under a loan from the New Jersey Economic Development Authority. During the three months ended July 31, 2010, we received a $0.25 million loan under the NJBPU Renewable Energy Business Venture Assistance Program.
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