Ocean Power Technologies Reports Revenue Growth and Reduced Losses in Q2 Fiscal 2024

Ocean Power Technologies, Inc. (OPT) reported its financial results for the second quarter of fiscal 2024, revealing a significant increase in revenue and a reduction in operating losses compared to the same period last year. For the three months ended October 31, 2024, the company generated revenues of $2.4 million, a substantial rise from $889,000 in the prior year. The six-month revenue also saw an increase, reaching $3.7 million compared to $2.2 million in the same period last year. Despite the revenue growth, OPT reported a net loss of $3.9 million for the quarter, an improvement from the $7.2 million loss in the same quarter of the previous year.

The company's cost of revenues increased to $1.6 million for the three months ended October 31, 2024, up from $401,000 in the same period last year, primarily due to higher sales and a shift in product mix that included more third-party equipment. Operating expenses also decreased significantly, falling to $4.7 million from $8.0 million year-over-year, reflecting cost reduction measures implemented by the company. These measures included headcount optimization and reductions in third-party spending.

In terms of strategic developments, OPT has been actively expanding its market presence and product offerings. The company has entered into several agreements, including a distributor agreement with Remah International Group in the UAE and a reseller agreement with Survey Equipment Services in the U.S. These partnerships aim to enhance OPT's capabilities in the defense and security sectors, as well as in offshore energy and maritime industries. Additionally, the company has been awarded contracts to deploy its PowerBuoy® technology, which integrates advanced sensors and communication technologies for maritime domain awareness.

Operationally, OPT reported a backlog of $3.8 million as of October 31, 2024, which includes unfilled firm orders for its products and services. The company continues to focus on its core service areas: Data as a Service (DaaS), Robotics as a Service (RaaS), and Power as a Service (PaaS). The DaaS segment has been particularly active, with contracts awarded for various marine resource surveys and research projects. The company also noted that it has been successful in expanding its geographic reach, with operations now in ten countries.

Looking ahead, OPT faces challenges related to its liquidity and ongoing operational losses. As of October 31, 2024, the company had cash and cash equivalents of $2.2 million, which management believes may not be sufficient to fund its planned expenditures through December 2025. The company has indicated that it will need to secure additional funding to continue its operations and achieve profitability. Despite these challenges, OPT remains focused on advancing its technology and expanding its market presence, particularly in the defense and offshore energy sectors.