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

Ocean Power Technologies, Inc. (OPT) reported its financial results for the three months ended July 31, 2024, showing a slight increase in revenue and a significant reduction in operating losses compared to the same period in the previous year. Total revenues for the quarter were $1.3 million, up from $1.27 million in the prior year. The company attributed this revenue stability to two customers accounting for approximately 84% of total revenues, compared to four customers contributing 73% in the previous year.

Operating expenses decreased significantly to $4.9 million from $8.1 million, primarily due to cost reduction initiatives, including headcount optimization and reduced third-party spending. As a result, the operating loss narrowed to $4.5 million from $7.0 million in the same quarter of 2023. The net loss for the quarter was also reduced to $4.5 million, compared to $7.0 million in the prior year, leading to a basic and diluted net loss per share of $(0.05), an improvement from $(0.12) per share in the previous year.

Cash and cash equivalents as of July 31, 2024, totaled $3.2 million, a slight increase from $3.15 million at the end of April 2024. However, management expressed concerns that this cash balance may not be sufficient to fund planned expenditures through September 2025, raising substantial doubt about the company's ability to continue as a going concern. The company has been primarily funding its operations through the sale of securities, with net cash provided by financing activities amounting to $6.5 million during the quarter, driven by the issuance of common stock under its At-the-Market Facility.

Strategically, OPT has focused on enhancing its product offerings and expanding its market presence. The company divested its non-core strategic consulting team in November 2023 to concentrate on the commercialization of its product pipeline, particularly in national security and defense markets. Recent contracts include partnerships with the Naval Postgraduate School and various reseller agreements aimed at supporting global critical services.

As of July 31, 2024, the company reported a backlog of $5.3 million, which includes unfilled firm orders from commercial or governmental customers. The company continues to develop its Maritime Domain Awareness System (MDAS) and has made advancements in its PowerBuoy® technology, integrating renewable energy capabilities to enhance operational efficiency.