Optima Health Regulatory News (OPT)

30 Jul 2007 07:01

Ocean Power Technologies Inc30 July 2007 ------------------------------------------------------NEWS RELEASE------------------------------------------------------ Ocean Power Technologies, Inc. 1590 Reed Road Pennington, New Jersey 08534 USA For Immediate Release July 30, 2007 OCEAN POWER TECHNOLOGIES ANNOUNCES RESULTS FOR THE YEAR ENDED APRIL 30, 2007 Ocean Power Technologies, Inc. (Nasdaq: OPTT and London Stock Exchange AIM: OPT)("OPT" or the "Company") announced today its results for the year ended April30, 2007. Revenues in fiscal 2007 were $2.5 million compared with $1.7 millionin fiscal 2006. The Company incurred a net loss of $9.6 million in fiscal 2007compared with a net loss of $7.1 million in the prior year. Contract backlog forthe Company was $5.2 million as of April 30, 2007, as compared to $2.6 millionas of April 30, 2006. Highlights •Order backlog at April 30, 2007: $5.2 million (April 30, 2006: $2.6 million) •$90 million net raised in US IPO and Nasdaq listing •Signed a $3.2 million contract for the second phase of construction of a wave power station in Santona, Spain •OPT awarded its first operations and maintenance contract for a wave power station •Mark R. Draper appointed Chief Operating Officer •Cash of $115.9 million at year end (2006: $32.4 million) Operational review The twelve months ended April 30, 2007 represented a landmark year in thedevelopment of the Company. OPT achieved significant operational progress and experience during the periodtowards its long-term goal of fully commercializing the PowerBuoy wave energysystem. The completion of the US IPO means the Company has the capital base andthe credibility of a listing on two of the world's premier stock exchanges tobuild on those achievements in the future and benefit from the growth in demandfor renewable energy in the global markets. That progress is evident in the projects OPT has ongoing in four countries,including: - The Company's largest contract ($3.2 million) of the year was won in Spain for the second phase of construction of the wave power station OPT is building in partnership with Iberdrola, the Spanish utility. - OPT is continuing to work under contract from Total and Iberdrola in France to develop a wave power station on the Atlantic coast of France. - In the US, the Company signed an agreement with the Oregon-based electric power group PNGC Power to work cooperatively on OPT's development of an initial 2MW demonstration station in Reedsport on the coast of Oregon. OPT has been granted a preliminary permit for this project from the Federal Energy Regulatory Commission (FERC). OPT also has applied for FERC permits to build two other wave parks off the coast of Oregon. In total, the permit applications submitted to FERC for Oregon are to build three wave parks with a total capacity of up to 250MW. - In February 2007, OPT was awarded $1.2 million by the Scottish Executive for the construction, installation and in-ocean demonstration in the Orkney Islands of our most advanced 150kW PowerBuoy system. - Since the fiscal year end, OPT has expanded its relationship with the US Navy with the award of a $1.7 million contract to power a deep water acoustic detection system. The expansion of the Company's activities has necessitated the growth andreorganization of staff. Six new employees have been added at the New Jerseyheadquarters and at the headquarters of OPT's European subsidiary, Ocean PowerTechnologies Ltd. ("OPT Ltd."), in Warwick, England. Subsequent to April 30,2007, Mark Draper, the chief executive of OPT Ltd. and who has been instrumentalin the Company's success in Europe, has been appointed Chief Operating Officerof Ocean Power Technologies, Inc. OPT has continued to make significant investments in its technology over theperiod and has achieved substantial progress with the design of 150kWPowerBuoys, the largest system yet, and progress is being made towards the goalof developing a 500kW PowerBuoy by 2010. This progress includes completing thedesign and testing of the control system to be used in the 150kW, 250kW and500kW PowerBuoy systems. Financial review Revenues increased by $0.8 million in fiscal 2007, or 45%, to $2.5 million ascompared to $1.7 million in fiscal 2006. The increase in revenues was primarilyattributable to the following factors: •Revenues relating to the utility PowerBuoy system increased by approximately $1.1 million due to work that commenced on the first phase of construction of a 1.39MW wave power station off the coast of Spain, increased revenues relating to the US Navy project in Hawaii from a higher activity level; and work that commenced on the design, manufacture and installation of an OPT wave power station consisting of a single PB150 (150kW) PowerBuoy device in Orkney, Scotland. •Revenues relating to the autonomous PowerBuoy system decreased by approximately $0.3 million primarily as a result of the completion of a development and construction contract with Lockheed Martin in the fiscal year ended April 30, 2006. The Company was awarded a $1.7 million contract in July 2007 from the US Navy for the use of the autonomous PowerBuoy system in connection with a deep water ocean sensing application. Net loss for the year ended April 30, 2007 was $9.6 million, compared to a netloss of $7.1 million in the prior year. This change was attributable in part toa 47% increase in product development costs, including efforts to increase theoutput of PowerBuoy systems, and a 53% increase in selling, general andadministrative costs. These were partially offset by a $1.5 million foreignexchange gain in the year ended April 30, 2007, compared to a $1.0 millionforeign exchange loss in the year ended April 30, 2006. The Company finished the year with very strong liquidity. At April 30, 2007,total cash, cash equivalents and certificates of deposit were $115.9 million.Non-US dollar denominated certificates of deposit and cash accounts had abalance of $16.6 million as of April 30, 2007, or 14% of the total. Long-termdebt of $232,000 represents amounts due to the State of New Jersey under anon-interest bearing loan which must be repaid no later than January 2012.Stockholders' equity and common shares outstanding reflect the closing in lateApril 2007 of the US IPO and listing on the Nasdaq Global Market. The Companyraised a net amount of approximately $90 million through the sale of 5 millioncommon shares. Outlook OPT has made progress on all fronts in fiscal year 2007, improving thetechnology of the PowerBuoys, strengthening our team and signing significantcontracts with world-class partners. The completion of the US IPO and listing onNasdaq, and the approximately $90 million net raised in that transaction hasgiven OPT the resources to build on those achievements in fiscal 2008, and theCompany expects to make continued progress in commercializing the technology inthe target markets of North America, Europe, Japan and Australia. **********Additional information may be found in the Company's Annual Report on Form 10-Kfiled with the US Securities and Exchange Commission. The Form 10-K may beaccessed at www.sec.gov or at the Company's website in the Investor Relationstab. About Ocean Power Technologies Ocean Power Technologies, Inc. develops and is commercializing proprietarysystems that generate electricity by harnessing the renewable energy of oceanwaves. The Company's PowerBuoy(R) system is based on modular, ocean-going buoys,which have been ocean tested for nearly a decade. The waves move the buoy-likestructure creating mechanical energy that the Company's proprietary technologiesconvert into electricity. For further information, please contact: Ocean Power Technologies, Inc. Telephone: +1 609 730 0400Dr. George W. Taylor, Chief Executive Officer Telephone: +1 609 730 0400Charles F. Dunleavy, Chief Financial Officer Corfin Communications Telephone: +44 20 7929 8989Ben Hunt, Neil Thapar Collins Stewart Telephone: +44 20 7523 8353Adrian Hadden Consolidated Balance Sheets as ofApril 30, 2006 and April 30, 2007 Apr 30, Apr 30, 2006 2007 $ $ASSETSCash and cashequivalents 31,957,209 107,505,473Certificates ofdeposit 482,156 8,390,146Accounts receivable - 865,081Unbilledreceivables 211,000 313,080Other currentassets 331,139 441,342 Total current assets 32,981,504 117,515,122Property andequipment, net 544,285 387,923Patents, net of accumulated amortization of $157,451and $176,840,respectively 372,448 597,280Restricted cash - 983,376Other noncurrentassets 97,901 227,845 TOTAL ASSETS 33,996,138 119,711,546LIABILITIES AND STOCKHOLDERS' EQUITYCURRENT LIABILITIES:Accounts payable 242,624 1,708,408Accrued expenses 1,726,870 4,593,413Unearned revenues 14,405 -Other currentliabilities 111,576 26,106 Total current liabilities 2,095,475 6,327,927 LONG-TERM DEBT 233,959 231,585DEFERRED RENT - 10,825DEFERRED CREDITS 600,000 600,000 Total liabilities 2,929,434 7,170,337COMMITMENTS AND CONTINGENCIESSTOCKHOLDERS' EQUITY:Preferred stock, $0.001 par value; authorized5,000,000shares; none issued or outstanding - -Common stock, $0.001 par value; authorized105,000,000shares; issued and outstanding 5,171,119 and10,186,254shares,respectively 5,171 10,186Additional paid-incapital 59,725,777 150,842,671Accumulated deficit (28,632,153) (38,270,918)Accumulated othercomprehensive loss (32,091) (40,730) Total stockholders' equity 31,066,704 112,541,209 TOTAL LIABILITIESAND STOCKHOLDERS'EQUITY 33,996,138 119,711,546 Consolidated Statements of OperationsFor the year ended April 30, 2006 and 2007 Apr 30 Apr 30 2006 2007 $ $REVENUES 1,747,715 2,531,315COST OF REVENUES 2,059,318 3,983,742Gross loss (311,603) (1,452,427)PRODUCT DEVELOPMENT COSTS 4,224,997 6,219,893SELLING, GENERAL AND ADMINISTRATIVE COSTS 3,190,687 4,893,580Operating loss (7,727,287) (12,565,900)INTEREST INCOME, NET 1,408,361 1,389,702OTHER INCOME, NET 218,257 13,906FOREIGN EXCHANGE (LOSS) GAIN (978,242) 1,523,527NET LOSS (7,078,911) (9,638,765)Basic and diluted net loss per share (1.37) (1.83)Weighted average shares used to compute basic anddiluted net loss per share 5,162,340 5,260,794 Consolidated Statements of Cash FlowsFor the years ended April 30, 2006 and 2007 Apr 30, Apr 30, 2006 2007CASH FLOWS FROM OPERATING ACTIVITIES: $ $Net loss (7,078,911) (9,638,765)Adjustments to reconcile net loss to net cashused inoperating activities:Foreignexchange loss(gain) 978,242 (1,523,527)Depreciationandamortization 233,132 269,075Loss ondisposal ofequipment - 24,572Compensationexpenserelated tostock optiongrants 129,139 1,152,416Realization ofdeferredcredits (75,000) -Deferred rent - 10,825 Changes in operating assets and liabilities:Accountsreceivable 668,424 (827,287)Unbilledreceivables 611,037 (95,896)Other currentassets 161,505 (99,436)Accountspayable (632,778) 1,233,484Accruedexpenses (121,840) 2,126,616Unearnedrevenues (2,383) (14,405)Other currentliabilities 57,803 (85,470) Net cash used in operating activities (5,071,630) (7,467,798) CASH FLOWS FROM INVESTING ACTIVITIES:Purchases ofcertificatesof deposit (62,677,400) (55,187,304)Maturities ofcertificatesof deposit 87,397,606 47,279,314Restrictedcash - (983,376)Purchases ofequipment (330,047) (107,271)Payments ofpatent costs (57,396) (217,763)Investments injoint venturesand othernoncurrentassets (30,747) (122,001) Net cash provided by (used in) investing 24,302,016 (9,338,401) activities CASH FLOWS FROM FINANCING ACTIVITIES:Sale of commonstock, net ofissuance costs - 90,773,935Proceeds fromexercise ofstock options 122,703 65,674 Net cash provided by financing 122,703 90,839,609 activities EFFECT OF EXCHANGE RATE CHANGES ON CASH ANDCASHEQUIVALENTS (980,694) 1,514,854NET INCREASEIN CASH ANDCASHEQUIVALENTS 18,372,395 75,548,264CASH AND CASHEQUIVALENTS,BEGINNING OFPERIOD 13,584,814 31,957,209CASH AND CASHEQUIVALENTS,END OF PERIOD 31,957,209 107,505,473 ****** This information is provided by RNS The company news service from the London Stock Exchange