Ocean Power (OPTT) 14 Sep 232024 Q1 Earnings call transcript

Good morning and welcome to the Ocean Power Technologies, First Quarter of Fiscal Year 2024 Earnings Conference Call. A webcast of this call is also available and can be accessed by a link on the company's website at www.OceanPowerTechnologies.com. This conference call is being recorded and will be available for replay shortly after its completion.

On the call today are Dr. Philipp Stratmann, President and Chief Executive Officer; Bob Powers, Senior Vice President and Chief Financial Officer; and Joseph DiPietro, Controller, Treasurer, and Principal Accounting Officer.

there a remarks, session. prepared the will question-and-answer be Following

call to Joseph It's pleasure the over sir. now my ahead, turn to go DiPietro. Please

we Form XX-Q good market the quarter release and After XX, for filed issued XXXX. July yesterday, and on you press our report Thank our ended earnings morning. closed the

available SEC of filings website website. OPT Our the the within are public and on the section Investor Relations

Litigation of Reform that During of are forward-looking within the we Private Harbor Safe call, Securities this statements Provisions Act XXXX. will the make

Forward-looking include the projections other company's or plans, statements intentions. financial may statements objectives, of expectations or

statements by forward-looking involve results statements. future materially different over little circumstances These such that uncertainties, on results based may no to be expressed or are factors assumptions actual risks, management regarding have cause any company by the made from and future implied and or control other which may

company and intention made Form these call. within the Additional the in information on uncertainties The company's any found about can forward-looking subsequent statements filings update be the disclaims risks obligation XX-K this and SEC. to or

company on strategy. we a a IR updated our an overview investor our posted provides to presentation it of review website. moment Please it Finally, as nice take and

Philipp Now, I pleased Stratmann. to Dr. am introduce

pleased Thank support call join and Joe. is to your greatly morning, you, everyone. us Good We're continued you have on this valued.

are I'm Before we we delve market clear our The with pleased that results like numbers, quarterly the I highlight into signals. momentum building. the is to and positive would sending

that ocean and security. data, more Our customers essential are enhance looking protect marine collect assets environments, for national

we our the growth momentum seen pipeline NOAA into and to translate profitable with like this wins revenues, are value our and positioned opportunities as of converting for are well We IDIQ. shareholders. We believe into recent backlog

in recent emphasize These Delivery, Quantity be to Let's developments. our three value millions marine three-year conservation the National Atmospheric XXXX, With significant September Administration. of projects and Indefinite and secured Oceanic expected from contracts. a Indefinite to contract the research. dollars On talk X, total we some about commitment

Facility buoys, in dedication particularly independence supporting August, opening In energy celebrated This our the in we California. innovation, and Richmond, Marine Robotics security. autonomous wave vehicles America's energy event Production national and showcased of our to

demonstrating remotely August, a Modular milestone Adaptive buoy. and by This achieved to a attaching our advanced capabilities itself Wave accomplishment Vessel the opens applications. various to In showcases we autonomous maritime doors

the During autonomous Agency, with vehicle we of our for range work U.S. a the supporting quarter continued demonstrations services. Government

We of System. of also scale continued to operations Energy MOSWEC our the Department the the work full with related

both commercial We are enthusiastic to the about sectors. and commitment security future our partnerships, reinforcing

pipeline to continues opportunity grow. Our

from pipeline, year. pulling addition down orders, it in profit million the the a In net top to also gross several to margins with to of dollars fiscal of months We're few first to we've the $XX $XX increasing. above our the continuing million just for sitting this our continued gain grow exceeding currently and into are million purchase add revenues

working, we on is orders horizon. additional multi-system for opportunity strategy Our see and the

detailed information introduce Bob CFO, more our performance fiscal provide Now, I about into we ‘XX. the like highlights, before our you financial QX Bob would financial in Powers. will to with dive

Thanks Phillip.

QX, In revenue. a ‘XX, the in QX reported to with revenues reached begin increase ‘XX. significant Let's $X.X compared million, marking $XXX,XXX our

in and be contract, our attributed This in can continues revenue from our generated DOE sales, was seven during delivery growth to the strategic our services. of This figure over WAMV fiscal our highest years, and performance traction quarterly XXXX. revenue the consulting gain strong

the strategic am progress made in the QX unmanned we've consulting compared Our XXXX. vehicles is business this and which WAMV to margin a enthused for a gross business, primarily $XXX,XXX, about particularly of ‘XX the of substantial and fiscal our attributed area profit improvement higher QX progress at profit ‘XX improvement leasing gross our $XXX,XXX. figure, the expansion showed I stood This services. made in the to

and QX reflecting investments our for to expenses personnel I in both support million, ‘XX operating the $X.X to discussed growth systems previously. Our amounted Phillip and

our of $X.X of million ‘XX net compared million QX loss a $X As ‘XX. for to a result, net for reported for net we loss QX

We continue the investments strategy to costs needed tightly, plans support and personnel to structure our targeted our manage making growth. and for in

with the continue equivalents, XXXX debt our Notably, in cash, no investments combined financial structure. to balance balance July On cash maintain million. short-term of XX, sheet a cash, we $XX.X front, unrestricted our totaled and debt-free as sheet bank

the of year loss XXXX. cash operating net This used accrued in million. amounted primarily the for $X terms In reflects flow, bonuses of payout employment cash and to our net activities QX fiscal ‘XX during

addition, autonomous accrued earn-out in resulting continues the the payment exceed to business during of vehicles our In our XXXX. fiscal expectations,

will balance $X.X by our to you our as to increased inventory in note that fiscal approximately well Finally, investment This in in XXXX. revenue was inventory satisfy for growth backlog, as million. $XXX,XXX order growing planned necessary

That covers financial update. our

remind everyone discuss purpose the of fiscal to our to today's first of like is call I'd well quarter results, XXXX as outlook. our Q&A, enter that we as Before financial

limit As these that we your Q&A, you we topics. into Thank to head you. questions ask the

Thank Instructions]. you. We'll now be conducting the question-and-answer session. [Operator

today first Shawn Research. Water Severson question coming from Tower from Our is

line Your now is live.

Well, thank you. morning, everyone. Good

the long two, have the don't you could sounds are it NOAA? recurring renewable say, from in like but they or how revenue, purchase? very of that a should one-off of mean, through these? this not, lengths like or with know came does applications or more this going bit two there is a other NOAA type backlog I is I contracts I if nature implications are to quickly. on pilot and what of little things? be them? One, So, try those for this a affect they is And would understand expand the a and It to something

the as are world, Shawn, a the what that to Indefinite Indefinite agreements call-off have in, question. have essentially thanks commercial refers the to that And thank for The three-year attached Delivery, contracts for ceiling orders Quantity. can non-governmental NOAA you dialing consider them. government and IDIQs, are These to services similar in very you a ceiling attached with them them. master contracts to

awarded in got sheet with three rate agreed been We've place NOAA. we've these. an that of There's

these vehicles for on framed entirely we are that statement way with operators. think and accurate. So, the the And provided is rates specifically I leases day are

is the vehicles part in for around the fisheries of operations use demonstrations. These is within these increase government's that continued around to around surface around effort of This NOAA a that illegal or vehicles weather activities. office monitoring, jobs, United and aren't number unmanned that to specific uncrewed that be for specific States. do the be It U.S. observations, line be to sea are

excited call-off these are contracts over some the three us commercial these, over provide because true that terms with next clarity commercial very vehicles to So a basis. about we're on give opportunities real years

real kind it pilot. is the is of big a I'm just This the commercial is years. inflection just not This before? the first [ph] And you've deployment right. this, applications two is contract, this you of If for point do this or a understanding kind one and of This first reaches application. correctly, types operations have like had similar

sort under the perspective offerings. that Contractor-Operated government fall the under I perspective, commercial and contracts been these government. our with in vehicles And think time what terms, our a vehicle type term from the would of long-term governmental certainly have first COCO, this call-off is from NOAA Contractor-Owned,

of offering, we're so excited to on the about lease the the us our of enables expand this, parts and vehicles basis this, because provide on day into U.S. monetize it very rates. yes, government, the And additional fleet

Thank you. queue. Great. I'll in step back

the to our end We've session. reached you. further turn any management for like the question-and-answer floor of comments. I'd over to Thank back closing

for being and you. and of all to our We value and for of never employees. Thank granted, shareholders in for towards all enhancement OPT. we continue our participation shareholders you you take for your any of Thank stakeholders and work

Thank you. today's conclude That webcast. teleconference and does

your day. at You you and may participation. have thank wonderful a disconnect your time line We for this