Ocean Power (OPTT) 17 Sep 242025 Q1 Earnings call transcript

Greetings, and welcome to the Ocean Power Technologies' Fiscal Year 2025 Q1 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded.

It's now my pleasure to turn the call over to Chief Financial Officer, Bob Powers. Please go ahead, sir.

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

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

provisions we of harbor XXXX. the this the call, that within Litigation make will During Private statements Securities forward-looking are safe of Act Reform

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

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

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

pleased Stratmann. Dr. introduce Now Philipp am I to

us. Thank morning. you We you, Bob. appreciate Good joining

quarter progress fiscal to for XXXX first flow us in year make saw towards continue The of XXXX significant calendar cash positive our company.

advancements we highly This several achieved technical partnerships further materially support XXXX. companies, reputable and increase our growth quarter in reduce the advance expenses, and established during significant pipeline us our to saw with build commercial operating progress strategic fiscal upon

toward they fiscal and on the I for occurring confidence developments goals our focus recently will Today, XXXX. achieving provide the significant resulting

deployment. equipped next-generation off more that we than and of offshore throughout was batteries maintained intelligence of over months wind next-generation of This XX% data of solar our Atlantic New system the charge Ocean PowerBuoy we proprietary capable power remained the the testing XXX% in X The First, with announced PowerBuoy and of Jersey. artificial the suite solutions. Merrows completed uptime state recently our equipped

and potential reconnaissance the several During demonstrations surveillance were completed. customers intelligence for deployment,

XXXX, Additionally, the hours by mentioned materially of we XX-megawatt of wave approaching our PowerBuoy energy accelerated energy off PowerBuoys. New capabilities. and renewable in production were our average May Jersey combining solar, energy announced family The next-generation just coast deployment from we of of wind production production

not energy Our the is R&D that show commercially marine but solution. production just is community, production connected energy numbers non-grid available a for

been company's customer unique provider. reach efficiency expected our technology Finally, functionality solutions development our waterways our Each dedication for the marine leadership artificial docking innovations broader enhance WAM-V. while we and ocean, designed potential successfully a solidifying Merrows revolutionize supporting growth our demonstrated, the market of systems versatility thereby global to capable positions a of and to operational role variety our areas to capitalize expanding already the OPT's as to strategy stands position buoy to these its these the specifically recently announced patent the needs. and intelligence of This with and us for platform, supporting groundbreaking protection bringing the vessels. application security a on as in and the recharging showcasing system aligns This has and autonomous of advanced of in testament

signing In America targeted reseller efforts August in of with In services. Sea, Latin a global we new critical we previously areas opportunities and These South global allied the agreements East partnering for latest industry with XXXX, like addition, and agreements servicing Middle the announced nations strategic commercial leaders. in China markets. X include advanced complementary of supporting of number alliances the the announced

industry-leading and AT&T's further partnerships proactively in most of and in notably on suite Teledyne partnerships Naval PowerBuoys, for our demand sensors. future, the technologies. We Postgraduate these believe of developments the additional also School Marine's underwater our Latin accelerate specifically We partnerships to integration the to maritime us provide the systems the for growth deployment amplification strategic integration East. our in announced XG serve of our for These further efforts of autonomous drive supporting for near We America expanding additional our Middle focused the will and look revenue forward streams. the

the cash operating end QX, performing Bob well. momentarily, closing, as the during of our expenses. In at significant the business we fiscal detail significant in cost of Finally, XXXX, will implemented burn realized we and initial activities reduction including is benefits reductions

on result XXXX. stated quarter of a achieve profitability previously track attaining and during of As foundation our the the just remain goal to we fourth calendar described, I've opportunities of

will I in to to more detail. hand our it Bob performance discuss over Now financial

Thanks, Scott.

in 'XX, In the 'XX. in with of QX delays QX number begin control, be beyond revenue. we line revenues QX our million, to realized 'XX. in were in FY revenue $X.X QX are now A opportunities experienced $X.X million expected these Let's and our in our experienced of backlog and with

at stands of pipeline largest pipeline $XX the history approximately represents Our company. and million in the the

expenses was compared operating head the decrease result a expenses million, a 'XX to Our operating $X.X of control and contain last costs. optimization, material efforts count for tightly spend to in XX% year. as third-party to reductions amounted QX and This reduction

operating the over our noted. primarily expenses we for of for in in net just by net 'XX, XX% the decrease driven loss reported I result, As QX decrease a

increase be revenue July portion driven our the prior previously long-term is XX, Finally, leasing America at the compared in XXXX, increase $X.X recent under stands the our of announced at year. A well million Latin contracts. expansion $X.X to by generated as million, backlog as recurring to this significant into a as XX%

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

bonuses earnout loss, year XXXX $X.X amounted reflects This as accrued cash quarter in previously net well the for XXXX. That our terms of order inventory increase of update. In 'XX. for financial primarily accrued employment growth cash to fiscal fiscal fiscal payment the net the Investments million. flow, as our activities the in in during of payout in covers and operating noted planned satisfy necessary first during in to used the the our backlog revenue

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

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

is Grampp coming Instructions] [Operator Partners. first Global question Jeffrey from Alliance from Our

increase on What related, I the attribute the peel the you you And guess, guys’ maybe onion bit a First Can the there? of question also on curious little pipeline. drivers for more? continued do kind guys few the touch back main has be terms of can also you or that that might maybe sales approach growth? if the last in know, evolved, either perhaps over pipeline year quarters or how driving team I don't size

of community. help it available be every next appetite systems is There systems. news. geopolitical think -- of broader and security one factors. the you an there's that range defense day, the domestic And side, ocean that's an government you look to our the I at funding on is I generation on autonomous I the warfighter autonomous standing to up see a mean increasing support side, impact is ocean deployed factors for within U.S. and think monitoring and demand from the there Jeff, security increasing also

side. So that's geopolitical on the

community what years past capabilities then side, making I our have drive into available and the the commercially sure is exercises we ready, user to systems on other done few then the and be end think where to we their over growth able forward. can that that dropped are showcase

has to overseas of defense understands U.S. team then that of can take integrated. that solutions sector. ongoing customers team to understands for that much with So the at access keep to technology to that's sales team, of through kind customers carbon their is have combined lower we're growing through will pipeline the lead to and and that increased the defense which There combined gone sales help about is traditional able would are and our lower security, burn. To the anybody and CapEx maintaining and the point also the end excited marine are one big the been that, sales of increasing our government less on us they are the desire backlog, emissions help And have because margin helping helps we all that of convert means. and we a is at revenues. end same the revenues, than evolutions operating But more cost as other data gross point requirements offshore overall I an us a the factors all keeps think lower is that government create have pipeline done and on then on overall on security what their and also the focused And lowering and to ocean time OpEx, backlog side. get those

with order first, that on feel about about and Great. sure just put maybe good a guidance And to disclosed the still short you respect sound then, the year. million you quarter, I for or out guys if don't does that the quarter. I a kind guidance this number $X I explicitly, And I track wanted guess, know backed make last right? you for little orders orders fiscal into of of guys to

trending. Yes. are about heading still feel and good We where things

beginning fiscal You've had year. seen of the the increase in we backlog from what at the

revenues maintained this quarter So year we've we backlog, also a versus increased but ago.

So feel and combined the the efforts where those we I with what heading. growth seeing good in in with pipeline, with think we're we're

pretty of on Perfect. is medium to that And just of a kind to I in. left kind forward, more the Is going front obviously year-over-year. about one in sneak state if steady reasonable anything came there near down or term? least at think do OpEx that can nicely

we've Yes, bring I that down. required work really OpEx lot of the think hard to done was a

the going continue efforts I think quarter fluctuation, full and costs to due see to manage having tightly. contain marginal you some were implemented. really to we we effects of make and And be that's will that last but that embedding sure potentially

Severson Tower Research. is coming question from from Next Water Shawn

let's in of where companies upside. say, I is about -- valuation. looking talked of market where these to of there think sectors question relates some was your or sector the I terms you the question understand do capitalization my them and new are fully versus many of a inflection there in you to don't market industry other have know commercial get overall. some my But commercialization in the I kind point, compare in And at. are you different that at about of readiness about investors put at they're the contrast deck, know your and private. more slide

you color you the are let's say? group, comp us that in can versus some So on scheme give where greater

the numbers, pipeline look Where question, it's to the margin. good we at grow; and and achieved to grow. asked OPT you've But continues continues see our backlog just we've gross Jeff it seen the of you it, -- a level in

demand are into revenues. from commercial ready, readiness then are the And demand the longer So being a no there, systems signals it's there. are signals. perspective, converted The we're and demand signals backlog actual into and

to the I and the Postgraduate market, on efforts in with the general, overall, we're you're your at are I mainly would at, public side. that we the visibility technology there market AT&T, is with being those I encouraging that goes ready, on the probably commercially all of on the cases that think there's actual advances making less that markets, really and further think Naval autonomy say we feel grant available through what are seeing there Those for the we've that East. those combination funded. of because providers deployable public question, going the on is systems the is like -- now market, that but being and School buoy technologies a what's This are probably done deployed. And buoy use -- that in Middle aren't with the the that of strongly to have we're shipping ongoing because the in very in that because and ready, side, through when where particularly into the parties good the we are what on third side. looking got part is I are these think commercially are ocean other projects we're is many show systems projects not

that a we it in with We we feel good So and a we growth that robust comfortable to we're for and about is continue feel will commercially. and and market our where accelerate are think very of think large shareholders. seeing TAM, confident help value deliver the all I it

long-term And next modeling question question. is a

understand to data-as-a-service the as pipeline to convert, the business what whether mix to out between of starts business a As look and the like build and equipment we're backlog would it's mix trying trying sales. the of targeted

perspective, understand from business -- and would little what long-term this full you when when a matured trying it's modeling is bit again, more look a commercialization the a scale. So little think in to like it's

Yes.

and think end -- from at take that look at is. customer industry let's let's mix the I look step back really this, what a

side I commercial a think being with research we business segments. being really it's And work. to security of defense type balance of those and and about XX-plus-percent science on and see little vary on the the bit the across going

where that got is side, that robust are have that, thankful recurring a into our long-term sides the the partnership We're of is we and If maintenance long-term Sulmara, for helps great companies and you're both of business looking very we several leasing the pleased it in on revenue strong at a commercial equation. systems like And with who've layering model. leases. and

where think, with others service it then think of and there's exercise additional the are for to give we're to doing be forward own sale. monitoring, region, fact into during but I come phases down we've region customers, be said that leased. If a have and the but long-term to going to And really specific that. a to going particularly buoy to to. in to is we're start security sales specific the going yes, And and for top model leases going what that's sites, on, on up if deployments increasing what's what's a is free then help going probably customers. before, that's And all as of that Then security long-term we long-term us quickly, it sales who deployments some that to defense short-term seeing defense wants that's is lease is flow cash it on layered the customer going is to looking healthy scale us margins and it for I

last you technology question technology to commercial. have -- well, wheel, a couple the the reinventing could Phil, do see there, things made it you've is guys of is But you're but road future, do look when could that months? have map. what on you you My other we think, this as the points for where is the investments, do fully I'm -- already aware it's out significant technology that XX we this improve maybe you that focused do the if to next or necessarily over not you on improvements

I mean, never we Yes, it obviously, varies. stand still.

say, provide through it continuously they working systems, know previously or at work haven't our customers towed. are systems, having bulletin we service and And feedback field haven't later we'll maintenance additional some issue improvement where we regions continuous then from Our previously operated then we in we'll then on integrating have we'll that operated any and towing for program stage. example, a systems

of offshore completed just bigger the month we testing we next-gen PowerBuoy. announced the for level, that At obviously, the

performed that's and expectations So had. that glad any we're really that beyond think -- that, above obviously we I

then are continuing because and collaboration, of the stations autonomous their the a the operations. the patent point, it. is do have start essentially for that you I out technology charge-up, of remote others, ocean. Imagine remote that of and not work At systems, on continuing production. and and approach that gets charging in ours docking and low And really range And charging system systems. of or think out in to integration the kind with look we system buoys already you this initially filed that a in opportunities. forward on to docking for with like we going you buoy, re-task processed offload really offshore I ocean what's can data We've whole announced moving and then come a We autonomous working range uses work, but deployed a X that integration systems our charging exciting vehicles, carbon the the add ocean that autonomous into enable alongside you autonomous where later systems have to is just on go data, of

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

being for a our execution strategy. to our We of our customers and Thank look continuing growth shareholder for for and stakeholders. have you, forward to you day. and supporting our of and ongoing deliver you, all a great Thank

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

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