Ocean Power Technologies announced financial results for its fiscal 2016 fourth quarter and full year ended April 30, 2016.
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For the three months ended April 30, 2016, OPT reported revenue of $0.1 million, as compared to revenue of $0.5 million for the three months ended April 30, 2015.
Revenue in both periods was primarily related to Ocean Power's’s projects with MES, with fiscal 2016 revenue related to an autonomous PB3 PowerBuoy project, and with fiscal 2015 revenue being related to a utility-scale project.
The decrease in revenues is consistent with our strategic pivot refocusing our product development efforts on autonomous PowerBuoys and our deliberate decision to transition toward commercial revenues.
The Company reported a net loss of $4 million for the three months ended April 30, 2016 compared with a loss of $3.3 million for the three months ended April 30, 2015.
Fiscal 2016 fourth quarter loss included a charge of $1.1 million related to the pending settlement of the class action securities litigation.
In addition, fiscal 2015 fourth quarter reflected higher gross profit due to a change in project costs related to a MES utility-focused contract which has been suspended. In fiscal 2016 fourth quarter, product development costs and selling, general and administrative expenses were lower.
Product development costs in fiscal 2015 fourth quarter were higher due to costs incurred related to our former utility-scale PB40 PowerBuoy as well as a prototype PB3 PowerBuoy versus Ocean Power's’s fiscal 2016 fourth quarter focus on development of our commercial PB3 PowerBuoy. Selling, general and administrative expenses were lower in fiscal 2016 fourth quarter in part due to reduced consulting, patent amortization and legal costs.
For fiscal 2016, OPT reported revenue of $0.7 million, as compared to revenue of $4.1 million for fiscal 2015. The decrease in revenue is primarily related to decreased billable work for revenue producing work in fiscal 2016.
For fiscal 2016, Ocean Power's reported a net loss of $13.1 million, as compared to a net loss of $13.2 million for fiscal 2015. The change in net loss reflects lower revenues and higher product development costs in fiscal 2016, offset in part by increased tax benefits and lower selling, general and administrative costs.
Fiscal 2016 also reflects a provision for the settlement of the class action securities litigation. Selling, general and administrative expenses in fiscal 2016 were lower than fiscal 2015 due in part to reduced consulting, site development and patent amortization costs.
As of April 30, 2016, Ocean Power's’s total cash, cash equivalents, and marketable securities were $6.8 million, down from $17.4 million on April 30, 2015. On April 30, 2016, restricted cash was $0.3 million, compared with $0.5 million as of April 30, 2015.
The cash used in operating activities of $10.9 million in fiscal 2016 represented a decrease compared to $17.2 million used in fiscal 2015, which included the return by Ocean Power's of $4.7 million to the Australian Renewable Energy Agency (ARENA), for a now-terminated project in Australia in fiscal 2015. ■