OPTT - Earnings call transcript Q1 2020 | Ocean Power Technologies, Inc.

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Operator

Good morning, ladies and gentlemen. And welcome to the Ocean Power Technologies First Quarter Fiscal Year 2020 Conference Call.

As a reminder, this conference call is being recorded.

I would now like to turn the call over to your host Mr. Abenante, Investor Relations for Ocean Power Technologies. sir. ahead go Please

Matthew Abenante

Good Ocean Thank and Power Donna. us Webcast. for on the Technologies morning, you, you everyone. joining Thank Conference Call

and Treasurer. On George Matthew me with Chief Chief President Shafer, and the and Executive Officer today Financial Officer; call Kirby, are

remarks, It open the prepared this available replay will call also questions. call Web Company's call. will on after webcast be being the we site our to This Following is at www.oceanpowertechnologies.com. for

its earnings On year on quarterly September and filed XXXX, release XX, first XXXX fiscal Securities report its XX-Q of press the issued the for Exchange Form Commission. and OPT quarter with

Web of site at can at All to oceanpowertechnologies.com. be Web you or the OPT may go SEC section filings site public sec.gov, Relations the viewed our Investor on the of

Harbor Harbor the statements the Private of securities call Now U.S. for This Safe reference forward-looking Securities may Reform forward-looking of contain let the provisions me provisions within of XXXX. statements. conference Act the Litigation are Safe that laws

identified expressions. intend, aim, estimate, will will similar variations Forward-looking statements believe, project, will, as to, objective, anticipate, result, continue, such goal, expressions by such phrases, are and future, will of should, expect, contemplate, likely may, seek plan, pursue, or words or certain

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

costs increasing of and relationships of revenue of key into volume, PowerBuoys costs and delivery expected customer competition, the growth, power future efficiencies, performance, building expected new with the output reduce enter flow, among the cash third-parties, relationships. key ability deployments others include factors operational sales other employees, markets, to success and increased hiring these to and following; of Some ability partners and in improve PowerBuoys, financial PowerBuoys,

filings to or recent reflect circumstances with a Forms these in and uncertainties. obligation to XX-Q statements discussion discussed the forward-looking of and to and subsequent risks this intent for further update XX-K or in any our call. Please most events refer order SEC disclaim We

Now, introduce to Kirby. pleased I Good Mr. George. morning, am George

George Kirby

our I'm Good the and Matt. Matt for morning Shafer open to everyone. floor our to commercialization then provide review of during we'll going today. the operations up first activities and business will financials, quarter a review questions. and Thanks Then

these the announced I In mentioned for mid-term several we've that last quarter PBX OPT. opportunities of take early Premier Premier opportunities August, provide In we surveillance and of PowerBuoy Premier we've for catalysts offshore Oil's field for deployment autonomous, serving Oil services had decommissioning posing Sea North an recent is process Oil. on us. intelligent customer, near platform significant as in growth Huntington This shape weeks, some the operations. the seen successful horizon the PowerBuoy at to our throughout the

the initial deployment, PBX PowerBuoy position. lease. of We're its in flawlessly operating initial rough period. feet. wave also nine-month of XX option PowerBuoy, that heights very began three-month field's During alert local to an over with the trial its the trial lease just deployment extend with This initial the monitor and that includes through to capabilities, environment seas ability halfway over to we'll average the ships nine-month the This demonstrate

we PowerBuoy performance gas we payloads I industry our and this Premier in and Before helps Oil and OPT elevate technology the have suggests Scotland, for successful the a which the the of had days, profile oil Gas the and voyage solutions. up Acteon Technology XXX uses examine capabilities. over and that attention event to offshore saw on oil Over that The met two media The with featured believe in world opportunities Sea, and oil and day and was and the decommissioning including gas the at partners with for to of gas we was participants, PowerBuoy The fuel & positive, our its can PBX our leaders its received PBX project, North help Centre. Oil feedback together held our team close hugely the feedback industry. only we

to can is enough during a We defined our to provide monitoring at of We surface solution, study decommissioning of for of well subsea can gas the because feasibility of monitoring recently of successfully to as solution the to from that The water were major provide in announced the leading the significant decouple the the support operator completion Gulf such were study can compelling. of feet. to a two assets us provide another wells subsea platforms, with it We savings development monitor X,XXX which Mexico. to a the power up detailed oil results customer. This assets and which depths once. cost demonstrate enables in able that power in Gulf wells quite decommissioning

this first study, of represents a step completion the trial. a with feasibility result successful could and customer With this field this in

confidence opportunities in growth. Our our reinforces our long-term pipeline robust of

challenges. few continue top solving to with of and integral how us the we've prospects met last tell they some our be solutions to Over months, some our their more could of difficult

many discover more helping opportunity a and security, and and in research, than process; is growing pipeline, at in oil as and proposal leads which Our and of in which power subsea offshore defense, now to stands applications gas, reputation communications science markets. us various the the of telecommunications stages opportunities, XX are our leader fill remote

the financials, let call to turn the Now, me Matt over to discuss Matt.

Matthew Shafer

for recorded good quarter period ended and for XXXX compared the Eni, We Premier contracts our and fiscal revenue first year with quarter in first as July the US year. increase the Navy. George XX, to Oil, result new XX,XXX the XXXX, of last was XXX,XXX everyone. you, in of Thank revenues of revenue the of morning of This

as higher material of costs July ended increase XXXX. upfront the cost prior the revenues months Cost customer compared to revenue The to of and increased new to the compared XX, three in to $XXX,XXX spending due on period generating was products $XXX,XXX in same of $XXX,XXX revenues loss the and decrease quarter of was net year loss in selling, XXXX in compared loss the year. costs. general, for mainly prior for million net decrease $X fiscal was first to attributable period. million $X.X administrative The a The the to net

Turning now to the balance sheet.

operating total ended million XXXX. of cash, three million XX, compared July XX, XX, were cash and XX, As equivalents, cash as securities the to activities July a million $X.X July XXXX. of $XX.X on $X.X used XXXX restricted during XXXX, million cash, decrease compared million, three $XX.X months were months $X.X April to the ended Net in during marketable

turn back George. it I'll that, to With

George Kirby

prospects with time. near our want this remain we're close business I execute professionals about identify work I focused everyone for to customers. lead I'm to extremely moment to a Matt. at company. on an expecting staffing our new how are that We're to Thanks, exciting laser close and we vision. And optimistic sales of business. at OPT the proud is wanted our extremely proud can thank activities, emphasize to team such delivering actively team tirelessly I'm who to take to closing and our up for our my We're which team continue in future. working commercial who experienced new I on actively

operator, that, to take now With questions. ready we're

Operator

Thank Instructions]. for you. The floor [Operator is now questions open

Transport [ph]. coming today question Victor is ENP [ph] Aguayo of first from Our

Unidentified Analyst

doing the the congratulations so the also which you've And question on you that you. will the expect success how Thank at company market? far, that been current you. the success stock would begs impact Thank

George Kirby

around this everybody sitting the thank for your you for table question and dissatisfied although immensely congratulations thanks Victor, progress. with our is

can't about come. we So, things how speak price. are really the expecting great stock affects it I to

We investor base, have a it's very difficult to diverse and predict.

on And great is I people people we're as difficult that All watch. orders. hiring salespeople, continue Sometimes, focused laser oil closing to with it's with gas defense to up do experience. and mentioned, experience, we remain

That Scotland, a epicenter with hope. to to We really like the our augment commercial here the seems operations. activities Mexico just close behind of hired soon, Gulf North coming follow seeming are Sea Aberdeen, where from of person the we in

That So, that proposals three oil a and customer in we area great with address order in so people in Aberdeen. makes and requests information for request experience forth. and to gas and person have now

the we're really to focused that's price. on and So, can't speak what stock

Operator

to you. the move on like me to next Would question? you Thank

George Kirby

Yes, please.

Operator

Thank you.

is Ruggiere Peter Dawson from coming question of next James. Our

Peter Ruggiere

the Huntington oil field? Couple site questions or on

George Kirby

Hey Peter, yes.

Peter Ruggiere

How I need you lot. many a use only wells would are just there's six? actually, wouldn't there? at why it. I It was question would PowerBuoy, why they looked five one or

George Kirby

asked Well, field good a us to but now, multiple Huntington surface. the is surveillance, Oil sea Premier topside above provide which wells, that's right has question.

seven feet, feet, now seven-foot they're phone, we of all, going continue seas type We it describe me seeing means and When really have this an the looking we to in -- let to showing I'm XX average on on at see and an weather. of there. of X seas. right of my app first it's is what what's operate

it's So, a overlooking platform, is it's remote, miles few away. which a

And through headquarters industry site. radar back they're has can on and the it a the see Premier it system the They idea in creates images. the turn thermal has imaging the camera. watching that can that what's our cameras, radar, They this augmented is called -- They reality to camera. Oil's PowerBuoy actually manipulate can

So, they're topside. surveilling

that you to would see a on We there can I would at out wells. of as monitoring subsea be social media. posting Next we're to look well. that step mention lot information this and provide also continue

Huntington with now, But field standpoint, the at we're on least right Peter. customer monitoring question, good a that's yet. wells not So from focused

Peter Ruggiere

on Japan? -- new MES with going is anything in How

George Kirby

say this some are I share, with be There its maybe ask wins can relationship rather talk about talk on the can't when the I I are you experience talk have can information wins. to small that But direction that that, not pretty I'm rest to is There it's begs the that these important shared, I way I there. assured about be going then whether with shouldn't an about we about excited And right going that along would that can't new will. MES. customer small that point. things because many them. customers that maybe

them. direct direct up glad I was of result I'm brought with the over spent is a we progress And making important time them or because But a result July. you it that MES, are in with

So, as a I'm sales some with a week, more out what do meet new to more more and and existing very more customer customer big in next I'll an field as customer, trying be with my the folks well customers. see meeting them we get team other to potential to well. as the UK with could with in

So, good question.

Peter Ruggiere

that I the Mexico biggest two the On guess market? the in of the how of on Gulf mean right? Because fields would possible what buoys, I the Mexico, -- And step? be are and many Sea Gulf the next when is North would that world,

George Kirby

the in wells. market from standpoint, is decommissioning Gulf And Yes. a largest there's interestingly that of world, many the Mexico the

Now not they this we're not future. in every you working I steps? well you with on that or this, can looking needs the are next have our field solutions, every PowerBuoys needs When service, at time in our that if our they're that will. opportunities multiple tell operator

target are to has near-term happen. it customer’s of from there's a internal needs timing, with that We lot opportunity, trying a work to of lot to the because a standpoint do

everything be doing future to us to we whatever reason, opportunity. happen doesn't we're that So, can help next a used more are position to they field, behind If decommissioning it. that the on for them

Premier was say that's this years. are with time, customers and important, can applications very, over very and customer. wells, like from seeing Oil But us multiple with Oil. for we're So, with multiple OPT this working systems single Premier I one

on XXXX. the would were PBX input. executing. now PowerBuoy, In us technical They providing said back advisory to what we We're in fact, we project developing joined on panel talking and and And interested it, and came then we're when Board were they our we our I doing they us this developed as they very product, were do. in put

to continues very of would all from globally. very, are happen in The Gulf perform market And decommissioning Mexico. same well. over throughout eyes with this buoy The operator thing the project the this

working and customers do these show can leverage replicate we demonstration we're projects, replicate new what is customers. to other to with but we're showcases. them we're of showcase the hard and to do become trying around bring low hanging what contracts. these to world the what from fruit terms This we're They trying So try And to showcases these become to in that also is seeing that's projects.

Peter Ruggiere

do revenue of together type What guys put think year? particular you this you

George Kirby

wish about I could talk I that.

around giving their it by measured not have on They're we're I resourced We have being But definitive we goals. to internal revenue goals want But again, goals. guidance, they're and internal salesperson. salesperson are that being has broken Peter. Every a emphasize target. up

So targets what outwardly really now we're where just not at are. a revenue we about point can our talk

Peter Ruggiere

available for you we many now? buoys how sale right And have

George Kirby

facility at one different more in question. manufacture. points going the Interesting got of buoy than We've under

trying to in, this. and The was build when are to. We thought we share need only I'll

So it be would But to reasons. North buoy a finished stationed the his land would is not idea new for we're to And news. that over seeking out a have building we're on the two buoy we on over we a Sea, move as Number actually floor be there. there new that contracts one, the spare. potentially

So a allow quicker much us that it quicker could have to deliver turnaround. and

how we that cycle compress very, ends do up We sales being are always the very looking at long.

customer PowerBuoy, about execution if happen responsiveness. to But it's to our something and were to our for two, number all delivering

So, we have one to there positioned go. would to ready want and

that's a we buoy in working a we with are We but now, the right particular that customer good another been have have hoping have final future sometime do considering news still in we're on, on the that and to one. its that that's state So thought.

Peter Ruggiere

Eni Baltic, are themselves, getting in there another with or buoys in And they they up just...? be of the may couple interested

George Kirby

That's Adriatic the question. Sea. in a Not it's actually Baltic, but great the

talking near-term both to say, would as opportunities, well about probably weekly are long-range We they're and as opportunities I Eni, opportunities.

good you their to have are -- they safely can and really more we're two working will. totally or talking operations both different lucky with of these both great; do, Premier they're carbon And So and to But that's reduce Oil NE; great like organizations very in very large more two efficiently, of forward-looking technologies cost-effectively. if more terms with they how execute organizations, partners great can why with, also, work really new us footprint, how customers, and like our us.

trying right are these like We actively now. find to more two, customers

Peter Ruggiere

if of that good couple And for how hundreds -- a statement market, big the or...? I millions Is you calls this the you backwards, of get dollars market of XX% is said think you said.

George Kirby

let what me way. You know answer this it

first all, First do into and our that's and market total understand better to we rigorous banks, launching we want to new top-down really information. it because our bottoms-up. really working we've want our much and analysts, Today, together gives our were and total from detailed limited and addressable our We just put of assessment around on we markets. and When we rebuild for we we're market, were study, addressable did more a understanding do to a markets investors, the That got to a business. that.

one. number that's So

Number a And That's at segment decommissioning rate, said, and is of customer close We or hundreds can is. that, only that's two, six could We've XX% assuming the enough market. of alone. business apply what's market we that a and a estimate hundreds eyes market globally you their That's if actually we for by next that PowerBuoys that seven you a this is taking told look of over or robust years. potentially around market XX%. in one of there. big offshore the slice robust that been the how market this as a enough, segment, decommissioning gas build oil a

and that to this that lease are So it's or transaction, doing because provide. customers service And of ends sale, when the we would up you services provide because the now. value provide, putting only it we're asset ones we're recognizing that being it's look buoy whether that we pretty all we're to the the not or around big also we our able only but lease it's it's need can right on whether at that the sell, dollars, that one a a

revenue as opportunity that well. increases the So

our we're was with believe around generate of beyond people, And that lot around deployment. expectations. we putting effort And event over a interest the that well market great this And very, very there. earlier. had momentum that momentum we have we south feel XXX bullish to we of we trying that's I Scotland, Aberdeen, and segment, why With had this said

I'm to event, our know when PowerBuoy. what having ended marketing and and in. in buoy this on looks us, really So integrated actually having them we having invested payloads look customers let It the people up that the a solution for for like the event what there like, being a stationed glad important they're

Peter Ruggiere

everything's now, there great. like Sounds right right that's

George Kirby

understand though that just why positioned from Board. things it we on we're we can expect our is sales proposition. understand calling It as our that that's that feel now ground strike, the It's There's the They them. ramp bringing we're we have time staffing we're is. are We that little with They where that on. the big technology. it They And and up the relationships. customers know for right right is. people to value hit the people up already very way people, have running

revenue As I -- our mentioned of have before, a all sales people everybody target.

in needs But just their them performance. market what market of the terms than of are in we and terms Some market the and of It's quite bear can seeing what value. dollar believe the solutions. our steep that's more what expectations in we're around

Peter Ruggiere

what when as stock the pretty know are under trading asked else You guys funny price. about alluded, It's cash you value. somebody

George Kirby

shareholders. I we're frustrating, But come But making you're Yes, and executing, characterize I Peter. We Because we're as the I don't progress. and what I I if here funny, know every saying. that share we need understand It's day right? would sentiment contracts. know of

Peter Ruggiere

But you sound close. Right. you. pretty Anyway, thank

George Kirby

Appreciate Peter. dialog. the you, Thank

Operator

time, turn I'd any Instructions] you. to additional the this closing [Operator for or over comments. management back floor Thank like At to

George Kirby

Thank you, Operator.

some again and be soon. very to And Twitter, to much watch we'll our shareholders. joining. with footage. vendors want to media, us you very customers, follow social a loyal channel everyone Facebook, our invite want thank has for who been everyone including you employees, really company, our for speaking to our I I on Thank our LinkedIn, the conclude, terrific and we Before stakeholder including in YouTube

Operator

thank for and Ladies event. concludes gentlemen, your participation. This you today's

or disconnect off may You lines, the time. your this at log webcast

Ocean Power (OPTT) 18 Sep 192020 Q1 Earnings call transcript