OPTT - Earnings call 4 2021 | Ocean Power Technologies, Inc.

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Operator

Good morning, ladies and gentlemen. Welcome to the Ocean Power Technologies Fourth Quarter Fiscal Year 2021 Conference Call. A webcast of this call is also available on the company's website at www.oceanpowertechnologies.com.

As a reminder, this conference call is being recorded and will be available for replay after its completion.

Today, Philipp Stratmann, President and Chief Executive Officer; and Matthew Shafer, Senior Vice President, Chief Financial Officer and Treasurer, are on the call.

will call we questions. remarks, prepared open to the Following

and earnings OPT and the Relations Form On Commission. April All quarter available and XXXX, in filings the the its XXXX, XX-K year press with section. XX, the OPT on July XX, or Exchange report Investor SEC issued website release OPT Securities sec.gov ended website's quarterly filed for are public fiscal on its at

within contain note of harbor the management's are remarks statements Please Securities XXXX. Act safe may of Reform forward-looking Private that the provisions that prepared Litigation

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

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

Thank Now introduce to Dr. Philipp I'd Stratmann. like you.

begin. You may

Philipp Stratmann

will review financials, before an we Thank you, good during Matt review our business and Then will questions. morning. Today, on up operations open and XXXX and line provide activities year OPT's I update fiscal developments and to for today. the

is Company Young; InterMoor introduce Vice to and Science in in a the worked England I take experience with the Group experience solutions. and to President its in OPT and in from with energy Development working VT served to Southampton. myself. other Degree Business XXXX Germany, Engineering positions United German joined Global global shipbuilding Ship in like I'd studied many leadership Shell. Acteon with moment and top, Doctorate in I've worldwide the Navy, I Velocys, was and and University to Kingdom's of OPT I a & sell born of Off Master's in addition Management regions a as Ernst and hold in industry and

office, to am recently, worked the closer I'm Directors execute Jersey Until have I headquarters. OPT's family process OPT's our to am that in of ambitious for plans New moving has and of and the Board to my development, lead I in next now me proud chosen the excited the company's of chapter growth. I Houston

our to up of customers, services, marine of gas year for wave notably design challenges offshore addition Despite the OPT continued contractors, and Technology. and oil and including The fiscal XDent companies. service and construction XXXX, presence the grew during COVID-XX Houston engineering energy progress, strategic in services offshore wind, energy and for acquiring XDent providing pandemic consulting opened avenues and successfully new

for delivering year Postgraduate fiscal studies subsea and Naval also Navy The Technology U.S. OPT Communication oil Adams PBX PowerBuoy. defense School initiative on for gas consortium, contractor, & and the the production applications oil DeepStar, Engineering saw for SLAMR

going now financials. and Sea a as position Adriatic reducing PBX company PowerBuoy milestone and capital The in Subsea that X products, and XXXX. in key on launched Battery. deployed a a also achieved risk of in PowerBuoy to PBX year Chile, operational OPT financial its OPT's ask goal new he fiscal improving the Hybrid Matt expand I'm had to discusses

Matthew Shafer

you, and morning, good Thank Philipp, everyone.

equity at-the-market utilization significantly year stock XXXX, Philipp have of proceeds working very position, line OPT in very excited and facilities all to in to common to capacity cash than highlight that looking its purchase are during all and generating this net million fiscal forward I are improved more want We agreements. together. much through its $XX

visibility Exchange. but listing not to changed OPT We existing Microcap the exposure of NYSE shareholders And Stock benefits to company. Russell also Market only greater to recent the enhances American Index, NASDAQ the addition potential Capital its the investors. will our our lead like transition the from recently, believe Also this to

With full million, full to fourth the of year mainly flat decline was the was period XXXX XXXX was fiscal compared year to revenue for full the -- Revenue year the in to quarter now from for attributable a The delays. in project OPT year. pandemic-related That $XXX,XXX. for financials. fiscal fiscal COVID-XX turning $X.X XX% decrease reflecting that, XXXX. same was the essentially the Revenue prior year

primarily the costs delays; the higher impact The periods, and administrative million fourth for was arbitration to and $XX.X of development engineering, and quarter year costs to representing year the settlement. loss $X.X prior due over higher product and an incurred fiscal XXXX net respectively, increases attributable comparable and pandemic million, COVID-XX general

On by sheet, cash cash, and balance was of million XXXX. cash April to Net in total million activities increased $X.X $XX.X restricted cash April operating XXXX. ended the XX as the months XX, equivalents used XX, compared

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

Philipp Stratmann

Matt. Thanks,

our continue commercialize systems by Going waves harnessing and of renewable power. proprietary electricity will OPT generate develop forward, solar the to ocean energy that and

our domain solutions wind includes ocean cloud-based our data to markets is and third-party there noted analytics intelligence. developing our protection, and an As XX-K, solutions awareness delivery as and and systems in We maritime farm using including and in believe predictive offshore applications. for services, such increasing fishery need holistic products strategy ocean support provide data for actionable

mission of build there. our to connecting continue the We those ocean with operate upon who

data services, enabled solutions on a proprietary our services: platforms major as for engineering a our underpinned data fiscal focus of XDent developing, we renewable and solidify on service supported and strategic X Based all power which and leader as intend continue offerings power as service, skills, and by we our and XXXX, a consulting our we position in our maritime solutions. as broadened power acquisition technology. strengthening evolving fully to Throughout with the

up Operator, call the questions. for to we're open ready

Operator

Instructions] [Operator

Robert first from ]. Silvera Silvera [ Our & (sic) Associates Associates with Silvera question comes

Robert Silvera

million next quarter. quarter, rate so give in the a $X Good to And for current job, this to guys. last me opposed could your cash speak, the of as you last basically picture burn

Matthew Shafer

is in this you know called you've well. quarters of Matt. ago. Robert, hope I I a couple Thanks been doing Yes. for...

Robert Silvera

you. thank Yes,

Matthew Shafer

higher Yes, been. [ cash It's million rate burn than questions. for $X the slightly has is our thanks tuning ]. around been historically in. Yes, it Good

So the we've so done pivot looking talked slight what And that going we're we've higher yes, forward. at it's that's with about. slightly

Robert Silvera

Approximately a quarter still? $X then million

Matthew Shafer

That's correct, approximately.

Robert Silvera

Yes.

Okay. How would you next on the X it say sales? months looks X to for pending

Philipp Stratmann

Robert, nice you. to to talk

and hasn't can in range love you of detail. any I'd as believe cycle those able we'll with the on right We're now. we're in or soon but markets much of We're in projects related geographies. pick up, be something more cycle details customers of to to detail great anything pandemic to by working government curtailing projects, able private Obviously, freely the slowing not work. do it, a don't very able As will a to the that's to of share be the be know travel I different not hard in and I travel optimistic helped number that global say

Robert Silvera

Okay.

on Kind the You on did is how of How of it's the elaborate Philly. -- about in, customer How that buoy that? in feedback not is feel it? now PB does going? installation the it

Philipp Stratmann

may the with Chile, be our deploy did work we and that for to continue April, follow-up any required customers in we down there. PowerBuoy PBX In

Robert Silvera

happy is there functional of are as feedback rights little to customers, other you with this translate Give impression the doing -- results particular may because job? bit et and a into point have to cetera. at it? a on But they it they that an us given bragging And

Philipp Stratmann

can't The buoy comment matters is internal being I other the for installed. on companies.

Robert Silvera

there? It's installation still in the process of

Philipp Stratmann

It's being deployed.

Robert Silvera

I see.

long has in that's X that over the on gone impressions the is now the Europe, And customer? service from X And what Okay. duty. that

Philipp Stratmann

to referring you're the X presume for Adriatic the I in was PBX, The that Eni.

Robert Silvera

Yes.

Philipp Stratmann

in the after long next back Jersey it mission. New ready for the is to slowdowns and related That COVID-XX, be will deployment following refurbished the due

Robert Silvera

it I mission? first see. the was very And on successful

Philipp Stratmann

It deployed years. for was nearly successfully X

Robert Silvera

Great. Wonderful.

Okay.

a I'd you On to $X,XXX,XXX? have due? the that it payable. little when a about? you what that litigation that's item says balance bit I sheet it And presume you that like is is And where expand presented,

Matthew Shafer

is filed has CEO the in payment I XX-K it's to this and litigation and That's former That the been relates all as The it's we matter Matt well. from back all say, and so made. XXXX, -- was again. of a That started in, Robert, just President yesterday that to disclosed. disclosed Yes. company. our that want Yes,

Robert Silvera

-- is that settled? words, So other now in that's

Matthew Shafer

That's correct.

Robert Silvera

out The at you that going the date this. number that's had All right.

And and so more... clear. is No free all litigation now

Matthew Shafer

right. That's

Robert Silvera

Wonderful.

guess that's it working for I me. on Okay. it, guys. Keep

you think great got get sales. I ideas some and let's

Matthew Shafer

Thanks, Robert.

Operator

question next comes from Our [ Instructions] [Operator Durg Private a ], Joe Investor.

Unknown Attendee

And was that's one. buoy. that do have DeepStar Number -- really, that have. a answer the to really is information May, the get we Chile June, answer the vague July number project? on April, Question for to -- I two on any need on the deployed, only we pretty

more elaboration little would You feedback kind got to or that kind -- anything. like or what a of or on of

Philipp Stratmann

excited which gas -- because the DeepStar more you studies are in working next same thanks oil And sale the that large steps, asked X operators very several or could Yes, about DeepStar to and include There's We're us about lease complete. the with complete, any to as for include solutions. Joe, study studies are yes, come. contracted And of we're and gives a the to specifically. towards those ACET, we question. and visibility consortium. and DeepStar,

Unknown Attendee

it And gets Or mean the operational? deployment? out deployed more is it, say about I anything it's is sitting there that's and you could Chile there?

Philipp Stratmann

water. the We buoy as has sits The comment now. on can't relating information other internal that the been we deployed. right to that's is, companies, can in said, matters It's where it give and we

Operator

at turn me, back James. We Ruggiere There excuse this a Philipp time. question Peter Dawson I'd are from point, have this with to to jumped into further over the closing like no the call queue. Stratmann -- for do someone questions At

Peter Ruggiere

I would there? But questions. George, know lot what happened don't about why where did got why to of start. I -- he -- a

Philipp Stratmann

other Sure. OPT Kirby pursue to departed endeavors. Yes. George

Peter Ruggiere

Okay. been was because I wondering there a while. was he for --

does Microsoft data Where for of as with in on been balance quarters you're notes and the confused adding for was up questions Adriatic [ Sea, whole France, a ago I involved then with with Asia but was years, thing their there I the so... centers. I've you seen going about thing that answer, the had the there are the I myself. just the the couple haven't the -- little Navy a there. about sheet thing kind the a yet fishing, like early the far revenue come the you're an the understand, something doing really X it stuff On with wasn't for stand? that $X.X I'm here illegal in ] of over -- with and bit I'm everything Chile as underwater would working get guys million was for of buoy. different sale on deployment on stuff

Matthew Shafer

Yes.

EGP to turf And I off Peter, up financials, So been accounting. working to using our that Philipp it for under we the start sheet, in time that revenue right, I'll the revenue rules the on have revenue answering percentage then and the into the showing balance turn said, of regards recognize as time over get accounting recognized But part. won't how that latter have performance Chile. been you completion and recognition, we over on as works. on obligations. contracts would you been, deploying all asset over has on contract new With

we the question to last Philipp then referring upon I about. that's Navy your and quarter, of to Microsoft's that maybe our had fishing, you regards that you're data a revised can little and talk bit can With one centers? more underwater believe strategies illegal And touch

Peter Ruggiere

Correct.

Matthew Shafer

have correctly, we with recall speak you any that. asked to had I I question, fully them. the if had can't And conversations

it Philipp that. to X on Navy the on and over those I'll So turn

Philipp Stratmann

Yes.

the aspects as any key the one Matt ocean. domain, line security So is the in said, of operation defense [ ] of maritime

will actionable a space station order provide of additional with that shore-based and in gateway intelligence. edge developing on which so providers, and capabilities to speed into of links and MDA the includes in may vessels, upload work it cloud other gathering computing are as order We satellite system nodes, the the other so forth, be, to participants up

be train Either stop in really. order to vessels, only IUU and spend transgressions of now. which specific activities which there you be it mitigate fishing it unreported, of buoys, them To be day taking need they're That you our all you use in the to other Or unregulated in fuel prevent can to that not illegal, to where but your can burning then fishing, present prosecute autonomous to fishing such occurs, and to illegal larger the able there, the there have instance legal millions X then fishing, as data on go and might the place. go owners, so out generates requires and you crews deploy and systems, vessels prevent have you fishing, out options that at carried dollars the of IUU question on there.

Peter Ruggiere

I Okay. On Houston, in opened was deep Anadarko, X of Mexico? oil Gulf a to it a want the then where bought with July a ago when of Gulf do you in different for, any Occidental, project was years stand is believe deadline commissioning does note, of and an by you which office the in Mexico project the

Philipp Stratmann

Anadarko have discussions you're the connections to I'm sure recently the operators, Occidental DeepStar part made now well with continue various is of with consortium. particularly through aware, as that the We obviously, we've as Petroleum. And

-- and plentiful. the our are Houston As in is said, companies I is oil marine operators, with conversation gas done here the and

Peter Ruggiere

sheet you've never type that's -- have balance as I've seen. with are you all your What's because sitting acquisition? And of of to money cash you to maybe do this the possibly involved since doing planning Because ever company, Okay. I've What your some plan? on had much there. been plenty with cash,

Philipp Stratmann

XDent the is the OPT's So first growth revenues. acquisition value strategy proposition building expand while to long-term market within opportunity

So growth to company execute value continuing our we add strategy. our we to opportunities that at other are look as

Peter Ruggiere

built many have point? this far, buoys PBXs at How you so the do Okay.

Matthew Shafer

Yes.

Philipp Stratmann

we've We are got in outfitting. #X I undergoing think final -- yes, the warehouse is serial

Peter Ruggiere

-- is Premier further with Oil? there What Okay. going anything

Philipp Stratmann

Energy early -- Premier this last with Harbour and Chrysaor year, Oil energy Premier Oil year. Yes. merged obviously, late

completed think in Kingdom. the I it and approved was United

have is discussions customers, -- various next looking them of So with we opportunities. to we as opportunities, around with continue our as its any at Harbour other

Operator

next comes with muted? with Silvera our you're Robert speakers. Robert, live Are Our from Silvera Associates. question you &

Robert Silvera

I am. hear I guess me you Yes, How's Can that? now?

Operator

Thank can. we you. Yes,

Robert Silvera

Okay.

would business? a acquired the elaborate mesh how you as that? little I And Technology little Sorry. you like to about got bit a existing you what XDent as those me when you to capabilities. elaborate Can far on with

Philipp Stratmann

a and Technology enables us the of operating customers move into expands naval team to architects course. comprehensive to and engineers Battery in strengthen of us and oil offshore ability do PowerBuoy been... had not partner products, we that propositions. naval evolving the onboard Subsea have our in solutions have their having markets. of XDent It serves XDent has expertise we see architects been and the to value developing to offshore form rapidly gas and and served not past. They wind, in Yes, Hybrid our aspire only We that. and offshore industry. allow will and in provide strategic has dedicated have them engineers And our XDent

Robert Silvera

understand better I Good. now.

power? So wind you in can couple even with

Philipp Stratmann

XDent, to farm life start the With offshore services can we we them. provide so with cycle wind that having discussions developers across engineering can

Operator

to Philipp are to [Operator Stratmann no the closing time. I'd for call turn at Instructions] questions like this back over further comments. There

Philipp Stratmann

you. Thank

for impact fiscal the we've a pandemic, As the here discussed was global despite today, of year period growth of XXXX OPT.

We're We well high-growth continue markets. solutions and to into capitalized. develop commercialize

we to for shareholders. joining are the to year business We customers. And and value and plans additional our are grow and us continuously today. our benefit energized our our for bring expanding ahead our Thank you to capabilities, expertise to us allowing excited

Operator

today's concludes for teleconference webcast. Thank This your today. and you participation

this lines you. your disconnect may Thank at You time.

Ocean Power (OPTT) 20 Jul 212021 Q4 Earnings call transcript