OPTT - Earnings call transcript Q4 2022 | Ocean Power Technologies, Inc.

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Operator

Good morning and welcome to the Ocean Power Technologies fourth quarter and full year fiscal 2022 conference call. A webcast of this call is also available 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 Philipp Stratmann, President and Chief Executive Officer; Bob Power, Senior Vice President and Chief Financial Officer; and Joseph DiPietro, Controller, Treasurer, and Principal Accounting Officer.

Following the prepared remarks, there will be a question and answer session. introduce to pleased now Joseph DiPietro. I’m

Joseph DiPietro

OPT SEC Safe Relations of market Harbor release Reform and the for year the Securities XXXX. website. the provisions the statements that Act Investor closed the available include Litigation on call of yesterday, press earnings the will All XX, forward-looking April within our issued of are ended website filings filed OPT XX-K are on we Form After public our and section report This within XXXX. the Private annual

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

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

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

am I Dr. to pleased Stratmann. Now Philipp introduce

Philipp Stratmann

morning everyone. Good Joe. you Thank

with in executive human marketing, a oceans, streams, important clear in team assets resources. finance, to proved revenue sales XXXX and to and a of our and solidified of the be position a was areas transformative number fiscal of strategy of filled our us monitoring We offshore Our pursued leadership areas defined for our identified with year key accomplishments. additions engineering, we we in new and establish and

hands. excellent in is investment Your

we first year for XXXX came well, of the our on meaningful on components the has strategy. progress believe solid should business Finally, our a and like we foundation and executing the fiscal a elements This To plan a and XXXX end, growth. you operating together. where I’d OPT positioned are mission as strategy update of many give are that be quick was for many three on strategy our to years of of us

where First as of analytics on are focused is data real a offshore service, the we time collection, leader being communication. and integration, data

fiscal data-as-a-service drivers maritime primary Our and time, are WAM-V domain to to invested capital considerable launch. cutting proprietary development our within ready MDA our towards and we our resources its Throughout technology, revenue it are and awareness of XXXX, be expected autonomous edge surface commercial close solution we vessels. the for having

Our and fiscal MDA of expected currently by XXXX. the to of is is testing end undergoing QX operational be solution

assets. Our other and offshore software will data be WAM-Vs, non-OPT buoys, processed many power enable onboard to

technology we Our potential team subscriptions. is with of capabilities thrilled our excited are at for customers as our and we conduct the meetings initial

selling Our proposition is strong.

cost a will provide of valuable reduce range We which help eliminate and customers human will data error. wide

improve artificial collection segment, that systems, integration is decision sales increasing provide a our of wanted WAM-V fall making. enables materially update granularity autonomous automatically I by to to short on Our a data-as-a-service analyzed XX/X our of the system our data to can be under portion Since sizeable data expected intelligence activity efforts.

Hawaii. the University, include teams Brigham Recent customer commercial Australian Research Young HR had contract fostering systems, of integrate and to focusing working exchanges, continuing Hudson, have OPT ST learning business cross-selling the wins University started through engineering have on we’re Applied are leadership to their We Defense, Government nice at Kaiyo, Nippon Department team on a and MAR the a now opportunities. and with start of culture finance ours. the with Lab

recently. started we manufacturing manufacturing to of for efficiency the of of believe future costs areas of will is we underway: integration the One facility, New which the completed, transition WAM-Vs. Once and final Jersey improve our reduce

to our deliver which Each power-as-a-service, buoys, that by can customers is or power utilizing solutions sub-sea leased. managed be power power are purchased and Second batteries. value buoys, platforms hybrid of

the utilize Feedback on new duration and for short building our pipeline potential customers. where our the enables and to awareness is a our OPT them budgets. fee. of from then we model power for who suggests year these customer an procure from the has able sells projects offering power owned developed To during buoy being Additionally, a hybrid the to to growing and past produced our this affiliate customers or by services or recurring operated date, for opex focus been systems

We are now actively working orders. on converting these to

have our services. we strategic consulting Finally,

Our part excellent this year. our team had an of managing business

go-to as the services. We engineering recognized becoming are for consulting firm offshore energy-related quickly

We Collectively, known increase simulation engineering, best and of monitoring, revenues. design, million of customers efficiencies for three reduce risk. the motions concept engineering, which and our $X.XX our strategy all are delivered of software operational help components

from move far we nice want be. the direction, right a where it was this While in is to

We our fiscal momentum expect continue to XXXX. into

We expect million of good deliver to order reflected profitability be progress having the level towards is to XXXX, for in set fiscal expected This which up sustained in much revenue of record will to be our revenue to generate $X for activity the company. year.

I the Bob process provide a three top throughout to to over update it world. turn discussion our like an financials, for would I on in projects Before on

primarily our project is under which Chile with in EDP, falls power-as-a-service. First

was equipment Ongoing open and During fiscal activities deployment it the commissioning operated completed of XXXX, into installation fiscal sub-sea continuously installation. lab and has XXXX. of sea continues since the PVX

our offshore that support to you Details is SLAMR but tell progress the demonstration. classified, support with Second can I made this and important U.S. autonomous with customer continue network. we Naval school our post-graduate remain work initiative to defense its

MDAS off successful and to MDAS. coast Most ways. our which design have X,XXX year has importantly, are are from we the will being we of where be for important ongoing. demonstration tracks XXXX of fiscal OPT began many XXXX in of this it MDAS Jersey. foundation New more Fiscal is the an for set was software Initial our AIS used our offshore in date, and and Third the radar demonstration To headed. QX of of refine than collected demonstration field our year

the and have solutions we have sources, offshore the products and expanded We the in we believe have the best world. team, revenue we

are We to and discuss integrated demonstrate OPT, focused the roaming to a of resident excited me platforms. call the bringing potential results. let turn and market to to that, Bob autonomous the financial With over

Robert Powers

metric we revenue. are Philipp. start executing validates closely I driving it - will as the Thanks we our are on strategy with most

our of services consulting our quarter XXXX, For by the growth top driven in fourth primarily line $XXX,XXX. strategic quarter. of was fiscal This was the

and revenue consulting strategic the our business growth of million reflects MAR our For the year, our and was acquisition. $X.XX

offerings tightly costs hiring. travel part the for increased SG&A were to are receptive our the the We we and term responsive that and in structure pre-COVID to runway bank pleased sheet, consecutive reflecting the was levels, the million than balance increase giving past equity that Philipp and our recruiting we of ending debt, this I million we increased with cannot no fiscal on major cash, compensation which maintained can to a prior liquidity as we equivalents, stress and outlined. products the $X.X short year, while are product gives came the a XXXX service business. closer was with us be to are cost in From right get XXXX, quarter The us and $X due to still successful cash cash, environment fourth non-cash While the MDAS were perspective, quarter the development. with second fourth traction awards, a down with costs of restricted sequentially an lowest quarter gained investments strategy. was our that that we million in long to the development quarter and of not revenue close third due enough path. and the quarter. we the about is to think we and where if in drive relocation for the from combined manage executing flexibility costs This strategy year, more that expenses on investing of of Engineering total primarily strong continue confidence $XX.X is we we

to we million quarter operating cash expect use of per cash, near approximately term our expenses. to our financial $X Regarding of fund to continue use

we acquisition reinforce continue tuck-in that the look strategy. growth to opportunities Additionally, for our three will components of

just take Philipp’s from fiscal With alignment, Philipp focus my your and is even a XXXX the for We us happy to will our it and be fiscal to start. that, comments, you exciting. like believe I we both year tell are it that can was company, to but successful and As more think brought questions. XXXX in energy

Operator

[Operator instructions] Thank you.

Silvera with Associates. comes your question & first question. with the from Our Please RE of Robert proceed Silvera line

Robert Silvera

bit is on MDA fiscal this in $X million $X.XX and of - you good looking which us just pretty the give of looks a you’re million? growth. million, color some at fellows, morning $X Can that Good year passing, portion quite

Philipp Stratmann

good for MDA, portion one a by The the that offshore being of surface be way I million Robert, and bookings we data-as-a-service appreciate Hey, the is in offering shareholders, going this morning material with question. of related. portion is thanks that look which to our $X of is a world, large at being the of generated largely

California provided acquisition will there give - material off utilization also on the a that at two perspective, New we now, give acquired of MAR. the go be in we operation customer in through our it of are system a we systems right percentage an portion and you through for that have idea $X off do offerings right services an operating coast be an to can MDA-related Monday doing that now. will can’t It I we of array some forward. were and the we that the on as have demonstration fact, working things exact currently Just vehicles of Jersey a million out include the the where with but of internal potential testing, autonomous From you of coast

Robert Silvera

whatsoever five picture grow any have say MDA to, years? to the three next of the you Do revenues through what can

Philipp Stratmann

have that we at are Well, the moment. developing we some projections certainly internal

market continuing is a I interest seen the is think updated that forward when million right the in the very stands comes as growth would it yesterday, from over to investor three see that degree view it’s it $X on $X.X We you have going great a and industry. two the probably of years. that sizeable, out the useful and the we billion now offshore market it to MDA relations about general point as next MDA materials in to is U.S.

Robert Silvera

positive very and for I that very Wonderful, restructured the company promising, in a - way give like sounds you’ve you that. it credit sounds

few things into Let me go a here. other

assets. of dollar value you a contract with do contract call it do you--what mean You on asset them How a by exactly $XXX?

Robert Powers

revenue that’s our and the Hey Robert, for upon is to will according the Yes, so those that accounting we up actually Thanks we’ve invoiced question. performed specific cases, revenue so those for in haven’t customers, asset. the the to balance the able at of customers, work this Bob. some that actually works billing advance that in recognize customer, sheet the but as those of the time, yet in terms revenue we’ve we majority a cases related because customers, recognized are contract, it’s to the based on of where way show contract

Robert Silvera

thanks clarification. for Wonderful, that

short-term You give a have consider on million-plus a you investments. short what investment-- in little Could term $XX you color

Robert Powers

Yes--

Robert Silvera

opposed and equivalents? cash --as to cash

Robert Powers

we move in what us had slightly a in to better of we quarter return give made fourth order that FYXX historically. on cash so our Yes, versus the

quality high duration All in less months, and why XX bucket. of than it’s are landing short investments that’s have term the our bonds so of a

Robert Silvera

that’s like or stuff preferred Is and any that? million, so it bonds. it’s see, $XX I shares basically

Robert Powers

preferred no high shares, No, investment-grade all bonds. quality

Robert Silvera

I that. secure, well as that’s these get days. good okay, we - guess, Bonds That’s can as

Robert Powers

so. think I

Robert Silvera

is of last dollar. The Yes. of is course, concerned thing below the about, the stock I’m a price

then I’m If am which de-listing all? in considering wondering, below concerned about just I I’m and a spend a long that. you dollar, favor reverse split, not a are place, you time at takes of

Robert Powers

move the dipping in you now specific regard price below apply That NASDAQ, is dollar, NYSE the we the the specific mentioned there-- at with to time. we Not that’s share not where That this actually to and a which American past metric year, does trade. to made metric

Robert Silvera

Hm, good.

Robert Powers

--so for that--

Robert Silvera

I didn’t realize that, that so thanks clarification. for

Robert Powers

of one we the was that Yes, moved. reasons

Robert Silvera

my puts of a because ease, at we stock OPTT. It have mind in lot

Robert Powers

Yes.

Robert Silvera

Keep pleased and I work. for me. are very I that’s what it focused. think good with guys Okay, see, you up the I’m

Robert Powers

you. thank Great,

Philipp Stratmann

Thank you Robert.

Operator

please queue, you. on to and Thank as press question gentlemen, reminder, Ladies the a your keypad. one star, join telephone

comes Our the with Please from next with your Peter Dawson of line question question. proceed Ruggiere James.

Peter Ruggiere

Good morning.

Robert Powers

morning. Good

Peter Ruggiere

lot is Gulf for I have I on with questions. had there was the now. had a a - to coast big you that there. Anadarko off lot Where Asia involved heard project, of Sea was six Oil, Engineering done Occidental them a been illegal now. with Then a all that over then them. Anyway, you haven’t Japan, does there seems was years lot wherever fishing the in years, in the or anything in over stuff of around there--like North Singapore, which Mitsui I’ve in about OPT Premier probably it’s of consulting it me of talk stand? It was the

You had this in buoy sold [indiscernible]. one

Another question do are water? questions, a and lot now how I you is--there’s How right many that. in buoys have for of built apologize the many

Philipp Stratmann

around place, and to in The Sea Illegal and of None appreciate efforts is a Maritime fishing and long-term of fishing, hasn’t intelligent Oil, now for and Thanks providers illegal Harbor discussions in have I with is the under being autonomous the services Premier gone merger Energy Chrysaor we’ve those transition. forth. Awareness, solutions illegal tie-back included project, migration, their in so buoys on order support discussions them. took away. such platforms for border which the remain away, our prevent with during and our is so future energy Harbor questions, intrusions to after Domain investor. illegal fishing on systems the as and MDA with them The top systems Oil we reconnaissance hosting Premier surveillance energy of power Peter, work obviously developments, North you and for the gone continued Energy with

way. I putting it assets forward-looking are which from however, none portion and the to the and current fair, state a that efforts bookings into defense applications, is of material stemming They is think more our water. security consulting, are of by

coast buoys - the of terms numbers, off In being the New there’s off water obviously going the there’s currently facility one on. Chile, coast here right have the Jersey, deployment EGP an two for of of fleet build there’s of obviously now, in readied build-out we California. our the coast four There is is there a for and stands further it in inventory two-plus-one ongoing vehicle as off

the between manufacturing when I’m--it remaining vehicles one-off out entirely now it California in being the autonomous Californian were Richmond, of and unless over think, over is previously to is with the specialized being number now that bulk to serial built up that New I somewhere comes assembled lifetime projects the side. over on XXXX and the moving are Jersey, manufacturing

Peter Ruggiere

Okay.

So shares there’s April XX as of million correct? XX,

Robert Powers

correct. That’s

Peter Ruggiere

for have The ’XX, $XXX. because Okay, I at go another $XXX myself, still because they left, out but something they some got it are of of these is. April warrants, those I know that in even many year converted, to of warrants--? about I’ve I mail How the think

Robert Powers

my have Yes, to--off remember. I than million. think less I’d of can’t it’s top the head, a I

Peter Ruggiere

on you buoys. anything them, these or--? going those with years All with I there powering ago, data right. thinking would with was Bob, Microsoft the all be possibly them doing centers, Is was guys and guys,

Philipp Stratmann

we can’t power-as-a-service. data-as-a-service conversations specific around the data, those with and that say have transition we’re and having any customers I but defense around support. energy security, conversations discussions with, certainly of aren’t just rather and meta do efforts divulge would areas to ongoing We is in ocean that bulk

Peter Ruggiere

Okay.

with to its of off before happened, there problem going up north, this from thing, the to project? happening [indiscernible] put buoy--move their area that anything COVID the France. from a stuff Is Another was coast

Philipp Stratmann

work buoys that result movements. cases the particularly any on and got they with around to comes I’m or future not planned side. deployment conversations surface oil the efforts sub-sea utilizations of have their them COVID price support aware Mediterranean We are be about and in a it repositioning of as to remain vehicles, as E&P use or for efforts and with them that

Peter Ruggiere

[indiscernible], still Yes, water was? because and in NEC, with believe [indiscernible], maybe buoy certain is the in vehicles systems battery doing the that particular with Adriatic autonomous Sea I it

Philipp Stratmann

one we’ve for that’s go its No, and assets be the its that pandemic to is buoy got the here shop the refurb finishing and recovered deployment. next was during in - readied of

Peter Ruggiere

Okay.

you thing a lot years many million $X doing you quarter. employees have - do right a ago. than Another couple you’re more now? were a That’s spending How

Philipp Stratmann

staff right now. got We’ve XX

Peter Ruggiere

Okay.

it the $X but million $X.XX with You this stock million? a wondering cost of might really hate want and look take for if $XX higher right cash I’ve the year, actually--I’m is it year figuring catalyst boost a I’m to market before to your now, close the million, you’re cap I bring actually XX so what that but might to price, out you reverse you what’s will company, I million may $XX $X to through base but bring a left because take a do I’m share split. one come that that’s you’re revenue here, to say should revenue been right the stock catalyst, count, support that big just of of field, at could kind the wondering because

Philipp Stratmann

of Well we’ve investors, our short year. I the and long are building an strong accelerate we to path all returns Peter, what in continue to I that on over--in see to that in that million growth, so the time the forward as we’ve out, solutions position which past continue in very bookings do now, you able we’ve I to to that, say all to back can future profitability term the the We’ve be in team provide company go as a accelerated that the order of things, restructured blocks is over acquisitions got the said, go doing term. get growth the put but ourselves accelerated period. even going built foundation got--you to positions to we’ve we made, love in growth we’ve $X break would can’t I and ongoing, change to know, think, the then we the our with we place and place necessary and the

Peter Ruggiere

that lot of of a different companies. in was--there’s were I a ton buoys

have all big years, you’d partnership and guys to almost, a have it’s buoys long. You for a the been dollars you’d that, just the sounds close revenue. have so and over you’d Everything figured of ocean like of of fleet XX doing I’m that wondering have lay great and millions I this why always them stuff you’d with taking hundreds of technology, and and

Philipp Stratmann

trends, ideal integrate is an ocean. to that technology do right solutions Well, market in where global we’re can’t the solutions and conversations systems with that having we’re other it we’re seeing platform bookings sitting it’s and be exist going and with an I know out accelerated think and but I pipeline honest develop is you’re payload on other to that on you, path host comment forward. and I growth and great the the where

Peter Ruggiere

Yes, goes the a I - project, there like was be that things big there, going guess they and and other Loon had Wi-Fi your that. Listen, are but--anyway. and direction. that and you if buoys for they stuff, that up ditched was that thought would very I in that project, on XG get stays can’t like this Project down that perfect it something much, off right bounced islands and all like solution balloon the thank going Google sounds in stratosphere you your

Philipp Stratmann

you it, Appreciate thank Peter.

Operator

final Thank answer to back Ladies session. concludes gentlemen, any and turn floor for comments. question that Stratmann I’ll you. Dr. the our and

Philipp Stratmann

are was your never confidence, granted. become. Have pivotal interest, to very great in a hope Thank We you. clear about you company. headed. a support, that for what of it where for I and rest our and year are it Thank foundation we provides investment XXXX are of take day. is we continued excited your Fiscal we a

Operator

conference. Thank you. concludes today’s This

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

Ocean Power (OPTT) 14 Jul 222022 Q4 Earnings call transcript