Q1 2021 Ocean Power Technologies Inc Earnings Call

21 conference call a webcast of this call is also available on the company's website at Www Dot Ocean power technologies Dot com.

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

On the call today are George Kirby, President and Chief Executive Officer, and Matthew Shafer, Chief Financial Officer, and Treasurer. Following prepared remarks, we will open the call to questions.

September 14th 2020, O.P.T. issued its earnings press release.

<unk> form 10-Q for the quarter ended July 31st 2020, what's the Securities and Exchange Commission.

<unk> public filings are available on the FCC website at <unk> Dot Gov or in the Investor Relations section of the O.P.T. website.

Please note that managements prepared remarks may contain forward looking statements that are within the safe Harbor provisions of the private Securities Litigation Reform Act of 1995 forward looking statements are intended by.

Identified by certain words or phrases such as May will aim will likely result believe expect will continue anticipate estimate intend plan contemplate seek to future objective gold project should we.

We'll pursue and similar expressions or variations of such expressions. These forward looking statements are based on assumptions made by management regarding future circumstances over which the company may have little or no control and involve risks uncertainties and other factors that may cause actual results to be materially different from any future results expressed.

Implied by such forward looking statements.

Some of these factors include among others the following.

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Future financial performance expected cash flow ability to reduce cost and improve operational efficiencies revenue growth and increased sales volume.

Success in key markets competition ability to enter into relationships with partners and other third parties delivery and deployment of Powerbuoys, increasing the power output of Powerbuoys expected cost the powerbuoy buoys product higher.

Hiring new key employees and building customer relationships.

Please refer to our most recent form 10-K and subsequent filings with the FCC for further discussion of these risks or uncertainties we.

We disclaim any obligation or intent to update the forward looking statements in order to reflect events or circumstances discussed in this call now I'm pleased to introduce Mr. George Kirby.

Thank you and good morning, everyone I'm going to review our business operations and provide an update on our commercialization activities and developments during the first quarter of fiscal year 2021, and up to today, Matt will review, our financials and after that.

Well open the line for questions.

In recent months O P. T has made substantial advances in net sales and business development efforts, including the introduction of three new products and solutions the company.

The company also saw the addition of an Indonesia based sales rep and the opening of the Houston, Texas sales office and expansion into additional emerging markets, including fisheries protection and surveillance and monitoring of marine protected areas.

Our first new product the hybrid Powerbuoy uses solar panels on an official Stirling engine to power onboard for sub sea payloads, regardless of wave activity.

We believe this makes it an ideal solution for both heavy seas and calm wave environments.

In August we deployed a hybrid powerbuoys several miles off the new Jersey coast to accumulate operational data for interested customers.

In the coming months, we anticipate outfitting the hybrid powerbuoy with Oki teas Marine surveillance solution for live virtual demonstrations to customers in different locations throughout the world.

Oh, Ptcs Marine surveillance solution integrates high definition radar and thermal and optical cameras with state of the art security sensors and software.

When installed on a P.B. three powerbuoy. The single unit can monitor more than 1600 square miles of ocean surface to protect the isolated marine assets fisheries and marine protected areas.

Oh Ptcs Marine surveillance solution is also scalable by integrating multiple units over larger areas to assist agencies and organizations and securing extensive territorial waters, where larger marine protected areas.

The sub C battery uses <unk> proprietary and highly efficient battery management system to maximize the amount of energy available for subsea payloads. Its modular design allows multiple units to be linked together to meet more significant energy requirements for a wide range of subsea equipment.

The sub C battery can be a standalone power solution or integrated with the P.B. three or hybrid powerbuoy for onsite charging.

The recently established O.P.T. office in Houston, Texas is strategically located adjacent to Houston Energy corridor.

The new office is the base for our regional sales and business development activities in support of opportunities in the Gulf of Mexico, and broader U.S. and South American markets.

It also provides a space for Ob T. project managers engineers and field operations personnel to collaborate more closely with <unk> customer project teams.

We're happy to welcome Galore, Prakoso as an Indonesia based member of our commercial team to represent O.P.T. in the Asia Pacific region.

This area of the World has bass marine resources and territories and a significant number of older offshore oil wells, which are due to be decommissioned.

Mr. Picasso is well established with industry relationships throughout local maritime agencies that we believe will enable OPGC two expand our customer base.

As a result, we're identifying new opportunities to apply O.P.T. surveillance power and communication solutions to varied markets, including fisheries marine protected areas and maritime border security.

During the first quarter of this fiscal year and every day, we continue to navigate challenges created by the global Cobot 19 pandemic opportunities have proven slower to develop two to the impact of the virus on different geographies or markets.

We continue to work with existing customers cultivate new opportunities and market our solutions through virtual meetings and conferences.

No we're still unable to meet with customers face to face in a world that continues to grapple with cobot 19. The last few months have been a period of substantial activity for obesity.

We have new products and solutions, a growing commercial organization and presence and were expanding into very promising new markets.

I am very proud of our entire team's dedication and hard work to keep our projects on schedule.

And continue pushing forward despite the personal impact so the pandemic.

We continue to feel demand for proposals from diverse markets and we believe we are well positioned to deliver on our commitment to grow our revenue.

With that let me turn the call over to Matt to discuss the financials Matt.

Thank you George and good morning, everyone we were.

We recorded revenue of 200000 for the first quarter of fiscal 2021, which.

Which was essentially flat compared to the same period in the prior year revving.

Revenue for the three months ended July 31, 2020 was primarily derived from an L. Green power project, while revenue for the same period in the prior year was mainly from projects with Premier oil in the U.S. Navy.

Net loss for the first quarter of fiscal 2021 increased by $400000 as compared to the first quarter of fiscal 2020.

Which was mainly attributable to new product development and administrative costs.

Turning now to the balance sheet total.

Total cash cash equivalents and restricted cash was $12 million as of July 31, 2020.

Net cash used in operating activities decreased by $900000 during the first quarter of fiscal 2021 to two.

To 2.7 million as compared to the first quarter of fiscal 2020.

With that I will turn it back to George.

Thanks, Matt Operator, we're now ready to open the call for questions.

Oh.

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

Thank you operator for your and everyone for your participation today. This concludes today's teleconference and webcast and we look forward to speaking to you again in the future.

Thank you that does conclude today's teleconference. Webcast. You may now disconnect. Your line and have a wonderful day, we thank you for your participation today.

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