Ocean Power Technologies, Inc. (OPTT) announced its first-quarter financial results on Monday after the market closed, revealing positive signs of progress.
The company reported a quarterly loss of five cents per share, a significant improvement from the 12 cents per share loss recorded in the same period last year. Revenue for the quarter reached $1.3 million, slightly exceeding the $1.27 million generated in the prior year’s first quarter.
A key highlight of the report was the 39% year-over-year decrease in operating expenses, attributed to the company’s restructuring and streamlining initiatives. This cost reduction, coupled with the growth in revenue, demonstrates the company’s commitment to achieving profitability.
Ocean Power Technologies also boasts a healthy backlog of $5.3 million, representing a substantial 71% increase compared to the same period last year. This growth is driven by the company’s expanding presence in Latin America and the Middle East. Furthermore, the company’s pipeline has reached an impressive $92 million, fueled by increased activity in the defense and security sector, as well as expanding commercial opportunities.
Philipp Stratmann, CEO of Ocean Power Technologies, expressed optimism about the company’s trajectory, stating, “We continue to make progress on our path towards profitability as evidenced by the continued growth in our pipeline, backlog, revenues and gross margin. We have also made significant progress in stemming our losses, as evidenced by a material decrease in our operating costs.” He further highlighted the impact of the company’s strategic initiatives, emphasizing the reduction in payroll and engineering expenditures resulting from the cessation of R&D efforts and workforce realignment.
OPTT’s stock price responded positively to the earnings announcement, surging 9.32% in after-hours trading, adding to the 28.27% gain seen during Monday’s regular trading session. This strong market reaction reflects investor confidence in the company’s progress and future potential.
With its growing revenue, declining losses, and substantial backlog and pipeline, Ocean Power Technologies appears well-positioned for continued growth and success in the renewable energy sector.
