Ocean Power Technologies Inc (NYSE-A:OPTT) has announced an action plan aimed at achieving profitability for the company in the 2025 calendar year.
With its research and development (R&D) phase substantially completed, the company outlined milestones and initiatives aimed at enhancing value for its shareholders.
Among these, Ocean Power said it has divested its strategic consulting team so that it can more fully focus its efforts and resources on the commercialization of its cutting-edge pipeline of products – particularly for the national security and defense markets.
The company highlighted its recent achievements in R&D, including the successful demonstration of the Wave Adaptive Modular Vessel (WAM-V) attaching itself remotely to a buoy and establishing a connection that will enable charging.
It also noted the development of its next-generation increased power wave energy converter buoy, the Mass-On-Spring-Wave-Energy-Converter (MOSWEC).
“As we have consistently stated, we are seeing meaningful progress in orders, pipeline, and backlog across our business, especially with the completion of our product development efforts,” president and CEO Dr Philipp Stratmann commented in a statement.
“Despite current economic headwinds, we have built a cutting-edge suite of products that we believe will be the basis for our current and future commercial success and that will help drive profitability in calendar year 2025.”
Following a reallocation of headcount and a material reduction in third-party expenditure, it noted that more than half of its employees are now dedicated to customer delivery.
To drive commercialization efforts that will support its financial goals, Ocean Power said it has appointed Matt Burdyny, its current vice president for sales and marketing, to the newly created role of chief commercial officer.
“Matt’s promotion to the newly created chief commercial officer role aligns with our strategy of focusing on meeting our customers’ needs and emphasizing commercialization as we move away from the R&D phase of our evolution,” Stratmann added.
“Our focus remains first and foremost on executing our strategy in order to generate value for our shareholders.”
The company's shares gained 6.7% to $0.2998 by late morning in New York.
Ocean Power Technologies is a provider of ocean energy and intelligent data services through its innovative, low carbon distributed and autonomous ocean power and data solutions, combined with its offshore engineering and design services.
~Updated with share price movement~
Contact the author at stephen.gunnion@proactiveinvestors.com