Ocean Power Technologies Inc (NYSE-A:OPTT) announced that it made significant further progress towards achieving profitability during the fiscal first quarter of 2025, notably decreasing its operating expenses, reducing its operating loss, and lowering cash burn.
The provider of intelligent maritime solutions said it reduced its operating expenses by 39% year-over-year to $4.9 million, attributed to its restricting and streamlining efforts.
Cash used for operating activities decreased 23% to $6.1 million.
OPT narrowed its net loss to $4.5 million from $7 million for Q1 2024.
Revenue was $1.3 million, consistent with the same period in fiscal 2024, while trailing revenue for the 12 months was $5.6 million, marking a 70% increase from trailing 12-month revenue of $3.3 million as of July 31, 2023.
Other highlights included successful testing of OPT’s Next Generation PowerBuoy and the signing of new reseller agreements.
“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,” OPT CEO Philip Stratmann commented.
“The previously announced substantial cessation of our R&D efforts and the realignment of our headcount to focus on execution has led to a reduction in payroll and engineering related expenditures, and we will continue to see further benefits of these efforts going forward.”
As of July 31, 2024, the company’s pipeline stood at $92 million, the largest in the company’s history. This reflected increased activity in the defense, security and commercial sectors.
Its backlog grew 71% year-over-year to $5.3 million, reflecting expansions in Latin America and the Middle East.
Stratmann said the company’s efforts to increase its backlog and pipeline in the defense and national security industry were paying off.
“Our recent contract wins with large government prime contractors enable us to provide autonomous vehicles and renewable energy buoys to various U.S. Government Agencies,” the CEO said.
“In addition to these contract wins, we continue to deliver for our commercial customers, especially in the field of autonomous survey operations, enabling them to lower costs and carbon emissions.”
He also noted that the company’s geographical footprint continues to expand as it pursues growth opportunities in Latin America and the Middle East.
“We continue to explore opportunities that will accelerate shareholder value generation, for example through resellers and partnerships in overseas locations, as we execute on our stated strategy, including cost optimization, accelerated revenue growth, partnerships, or other mechanisms,” Stratmann concluded.