MONROE TOWNSHIP, N.J. - Ocean Power Technologies, Inc. (NYSE American: OPTT), a company specializing in low-carbon marine power and service solutions, announced today that it has received a $1 million follow-on contract as part of Project Overmatch. The contract was awarded by EpiSci, a tactical autonomy technology provider, following a year of successful demonstrations of Ocean Power's autonomous surface vehicle technologies.
The demonstrations, which took place at the Mission Autonomy Proving Grounds (MAPG), have already led to immediate revenue recognition for Ocean Power Technologies. The new contract will focus on further ruggedizing and enhancing the operational capabilities of the company's maritime technologies to support the needs of the U.S. military and its allies.
CEO Philipp Stratmann expressed enthusiasm about the contract, stating, "We are thrilled to have been awarded this contract, which is a testament to the strength and innovation of our technology." He emphasized the significant role their solutions could play in bolstering the operational capabilities of the U.S. Navy.
Ocean Power Technologies provides intelligent solutions for various markets, including defense and security, oil and gas, science and research, and offshore wind. The company is known for its PowerBuoy platforms, which supply clean electric power and real-time data communications for remote maritime applications, as well as for its WAM-V autonomous surface vessels (ASVs) and marine robotics services.
The forward-looking statements included in the company's announcement indicate expectations of continued partnership success with EpiSci and the potential for future revenue growth. However, these statements are subject to risks and uncertainties, as detailed in the company's filings with the U.S. Securities and Exchange Commission.
The information reported is based on a press release statement from Ocean Power Technologies.
In other recent news, Ocean Power Technologies has made significant strides in its financial performance and strategic initiatives. The company reported a notable increase in its revenue for fiscal year 2024, with a surge of 102% to $5.5 million. Despite a net loss of $27.5 million, the company has continued to make technological advancements and form key strategic alliances.
In a recent move, Ocean Power Technologies' stockholders approved an amendment to double the authorized common stock from 100 million to 200 million shares, potentially paving the way for future financings or strategic initiatives. The company also announced a change in its independent registered public accounting firm, replacing EisnerAmper LLP with Moss Adams LLP to reduce audit fees and costs.
Analysts attribute the company's revenue growth to strong WAM-V sales and an increase in orders and pipeline. The company projects to reach profitability in the second half of 2025, with a pipeline valued at $85 million expected to generate contract orders worth $12.5 million for 2025. These developments highlight Ocean Power Technologies' ongoing efforts to improve its financial health and strategic position.
InvestingPro Insights
As Ocean Power Technologies (NYSE American: OPTT) garners attention with its recent $1 million follow-on contract and its role in supporting the U.S. military's operational capabilities, financial metrics and market performance provide additional context to the company's situation. According to InvestingPro, Ocean Power Technologies holds a market capitalization of $16.9 million, reflecting its position in the market. The company's revenue has seen a substantial increase, with a growth of 102.23% over the last twelve months as of Q4 2024. This impressive growth aligns with the company's advancements and contract achievements in the maritime technology sector.
One of the notable InvestingPro Tips for Ocean Power Technologies is its impressive gross profit margins, which stand at 51.15% for the same period. This indicates the company's ability to maintain profitability on its products and services despite operational costs. Additionally, the stock has experienced an 18.99% return over the last three months, suggesting a positive short-term investor sentiment.
However, it's important to note that Ocean Power Technologies has been quickly burning through cash and has not been profitable over the last twelve months. This could be a point of concern for potential investors considering the long-term sustainability of the company. For those interested in a deeper analysis, InvestingPro offers additional tips, with a total of 14 InvestingPro Tips available for Ocean Power Technologies, which can be accessed at https://www.investing.com/pro/OPTT.
With an InvestingPro Fair Value estimated at $0.34, investors and stakeholders can weigh the company's current performance against potential future growth, especially as Ocean Power Technologies continues to expand its technological offerings and partnerships.
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