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Ocean Power Technologies secures $3M Latin America deal

Published 12/09/2024, 08:25 AM
OPTT
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MONROE TOWNSHIP, N.J. - Ocean Power Technologies, Inc. (NYSE American: OPTT), a micro-cap company with a market value of approximately $43 million engaged in low-carbon marine power and data solutions, has announced the expansion of its presence in Latin America with a new partnership that includes purchase orders totaling $3 million over the next 36 months. This agreement increases the company's previous commitments in the region by $1.5 million. According to InvestingPro data, the company has demonstrated strong revenue growth of nearly 69% in the last twelve months, though current analysis suggests the stock is slightly overvalued at current levels.

The partnership involves the deployment of the WAM-V USV (Unmanned Surface Vehicle), a platform known for its advanced technology and versatility in marine applications. These vehicles are set to be utilized in hydrographic applications, providing what the company describes as a versatile, multi-application solution. The company maintains a healthy balance sheet with more cash than debt, and a current ratio of 2.16, indicating strong short-term liquidity to support its operational expansion.

Philipp Stratmann, President and CEO of Ocean Power Technologies, commented on the partnership, highlighting the company's commitment to innovation in the marine artificial intelligence sector and its focus on meeting the needs of customers in Latin America.

Ocean Power Technologies specializes in providing intelligent maritime solutions that serve various sectors, including defense, oil and gas, research, and offshore wind. The company offers products such as PowerBuoy platforms for clean and reliable electric power and real-time data communications, as well as WAM-V autonomous surface vessels and marine robotics services.

This announcement is based on a press release statement and follows the company's strategy to expand its global footprint through strategic partnerships. As with all forward-looking statements, these plans are subject to risks and uncertainties that could affect the company's future performance and the actual results of the deployment of the WAM-V USVs. Ocean Power Technologies advises referring to its filings with the U.S. Securities and Exchange Commission for a more detailed discussion of potential risks. For a comprehensive analysis of OPTT's financial health, growth prospects, and 13 additional ProTips, investors can access the full company research report on InvestingPro, which provides detailed insights into the company's performance metrics and future potential.

In other recent news, Ocean Power Technologies (OPT) has reported steady revenues of $1.3 million in Q1 FY25, mirroring the previous year's first quarter results. The company also managed to reduce its net loss by over 35% and cut operating expenses by 39% to $4.9 million through effective cost control measures. These recent developments include a significant 71% increase in backlog to $5.3 million, reflecting growth in Latin America and long-term leasing contracts.

OPT also announced strategic partnerships with AT&T and Teledyne Marine to enhance system functionality. The company's growth strategy is backed by a robust pipeline valued at approximately $92 million, the largest in its history. The expectation, according to CEO Philipp Stratmann, is to reach profitability by Q4 FY25, driven by strong demand for its autonomous ocean monitoring systems.

Despite these promising developments, it's important to note that OPT still operates at a loss and faces the challenge of transitioning from grant-funded initiatives to commercially viable projects. However, the company's strategic partnerships and projected revenue from defense and security sectors, which is expected to account for over 50% of total revenue, provide a positive outlook.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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