Ocean Power Technologies Posts Record $19.9M Backlog But Q3 Revenue Falls to $0.5M
Ocean Power Technologies reported a record $19.9 million backlog split evenly between North America and Latin America/Middle East, with initial Department of Security systems shipping within weeks and revenue recognized over a 15-month lease term. Q3 net loss widened to $11.4 million on $0.5 million revenue, while operating cash burn rose to $19.9 million year-to-date.
1. Record $19.9 Million Backlog
Ocean Power Technologies ended Q3 with a $19.9 million backlog, nearly half in North America and the remainder split between Latin America and the Middle East. Systems for the Department of Security are set to ship within days or weeks, with revenue recognized over a 15-month lease period.
2. Widening Losses and Revenue Decline
The company posted a net loss of $11.4 million for Q3, up from $6.7 million a year earlier. Revenue declined to $0.5 million from $0.8 million, while gross margin swung to a $0.8 million loss from a $0.2 million profit due to timing impacts and one-time GAAP effects.
3. Increased Cash Burn and Inventory Strategy
Operating activities used $19.9 million in the first nine months, compared to $14.6 million last year. Management has built inventory, especially buoys, to support anticipated orders and enable rapid deployment for emerging contracts.