Summary of Ocean Power Technologies (OPTT) Q2/013 Earnings Conference Call December 14, 2012

Ocean Power Technologies has created a separate Autonomous PowerBuoy business unit, which will be led by Phil Hart.  The company believes there are opportunities in the oil and gas market, defense and homeland security and academia (oceanographic studies that measure and analyze the oceans) for the PowerBuoys.  For instance, in oil and gas, there is the potential to use PowerBuoys in remote field applications for environmental monitoring near subsea wells.  Companies operating in the North Sea appear to be more interested in the technologies than those operating in the Gulf of Mexico. 

Ocean Power won a $900,000 contract from Mitsui Engineering & Shipbuilding to develop wave energy applications in Japan.  Once the phase of work is complete in April 2013, a decision will be made whether to perform ocean trial of a demonstration PowerBuoy.  Wave energy was identified as a key component of Japan's new strategy to increase the generating capacity of renewable energy.

At the Reedsport, Oregon project, Ocean Power had anticipated deploying the wave power station in October.  This was delayed due to adverse weather conditions and the company is delaying deployment unit 2013.  The company is looking to raise additional funding for the Oregon project.

In Australia, Ocean Power is working with Lockheed Martin to develop the power station off the coast of Victoria.  The status of the grant provided by Australia will be reviewed this month by the Australian Renewable Energy Agency (ARENA).  ARENA is a new agency that was formed in the spring of 2012 and it is reviewing grants that were made before it came into existence. 

Revenue declined slightly due to the completion of the U.S. Navy LEAP program in fiscal year 2012 and lower external funding for Ocean Power's PB500 development projects.  Net loss increased by $.9 million to $4.8 million due to high product development costs and increased SG&A expenses for business development. 

The transcript of the earnings conference call can be found on Seeking Alpha at the following link:
 http://seekingalpha.com/article/1064901-ocean-power-technologies-management-discusses-q2-2013-results-earnings-call-transcript

Copyright 2012 Jaygo's Earnings Conference Call Summaries


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