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PENNINGTON, N.J.--([ BUSINESS WIRE ])--Ocean Power Technologies, Inc. (Nasdaq: OPTT) (aOPTa or athe Companya) today announced financial results for its fiscal 2013 first quarter ended July 31, 2012.

"OPT got off to a strong start in fiscal 2013, with progress on a number of ongoing initiatives in the U.S. and abroad"

Highlights

• Net loss decreased to $4.4 million for the three months ended July 31, 2012 compared to $5.0 million for the three months ended July 31, 2011, primarily reflecting a 38% decrease in product development costs.
• Efforts continued in Australia following the announcement of a teaming agreement with Lockheed Martin for the development of a proposed 19 megawatt wave energy project off Portland, Victoria. Focus is now on permitting activity and securing the required financing to meet the conditions for the receipt of a previously announced A$66.5 million (US$69.5 million) grant from the Commonwealth of Australia.
• The U.S. Federal Energy Regulatory Commission (aFERCa) approved the full build-out of OPTas proposed 1.5 megawatt, grid-connected wave power station off Reedsport, Oregon a" the first such license to be issued for a wave power station in the U.S. The Company is in the process of final assembly and inland testing of the first PowerBuoy to be installed at the Reedsport site. OPT expects that this PowerBuoy will be ready for deployment in early October. At that time, the Company will be dependent on the weather conditions for determination of when to commence deployment activities.
• OPT has entered into a Cooperative Research and Development Agreement (aCRADAa) with the U.S. Department of Homeland Security (aDHSa) to demonstrate the use of OPTas Autonomous PowerBuoy (aAPBa) for ocean surveillance. OPT has also been awarded a new $75,000 grant from the Maryland Technology Development Corporation (aMTDCa) via a joint technology transfer initiative to demonstrate how the APB can be used with multiple surveillance technologies.

aOPT got off to a strong start in fiscal 2013, with progress on a number of ongoing initiatives in the U.S. and abroad,a said Charles F. Dunleavy, Chief Executive Officer of OPT. aAs recently announced, we secured the FERC license for the prospective build-out of our project in Reedsport, Oregon a" the first such license in the United States. At the same time, we are actively working alongside Lockheed Martin to implement strategies in Australia to expedite our commercialization plans. We also gained traction in the Autonomous PowerBuoy market with the signing of a CRADA with the Department of Homeland Security and receipt of a grant to leverage our knowledge gained from last yearas deployment under the U.S. Navyas Littoral Expeditionary Autonomous PowerBuoy program. We look forward to reporting results on these and our other initiatives in the months ahead.a

Financial Review

OPTas contract backlog as of July 31, 2012 was $5.8 million, compared to $6.8 million as of April 30, 2012 and $7.1 million as of July 31, 2011. Backlog includes funded amounts and unfunded amounts that are expected to be funded in the future. Funded backlog was $5.0 million, $4.8 million, and $5.1 million as of July 31, 2012, April 30, 2012, and July 31, 2011, respectively. The Companyas contract backlog consists largely of orders to support its product development.

Results for the Fiscal First Quarter Ended July 31, 2012

For the three months ended July 31, 2012, OPT reported revenues of $1.0 million as compared to revenues of $1.9 million for the three months ended July 31, 2011. This decrease primarily reflects lower revenues tied to the US Navyas Littoral Expeditionary Autonomous PowerBuoy (aLEAPa) program on a year-over-year basis, as that project was successfully completed in fiscal 2012. This decline was partially offset by an increase in revenue from the Companyas WavePort project in Spain.

The net loss for the three months ended July 31, 2012 was $4.4 million as compared to a net loss of $5.0 million for the three months ended July 31, 2011. The reduction in net loss year-over-year was due primarily to a decrease in product development costs, principally for the PB150 system successfully deployed off Scotland in 2011 and lower costs related to the PB150 buoy in Reedsport, Oregon. These decreases in product development costs were partially offset by increased investment in advanced technology development.

Cash and Investments

On July 31, 2012, total cash, cash equivalents, restricted cash and investments were $29.4 million, as compared to $33.2 million as of April 30, 2012. The net decrease in cash and investments was $3.8 million for the three months ended July 31, 2012, compared to $5.2 million for the three months ended July 31, 2011.

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Additional information may be found in the Companyas Quarterly Report on Form 10-Q that will be filed with the US Securities and Exchange Commission (aSECa). The Form 10-Q may be accessed at [ www.sec.gov ] or at the Companyas website in the Investor Relations tab.

Conference Call Details

The Company will host a conference call to review these results at 10:00 a.m. Eastern Time today.

The call will be available by telephone at 866.713.8563 (toll free in the U.S.) or 617.597.5311 (for international callers), using passcode 56971842. Investors may also access a webcast by visiting the Companyas website at [ www.oceanpowertechnologies.com ] and clicking on the Investor Relations tab, then Webcasts & Presentations. Recorded replays of the conference call will be available on the Companyas website and by telephone at 888.286.8010 (toll free in the U.S.) or 617.801.6888 (for international callers), replay passcode 51854519, beginning at 1:00 p.m. Eastern on September 14, 2012.

Forward-Looking Statements

This release may contain aforward-looking statementsa that are within the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect the Companyas current expectations about its future plans and performance, including statements concerning the impact of marketing strategies, new product introductions and innovation, deliveries of product, sales, earnings and margins. These forward-looking statements rely on a number of assumptions and estimates which could be inaccurate and which are subject to risks and uncertainties. Actual results could vary materially from those anticipated or expressed in any forward-looking statement made by the Company. Please refer to the Companyas most recent Forms 10-Q and 10-K and subsequent filings with the SEC for a further discussion of these risks and uncertainties. The Company disclaims any obligation or intent to update the forward-looking statements in order to reflect events or circumstances after the date of this release.

About Ocean Power Technologies

Ocean Power Technologies, Inc. (Nasdaq: OPTT) is a pioneer in wave-energy technology that harnesses ocean wave resources to generate reliable and clean and environmentally-beneficial electricity. OPT has a strong track record in the advancement of wave energy and participates in an estimated $150 billion annual power generation equipment market. OPTas proprietary PowerBuoy system is based on modular, ocean-going buoys that capture and convert predictable wave energy into clean electricity. The Company is widely recognized as a leading developer of on-grid and autonomous wave-energy generation systems, benefiting from 15 years of in-ocean experience. OPT is headquartered in Pennington, New Jersey, USA with an office in Warwick, UK, and operations in Melbourne and Perth, Australia. More information can be found at [ www.oceanpowertechnologies.com ].

Consolidated Balance Sheets as of

July 31, 2012 and April 30, 2012

Consolidated Statements of Operations

For the Three Months Ended July 31, 2012 and 2011

(Unaudited)

Consolidated Statements of Cash Flows

For the Three Months Ended July 31, 2012 and 2011

(Unaudited)