Wave-energy technology provider Ocean Power Technologies, Inc. (OPTT, OPT.L) Thursday reported a narrower loss for the second quarter, reflecting lower cost of revenues and foreign exchange gains.
For the quarter, net loss attributable to the company was $5.19 million compared to a loss of $6.12 million in the prior-year period. On a per share basis, net loss narrowed to $0.51 from a loss of $0.60 last year.
The company said the results included an increase in foreign exchange gains relative to the change in the value of the British pound sterling. The company recorded a foreign exchange gain of $101 thousand, in comparison with a loss of $1.2 million in the corresponding period a year ago.
Revenues for the period declined to $581 thousand from $667 thousand in second quarter of fiscal 2009. The company attributed the decrease in revenues to lower level of activity in connection with its contract with the US Navy for ocean data gathering. Also, decrease in revenues from the Reedsport project in Oregon was offset by increases in revenue from Ocean Power's Hawaii project with the US Navy and EMEC project in the Orkney Islands, Scotland.
Cost of revenues totaled $528 thousand, versus $1.37 million a year ago, which resulted in a gross profit of $54 thousand, as compared with a loss of $702 thousand in the previous year quarter. The company said that lower cost of revenues reflected lower levels of activity on revenue-bearing contracts, primarily the company's project off the coast of Reedsport, Oregon.
Operating loss widened to $5.56 million from $5.43 million in the year ago quarter, reflecting an increase in product development costs related to the company's continued work to increase the power output of its utility PowerBuoy system, which was partly offset by improvements in gross profit.
During the three-month period, operating expenses increased to $5.62 million from $4.72 million, and product development costs rose to $3.43 million from $2.33 million in the same quarter last year.
Interest income declined to $248 thousand from $514 thousand in the same quarter a year earlier.
For the six-month period, the Pennington, New Jersey-based company reported net loss attributable to the company of $7.3 million, or $0.71 per share, compared to a net loss of $10.0 million, or $0.98 per share, last year. Half-yearly revenues dropped to $1.9 million from $2.45 million in the prior-year period.
Contract order backlog increased to $7.1 million at October 31, 2009 from $6.4 million at July 31, 2009.
OPTT closed Wednesday's trade at $9.13 on Nasdaq, down from previous close of $9.31, on a volume of 165 thousand shares.
OPT last traded on December 7 on the London Stock Exchange at 515.00 pence.
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