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Edited Transcript of OPTT earnings conference call or presentation 23-Jul-19 1:00pm GMT

Q4 2019 Ocean Power Technologies Inc Earnings Call

PENNINGTON Jul 25, 2019 (Thomson StreetEvents) -- Edited Transcript of Ocean Power Technologies Inc earnings conference call or presentation Tuesday, July 23, 2019 at 1:00:00pm GMT

TEXT version of Transcript

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Corporate Participants

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* George H. Kirby

Ocean Power Technologies, Inc. - President, CEO & Director

* Matthew T. Shafer

Ocean Power Technologies, Inc. - CFO, VP of Finance & Treasurer

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Conference Call Participants

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* Hunter Louis Diamond

Diamond Equity Research LLC - CEO & Founder

* Peter G. Ruggiere

Dawson James Securities, Inc., Research Division - Financial Professional

* Robert L. Littlehale

J.P. Morgan Securities - Executive Director

* Matthew Abenante

Porter, LeVay & Rose, Inc. - SVP

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Presentation

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Operator [1]

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Greetings and welcome to the Ocean Power Technologies Fourth Quarter Fiscal Year 2019 Conference Call and Webcast. (Operator Instructions) As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Matthew Abenante, Senior Vice President, Porter, LeVay & Rose. Please go ahead, sir.

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Matthew Abenante, Porter, LeVay & Rose, Inc. - SVP [2]

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Good morning, and thank you for joining us for the Ocean Power Technologies conference call and webcast. On the call with me today are George Kirby, President and Chief Executive Officer; and Matthew Shafer, Chief Financial Officer and Treasurer. Following our prepared remarks, we will open the call to questions. This call is being webcast on the company's website at www.oceanpowertechnologies.com. It will also be available for replay after this call.

On July 22, 2019, OPT issued its earnings press release and filed its annual report on Form 10-K for fiscal year 2019 with the Securities and Exchange Commission. All of our public filings can be viewed on the SEC website at sec.gov, or you may go to the Investor Relations section of the OPT website at oceanpowertechnologies.com.

Now let me reference the safe harbor provisions of the U.S. securities laws for forward-looking statements. This conference call may contain forward-looking statements that are within the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are identified by certain words or phrases, such as may, will, aim, will likely result, believe, expect, will continue, anticipate, estimate, intend, plan, contemplate, seek to, future, objective, goal, project, should, will pursue and similar expressions or variations of such expressions. These forward-looking statements are based on assumptions made by management regarding future circumstances over which the company may have little or no control and involve risks, uncertainties and other factors that may cause actual results to be materially different from any future results expressed or implied by such forward-looking statements. Some of these factors include, among others, the following: future financial performance, expected cash flow, ability to reduce costs and improve operational efficiencies, revenue growth and increased sales volume, success in key markets, competition, ability to enter into relationships with partners and other third parties, delivery and deployment of PowerBuoys, increasing the power output of PowerBuoys, hiring new key employees, expected cost of PowerBuoys, product and building customer relationships. Please refer to our most recent Form 10-Q and 10-K and subsequent filings with the SEC for a further discussion of these risks and uncertainties. We disclaim any obligation or intent to update the forward-looking statements in order to reflect events or circumstances discussed in this call.

Now I'm pleased to introduce Mr. George Kirby. Good morning, George.

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George H. Kirby, Ocean Power Technologies, Inc. - President, CEO & Director [3]

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Thank you, Matthew, and good morning, Matt, and good morning, everyone, and greetings from Tokyo. I'm going to review our business operations and provide an update on our commercialization activities and developments during the fourth quarter up to today. Then Matt Shafer will provide a review of our financials. Then we'll open the floor for questions.

The fourth fiscal quarter marked a pivotal time for OPT with the achievement of key milestones across our business, moving us closer towards being the leading provider of power and communications for subsea applications across the globe. We strongly believe that we have positioned OPT's technology to address the growing need for these solutions across our addressable markets, including defense and security, oil and gas, communications and science and research. We've become known as the innovator in offshore power, broadening demand for our solutions.

Back in May, I held a commercialization conference call to provide greater insight to investors into our current project pipeline as well as to establish clear expectations for OPT in generating meaningful revenue opportunities. And currently, we have a pipeline of over 80 active opportunities where we are responding to information requests, we're actively providing proposals, we're participating in customer studies where our PowerBuoy technology can be employed. Information requests and request for proposals are at an all-time high, which is further evidence of the greater awareness of our brand in offshore power solutions. Our pipeline is robust. The potential value of the current pipeline is greater than $50 million, which is a conservative figure, knowing that naturally, not every opportunity will come to fruition.

For everyone's convenience, the presentation for this commercialization conference call can be found on the Investor Relations section of our website, which provides additional details on each of these opportunities.

I want to take some time to discuss several key developments from our fiscal fourth quarter up to now. For those of you that follow OPT on social media, we sent out footage of a PowerBuoy leaving our Monroe Township facility in early June for our customer, Premier Oil. This PowerBuoy has recently reached its destination in Scotland and is currently being readied for its August deployment in the North Sea. This deployment will be the culmination of several milestones for OPT, which I'm very happy to highlight. The PB3 PowerBuoy is equipped with an Exclusion Zone Monitoring payload in collaboration with Premier Oil. Importantly, there is nothing in the marketplace like our PB3 PowerBuoy technology, which is the first such autonomous device used to provide remote topside monitoring and surveillance for offshore decommissioning, eliminating the need for a manned vessel.

Why is this important? For the customers such as Premier Oil, it is all about cost savings, yet -- and greater operational possibility. To charter a vessel and man it with a crew is an expensive proposition. Our PB3 PowerBuoy allows for the elimination of vessels, yet still provides persistent power and communications along with faster operational decision-making from real-time subsea data communications. Simply put, our PowerBuoys are a safer, cost-effective solution that can also reduce the operational carbon footprint.

Everything I just mentioned makes total sense on paper but what makes this Premier Oil project so pivotal for OPT is in establishing an operational track record of performance in well decommissioning for the oil and gas industry as a whole. We always strive to outperform our customers' expectations and I'm fully confident that we'll do so for Premier Oil. To leverage this opportunity, we have announced a promotional event in Montrose, United Kingdom on July 31 and August 1. Together with our partners Acteon and The Oil & Gas Technology Centre, we're inviting oil and gas industry leaders throughout the region to see the PowerBuoy and its payloads up close and to examine its uses and capabilities.

We believe that we can leverage this project with Premier Oil to drive significant revenue opportunities for OPT and over time, make the PB3 PowerBuoy become the standard of practice for topside surveillance during decommissioning and eventually, wellhead monitoring. All eyes in the offshore oil and gas decommissioning world are focused on this project right now.

Highlighting another instance where the versatility and performance of our PowerBuoy is speaking to the marketplace, we announced in May that our PB3 PowerBuoy, deployed for our customer, Eni in the Adriatic Sea, produced more than 1 megawatt hour of cumulative energy. This PowerBuoy has been deployed in the Adriatic Sea, off the coast of Italy, since November 2018, operating continuously and error-free while being controlled remotely from our New Jersey facility. The PowerBuoy is a key part of Eni's MaREnergy project, which seeks to demonstrate the suitability of wave energy renewable technologies in the oil and gas industry. Importantly, the PowerBuoy's demonstrated AUV charging capabilities during recent trials with Eni, successfully sending power and communications to a subsea payload throughout the test period. Having our PowerBuoy technology front and center with Eni as they continue to innovate in this critical function, with the PB3 achieving operational success only builds our case as a necessary partner to the oil and gas industry.

Back in April, we announced our agreement with a leading oil and gas operator to conduct a detailed feasibility study to monitor subsea wells during decommissioning in the Gulf of Mexico. We've been working very closely with this operator, and the study is nearing completion. Similar to our strategy with Premier Oil, we believe that this study is critical to our decommissioning business in demonstrating to both this operator as well as the industry our ability to actively and reliably monitor wellheads over a long period of time. This solution would allow for more operational flexibility and to potentially remove vessels from the sea surface, which could result in significant cost savings to the operator. We're beginning to discuss next steps with this operator as the study comes to its final conclusion.

As noted in last quarter's call, we've held numerous discussions regarding collaborations with several defense contractors and government organizations. That work continues as does our relationship with the Office of Naval Research, who's turned its focus to autonomous power over the past few years.

On February 12, we were awarded a contract with the U.S. Navy to carry out the first phase of a project to design and develop a buoy mooring system, incorporating fiber optics for the transmission of subsea center data to airplanes, ships and satellites. We'll execute the work under our innovation and support services business line, leveraging our many years of experience with marine systems and U.S. Navy programs. Importantly, the fiber optic mooring concepts developed under this contract can be incorporated into OPT's PowerBuoy and subsea battery product lines, providing additional commercialization opportunities.

All these agreements and contracts represent opportunities to expand our operational expertise and build a more robust pipeline. The more opportunities that we can develop in our pipeline and push towards the proposal phase, the easier it will be to manage the typically very long lead time conversion process. This process takes a tremendous amount of effort from our team, involving commercial, technical and project management, along with finance and legal. In fact, the heightened demand that we're seeing in request for information and proposals has caused us to work around the clock in order to respond and meet deadlines from these potential customers. As the company and product portfolio is growing, we continue to assess the need to bring additional talent onboard the OPT team, and we've identified specific strategic roles throughout the organization, mainly in commercially focused areas, such as sales, marketing, program management that we've either brought on new employees or have recruitment efforts underway.

A significant catalyst for this heightened interest is our new product developments. Our hybrid PowerBuoy is a much smaller machine compared to our PB3 PowerBuoy. While the PB3 PowerBuoy is intended for longer-term deployments, the hybrid PowerBuoy was designed for shorter-term deployment applications and thus, has a lower price point. When combined with a subsea battery, the hybrid PowerBuoy allows for topside refueling or even a hot swap with a fully refueled unit which provides for continuous subsea battery recharging, providing operators with even more flexibility. These value propositions are appealing to our customers.

In addition, we partnered with battery industry leader, NEC Energy Solutions for our subsea battery solutions that are really a natural fit for the markets that we're selling into. The customer would take these battery systems, place them on the seafloor and have months of continuous power before the batteries require recharging. Up until recently, these batteries really didn't have the ability to be recharged without a vessel coming out to sea and hauling them onboard for recharging or replacement. We offer the PB3 PowerBuoy and the hybrid PowerBuoy as perpetual recharging systems, and it's really caught the attention of potential customers.

In summary, we continue to have significant opportunities in front of us. There are several growth catalysts on the near- and midterm horizon, and I believe we made meaningful strides in fiscal year 2019. And today, we're in the very best position to realize commercial success than ever before. Now let me turn the call over to Matt to discuss the financials.

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Matthew T. Shafer, Ocean Power Technologies, Inc. - CFO, VP of Finance & Treasurer [4]

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Thank you, George, and good morning, everyone. We recorded revenues of $191,000 in the fourth quarter ended April 30, 2019 compared to $222,000 of revenue for the fourth quarter of last year. The net loss for the fourth quarter of fiscal 2019 was $2.5 million compared to a net loss of $3.3 million for the prior year period. The decrease in net loss was mainly attributable to lower cost of revenue due to the timing on new contracts and the decrease in selling, general and administrative costs.

Revenue for the fiscal year 2019 was $632,000 compared to $511,000 for fiscal 2018. The increase over 2018 was attributable to higher revenue on new contracts in fiscal year 2019 that related to Eni, Premier Oil, Enel Green Power and the U.S. Navy.

The net loss for the 12 months of fiscal 2019 was $12.2 million as compared to a net loss of $10.2 million for the same period in fiscal 2018. The increase in net loss primarily related to the increased cost of revenues versus fiscal year 2018 due to higher upfront spending and material cost on new projects as well as higher spending on new products and buoy builds for customer contracts.

Turning now to the balance sheet. As of April 30, 2019, total cash, cash equivalents, restricted cash and marketable securities were $17.2 million as of April 30, 2019, up from $12.3 million on April 30, 2018. Net cash used in operating activities during the fiscal year ended April 30, 2019, were $12.1 million, an increase of $1.4 million when compared to $10.7 million during the fiscal year ended April 30, 2018.

On April 9, we closed on a public offering with total aggregate net proceeds to the company of approximately $15.7 million after deducting underwriter fees, commissions and other operating expenses paid by the company. Now with that, I'll turn it back to George.

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George H. Kirby, Ocean Power Technologies, Inc. - President, CEO & Director [5]

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Thanks, Matt. As you can see, we continue to be very inspired and excited about the potential for OPT. Before we move on to Q&A, I wanted to take a moment to thank the entire team at OPT who continues to work tirelessly to execute our vision. We're just at the beginning of this journey in realizing commercialization success, and I'm extremely proud to be a part of this team at such an exciting time. With that, operator, we're now ready to take questions.

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Questions and Answers

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Operator [1]

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(Operator Instructions) Our first question today is coming from Peter Ruggiere from Dawson James.

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Peter G. Ruggiere, Dawson James Securities, Inc., Research Division - Financial Professional [2]

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A question on Eni because you just signed 1.5 years lease with them. What type of money do you guys make off of that?

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George H. Kirby, Ocean Power Technologies, Inc. - President, CEO & Director [3]

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Well, right now, we're into the lease revenues which occur monthly, which is typical of leases as compared to buoy sales when the majority of the moneys are seen upfront, obviously, for milestones that are captured more quickly than a lease that extends about 1.5 years. Matt, anything you want to add to that?

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Matthew T. Shafer, Ocean Power Technologies, Inc. - CFO, VP of Finance & Treasurer [4]

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Yes. No, that covers it. I mean in terms of -- we're talking -- there's going to be a difference between, Peter, as we recognize revenue, which is on a different basis as compared to when you actually collect the cash. And many of our contracts are structured in a way is where you're collecting cash at different key milestone points in the contract. But under the revenue recognition standards, the new standards that were recently issued, revenue is recognized based on performance obligations, which could be many times different than those different milestones. So -- but yes, to reiterate what George said, we are now into lease stage with Eni, so it's more of a consistent, steady stream of cash inflow as well as the revenue that's being recognized.

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Peter G. Ruggiere, Dawson James Securities, Inc., Research Division - Financial Professional [5]

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Okay. Eni has -- they have always -- they have the one PowerBuoy up there, which is I guess the first one or the new one. And it's connected the bottom floor with these autonomous vehicles. Wouldn't they order a whole bunch more to get more power down there since it works?

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George H. Kirby, Ocean Power Technologies, Inc. - President, CEO & Director [6]

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Well, that's a great question. I really wish that we could talk more about discussions with customers like Eni because we have a great relationship with them. The buoy's been acting flawlessly -- or I should say performing flawlessly. We're not actually providing power down to autonomous vehicles, we're providing power down to a -- basically, it's a dummy load that calls for power periodically, where we dump power from the PowerBuoy down to the seafloor. The next logical step would be to provide power to some sort of a charging station for AUVs. That's really the intention that we're seeing throughout the industry as AUVs are becoming more prevalent. They're used more and there's more of a need for charging stations. But back to Eni, we have periodic discussions with them. They are happy with the way that the lease and the performance of the buoy is going. And I'm pretty confident we're going to have -- continue to have a good relationship with them and more opportunities as they arise.

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Peter G. Ruggiere, Dawson James Securities, Inc., Research Division - Financial Professional [7]

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You're in Japan, right now, is what you said?

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George H. Kirby, Ocean Power Technologies, Inc. - President, CEO & Director [8]

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I am.

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Peter G. Ruggiere, Dawson James Securities, Inc., Research Division - Financial Professional [9]

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Because Mitsui Engineering is over there. How's that relationship going?

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George H. Kirby, Ocean Power Technologies, Inc. - President, CEO & Director [10]

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It's good. I spent the day with Mitsui E&S. They actually reorganized back in April, and they basically turned their business into a holding company. So Mitsui E&S, we were out speaking with the Japan Ministry of Defense, today. We were speaking with some DoD contractors and so forth.

And again, it seems as though the major focus is around the use of AUVs. Interestingly, it's paralleling the oil and gas industry. The challenge is, even overseas, departments of defense will run at a little bit longer sales cycle than even oil and gas so we're talking about opportunities that could arise over the coming years, but these are multi-stage opportunities, so that's why discussions happen so soon in the process.

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Peter G. Ruggiere, Dawson James Securities, Inc., Research Division - Financial Professional [11]

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Right. On this oil and gas company in the Gulf, what's the next stage? You place a buoy out there and you do the same thing as Eni is doing and -- because they come up and see how it goes or...

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George H. Kirby, Ocean Power Technologies, Inc. - President, CEO & Director [12]

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Yes. Interestingly, with the study that we've conducted for that operator, things always take longer, not always because of our company, but things happen with customer companies. And it really is a collaborative approach. It's not just OPT conducting the study and then returning a deliverable. There's transfer of information going on between both companies. So as operations ramp up in different areas of the company, they get pulled away.

So anyway, the study is wrapping up. It should be wrapped up over the next week or 2. And we are set to continue discussions with this operator beginning in August. In fact, recent communications with them are around what the next steps could potentially be. And so the process is, we'll evaluate the study with the customer. We'll talk about it. We'll talk about how the results would actually translate into potentially a project and then, from there, a project could launch into even more widespread applications throughout their operation. So we're hoping to really get into those details in the beginning of August.

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Operator [13]

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Our next question today is coming from Hunter Diamond from Diamond Equity Research.

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Hunter Louis Diamond, Diamond Equity Research LLC - CEO & Founder [14]

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In terms of the sales and marketing, I'm just curious where people are coming from, what are their companies. And how are the sales really being conducted? Are they inbound, outbound, referrals? Just trying to get some color on sort of the sales pipeline.

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George H. Kirby, Ocean Power Technologies, Inc. - President, CEO & Director [15]

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No, that's a great question. The sales approach that we take is very much hands-on. It's person-to-person. And what we're trying to do right now is really expand that by using what would be considered representatives to be able to go out. And not only would they be selling our product, but they would be selling other complementary products. We're trying to do more and more of that. But over the last few years, it's really been about building our brand and getting out there and making operators in the oil and gas industry or engineering service providers, making them aware of our products, aware of what it can do and essentially building our brand.

Today, we're still doing that. We're still out talking to operators and trying to draw business out of them, but we've also got customers with -- throughout the industry that are coming directly to us and asking for information about our products. They're pulling us into meetings, they're pulling us into studies in order to evaluate how our products could help them do things differently in their operations, but it's very much person-to-person. And it's a big reason why we're investing in bringing in more qualified salespeople.

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Operator [16]

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(Operator Instructions) Our next question today is coming from [Corey Stantal], a private investor.

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Unidentified Participant, [17]

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Good job on the call this morning. I just had a couple of questions. First, I was wondering -- you spoke on the lead time a little bit, and I was curious as to how these feasibility studies produce enough data that these future opportunities don't really have to go through these lengthy studies. And are there buoys ready to be like leased or sold more quickly once kind of a project comes into action? And then the second question is, how many buoys do you have on standby waiting to be leased or bought?

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George H. Kirby, Ocean Power Technologies, Inc. - President, CEO & Director [18]

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[Corey], great questions. So I'll work backwards. We have 2 being fabricated in the -- in our headquarters right now. One was shipped to Premier Oil. We also have what we consider 2 legacy buoys that have been since not totally obsoleted, but we had more advanced designs now that we're actually using with customers. So those 2 are also at our facility. We have 1 in the water for Eni in the Adriatic.

But with regards to studies and really the whole sales process, these types of engineering studies all are typically the same. We'll be given a scenario from a customer, what they want to do, what types of equipment they want powered. Oftentimes, it takes quite a bit of time going back and forth with the customer in order to get the information that we need from a technical standpoint. For instance, if they're using certain equipment, not every customer uses the same equipment, so we need to find out things like voltages, power draw in watts or kilowatts. We need to understand placement on the seafloor and configuration.

When you think about the problem that we're trying to solve, it's not just power and communications, but it's also 3 dimensional. We're putting our buoy in a particular location, a site that has different wave conditions. So we have to figure out how much power we can continuously create. We have to design a mooring system because every site is at a different depth. So there's quite a bit that goes into these studies.

Once the study is complete, then we go back and we sit down with the customer and we talk about truly what is the technical feasibility of actually executing the work, what's the risk. We look at it from not only our standpoint but also their entire operation. Most of these customers, rightfully so, are very risk averse. When you look at the types of equipment that they're using, anything that has to do with the wellhead on the seafloor, they're going to be risk averse. So we have to, in every way, prove to these customers that the solution is technically feasible.

And then we also have to provide pricing. Oftentimes, there are gaps in knowledge around what we can provide pricing on. Of course, we can price out our part of the system, but sometimes, there's intermediary equipment that needs to be obtained, so we have to go out for bid on those, and then we have to wait for quotations to come back from third-party vendors. All of this gets fed back into a feasibility study. So once that's complete, we can sit down with the customer, and we can essentially go through it, put together our project plan and then hopefully the numbers work out so that we can move on to a demonstration project.

If we move on to a demonstration project, oftentimes, that takes about a year in order to put in place. And then once we're able to physically demonstrate that all of the equipment works together without any issues, then we can start moving into the ability to replicate the project with other operators and essentially to leverage this across the globe with other operators. Does that make sense?

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Unidentified Participant, [19]

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Yes, it does. It seems like you definitely needed -- trying to streamline all the opportunities that you have that kind of cut back on these lead times that you mentioned. So yes, thank you for the light on that. It sounds like everything is going well over there.

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George H. Kirby, Ocean Power Technologies, Inc. - President, CEO & Director [20]

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Thanks, [Corey], and one thing that I'll mention along those lines is the more PowerBuoys that we install, which is a big focus of ours, the more that we deploy for different applications for customers, the more that we could leverage those with, likewise, other service providers and customers, and we believe that there's an acceleration effect there. So our biggest focus right now is contracts, revenues but also getting buoys operating in the water.

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Operator [21]

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Our next question is coming from Robert Littlehale from JPMorgan.

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Robert L. Littlehale, J.P. Morgan Securities - Executive Director [22]

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George, could you maybe compare and contrast the PB3 to the hybrid PowerBuoy? Differences, similarities, just any context in that regard?

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George H. Kirby, Ocean Power Technologies, Inc. - President, CEO & Director [23]

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Sure. No, great question. The PB3 is typically meant for longer-term deployments. And the reason why is, it's a larger device. It's 40 feet long. We're working on ways to be able to deploy this thing more quickly in a less expensive manner. But for the most part, it's intended for deployments that are, let's say, 6 months or longer, whereas the hybrid PowerBuoy is really intended for shorter-term deployments, 3 months to 6 months, even weeks, depending on the customer's operations. The PB3 PowerBuoy can be towed out to site, but oftentimes, it's quicker, and we can also deploy in higher seas, larger waves, if we actually put the buoy on a boat and bring it out to site.

The hybrid PowerBuoy is purely designed to be towed. It can certainly be put on deck, but it's been fashioned into a boat-like shape in order to minimize the cost for deployment. So you can literally hook it behind a small vessel and you can tow it out to site. The PB3 PowerBuoy is a wave energy generator. So again, it's renewable, it's meant for persistent power, whereas the hybrid PowerBuoy is based off of liquid fuel. It's an external combustion engine. And the idea is that you have energy storage onboard this PowerBuoy that is both refuelable at sea or you can simply hot swap a hybrid PowerBuoy, one that is full for the one that's empty. It uses liquid propane fuel.

Interestingly, we've been working on some studies recently. And now that we have a PB3 and a hybrid option and a subsea battery, now we can start mixing and matching these products together in order to come up with very creative solutions for customers. Whereas in the past, it's only been, we have the PB3 and that's it. So do you want 1, 2, 3 or 4 PB3s? If you think about a hybrid PowerBuoy, it's very similar to a subsea battery, except you're storing energy in the form of liquid propane, and we're converting it using our stirling engine and then bringing the power to the load center.

So 1 hybrid PowerBuoy at 1 megawatt hour of energy storage through the liquid propane is equivalent to 10 subsea batteries. One of our subsea batteries is equivalent to 100 kilowatt-hours, right? And that's pretty standard for the industry. Most subsea batteries are around the same nominal energy storage. But it becomes so much more economical to use a hybrid PowerBuoy because you actually have 10x the power of one subsea battery, and you're also able to refuel at sea or do a hot swap with a hybrid PowerBuoy that is filled with liquid propane. So it becomes more flexible for the operators as well. But many of our solutions that we're using right now or that we're creating involve some combination of a PB3, a hybrid and subsea batteries. And it really gives us flexibility. And it's because of that, that we are really driving to have prototypes for our 2 new products, the hybrid and the subsea battery towards the end of this year. It's going to be very important that we have those because we are seeing a real need for it with customers.

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Operator [24]

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(Operator Instructions) If there are no further questions at this time, I'd like to turn the floor back over to management for any further or closing comments.

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George H. Kirby, Ocean Power Technologies, Inc. - President, CEO & Director [25]

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Thanks, operator. Before we conclude here, I just -- I really want to thank everyone who's been a stakeholder in the company, including our employees, our customers, our vendors and our loyal shareholders. I want to invite everyone to follow us on social media, including LinkedIn, Facebook, Twitter and to watch our YouTube channel for some terrific footage of the PowerBuoy's capabilities but also other videos, such as footage from our upcoming deployment event, which will -- should be posted shortly afterwards.

So thank you very much for joining, and we will be speaking again very soon.

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Operator [26]

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Thank you. That does conclude today's teleconference and webcast. You may disconnect your line at this time. And have a wonderful day. We thank you for your participation today.