Ocean Power Technologies, Inc. (NASDAQ:OPTT) Q1 2020 Earnings Conference Call - Final Transcript

Sep 18, 2019 • 11:00 am ET

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Ocean Power Technologies, Inc. (NASDAQ:OPTT) Q1 2020 Earnings Conference Call - Final Transcript

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Q & A
Executive
George H. Kirby

we were developing our product, the PB3 PowerBuoy. And they were very interested in providing input.

And then they developed this project and put us on it. And now we're executing. We're doing what we said we would do. The Buoy continues to perform very, very well and eyes are all over this project from throughout the decommissioning market globally. The same thing would happen with this operator in the Gulf of Mexico. So these become showcase projects, they become demonstration projects but also showcases. And what we're trying to do is we're trying to leverage these showcases to bring customers from around the world to show them what we can do and try to replicate with these other customers. This is the low-hanging fruit that we're seeing and that's what we're working hard to replicate in terms of new contracts.

Analyst
Peter Ruggiere

What type of revenue do you think you guys could put together this particular year?

Executive
George H. Kirby

I wish I could talk about that, we have internal goals. But we're not giving guidance, Peter. But I want to emphasize again, we have definitive internal goals that are broken up by salesperson. Every salesperson has a revenue target. They're being measured on it and they're being resourced around their goals. So we're just not at a point now where we can really outwardly talk about what our revenue targets are.

Analyst
Peter Ruggiere

Right. And how many buoys do you have available for sale right now?

Executive
George H. Kirby

Interesting question. We've got more than one buoy in the facility going on -- under at different points of manufacture. We're trying to only build when we need to. The thought was and I'll share this, this is not new news, but we have a buoy on the floor that we're building actually as a spare. And the idea would be potentially that we would move a finished buoy over to the North Sea over to -- to be stationed there on land for two reasons.

Number one, we're seeking out new contracts there, so it could allow us to deliver that much quicker and have a quicker turnaround. We're always looking at how do we compress this sales cycle that ends up being very, very long. But number two, if something were to happen to our PowerBuoy, it's all about delivering to our customer, execution and responsiveness. So we would want to have one positioned there ready to go. So we're still considering that right now, but that's a thought. We do have another buoy that's in its final state that we have been working with a particular customer on and we're hoping to have good news sometime in the future on that one.

Analyst
Peter Ruggiere

Okay. And with Eni up there in the Baltic, are they maybe interested in getting another couple of buoys themselves or they just...

Executive
George H. Kirby

That's a great question, not the Baltic, but it's actually in the Adriatic Sea. We are talking to Eni, I would say, probably weekly about opportunities and they're both near-term opportunities