Ocean Power Technologies Inc Fireside Chat Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Shawn Severson - Water Tower Research LLC - Analyst : It seems that this has been the year of commercialization, too, is one way to put it. I've been familiar with the company for quite a few years; a lot of changes there, a lot of shift in focus. But if you kind of take a step back and look at the company's evolution, growth companies always hit these inflection points with commercialization. And based on the bookings and things that you've had this year and some of the announcements, I think it's fair to say that's kind of -- that's been the inflection point in 2024 for you guys.

Question: Shawn Severson - Water Tower Research LLC - Analyst : Right. Thanks. Great clarification, Philipp. Unidentified Participant (technical difficulty) a lot of things that you just alluded to. So you've been able to drive some rather significant reductions in OpEx over the last quarter or two. Could you really dive in and give a little bit more color on what you've been able to do to take down costs like this?

Question: Shawn Severson - Water Tower Research LLC - Analyst : And Philipp, I wanted to talk a little bit about the view of the business. When I look at it from a thesis, it's such an enabling technology. I mean, if you look at what the data and information that you gather becomes the goldmine, you have the enabling technology to put that instrumentation out in remote locations or recharging vehicles, lots of different applications. But if we think about it, you can't get through an event like this day without asking about AI. And I imagine it's particularly interesting because you look at the instrumentation stacks, whether it be for defense or whether it be for commercial use. How does that fit in? Does it fit in? And am I thinking of the business correctly as this enabling technology for these large data sets?

Question: Shawn Severson - Water Tower Research LLC - Analyst : And I think there are probably a lot of new investors in here. But to back up a second and talk about what you're actually accomplishing, I mean, I don't know if people are necessarily or investors are understanding the tie, the need for power -- remote, independent, offshore power -- to generate the technology stacks. But can you just give a brief overview for newer investors of: one, what you're solving for; and two, what the solution was before the legacy solution that you're displacing or, if any cases there wasn't a solution? But yeah, if you could expand on that.

Question: Shawn Severson - Water Tower Research LLC - Analyst : We have time for one more question I want to take here, Philipp, and then I'll turn it over to you for closing remarks. But the business model itself, you have multiple ways to drive revenue. You have the outright sale of equipment. You have a reoccurring revenue stream of basically running it and operating it. I assume you have -- is there maintenance contracts for equipment sales as well? If you can break those down, help investors understand the different avenues that you have for revenue streams and maybe the relative attractiveness to you or the strategic value to you as a business.

Question: Shawn Severson - Water Tower Research LLC - Analyst : And just for investors that might be new to this, the Street tends to have a much higher value on reoccurring revenue, which is why I asked that question, because as the business makes shifts, that clearly adds some predictability to your business. I assume, Philipp, obviously that's usually a good contribution margin as well and predictability of cash flow. Is that fair to say in terms of the economic model?

Question: Shawn Severson - Water Tower Research LLC - Analyst : Great. Thanks for that, Philipp. I'll turn it over to you for any final comments you'd like to leave, and then we'll wrap it up for today.

Question: Shawn Severson - Water Tower Research LLC - Analyst : Great. Thanks, Philipp. Great conversation today. Thank you, everyone, for joining us. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. DECEMBER 19, 2024 / 4:00PM, OPTT.A - Ocean Power Technologies Inc Fireside Chat As a reminder, please take a look at www You can find additional research there on OPTT, as well as additional companies under our coverage list. As a reminder, the views expressed in this fireside chat may not necessarily reflect the views of WTR and are provided for informational purposes only. Fireside chat may not be distributed or reproduced without the written consent of WTR and should not be considered research nor a recommendation. WTR is an investor engagement firm, not a licensed broker, broker-dealer, market-maker, investment bank, underwriter, or investment advisor. Additional disclaimers can be found at watertowerresearch.com. Thank you, everyone, for joining us today. Great conversation, and we look forward to having you back, Philipp.