Ocean Power Technologies Receives Further Contract for PowerBuoy® Deployment with Naval Postgraduate School

Rhea-AI Summary

Ocean Power Technologies (NYSE American: OPTT) has secured a new contract with the Naval Postgraduate School (NPS) in Monterey, California. This contract builds on a previous agreement and focuses on integrating advanced subsea sensors into a PowerBuoy® equipped with OPT's latest Merrows™ suite for AI-capable Maritime Domain Awareness (MDA). The system will utilize AT&T's 5G communication technologies.

The PowerBuoy® will be deployed in Monterey Bay, pending permits, in late Fall 2024. It will provide continuous, autonomous monitoring and data collection capabilities, contributing to NPS's Field Experimentation exercises. These exercises aim to test and refine technologies that improve situational awareness and operational efficiency for naval operations.

This contract reinforces OPT's growing partnership with the U.S. warfighter community and demonstrates the potential of PowerBuoy® technology in enhancing maritime security and operational capabilities.

Positive

• New contract secured with Naval Postgraduate School, supporting near-term revenue generation
• Integration of advanced subsea sensors and AI-capable MDA technology into PowerBuoy®
• Collaboration with AT&T for 5G communication technologies
• Expansion of partnership with U.S. warfighter community
• Demonstration of PowerBuoy® potential as 5G communication nodes along U.S. coastline

Negative

• None.

Insights

Defense Technology Analyst

OPT's latest contract with NPS marks a significant advancement in maritime domain awareness technology. The integration of advanced subsea sensors and AI-capable Merrows™ suite into the PowerBuoy® platform demonstrates a leap forward in autonomous maritime surveillance. This development could revolutionize naval operations by providing persistent, AI-enhanced monitoring in strategic waters.

The collaboration with AT&T for 5G integration further enhances the system's communication capabilities, potentially creating a network of offshore communication nodes. This could address critical gaps in coastal connectivity, benefiting both military and civilian applications. However, the true test will be in the system's performance during NPS's Field Experimentation exercises, which will determine its practical utility in real-world scenarios.

Financial Analyst

This contract represents a positive development for OPT, although its immediate financial impact may be The company's continued engagement with the Naval Postgraduate School suggests growing traction in the defense sector, which could lead to larger contracts in the future. However, investors should note that the revenue impact is described as "near-term," indicating it may not significantly alter the company's financial outlook.

The expansion of OPT's relationship with NPS and the potential for PowerBuoys to be deployed as 5G communication nodes along the U.S. coastline hint at substantial long-term growth opportunities. This could diversify OPT's revenue streams beyond its traditional focus on renewable energy. Investors should monitor the outcomes of the Fall deployment and any subsequent orders to gauge the technology's market potential.

Maritime Security Expert

The integration of OPT's PowerBuoy® with advanced subsea sensors and AI capabilities represents a significant leap in maritime domain awareness (MDA). This technology could dramatically improve the U.S. Navy's ability to monitor vast ocean areas continuously and autonomously, addressing a critical challenge in maritime security.

The system's potential to serve as a platform for multi-domain drone operations and secure communications further enhances its strategic value. If successful, this technology could redefine maritime surveillance strategies, offering a more cost-effective and persistent alternative to traditional methods. However, the true test will be its performance in the challenging conditions of Monterey Bay and its ability to seamlessly integrate with existing naval systems and protocols.

MONROE TOWNSHIP, N.J., Sept. 03, 2024 (GLOBE NEWSWIRE) -- Ocean Power Technologies, Inc. (NYSE American: OPTT) (“OPT” or the “Company”), a leader in innovative and cost-effective low-carbon marine power, data, and service solutions, today announced that it has received a further contract by the Naval Postgraduate School (NPS) in Monterey, California. This contract, which supports revenue generation in the near-term, adds to the deployment of OPT’s PowerBuoy® as part of an ongoing initiative to enhance maritime domain awareness and connectivity in Monterey Bay and demonstrate the use of PowerBuoys® for multi-domain drone and communication integration.

Building on the success of the previously announced NPS contract, which included installing AT&T 5G technology on a PowerBuoy®, this new order focuses on integrating advanced subsea sensors into a PowerBuoy® equipped with OPT’s latest Merrows™ suite for AI capable seamless integration of Maritime Domain Awareness (MDA) across platforms and utilizing communication technologies from AT&T for NPS. The PowerBuoy® will provide continuous, autonomous monitoring and data collection capabilities in one of the world’s most strategically significant maritime environments.

This deployment will contribute to NPS’s series of Field Experimentation exercises, designed to test and refine technologies that improve situational awareness and operational efficiency for naval operations. The PowerBuoy® will play a critical role in these exercises, offering a robust, resilient platform that supports persistent surveillance and secure communications in maritime settings. Permits pending, the integrated system will be deployed in the late Fall.

"Receiving this contract from NPS underscores the growing recognition of our PowerBuoy® technology as a vital tool for enhancing maritime security and operational capability above and below the surface," said Philipp Stratmann, CEO of Ocean Power Technologies. "This collaboration with NPS not only builds on our previous successes but also pushes the boundaries of what autonomous maritime technology can achieve. We are proud to continue supporting the Joint Force's efforts to advance MDA and secure communication networks. The results from this deployment will also further demonstrate the ability to deploy PowerBuoy’s® as 5G communication nodes across the coastline of the United States."

The contract represents a significant milestone in OPT’s expanding partnership with the U.S. warfighter community and reinforces the Company's commitment to delivering innovative solutions that meet the evolving demands of maritime security, safety, and environmental monitoring.

ABOUT OCEAN POWER TECHNOLOGIES

OPT provides intelligent maritime solutions and services that enable safer, cleaner, and more productive ocean operations for the defense and security, oil and gas, science and research, and offshore wind markets, including Merrows™, which provides AI capable seamless integration of Maritime Domain Awareness Systems across platforms. Our PowerBuoy® platforms provide clean and reliable electric power and real-time data communications for remote maritime and subsea applications. We also provide WAM-V® autonomous surface vessels (ASVs) and marine robotics services. The Company’s headquarters is in Monroe Township, New Jersey, with an additional office in Richmond, California. To learn more about OPT’s groundbreaking marine solutions, visit www.OceanPowerTechnologies.com.

FORWARD-LOOKING STATEMENTS

This release 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 reflect the Company's current expectations about its future plans and performance. These forward-looking statements rely on a number of assumptions and estimates that could be inaccurate and subject to risks and uncertainties, including the continuing success with NPS, the delivery of customer services, the conversion of potential customers to contracts and the realization of the potential revenue thereunder. Actual results could vary materially from those anticipated or expressed in any forward-looking statement made by the Company. Please refer to the Company's most recent Forms 10-Q and 10-K and subsequent filings with the U.S. Securities and Exchange Commission for 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.

FAQ

What is the purpose of Ocean Power Technologies' PowerBuoy® deployment for the Naval Postgraduate School?

The PowerBuoy® deployment aims to enhance maritime domain awareness and connectivity in Monterey Bay, demonstrating its use for multi-domain drone and communication integration. It will provide continuous, autonomous monitoring and data collection capabilities in a strategically significant maritime environment.

When is the integrated PowerBuoy® system expected to be deployed for the NPS contract?

Pending permits, the integrated PowerBuoy® system is expected to be deployed in late Fall 2024 in Monterey Bay.

How does the new NPS contract for OPTT differ from the previous one?

The new contract focuses on integrating advanced subsea sensors into a PowerBuoy® equipped with OPT's latest Merrows™ suite for AI-capable Maritime Domain Awareness. It builds upon the previous contract, which included installing AT&T 5G technology on a PowerBuoy®.

What technologies are being integrated into the PowerBuoy® for the NPS contract?

The PowerBuoy® will integrate advanced subsea sensors, OPT's latest Merrows™ suite for AI-capable Maritime Domain Awareness, and AT&T's 5G communication technologies.