Ocean Power Technologies Selected as Preferred Supplier for Delivery of AI capable Merrows Buoy in the Middle East
Ocean Power Technologies (NYSE American: OPTT) has been chosen as the preferred supplier for delivering a PowerBuoy equipped with Merrows, an AI-capable Maritime Domain Awareness Solution, to the Middle East. This contract, set for immediate delivery, is expected to generate revenue in the current quarter. Due to confidentiality, specific contract details remain undisclosed. The announcement follows the completion of engineering for Merrows in hot climates, highlighting significant progress in the region. CEO Philipp Stratmann expressed optimism about the opportunities in the Middle East, emphasizing the potential for integrating additional WAM-Vs and PowerBuoys into customer operations.
- Preferred supplier selection for PowerBuoy and Merrows in the Middle East.
- Immediate revenue generation from the new contract in the current quarter.
- Completion of engineering for Merrows in hot climates.
- Continued growth in the Middle Eastern market for OPT’s technology solutions.
- Confidential nature of the contract means undisclosed financial details.
The revenue generation from this contract is a significant milestone for Ocean Power Technologies (OPT). Given that the contract will generate revenue in the current quarter, investors can expect an immediate boost to the company's financials. This is particularly pertinent as OPT has been working to diversify and expand its revenue streams. For retail investors, this suggests a positive short-term impact on the company's stock price as new revenue is always a strong driver for market sentiment.
Long-term implications could also be promising. Being chosen as a preferred supplier in a new geographic market signifies potential for further contracts and partnerships in the Middle East. However, investors should monitor if this opportunity translates into sustained growth or remains a one-off deal.
Another point to consider is the confidential nature of the agreement. While this is not uncommon, it does introduce some uncertainty about the specifics of the contract value and terms, requiring investors to keep an eye on future disclosures for more concrete details.
The introduction of the AI-capable Merrows buoy highlights the increasing relevance of integrating artificial intelligence within maritime technologies. This is significant as AI can vastly enhance Maritime Domain Awareness (MDA) by providing real-time data and analytics. This makes operations more efficient and safer.
For retail investors, understanding the technological edge of OPT is crucial. The successful deployment of AI-driven solutions can give OPT a competitive advantage in the market. It's worth noting that the completion of engineering for Merrows in hot climates suggests robust and versatile product development, important for its deployment in various global markets.
However, investors should be aware of the technology adoption curve. High-technology solutions often face initial deployment hurdles and require a certain maturity level in the market for widespread acceptance.
Continues trend of recent regional commercial progress
MONROE TOWNSHIP, N.J., June 24, 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 it has been selected as preferred supplier for a PowerBuoy equipped with Merrows, its Artificial Intelligence capable Maritime Domain Awareness Solution, for an immediate delivery opportunity in the Midde East. This contract, once finalized, will generate revenues in the current quarter. Due to the confidential nature of the award, details are not being disclosed.
The Company had previously announced the completion of engineering for Merrows in hot climates.
Philipp Stratmann, CEO and President of OPT, expressed his enthusiasm about this revenue generating selection, stating, "In addition to the material growth of our WAM-V business, we are excited to continue growing our PowerBuoy business. We believe that the Middle East offers a lot of opportunities for Merrows, and we look forward to further growth in the region. Offering proven technology solutions makes it easy for our potential customers to integrate additional WAM-Vs and PowerBuoys into their operations.”
For additional information about OPT and its services, please visit our website Ocean Power Technologies.
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. 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 and has an additional office in Richmond, California. To learn more, 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 finalization of the pending Middle East buoy contract, continued success of its Merrows solution 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.
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/242191c9-abbb-44fa-8dc5-1be8e245bc1e
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