Peter Ruggiere's questions to Ocean Power Technologies Inc (OPTT) leadership • Q4 2024
Question
Peter Ruggiere of Dawson James posed several questions regarding the company's work in oil and gas, the power generation improvements in the new PowerBuoys, the biggest market opportunity, fluctuations in the sales pipeline, gross margin levels, and the scope of the $12.5 million guidance for fiscal 2025.
Answer
CEO Dr. Philipp Stratmann explained that the company now targets the oil and gas sector through service providers, which accelerates sales. He detailed that next-generation buoys have higher power output due to the addition of solar and wind capabilities. He identified defense and security as a major market, with significant application overlap in offshore energy. Dr. Stratmann noted the pipeline is healthy at $85 million and fluctuates as deals convert to backlog. He confirmed gross margins have stabilized around 50-55% and positioned the $12.5 million guidance as a sustainable growth target.