US-based wave energy developer, Ocean Power Technologies (OPT), has reported a slight decrease in net loss for the third quarter of fiscal year 2016 in the amount of $0.2 million compared to the same period a year earlier.
The net loss for the three months ended January 31, 2016 was $2.0 million as compared to a net loss of $2.2 million for the same period a year before.
The decrease in net loss is primarily due to an increase in income tax benefits and lower selling, general and administrative expenses, and offset in part by higher product development costs.
Selling, general and administrative costs were lower due to reduced third party consulting, certain employee-related and patent amortization costs, the company informed.
OPT reported a decrease in revenue of $295,000 in the quarter, from $0.3 million in the corresponding period in fiscal year 2015, to $5,000.
OPT lists decreased billable costs on its project with Mitsui Engineering & Shipbuilding (MES) and the company’s contract with the US Department of Energy (DoE) as primary reasons for the decrease in revenue.
The company reported the decrease in the net loss of $0.8 million for the nine months period ended January 31, 2016, from $9.9 million in 2015 to $9.1 million in fiscal year 2016.
The decrease in the OPT’s net loss year-over-year primarily reflects increased income tax benefits and lower selling, general and administrative costs in the period, offset in part by higher product development costs, OPT informed.
In addition, the prior year period includes a loss related to estimated future project costs associated with OPT’s contract with MES. Lower selling, general and administrative costs in the current period were due to reduced legal, third party consulting, site development costs and patent amortization expenses.
Furthermore, for the nine months period ended January 31, 2016, OPT reported revenue of $0.6 million, as compared to revenue of $3.6 million for same period ended January 31, 2015, stating that the drop in revenue is primarily related to decreased billable work for the DoE, WavePort and MES.