ORLANDO, FL, March 26, 2025 (GLOBE NEWSWIRE) -- Coda Octopus Group, Inc. ("CODA" or the "Company") (NASDAQ:CODA), a global market leader in 4D/5D/6D imaging sonar technology and acoustic sensors for real time subsea intelligence, today reported that its Salt Lake City based Defense Engineering Services Business, Coda Octopus Colmek, recently received two orders from the US Government totalling $1.3M. These orders relate to the supply of proprietary parts used as sub-components of a larger mission critical D ...

Financial Data and Key Metrics Changes - In Q1 2025, total revenue increased by 16.8% to $5.2 million from $4.5 million in Q1 2024 [34][35] - Operating income rose by 19.2% to $0.7 million compared to $0.6 million in Q1 2024 [40] - Net income after taxes was $0.91 million or $0.08 per diluted share, up from $0.6 million or $0.06 per diluted share in Q1 2024 [41] Business Line Data and Key Metrics Changes - Marine Technology business revenue decreased by 35.8% to $2.3 million from $3.5 million in Q1 2024 [35] - Engineering business revenue increased by 77% to $1.6 million from $0.9 million in Q1 2024 [12] - Acoustic Sensors & Materials business, added in October 2024, generated $1.3 million in revenue, contributing 25.2% to consolidated revenue [13][36] Market Data and Key Metrics Changes - The Marine Technology business faced significant headwinds due to U.S. policy changes affecting offshore renewables, leading to weak demand [9][10] - Increased defense spending in Europe, particularly Germany's expected $428 billion over the coming years, is seen as a favorable factor for the company [11] Company Strategy and Development Direction - The company aims to pivot its revenue model in the Marine Technology business to a multi-year, multi-sales model, particularly with the DAVD product line [47] - The acquisition of Precision Acoustics is expected to enhance the company's competitiveness for larger defense contracts [31][32] Management's Comments on Operating Environment and Future Outlook - Management anticipates a quieter Q2 due to customer hesitance amid uncertain policy environments, but expects a robust Q3 and Q4 [52][53] - The company remains optimistic about long-term growth opportunities due to increased defense spending in Europe and the U.S. [46] Other Important Information - The company has $22.54 million in cash and cash equivalents with no debt as of January 31, 2025 [42] - The gross margin for the Acoustic Sensors & Materials business is expected to be between 57% and 61% on an annualized basis [38] Q&A Session Summary Question: What needs to happen for marine products to recover? - Management noted that customers are currently on standstill due to uncertainty, expecting a quiet Q2 but a robust Q3 and Q4 [52][53] Question: Timeline for tethered and untethered markets? - The company targets $4 million to $4.5 million in revenues for the DAVD system this year, with significant demand for both tethered and untethered systems [57][59] Question: Impact of market conditions on acoustic solutions? - The Precision Acoustics segment appears stable and less exposed to market fluctuations compared to other sectors [72] Question: Status of potential acquisition? - The company is conducting due diligence on one target but is waiting for the global policy environment to stabilize before proceeding [80][84]

Financial Performance - Net revenues for the three months ended January 31, 2025, increased to $5,209,715, a 16.7% increase from $4,461,191 in the same period of 2024[15] - Gross profit for the same period rose to $3,428,470, reflecting a gross margin of approximately 65.8%, compared to $3,086,736 in 2024[15] - Net income for the three months ended January 31, 2025, was $912,975, representing a 45% increase from $629,888 in the prior year[15] - The combined net revenue for Coda Octopus Group and Precision Acoustics for the three months ended January 31, 2025, was $5,209,715, compared to $5,572,237 for the same period in 2024, a decrease of 6.5%[65] - Basic earnings per share increased to $0.08 for the three months ended January 31, 2025, up from $0.06 in the prior year[82] - Total revenues for the three months ended January 31, 2025, were $5,209,715, a decrease from $4,461,191 in the same period of 2024, representing a year-over-year decline of approximately 17%[99] Assets and Liabilities - Total current assets decreased slightly to $42,719,311 from $42,982,015 as of October 31, 2024[8] - Total liabilities decreased to $3,784,241 from $4,416,021 as of October 31, 2024, indicating improved financial stability[11] - Total assets as of January 31, 2025, amounted to $56,897,298, compared to $53,012,943 as of January 31, 2024, indicating a 7% increase[95] - The company reported total liabilities of $3,784,241 as of January 31, 2025, compared to $2,863,265 as of January 31, 2024, representing a 32% increase[95] - The accumulated deficit improved to $(6,493,516) from $(7,406,491), showing a reduction of approximately 12.3%[12] Cash Flow and Expenses - Cash and cash equivalents at the end of the period were $22,541,963, a slight increase from $22,479,072 at the beginning of the period[20] - Net cash provided by operating activities was $641,511, compared to a net cash used of $(297,959) in the same period last year[20] - Operating expenses totaled $2,766,448, compared to $2,531,352, with R&D expenses increasing to $543,126 from $485,977[15] - Total stock compensation expense for the three months ended January 31, 2025, was $100,145, up from $77,076 in the prior year, reflecting a 30% increase[86] Research and Development - Research and development expenses increased to $543,126, up from $485,977 in the same quarter of 2024, indicating a focus on innovation[15] - Research and Development expenses totaled $543,126, representing about 10.4% of total revenues for the three months ended January 31, 2025[95] Acquisitions - The acquisition of PAL on October 29, 2024, was completed for $6,538,569, with a net cash outlay of $4,605,285 after accounting for PAL's cash balance[63] - PAL contributed revenues of $1,312,261 and earnings of $556,049 to the consolidated results for the current quarter[65] - The estimated future annual amortization expenses related to the PAL acquisition for fiscal year 2025 is projected to be $460,872[71] - The goodwill from the PAL acquisition is expected to provide future economic benefits, including synergies from integrating PAL's products with existing offerings[69] Revenue Recognition - Revenue from the Marine Technology Business is recognized upon delivery and passing of risks, with contracts sometimes requiring customer payments in advance[27] - The Company recognizes revenue from fixed-price contracts using the percentage of completion method, which is based on the costs incurred to date relative to the estimated total costs[37] - Revenue from goods transferred at a point in time was $2,774,625, while services transferred over time accounted for $1,686,566[100] Inventory and Receivables - Total inventory as of January 31, 2025, was $13,433,561, down from $13,975,529 as of October 31, 2024, indicating a decrease of about 3.9%[50] - Unbilled receivables increased to $2,259,419 as of January 31, 2025, up from $1,657,827 as of October 31, 2024, indicating a growth of 36.3%[55] - Deferred revenue decreased to $1,004,800 as of January 31, 2025, from $1,225,634 as of October 31, 2024, representing a decline of 18.0%[56] Geographic Revenue Breakdown - Major geographic markets for net sales included the Americas ($1,298,837), Europe ($1,901,884), Australia/Asia ($1,964,279), and Middle East/Africa ($44,715)[99] - The Americas generated $1,298,837 in total revenues, a 63.8% increase compared to $792,486 in the same quarter of 2024[99] Taxation - The effective tax rate for the three months ended January 31, 2025, was 2.3%, significantly lower than 19.5% for the same period in 2024[102] - The company did not generate any taxable income in the current quarter, leading to a tax benefit for U.S. companies[102] - A deferred tax benefit of $26,989 was recorded in the current quarter, compared to a deferred tax expense of $187,071 in the previous quarter[102] Other Financial Metrics - The company experienced a foreign currency translation adjustment loss of $1,028,586 during the period[15] - The company incurred commission costs of $245,509 for the three-month period ended January 31, 2025, compared to $293,184 for the same period in 2024, reflecting a decrease of approximately 16.3%[44] - Depreciation expense for the three months ended January 31, 2025, was $205,646, compared to $173,292 for the same period in 2024, representing an increase of approximately 18.7%[52]

Core Viewpoint - Coda Octopus Group, Inc. reported strong financial performance in the fiscal first quarter of 2025, with increases in revenue, operating income, net income, and earnings per share despite a challenging global policy environment [2][7]. Financial Performance - Total revenue for FQ2025 was approximately $5.2 million, a 16.8% increase from $4.5 million in FQ2024 [7]. - Revenue from the Products segment decreased by 35.8% to $2.3 million, while the Services segment saw a 76.6% increase to $1.6 million [7]. - The Acoustic Sensors and Material segment generated $1.3 million in revenue, as this business unit was acquired on October 29, 2024 [7]. - Gross profit increased to $3.4 million, with a gross margin of 65.8%, down from 69.2% in FQ2024 [7]. - Operating income rose to $0.7 million, an improvement of 19.2%, with an operating margin of 12.7% [7]. - Net income after taxes was $0.91 million, a 44.9% increase from $0.63 million in FQ2024 [7]. - Diluted earnings per share increased to $0.08 from $0.06 in FQ2024 [7]. Market Opportunities - The DAVD untethered system (DUS) is identified as a significant market opportunity, with a first order of approximately $800,000 for 16 DUS systems received during FQ2025 [3][4]. - The U.S. Navy's 4,000 active divers predominantly use Full-Face Mask Untethered systems, aligning with the DUS solution [5]. - The company is actively working with foreign navy divers, achieving successful trials that support the adoption of the DUS technology [4]. Strategic Investments - Despite uncertainties in the global policy environment, the company continues to invest in growth strategies, particularly in defense spending and energy production [3][9]. - The acquisition of Precision Acoustics Limited contributed 25.2% to consolidated revenue in FQ2025, enhancing the company's capabilities in the underwater/subsea market [8][16]. Industry Context - The new U.S. Administration's policies on energy and defense spending are expected to create both challenges and opportunities for the company [8][9]. - European nations are increasing defense spending, which may benefit the company's business in the medium to long term [9].

Core Viewpoint - Coda Octopus Group, Inc. will host a conference call on March 17, 2025, to discuss its fiscal first quarter results for the period ending January 31, 2025, with a press release to be issued prior to market opening on the same day [1]. Company Overview - Coda Octopus Group, Inc. is a leader in real-time 3D/4D/5D and 6D imaging sonar technology, providing solutions for subsea intelligence and augmented reality diving technology [1][4]. - The company offers proprietary sonar products, including Echoscope and Echoscope PIPE, which are utilized for underwater imaging in various applications such as mapping, salvage, search and rescue, and offshore renewables [4]. - The recently launched Diver Augmented Vision Display (DAVD) system enhances diving operations by integrating sonar technology, allowing for operations in zero visibility conditions [5]. Recent Developments - The company has acquired Precision Acoustics Limited, expanding its capabilities in acoustics sensor and materials [6]. - Coda Octopus Group also operates two defense engineering businesses, Coda Octopus Martech Ltd and Coda Octopus Colmek, which supply sub-assemblies for mission-critical defense programs [7].

January 29, 2025 Coda Octopus Group Reports Fiscal 2024 Financial Results ORLANDO, FL, Jan. 29, 2025 (GLOBE NEWSWIRE) -- Coda Octopus Group, Inc. (Nasdaq: CODA) today reported its audited financial results for its fiscal year ended October 31, 2024 (FY2024). Annmarie Gayle, CODA's Chairman and CEO, commented: "I am pleased with our overall financial performance in FY2024 as we increased revenue, gross profit margins, operating income, net income and earnings per share. We are also very pleased with the valu ...

Business Segments - Coda Octopus Group operates two segments: Marine Technology Business and Marine Engineering Business, with a focus on underwater technology solutions[13]. - The Marine Technology Business includes proprietary technologies such as Echoscope and Diver Augmented Vision Display (DAVD), which are used in various underwater applications[14][15]. - The Services Segment has been supporting significant defense programs for over 40 years, with 20% to 30% of consolidated revenues derived from a small number of prime defense contractors[20]. - The Marine Engineering Businesses, including Coda Octopus Colmek and Coda Octopus Martech, operate as subcontractors to prime defense contractors, focusing on high reliability and quality in defense programs[76][77]. Technology and Innovation - The Echoscope technology is recognized as the only acoustic imaging sonar capable of providing real-time 4D imaging of moving objects in zero visibility conditions[28]. - The DAVD tethered version is now operational across nine naval commands within the US Navy, marking its transition from R&D to operational status[32]. - The new generation of DAVD HUD technology features a 200% increase in resolution and an expanded field of view, enhancing compatibility with specialized dive equipment[35]. - The Echoscope PIPE technology generates real-time 3D, 4D, 5D, and 6D images, significantly enhancing underwater monitoring capabilities[55][57]. - The DAVD system enhances diver safety and operational efficiency by providing real-time data and high-quality communication, addressing challenges in low visibility environments[70]. - Coda Octopus aims to leverage its R&D to enhance product offerings and expand market share in underwater imaging and acoustic technologies[96]. - Coda Octopus has advanced its sonar technology and filed several significant patent applications, including innovations related to 5D and 6D technologies[110]. - The company has been awarded a significant patent for predicting and adjusting cable laying using sonar imaging, which is crucial for the Offshore Renewables Market[110]. Acquisitions and Market Expansion - The company acquired Precision Acoustics Limited on October 29, 2024, to enhance its capabilities in ultrasound and acoustic measurement, particularly for advancing Echoscope technology[23]. - Coda Octopus acquired Precision Acoustics Limited (PAL) on October 29, 2024, enhancing its capabilities in ultrasound and acoustic measurement, particularly in medical imaging and Non-Destructive Testing (NDT)[74]. - Coda Octopus Products Limited established subsidiaries in Australia, New Zealand, Denmark, and India to expand market presence and recruit resources for software development[44][45]. - The acquisition of PAL on October 29, 2024, is expected to increase R&D expenditures as the company aims to leverage PAL's expertise for new product development[115]. Financial Performance - Consolidated revenue for FY 2024 was $20,316,161, a 5.0% increase from $19,352,088 in FY 2023[194]. - Marine Technology Business generated $12,806,603, accounting for 63.0% of consolidated revenues, with a 5.7% increase from $12,119,066 in FY 2023[197]. - Services Business revenue increased by 3.8% to $7,509,558, representing 37.0% of consolidated revenues[200]. - Revenue from rentals in the Marine Technology Business surged by 84.1% to $2,328,781, offsetting a 14.6% decline in outright product sales[199]. - Total operating expenses for the consolidated entity rose by 2.9% to $10,588,974 in FY 2024[194]. - The company’s Echoscope technology generates significant revenue, with no direct competitors offering similar real-time 3D/4D/5D imaging capabilities[92]. - Revenue from the Americas decreased by 20.0% to $7,287,561 in FY 2024, down from $9,110,498 in FY 2023[178]. - US Operations revenue decreased by 33.4% to $2,838,857 in FY 2024 from $4,263,883 in FY 2023 due to reduced funding under Defense Programs[205]. Challenges and Risks - The ongoing war in Ukraine has redirected defense spending towards land-based applications, reducing opportunities for the Services Business[169]. - The geopolitical landscape, particularly trade restrictions with China, is expected to significantly impact revenues and growth strategy[168]. - The company is facing significant increases in raw material costs and operational expenses due to inflation and skill shortages[172][173]. - The company anticipates continued impacts on business until a new Federal Budget is approved, affecting Q1 2025 financial results[195]. - The company does not expect to pay cash dividends in the foreseeable future, focusing on retaining earnings for business expansion[144]. Certifications and Compliance - The company holds ISO 9001:2015 and Cyber Essentials Plus certifications, ensuring compliance with quality and cybersecurity standards[73]. - Coda Octopus has established a Cyber Security Management Committee to oversee cybersecurity risk management and compliance with certifications[130]. - The company has a competitive Patent Reward Scheme to incentivize employees to contribute to its patent portfolio[111]. Employee and Operational Insights - Coda Octopus employs approximately 103 employees, with a majority having backgrounds in science, technology, and engineering[122]. - Coda Octopus operates from multiple locations, including a 16,000 square foot facility in Salt Lake City, Utah, which includes manufacturing and R&D[132].

Core Insights - Coda Octopus Group, Inc. reported a strong financial performance for FY2024, with increases in revenue, gross profit margins, operating income, net income, and earnings per share [2][7][31] - The company successfully executed its first acquisition under its M&A strategy, acquiring Precision Acoustics Limited, which is expected to enhance its technological capabilities and market position [2][15] - Despite challenges in Defense Programs due to funding constraints, the company demonstrated resilience and continued to invest in growth strategies, particularly in its Echoscope and DAVD technologies [3][9][14] Financial Performance - Total revenue for FY2024 was approximately $20.3 million, a 5.0% increase from $19.4 million in FY2023 [7] - Gross profit increased to $14.2 million, with a gross margin of 69.8%, up from 67.3% in FY2023 [7] - Operating income rose by 30.8% to $3.6 million, with an operating margin of 17.6% [7] - Net income after taxes was $3.6 million, a 16.7% increase from $3.1 million in FY2023 [7] - Diluted earnings per share increased to $0.32 from $0.28 in FY2023 [7] Strategic Developments - The DAVD untethered system (DUS) is a key growth opportunity, targeting military divers and supported by a Navy-funded Hardening Program [4] - The company achieved a milestone by delivering a new generation Augmented Reality DAVD Head-Up Display (HUD), featuring a 200% increase in resolution [4] - Progress was made in integrating the Echoscope into various Defense undersea vehicle programs, with successful tests conducted with the Naval Information Warfare Center [5][6] Acquisition and Market Position - The acquisition of Precision Acoustics Limited is aimed at leveraging its technology for advancing Echoscope capabilities and entering new markets [15] - The company is focusing on increasing its share in the Defense Underwater Vehicles market, which is transitioning to new generation vehicles [14] - Positive feedback from Prime Defense Contractors indicates a growing acceptance of the Echoscope technology in defense applications [14]

Core Viewpoint - Coda Octopus Group, Inc. will host a conference call on January 29, 2025, to discuss its fiscal year 2024 results, with a press release to be issued prior to market opening on the same day [1][2]. Company Overview - Coda Octopus Group, Inc. is a leader in real-time 3D/4D/5D and 6D imaging sonar technology, providing solutions for subsea intelligence and augmented reality diving technology [1][4]. - The company was founded in 1994 and supplies hardware and software solutions, including proprietary imaging sonars marketed as Echoscope and Echoscope PIPE [4]. - The Echoscope PIPE sonar generates real-time images of underwater objects, even in zero visibility conditions, and is utilized in various applications such as underwater mapping, salvage, search and rescue, and marine construction [4]. Product Innovations - The newly launched Diver Augmented Vision Display (DAVD) technology integrates topside control with a diver's HUD system, enhancing communication and visualization during diving operations [5]. - DAVD technology allows operations in zero visibility conditions by integrating with the company's Echoscope sonar technology [5]. Defense Sector Involvement - Coda Octopus Group operates two defense engineering businesses, Coda Octopus Martech Ltd and Coda Octopus Colmek, which supply sub-assemblies for mission-critical programs as subcontractors [6]. - These businesses provide services including concept design, prototype manufacturing, and post-sale support, leading to potential repeat orders [6]. Recent Acquisition - The company acquired Precision Acoustics Limited on October 29, 2024, enhancing its capabilities in the MHz ultrasound market and subsea product manufacturing [7]. - Precision Acoustics is recognized for its expertise in acoustic Non-Destructive Testing (NDT), which is crucial for validating the integrity of various structures [8].

Core Viewpoint - Coda Octopus Group, Inc. will host a conference call on January 29, 2025, to discuss its fiscal year 2024 results, with a press release to be issued prior to market opening on the same day [1] Group 1: Conference Call Details - The conference call is scheduled for January 29, 2025, at 10:00 AM Eastern Time [2] - U.S. dial-in numbers are provided for participants, along with an international number and conference ID [2] - A replay of the call will be available after 2:00 PM Eastern Time on the same day until February 12, 2025 [3] Group 2: Company Overview - Coda Octopus Group, founded in 1994, specializes in underwater/subsea market solutions, including proprietary real-time imaging sonar technologies [4] - The company’s Echoscope PIPE® sonar generates real-time 3D/4D/5D images in zero visibility conditions, applicable in various sectors such as offshore renewables and defense [4] - The recently launched Diver Augmented Vision Display (DAVD) technology enhances diving operations by integrating topside control with diver HUD systems [5] Group 3: Recent Developments - The company acquired Precision Acoustics Limited on October 29, 2024, expanding its capabilities in the MHz ultrasound market and subsea product manufacturing [7] - Coda Octopus Group also operates two defense engineering businesses, providing sub-assemblies for mission-critical programs [6]