SHENZHEN, China, Sept. 25, 2025 (GLOBE NEWSWIRE) -- DIVEVOLK, a leader in innovative underwater imaging and communication solutions, today announced its role as a Gold Sponsor for the inaugural event of the 2025 Guangdong-Hong Kong-Macau Greater Bay Area Freediving Series. In a strategic partnership with the Guangdong Diving Association, DIVEVOLK provided cutting-edge technology, including its revolutionary SeaLink™ Underwater WiFi Signal Transmitter and SeaTouch smartphone housings, to enhance event broadc ...

Financial Data and Key Metrics Changes - In Q3 2025, total revenue increased by 29% to $7.1 million from $5.5 million in Q3 2024 [27] - Gross profit rose to $4.8 million, with a consolidated gross margin of 68.3%, down from 73.9% in the previous year [28] - Operating income slightly decreased to $1.38 million, with an operating margin of 19.5%, compared to 25.4% in Q3 2024 [30][31] Business Line Data and Key Metrics Changes - The marine technology business generated $4.0 million in revenue, a 30.7% increase from $3.0 million in Q3 2024, accounting for 56.4% of total revenue [27][28] - The marine engineering business saw a revenue decline of 33.2%, down to $1.6 million from $2.4 million in Q3 2024 [27][28] - The newly acquired Precision Acoustics Ltd contributed 20.6% to net revenue, generating $1.5 million [27][28] Market Data and Key Metrics Changes - Hardware sales in the marine technology business increased by 103.6%, reaching $2.7 million compared to $1.3 million in Q3 2024 [9][28] - Revenue from the Echoscope accounted for 57.7% of marine technology revenue, while DAVD contributed 42.3% [9] Company Strategy and Development Direction - The company aims to increase market share in underwater imaging sensors, particularly in the defense sector, leveraging the unique capabilities of the Echoscope and DAVD technologies [6][14] - The launch of the NanoGen series sonars is expected to enhance the company's position in the defense and underwater robotics markets [18][24] - The company is focused on executing its M&A strategy to pivot the revenue model towards multi-year, multiple sales opportunities [34] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges in the global policy environment but expressed confidence in the growth trajectory, particularly in defense-related markets [4][33] - The company is optimistic about the future, citing strong interest in its technologies and ongoing trials with defense customers [14][18] Other Important Information - The company has no debt and reported $26.2 million in cash and cash equivalents as of July 31, 2025, an increase from $22.5 million at the end of the previous fiscal year [31] - The company is experiencing delays in contract awards for the marine engineering business due to funding issues in defense programs [10] Q&A Session Summary Question: Feedback on Echoscope Type Nano Gen series - Management received positive feedback regarding the reduced size and weight of the Echoscope, which allows for integration into smaller platforms [36][37] Question: Change in DAVD-related revenue target - The company expects to achieve $4 million in DAVD revenue for the fiscal year, a significant increase from $1.2 million last year [38] Question: Exposure to China and supply chain concerns - The company has minimal exposure to China, with most components sourced from Europe, and has faced challenges in exporting to China due to regulatory barriers [42][43] Question: Echoscope as a revenue driver - Echoscope remains a key revenue driver, with recent sales growth attributed to hardware sales, although rental revenues have declined due to shifts in funding for offshore renewables [45][46] Question: Thoughts on stock buyback program - Management indicated that stock buyback decisions are for the board to consider, emphasizing a focus on M&A opportunities instead [49][51]

Core Insights - Coda Octopus Group, Inc. reported a 29.0% increase in total revenue for the fiscal third quarter ended July 31, 2025, reaching approximately $7.1 million compared to $5.5 million in the same quarter of the previous year [2][6][9] - The company continues to invest in its growth strategy, particularly through the Diver Augmented Vision Display (DAVD) program, with expected sales of $3.5 million to $4.0 million for fiscal year 2025, up from $1.2 million in the previous fiscal year [3][4] Financial Performance - Revenues from the Marine Technology Business increased by 30.7% to $4.0 million, while revenues from the Marine Engineering Business decreased by 33.2% to $1.6 million [6][9] - Gross profit for TQ2025 was $4.8 million, with a gross margin of 68.3%, down from 73.9% in TQ2024 [6][9] - Operating income was $1.38 million, a slight decrease of 0.8% from $1.39 million in TQ2024, with an operating margin of 19.5% [6][9] Product Development and Market Opportunities - The company successfully completed the DUS Hardening Program, leading to an order for sixteen DAVD untethered systems from the U.S. Navy, which were delivered in TQ2025 [4][5] - The launch of the Echoscope PIPE NANO GEN SERIES® is expected to open new market opportunities, particularly in defense and underwater robotics, with the UUV market projected to grow from $4.8 billion in 2024 to $11.1 billion by 2030 [10][15] Cash Position and Investments - Coda Octopus Group's cash balance increased to $26.2 million at the end of TQ2025, up from $22.5 million at the end of October 2024 [8] - Research and Development expenditures rose by 15.3% to approximately $0.6 million, reflecting the company's commitment to innovation [12]

Company Overview - Coda Octopus Group, Inc. is a global leader in real-time 3D/4D/5D and 6D imaging sonar technology for subsea intelligence and augmented reality diving technology [1][4] - The company was founded in 1994 and provides hardware and software solutions for the underwater/subsea market, including proprietary imaging sonars marketed as Echoscope and Echoscope PIPE [4] - The recently launched Diver Augmented Vision Display (DAVD) system is designed to enhance global diving operations by integrating topside control and diver HUD systems [5] Upcoming Conference Call - The company will host a conference call on September 15, 2025, at 10:00 a.m. Eastern time to discuss its fiscal third quarter results for the period ending July 31, 2025 [1][2] - A press release detailing the results will be issued before the market opens on the same day [2] Recent Developments - Coda Octopus Group has recently acquired Precision Acoustics Limited, which specializes in acoustics sensors and materials [6] - The company operates two defense engineering businesses, Coda Octopus Martech Ltd and Coda Octopus Engineering, which supply sub-assemblies for mission-critical programs [7]

Core Insights - Coda Octopus Group, Inc. has received ISO:17025 accreditation for its subsidiary Precision Acoustics Limited, recognizing its ultrasonic hydrophone calibration capabilities [1][2] - This accreditation places the company among a select group, being one of only two organizations in the UK with this certification, enhancing its reputation in precision ultrasonic measurement [2] - The company specializes in underwater imaging technology and has a range of products including Echoscope® and Diver Augmented Vision Display (DAVD) systems [3][4] Group 1: Accreditation and Recognition - The ISO/IEC 17025 accreditation is significant for markets requiring precision ultrasonic measurement and safety compliance, including high-risk applications [2] - Precision Acoustics has manufactured and calibrated thousands of hydrophone systems and supplied over 10,000 transducers, reinforcing customer confidence in its products [2] Group 2: Product Offerings - Coda Octopus Group provides advanced hardware and software solutions for the underwater/subsea market, including real-time 4D/5D/6D imaging sonars [3] - The Echoscope PIPE® sonar generates real-time images of moving underwater objects, even in zero visibility conditions, and is used in various applications such as mapping, salvage, and offshore renewables [3] - The newly launched DAVD system integrates sonar technology for improved diving operations, allowing for shared critical information between topside and divers [4] Group 3: Business Expansion - The company recently acquired Precision Acoustics Limited, a leader in ultrasound and acoustic measurement, focusing on medical imaging and Non-Destructive Testing (NDT) [5] - Coda Octopus Group also includes defense engineering businesses that supply sub-assemblies for mission-critical programs, providing opportunities for repeat orders [8]

Core Insights - Coda Octopus Group, Inc. reported a significant revenue increase of 31.8% in its fiscal second quarter 2025, reaching approximately $7.0 million compared to $5.3 million in the same quarter of the previous year [2][6][8] Financial Performance - Total revenue for SQ2025 was approximately $7.0 million, up from $5.3 million in SQ2024, marking a 31.8% increase [6] - Revenue from the Marine Technology Business was $3.9 million, a 10.0% increase from $3.5 million in SQ2024 [6] - Marine Engineering Business revenue increased to $1.84 million, a 2.3% rise from $1.80 million in SQ2024 [6] - The Acoustics Sensors and Material segment generated $1.3 million in revenue, with no prior comparative data available [6] - Gross profit was $4.5 million, up from $3.7 million in SQ2024, with a gross margin of 64.1% compared to 70.2% in SQ2024 [6] - Operating income decreased to $1.1 million, down 19.5% from $1.4 million in SQ2024, with an operating margin of 15.5% [6][13] - Net income after taxes was $0.9 million, a decrease of 35.8% from $1.4 million in SQ2024, with diluted earnings per share at $0.08 compared to $0.13 in SQ2024 [6][13] Business Developments - The company received orders for the DAVD tethered system valued at $1.53 million, expanding its user base to around 12 Navy Commands [3] - The company expects to deliver 16 DAVD untethered systems for integration into the MK16 Underwater Breathing Apparatus system during the third fiscal quarter of 2025 [4] - The DAVD technology is undergoing various evaluation programs, confirming its effectiveness in dive operations and enhancing its adoption potential [5] - The Echoscope technology has been recognized for its improvements in underwater imaging and object detection capabilities [6] Market Outlook - The company anticipates increased defense spending in Europe and the UK, which is expected to favor its business [9] - The transition in U.S. energy policy towards domestic oil and gas production is believed to benefit the company's products and solutions, offsetting potential revenue losses from offshore renewables [8]

Company Overview - Coda Octopus Group, Inc. is a global leader in real-time 3D/4D/5D and 6D imaging sonar technology for subsea intelligence and augmented reality diving technology [4] - The company was founded in 1994 and provides hardware and software solutions for the underwater/subsea market, including proprietary imaging sonars and diving technology [4] Upcoming Conference Call - The company will host a conference call on June 16, 2025, at 10:00 a.m. Eastern time to discuss its fiscal second quarter results for the period ending April 30, 2025 [1][2] - A press release detailing the results will be issued before the market opens on the same day [2] Technology and Products - Coda Octopus's Echoscope technology generates real-time 3D/4D/5D images of underwater objects, even in zero visibility conditions, and is used in various applications including mapping, salvage, and offshore renewables [4] - The newly launched Diver Augmented Vision Display (DAVD) system integrates sonar technology and allows for improved communication and visualization between topside control and divers [5] Recent Acquisition - The company recently acquired Precision Acoustics Limited, enhancing its capabilities in acoustics sensor and materials [6] Defense Engineering Businesses - Coda Octopus operates two defense engineering businesses, Coda Octopus Martech Ltd and Coda Octopus Colmek, which supply sub-assemblies for mission-critical programs as subcontractors [7]

Core Viewpoint - Coda Octopus Group, Inc. has received a significant order for its DAVD tethered systems bundled with the Echoscope, valued at $1.5 million, from various U.S. Navy Commands, highlighting the Navy's commitment to adopting this technology for subsea operations [1][2]. Group 1: Order and Technology Adoption - The recent order confirms the ongoing rollout and adoption of DAVD technology within the U.S. Navy, with the Echoscope PIPE real-time 3D Volumetric Sonar being a crucial part of the DAVD solution for diving and underwater inspections [2]. - The DAVD Tethered System is currently operational across nine naval commands, and this order will expand the user community, accelerating the technology's adoption curve [2]. - This order builds on a previous order in March 2025 for 16 DAVD Untethered Systems intended for the Special Operations Command, which represents the largest addressable market for this technology [2]. Group 2: Future Developments and Market Expansion - The company aims to attract adoptees of DAVD technology from foreign navies and the commercial sector, following the successful delivery of a new generation Head-Up-Display (HUD) to the U.S. Navy [3]. - The new HUD design features a 200% increase in resolution and an expanded field of view, improving compatibility with specialized dive helmets and masks, thus unlocking new market opportunities [3]. - The DAVD system is a fully integrated solution that allows topside control and diver HUD systems to share critical information, enabling operations in zero visibility conditions, which is a common challenge in diving operations [5]. Group 3: Company Overview and Product Offerings - Coda Octopus Group, founded in 1994, supplies a range of hardware and software solutions to the underwater/subsea market, including proprietary real-time 4D/5D/6D imaging sonars marketed under the name Echoscope [4]. - The Echoscope technology is utilized globally for various applications, including underwater mapping, subsea intervention, and marine construction, among others [4]. - The company also operates two defense engineering businesses that supply sub-assemblies for mission-critical programs, providing opportunities for repeat orders throughout the life of these programs [6].

Core Viewpoint - Coda Octopus Group, Inc. has received two orders totaling $1.3 million from the US Government for proprietary parts used in a critical Defense program, indicating a positive trend in easing delays in U.S. Defense Programs since fiscal year 2024 [1][2]. Company Overview - Coda Octopus Group, founded in 1994, specializes in advanced underwater technologies, providing hardware and software solutions including 4D/5D/6D imaging sonars like Echoscope® and Echoscope PIPE® [3]. - The company also offers the Diver Augmented Vision Display (DAVD) system, which enhances diving operations by integrating sonar technology for use in zero visibility conditions [4]. Recent Developments - The recent orders from the US Government are significant as they are contracted directly with Coda Octopus, potentially leading to more direct contract opportunities [2]. - The Engineering Business aims to restore its revenue to pre-COVID levels of $10 million, supported by increasing programs for proprietary sub-components and tactical mission computers [2]. Acquisitions and Expansion - Coda Octopus recently acquired Precision Acoustics Limited, a leader in ultrasound and acoustic measurement, enhancing its capabilities in medical imaging and Non-Destructive Testing (NDT) [5]. - The company operates two defense engineering businesses, Coda Octopus Martech Ltd and Coda Octopus Colmek, which supply sub-assemblies for broader mission-critical programs, contributing to a long-tail recurring revenue profile [6].