Coda Octopus Group Reports Fiscal First Quarter 2025 Financial Results
Coda Octopus Group (NASDAQ: CODA) reported strong financial results for fiscal Q1 2025. Total revenue increased 16.8% to $5.2 million, with net income rising 44.9% to $0.91 million. Earnings per share improved to $0.08 from $0.06 year-over-year.
The company received its first order worth $800,000 for 16 DAVD untethered systems (DUS), marking a significant milestone. These systems will be integrated into MK16 Underwater Breathing Apparatus for SPECWAR and EOD applications. The DUS system represents a substantial market opportunity, potentially serving 75% of U.S. Navy's 4,000 active divers and approximately 10,000 Public Safety divers.
Segment performance showed mixed results: Products revenue decreased 35.8% to $2.3 million, Services revenue increased 76.6% to $1.6 million, and the new Acoustic Sensors segment contributed $1.3 million. Gross margin slightly decreased to 65.8% from 69.2%. The company maintained a strong cash position of $22.54 million.
Coda Octopus Group (NASDAQ: CODA) ha riportato risultati finanziari solidi per il primo trimestre fiscale del 2025. I ricavi totali sono aumentati del 16,8%, raggiungendo i 5,2 milioni di dollari, con un utile netto in crescita del 44,9%, pari a 0,91 milioni di dollari. Gli utili per azione sono migliorati a 0,08 dollari rispetto a 0,06 dollari rispetto all'anno precedente.
L'azienda ha ricevuto il suo primo ordine del valore di 800.000 dollari per 16 sistemi untethered DAVD (DUS), segnando un traguardo significativo. Questi sistemi saranno integrati nell'Apparato di Respirazione Sottomarina MK16 per applicazioni SPECWAR ed EOD. Il sistema DUS rappresenta una notevole opportunità di mercato, potenzialmente in grado di servire il 75% dei 4.000 subacquei attivi della Marina degli Stati Uniti e circa 10.000 subacquei per la Sicurezza Pubblica.
Le performance dei segmenti hanno mostrato risultati misti: i ricavi dei prodotti sono diminuiti del 35,8%, raggiungendo i 2,3 milioni di dollari, i ricavi dei servizi sono aumentati del 76,6%, raggiungendo i 1,6 milioni di dollari, e il nuovo segmento dei Sensori Acustici ha contribuito con 1,3 milioni di dollari. Il margine lordo è leggermente diminuito al 65,8% rispetto al 69,2%. L'azienda ha mantenuto una forte posizione di liquidità di 22,54 milioni di dollari.
Coda Octopus Group (NASDAQ: CODA) reportó resultados financieros sólidos para el primer trimestre fiscal de 2025. Los ingresos totales aumentaron un 16,8% a 5,2 millones de dólares, con un ingreso neto que creció un 44,9% a 0,91 millones de dólares. Las ganancias por acción mejoraron a 0,08 dólares desde 0,06 dólares en comparación con el año anterior.
La compañía recibió su primer pedido por un valor de 800,000 dólares para 16 sistemas DAVD sin ataduras (DUS), marcando un hito significativo. Estos sistemas se integrarán en el Aparato de Respiración Submarina MK16 para aplicaciones de SPECWAR y EOD. El sistema DUS representa una oportunidad de mercado sustancial, potencialmente sirviendo al 75% de los 4,000 buzos activos de la Marina de los EE. UU. y aproximadamente 10,000 buzos de Seguridad Pública.
El rendimiento de los segmentos mostró resultados mixtos: los ingresos por productos disminuyeron un 35,8% a 2,3 millones de dólares, los ingresos por servicios aumentaron un 76,6% a 1,6 millones de dólares, y el nuevo segmento de Sensores Acústicos contribuyó con 1,3 millones de dólares. El margen bruto disminuyó ligeramente al 65,8% desde el 69,2%. La compañía mantuvo una sólida posición de efectivo de 22,54 millones de dólares.
Coda Octopus Group (NASDAQ: CODA)는 2025 회계 연도 1분기 강력한 재무 실적을 보고했습니다. 총 수익은 16.8% 증가하여 520만 달러에 도달했으며, 순이익은 44.9% 증가하여 91만 달러에 이르렀습니다. 주당 순이익은 전년 대비 0.06달러에서 0.08달러로 개선되었습니다.
회사는 16개의 DAVD 무선 시스템(DUS)에 대해 80만 달러의 첫 번째 주문을 받았으며, 이는 중요한 이정표가 되었습니다. 이 시스템은 SPECWAR 및 EOD 응용 프로그램을 위해 MK16 수중 호흡 장치에 통합될 것입니다. DUS 시스템은 미국 해군의 4,000명의 활동 중인 잠수부의 75%와 약 10,000명의 공공 안전 잠수부를 지원할 수 있는 상당한 시장 기회를 나타냅니다.
세그먼트 성과는 혼합된 결과를 보여주었습니다: 제품 수익은 35.8% 감소하여 230만 달러에 이르렀고, 서비스 수익은 76.6% 증가하여 160만 달러에 도달했으며, 새로운 음향 센서 세그먼트는 130만 달러를 기여했습니다. 총 마진은 69.2%에서 65.8%로 약간 감소했습니다. 회사는 2,254만 달러의 강력한 현금 포지션을 유지하고 있습니다.
Coda Octopus Group (NASDAQ: CODA) a annoncé des résultats financiers solides pour le premier trimestre fiscal de 2025. Le chiffre d'affaires total a augmenté de 16,8 % pour atteindre 5,2 millions de dollars, avec un bénéfice net en hausse de 44,9 % à 0,91 million de dollars. Le bénéfice par action a progressé de 0,06 dollar à 0,08 dollar par rapport à l'année précédente.
L'entreprise a reçu sa première commande d'une valeur de 800 000 dollars pour 16 systèmes DAVD sans fil (DUS), marquant une étape significative. Ces systèmes seront intégrés dans l'Appareil de Respiration Sous-Marine MK16 pour des applications SPECWAR et EOD. Le système DUS représente une opportunité de marché substantielle, pouvant potentiellement servir 75 % des 4 000 plongeurs actifs de la Marine américaine et environ 10 000 plongeurs de la Sécurité Publique.
Les performances des segments ont montré des résultats mitigés : les revenus des produits ont diminué de 35,8 % pour atteindre 2,3 millions de dollars, les revenus des services ont augmenté de 76,6 % pour atteindre 1,6 million de dollars, et le nouveau segment des capteurs acoustiques a contribué à hauteur de 1,3 million de dollars. La marge brute a légèrement diminué, passant de 69,2 % à 65,8 %. L'entreprise a maintenu une solide position de liquidités de 22,54 millions de dollars.
Coda Octopus Group (NASDAQ: CODA) hat starke finanzielle Ergebnisse für das erste Fiskalquartal 2025 berichtet. Der Gesamtumsatz stieg um 16,8% auf 5,2 Millionen Dollar, während der Nettogewinn um 44,9% auf 0,91 Millionen Dollar anstieg. Der Gewinn pro Aktie verbesserte sich von 0,06 Dollar auf 0,08 Dollar im Vergleich zum Vorjahr.
Das Unternehmen erhielt seine erste Bestellung im Wert von 800.000 Dollar für 16 DAVD-Systeme ohne Verbindung (DUS), was einen bedeutenden Meilenstein darstellt. Diese Systeme werden in das MK16 Unterwasser-Atemgerät für SPECWAR- und EOD-Anwendungen integriert. Das DUS-System stellt eine erhebliche Marktchance dar und könnte 75% der 4.000 aktiven Taucher der US Navy und etwa 10.000 Taucher im Bereich der öffentlichen Sicherheit bedienen.
Die Segmentleistung zeigte gemischte Ergebnisse: Die Produktumsätze sanken um 35,8% auf 2,3 Millionen Dollar, die Serviceumsätze stiegen um 76,6% auf 1,6 Millionen Dollar, und das neue Segment der akustischen Sensoren trug mit 1,3 Millionen Dollar bei. Die Bruttomarge sank leicht von 69,2% auf 65,8%. Das Unternehmen hielt eine starke Liquiditätsposition von 22,54 Millionen Dollar aufrecht.
- Net income increased 44.9% to $0.91 million
- Total revenue grew 16.8% to $5.2 million
- Services segment revenue increased 76.6%
- Secured first order of $800,000 for DUS systems
- Strong cash position of $22.54 million maintained
- Operating income improved 19.2%
- Products segment revenue declined 35.8%
- Gross margin decreased to 65.8% from 69.2%
- SG&A expenses increased 8.7%
- R&D expenditures increased 11.8%
Insights
Coda Octopus Group delivered solid financial results for Q1 FY2025, with total revenue increasing 16.8% year-over-year to
The revenue growth was primarily driven by the newly acquired Precision Acoustics business, which contributed
A significant milestone was achieved with the first order for 16 DAVD untethered systems (DUS) valued at approximately
Despite facing international market headwinds related to policy uncertainties, the company maintained strong operating margins at
CODA's Q1 results highlight the strategic importance of their diving technology in the defense sector. The company has reached two critical milestones with their DAVD untethered system (DUS) that substantially enhance their market positioning. First, they've secured an initial
The next-generation head-up display (HUD) developments - featuring smaller form factor and higher resolution - address key requirements for military deployment. These technical improvements significantly increase the likelihood of wider adoption across naval diving communities.
The addressable market for DUS technology is substantial within defense applications alone. With 75% of the U.S. Navy's 4,000 divers using compatible full-face mask systems, the potential for systematic integration presents a clear revenue pathway. The fact that this program continues "full steam ahead" despite broader defense spending uncertainties suggests the technology is viewed as mission-critical rather than discretionary.
While global defense policies present near-term uncertainty, the fundamental shifts in European defense spending create significant mid-term opportunities. Germany's planned
ORLANDO, FL, March 17, 2025 (GLOBE NEWSWIRE) -- Coda Octopus Group, Inc. (“CODA” or the “Company”) (Nasdaq: CODA) a global market leader in real-time 4D/5D/6D imaging sonar technology for real-time subsea intelligence and cutting-edge diving technology, today reported its unaudited financial results for its fiscal first quarter ended January 31, 2025 (FQ2025).
Annmarie Gayle, CODA’s Chairman and CEO, commented: “I am pleased with our overall financial performance in FQ2025 as we increased revenue, operating income, net income and earnings per share.
Furthermore, despite the uncertain global policy environment, we continue to invest in our growth strategy. The DAVD untethered system (“DUS”) presents the largest market opportunity for the technology and as we have stated previously, it is being evaluated for adoption by both the US Navy and a leading Foreign Navy, under the DUS Hardening Program. We have made exceptional progress under the hardening program, delivering the next generation of head up augmented display unit (HUD) which is a much smaller form factor and higher resolution display unit. In the FQ2025, we reached another pivotal milestone under this Program and have received our first order for approximately
Our Navy customers continue to emphasize the critical nature of this technology for future naval capabilities, and we believe this Program will continue full steam ahead despite the uncertain policy environment. In the FQ2025, we also started to work directly with the divers of the Foreign Navy who is participating in this Program. Their divers were able to perform a full 5-day trial which we believe was a resounding success and again a pivotal milestone for the adoption program.
We continue to believe that the DUS System represents the largest addressable market for DAVD technology. For example,
The numbers shown below have been rounded to one decimal point, unless two decimal points are required for clarity. The full FQ2025 financials can be found in CODA’s Form 10-Q filed with the SEC on March 17, 2025.
- Total revenue was approximately
$5.2 million compared to$4.5 million in FQ2024, representing an increase of16.8% . - Revenues from the Products segment were
$2.3 million compared to$3.5 million in FQ2024, a35.8% decrease. - Revenues from the Services segment were
$1.6 million compared to$0.9 million in FQ2024, an increase of76.6% . - Revenues from the Acoustic Sensors and Material segment were
$1.3 million in FQ2025 (with no comparison to prior year as this business unit was acquired on October 29, 2024). - Gross profit was
$3.4 million compared to$3.1 million in FQ2024. Gross margin was65.8% compared to69.2% in FQ2024. This is largely attributable to changes in the mix of sales between segments. - Operating income was
$0.7 million in FQ2025 compared to$0.6 million in FQ2024, an improvement of19.2% . Operating margin was12.7% compared to12.4% in FQ2024, driven by the increase in revenues previously mentioned. - Net income before taxes was approximately
$0.93 million in FQ2025 compared to$0.78 million in FQ2024, representing an increase of19.4% . Net income after taxes was$0.91 million in FQ2025 compared to$0.63 million in FQ2024, an increase of44.9% . - Diluted earnings per share in FQ2025 was
$0.08 compared to$0.06 in FQ2024. - Net income before tax as a percentage of revenues for FQ2025 was approximately
17.9% compared to17.6% in FQ2024. Research and Development expenditures for FQ2025 were approximately$0.54 million , an increase of11.8% , compared to approximately$0.49 million in FQ2024. SG&A in FQ2025 was approximately$2.2 million , an increase of8.7% over$2.0 million in FQ2024.
Our cash balance at the end of FQ2025 of
Annmarie Gayle, CODA’s Chairman and CEO, commented: “Despite the uncertain global policy environment, I am pleased with our overall financial performance in our FQ2025 and also the diversification of our revenue structure. The increase in revenue is due to the addition of our new business unit, Precision Acoustics Limited, which contributed
Notwithstanding the change in the U.S Policy on renewables, we believe that its new policy on prioritizing domestic energy production of Oil & Gas (O&G) favors our products and solutions. We further believe that the transition to O&G will in the foreseeable future offset any reduction of revenue from US offshore renewables which we may experience. Furthermore, a key part of our strategy as a Group relies on Defense spending. Although the policy of the new U.S Administration is to reduce Defense spending by
The Company’s full financial results, including its results for the FQ2025, are available at www.nasdaq.com/symbol/coda/sec-filings.
Conference Call
CODA will host a conference call today, March 17, 2025, at 10:00 a.m. Eastern Time (7:00 a.m. Pacific Time) to discuss its results for the fiscal quarter ended January 31, 2025.
CODA management will provide prepared remarks, followed by a question-and-answer period.
Date: Monday, March 17, 2025
Time: 10:00 AM Eastern time (7:00 AM Pacific time)
U.S. dial-in numbers: 1-877-451-6152 or 1-201-389-0879
International number: 1-201-389-0879
Conference ID: 13751915
The conference call will broadcast live and be available for replay here.
Persons interested in attending are required to call the conference telephone number approximately 10 minutes before the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please press *0.
A replay of the call will be available after approximately 2:00 p.m. Eastern time on the same day through March 31, 2025 at 11:59 PM ET.
Telephone replay numbers: 1-844-512-2921 or 1-412-317-6671
International replay number: 1-412-317-6671
Access ID: 13751915
About Coda Octopus Group, Inc.
The Company, founded in 1994, is an established supplier to the underwater/subsea market. It supplies a range of hardware and software solutions to this market which includes key proprietary real time 4D/5D/6D imaging sonars, marketed under the name Echoscope® and Echoscope PIPE® addressing the underwater imaging sensor market along with new generation diving technology, Diver Augmented Vision Display (DAVD) system. The Company’s Echoscope PIPE® sonar generates real-time 3D/4D/5D images of moving objects underwater including in zero visibility water conditions. Echoscope technology is used globally for numerous applications in both the commercial offshore market and defense underwater markets. Applications for the Echoscope® technology include complex mapping underwater, subsea intervention, subsea asset placements, salvage and recovery, search and rescue, offshore renewables cable installations and surveys, marine construction, subsea infrastructure installation, mining applications, robotics (3D Perception and Depth), breakwater construction and monitoring, decommissioning, diving applications and port and harbor security.
The recently launched new generation of diving technology, DAVD, has the potential to change the way global diving operations are performed (both in the Defense and Commercial space) because it is a fully integrated singular system for topside control and fully connected diver HUD system, allowing both the topside and diver to share a range of critical information and visualize the same underwater scene. Furthermore, the DAVD integrates the Company’s sonar technology, which allows dive operations to be performed in zero visibility conditions, a common problem that besets these operations.
The Company recently acquired Precision Acoustics Limited, an acoustics sensor and materials business. This Company is a recognized leader in the ultrasound and acoustic measurement field. Specializing in acoustic hydrophone design and innovative acoustic materials, they provide a comprehensive range of products and solutions, with a primary focus on medical imaging and Non-Destructive Testing (NDT). NDT is used to validate the viability of structures such as aircraft, ship hulls, wellheads and other subsea structures. Their expertise extends to working closely with national and global standard-setting bodies (such as the National Physical Laboratory of the UK), contributing to the establishment of the primary measurement standards in the industry.
The Company also includes two discrete Defense engineering businesses Coda Octopus Martech Ltd (UK based) and Coda Octopus Colmek, Inc. (U.S. based) whose primary business model is to supply sub-assemblies into broader mission critical programs in the capacity of sub-contractors to the Prime Defense Contractors. Their scope of supply under these programs typically includes concept, design, prototype, manufacturing, and post-sale support. This gives them the opportunity to have repeat orders for these sub-assemblies through the life of these programs.
For further information, please visit http://www.codaoctopusgroup.com or contact us at coda@codaoctopusgroup.com.
Forward Looking Statements
This press release contains forward-looking statements concerning Coda Octopus Group, Inc. within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. When used in this document, the words “may”, “would”, “could”, “will”, “intend”, “plan”, “anticipate”, “believe”, “estimate”, “expect”, “assume” and similar expressions are intended to identify forward‐looking statements. Those forward-looking statements include, without limitation, statements regarding the Company's expectations for the growth of the Company's operations and revenue. Such statements are subject to certain risks and uncertainties, and actual circumstances, events or results may differ materially from those projected in such forward-looking statements. Factors that could cause or contribute to differences include, but are not limited to, restrictions on our business operations due to the Pandemic, customer demand for our products and market prices; the outcome of our ongoing research and development efforts relating to our products including our patented real time 3D solutions; our ability to develop the sales force required to achieve our development and other examples of forward looking statement set forth in our Annual Report on Form 10-K for the year ended October 31, 2024, filed with the Securities and Exchange Commission on January 29, 2025, and the subsequently filed 10-Qs and 8-Ks. Coda Octopus Group, Inc. does not undertake and specifically disclaims any obligation to update or revise such statements to reflect new circumstances or unanticipated events as they occur, unless required by law.
Contact:
Geoff Turner
Coda Octopus Group, Inc.
1- 407-768- 0988
coda.ir@codaoctopusgroup.com
CODA OCTOPUS GROUP, INC.
Consolidated Balance Sheets
January 31, 2025 and October 31, 2024
2025 | 2024 | |||||||
ASSETS | ||||||||
CURRENT ASSETS | ||||||||
Cash and Cash Equivalents | $ | 22,541,963 | $ | 22,479,072 | ||||
Accounts Receivable, net | 3,359,711 | 3,493,463 | ||||||
Inventory | 13,433,561 | 13,975,529 | ||||||
Unbilled Receivables | 2,259,419 | 1,657,827 | ||||||
Prepaid Expenses | 723,802 | 537,289 | ||||||
Other Current Assets | 400,855 | 838,835 | ||||||
Total Current Assets | 42,719,311 | 42,982,015 | ||||||
FIXED ASSETS | ||||||||
Property and Equipment, net | 6,583,158 | 6,822,990 | ||||||
Right of Use Assets | 388,060 | 413,171 | ||||||
6,971,218 | 7,236,161 | |||||||
OTHER ASSETS | ||||||||
Goodwill | 3,639,334 | 3,639,334 | ||||||
Intangible Assets, net | 3,567,435 | 3,687,034 | ||||||
Total Other Assets | 7,206,769 | 7,326,368 | ||||||
Total Assets | $ | 56,897,298 | $ | 57,544,544 |
CODA OCTOPUS GROUP, INC.
Consolidated Balance Sheets (Continued)
January 31, 2025 and October 31, 2024
2025 | 2024 | |||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
CURRENT LIABILITIES | ||||||||
Accounts Payable | $ | 1,072,668 | $ | 1,034,488 | ||||
Current portion of operating lease liabilities | 32,505 | 32,298 | ||||||
Accrued Expenses and Other Current Liabilities | 1,226,421 | 1,604,596 | ||||||
Deferred Revenue | 1,004,800 | 1,225,634 | ||||||
Total Current Liabilities | 3,336,394 | 3,897,016 | ||||||
LONG TERM LIABILITIES | ||||||||
Deferred Tax Liability, net | 51,025 | 82,011 | ||||||
Non-current operating lease liabilities | 359,940 | 380,873 | ||||||
Deferred Revenue, less current portion | 36,882 | 56,121 | ||||||
Total Long Term Liabilities | 447,847 | 519,005 | ||||||
Total Liabilities | 3,784,241 | 4,416,021 | ||||||
STOCKHOLDERS’ EQUITY | ||||||||
Common Stock, $.001 par value; 150,000,000 shares authorized, 11,218,804 issued and outstanding as of January 31, 2025 and 11,195,487 shares issued and outstanding as of October 31, 2024 | 11,219 | 11,195 | ||||||
Preferred Stock $.001 par value; 5,000,000 shares authorized, zero issued and outstanding as of January 31, 2025 and October 31, 2024 | - | - | ||||||
Treasury Stock | (61,933 | ) | (61,933 | ) | ||||
Additional Paid-in Capital | 63,196,704 | 63,096,583 | ||||||
Accumulated Other Comprehensive Loss | (3,539,417 | ) | (2,510,831 | ) | ||||
Accumulated Deficit | (6,493,516 | ) | (7,406,491 | ) | ||||
Total Stockholders’ Equity | 53,113,057 | 53,128,523 | ||||||
Total Liabilities and Stockholders’ Equity | $ | 56,897,298 | $ | 57,544,544 |
CODA OCTOPUS GROUP, INC.
Consolidated Statements of Income and Comprehensive Income
Three Months Ended January 31, | ||||||||
2025 | 2024 | |||||||
Net Revenues | $ | 5,209,715 | $ | 4,461,191 | ||||
Cost of Revenues | 1,781,245 | 1,374,455 | ||||||
Gross Profit | 3,428,470 | 3,086,736 | ||||||
OPERATING EXPENSES | ||||||||
Research & Development | 543,126 | 485,977 | ||||||
Selling, General & Administrative | 2,223,322 | 2,045,375 | ||||||
Total Operating Expenses | 2,766,448 | 2,531,352 | ||||||
INCOME FROM OPERATIONS | 662,022 | 555,384 | ||||||
OTHER INCOME (EXPENSE) | ||||||||
Other Income | 78,667 | 35,020 | ||||||
Interest Income | 194,171 | 192,540 | ||||||
Total Other Income | 272,838 | 227,560 | ||||||
INCOME BEFORE INCOME TAX EXPENSE | 934,860 | 782,944 | ||||||
INCOME TAX (EXPENSE) BENEFIT | ||||||||
Current Tax (Expense) Benefit | (48,874 | ) | 34,015 | |||||
Deferred Tax Benefit (Expense) | 26,989 | (187,071 | ) | |||||
Total Income Tax (Expense) | (21,885 | ) | (153,056 | ) | ||||
NET INCOME | $ | 912,975 | $ | 629,888 | ||||
NET INCOME PER SHARE: | ||||||||
Basic | $ | 0.08 | $ | 0.06 | ||||
Diluted | $ | 0.08 | $ | 0.06 | ||||
WEIGHTED AVERAGE SHARES: | ||||||||
Basic | 11,213,989 | 11,125,061 | ||||||
Diluted | 11,299,737 | 11,264,478 | ||||||
NET INCOME | $ | 912,975 | $ | 629,888 | ||||
Foreign Currency Translation Adjustment | (1,028,586 | ) | 1,029,580 | |||||
Total Other Comprehensive Income | $ | (1,028,586 | ) | $ | 1,029,580 | |||
COMPREHENSIVE INCOME | $ | (115,611 | ) | $ | 1,659,468 |
