ORLANDO, FL - Coda Octopus Group, Inc. (NASDAQ:CODA), a specialist in real-time 3D sonar technology and underwater defense solutions, has announced the receipt of a $906,000 order for its defense engineering services. The contract, awarded to the company's Salt Lake City-based subsidiary Coda Octopus Colmek, is part of a longstanding program the firm has supported for over 25 years.
The order, which had been anticipated since the first quarter but faced delays, is now set to bolster the company's performance with deliveries scheduled throughout the remainder of 2024.
Annmarie Gayle, Coda Octopus's Chairman and CEO, expressed satisfaction over overcoming procurement budget barriers and securing the contract, viewing it as a positive step toward returning the company’s Engineering Business to its pre-pandemic revenue levels of $10 million.
Coda Octopus Group, with a history dating back to 1994, has established itself in the underwater market, supplying a range of hardware and software solutions, including its patented Echoscope sonars and the Diver Augmented Vision Display (DAVD) system.
The Echoscope technology is renowned for generating real-time 3D images underwater, even in zero visibility conditions, and is utilized across various applications such as marine construction, salvage operations, and port security.
The DAVD system, a newly launched diving technology, integrates the company's sonar tech and aims to revolutionize diving operations by providing a fully connected interface for both topside control and diver heads-up displays, facilitating operations in challenging visibility.
The company's defense engineering arms, Coda Octopus Martech Ltd in the UK and Coda Octopus Colmek in the US, operate primarily as subcontractors to prime defense contractors, offering services ranging from design to post-sale support, and have the potential for repeat orders throughout the lifespan of defense programs.
This press release contains forward-looking statements that involve risks and uncertainties, and actual results may differ. The company cautions that these statements are not guarantees of future performance and advises readers to refer to its filings with the Securities and Exchange Commission for a detailed discussion of risks.
The information in this article is based on a press release statement from Coda Octopus Group, Inc.
In other recent news, Coda Octopus Group, Inc., a leader in marine technology solutions, posted a strong performance in its Q2 2024 financial results, despite challenges in the defense sector. The company reported increased operating income, net income, and earnings per share, alongside a stable revenue stream from its marine technology business and growth in its engineering sector revenue.
Despite a slowdown in US orders due to funding gaps, the company saw increased revenue from Asia.
Notable projects include Echoscope rental services, ship hull scanning program, and the DAVD untethered system customization. The company's gross profit margin improved and total revenue saw a slight increase of 0.4% year-over-year. Operating expenses decreased, largely due to reduced stock compensation charges. The company maintains a strong cash position with $23.7 million and no debt.
Management is optimistic about future growth and aims to increase the adoption of Echoscope technology, expand the product portfolio, and grow the engineering business. The company received partial awards for new sub-assemblies and a new Navy program. These recent developments suggest a positive trajectory for Coda Octopus Group, Inc., despite some challenges.
InvestingPro Insights
As Coda Octopus Group, Inc. (NASDAQ:CODA) secures a significant order for its defense engineering services, investors may find the company's financial health and market performance to be of interest. With a market capitalization of $67.61 million, CODA's balance sheet strength is underscored by two key InvestingPro Tips: the company holds more cash than debt and its liquid assets exceed short-term obligations, which could provide financial flexibility to navigate and capitalize on market opportunities.
On the earnings front, CODA maintains a P/E ratio of 24.23, reflecting investor sentiment on its earnings capacity. The company's profitability over the last twelve months further reinforces this perspective. Moreover, CODA's gross profit margin stands at a robust 68.43%, indicating strong operational efficiency in generating earnings relative to revenue.
While CODA's revenue growth has seen a decline of 18.21% over the last twelve months, the company's ability to remain profitable and its high return over the last decade may offer reassurance to investors. It is also notable that CODA does not pay a dividend, which suggests that it may be reinvesting earnings back into the company to fuel growth and innovation—a strategy that could be particularly relevant given the recent order that could boost the company's performance.
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