Coda Octopus reports Q3 EPS 11c vs. 9c last year

Reports Q3 revenue $5.5M vs. $4.9M last year. “Management continues to focus on growing the Company while continuing to demonstrate that we run a solid and profitable business year-on-year,” said Annmarie Gayle, CODA‘s Chairman and CEO. “In our TQ2024, order intake from US Defense Programs was down, as a result of funding gaps created by the upcoming Presidential election. It is not unusual during a Presidential election period that decisions on some programs are postponed until the outcome is decided. Notwithstanding, we were able to increase sales outside the US, and we believe that we have delivered a solid set of results in TQ2024 including increasing revenue, gross profit margin, income and earnings per share. Within the business model of our Marine Technology Business, we have outright sales of our technology and rentals with associated support services. In TQ2024 rentals and associated services increased for this segment and contributed to our gross margin for this segment increasing to 82.9% from 82.1% in TQ2023. We however continued to be affected by funding gaps on some of the US Defense Programs which we rely on and in the TQ2024 the Marine Technology Business sales from US were $0.7 million compared to $1.3 million and this has affected funding for ongoing programs such as the DAVD tethered system where commands are waiting for budget for new acquisitions and DAVD untethered system where anticipated funding has been delayed. The Engineering segment relies on Defense Programs for funding, and it also suffered from weak order intake in the TQ2024. Notwithstanding, this segment’s revenue in the TQ2024 increased by 19.8% along with its gross profit margins which increased from 50.0% in the TQ2023 to 62.6% in the TQ2024 as a result of the mix of its sales in the TQ2024. As we enter the final quarter of the fiscal year 2024, our priority continues to be making progress with our growth strategy to increase our efforts to have more penetration in the Defense market with our key technologies – Echoscope and DAVD technology – and to return our Engineering Business to a solid $10 million revenue profile”. We also continue our efforts to identify acquisition targets under our M&A Strategy with the goal of adding value accretive technologies and capabilities to our portfolio.”