Despite this, our Engineering Business segment has made some encouraging operational progress. The
Commenting on the state of the Marine Industry,
First Quarter 2024 (FQ2024) Financial Summary
The numbers below have been rounded to one decimal point. The full FQ2024 financials can be found in CODA’s Form 10-Q filed with the
- Total revenue was approximately
$4.5 million compared to$5.6 million in FQ2023, representing a reduction of 20.3%. - Revenues from the Marine Technology Business (Products) were
$3.5 million compared to$3.8 million in FQ2023, a 7.4% decrease. - Revenues from the Marine Engineering Business (Services) were
$0.9 million compared to$1.8 million in FQ2023, a 48.2% decrease. - Gross profit was
$3.1 million compared to$3.8 million in FQ2023. Gross margin was 69.2% compared to 67.1% in FQ2023. This is largely attributable to changes in the mix of sales and lower commission costs incurred in FQ2024 when compared to FQ2023. - Operating income was
$0.6 million in FQ2024 compared to$1.3 million in FQ2023, a reduction of 58.7%. Operating margin was 12.4% compared to 24.1% in FQ2023, resulting from the reduction in revenues in the FQ2024. - Net income before taxes was approximately
$0.8 million in FQ2024 compared to$1.4 million in FQ2023, representing a reduction of 42.5%. Net income after taxes was$0.6 million in FQ2024 compared to$1.4 million in FQ2023, a reduction of 54.9%. - Diluted earnings per share was
$0.06 in FQ2024 compared to$0.12 in FQ2023. - Net income before tax as a percentage of revenues for FQ2024 was approximately 17.6% compared to 24.3% in FQ2023. Research and Development expenditures for FQ2024 were approximately
$0.5 million , an increase of 9.3%, compared to approximately$0.4 million in FQ2023. SG&A in FQ2024 was approximately$2.0 million , an increase of 4.2% over approximately$2.0 million in FQ2023. - We also continued to strengthen our balance sheet, with a cash balance of
$25.0 million at the end of FQ2024. This represents an increase of$0.6 million over FY2023, where the comparable figure was$24.4 million .
FQ2024 Operational Summary:
In FQ2024, we continued to prioritize investing in our growth strategy. This saw us continue to make progress against our key growth drivers:
- As discussed earlier, we saw increased traction for our Echoscope rental solutions.
- We also made good progress in advancing the DAVD Untethered System customization and hardening program and received overridingly positive feedback on the system and its potential. We are on track to receive the final tranche of funding of
$1.25m in our second quarter. - Following a survey by the
Navy of the users of DAVD Tethered Systems, we received broader positive feedback from the various current users who cited the Echoscope as “game-changing for their operations”. Furthermore, three newNavy user groups have requested DAVD systems and the Echoscope as part of their operations; and existing commands have also put in requests for additional systems. - We also had our first sale of the DAVD tethered system outside of the
US Navy to a large Asian Offshore Service Provider, which is involved in underwater construction and diving. - We continue to work globally with several Offshore Service Providers on their plans for adopting the DAVD. Some of these are waiting for internal management decisions on funding.
- We had a successful series of demonstrations of our Echoscope, DAVD technology and Digital Audio Communications System to several governmental bodies in
Texas including fire departments, theDepartment of Transportation , and other law enforcement agencies. We are working on progressing their interest in our solutions which we demonstrated. - We are continuing to work with
Naval Information Warfare Center (NIWC) as they advance the selection of their sensor package for the VideoRay Defender, and we have provided proposals for accessing the technology for extended operational trials scheduled forApril 2024 . In addition, we continue to work with a foreignNavy on integrating our Echoscope technology on the Videoray Defender which they have also adopted. - The safety and electrical assessment of our Digital Audio Communications System, Voice Hub-4, has now been completed by the
Navy , and they are expected to start trials in April. - Our Engineering Business is making progress in key areas. We are pursuing two significant opportunities for our Thermite® Octal mission computers for two new applications, and we are now awaiting the completion of these negotiations. The relevant trials with our Thermite® Octal were completed pre-COVID, but these programs had stalled due to the pandemic. We are pleased that they are now advancing. This Business segment has also received small batch orders for two new Defense Programs of record that are likely to go into the Production Phase in this fiscal year.
- Our
UK Engineering Business is also seeing an uptick in its order take and has received orders for two new programs relating to autonomous mine hunting vehicles and a new line of military land vehicles. We therefore believe the results of the Engineering Business will improve in Fiscal 2024.”
The Company’s full financial results, including its Quarterly Report for the First Quarter of 2024, are available at www.nasdaq.com/symbol/coda/sec-filings.
Conference Call
CODA will host a conference call today,
CODA management will provide prepared remarks, followed by a question-and-answer period.
Date:
Time:
International number: 1-201-389-0879
Conference ID: 13744838
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 contact the Company’s investor relations team at 1-949-574-3860.
A replay of the call will be available after
Toll-free replay number: 1-844-512-2921
International replay number: 1-412-317-6671
Conference ID: 13744838
About
The Company, founded in 1994, is an established supplier to the Underwater/
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 also includes two discrete Defense engineering businesses
For further information, please visit http://www.codaoctopusgroup.com or contact us at coda@codaoctopusgroup.com.
Forward Looking Statement
This press release contains forward-looking statements concerning
Contact:
1-949-574-3860
CODA@gateway-grp.com
Consolidated Balance Sheets
2024 | 2023 | |||||||
Unaudited | ||||||||
ASSETS | ||||||||
CURRENT ASSETS | ||||||||
Cash and Cash Equivalents | $ | 25,003,984 | $ | 24,448,841 | ||||
Accounts Receivable | 3,030,988 | 2,643,461 | ||||||
Inventory | 12,768,672 | 11,685,525 | ||||||
Unbilled Receivables | 763,123 | 894,251 | ||||||
Prepaid Expenses | 392,591 | 181,383 | ||||||
Other Current Assets | 813,586 | 1,034,626 | ||||||
Total Current Assets | 42,772,944 | 40,888,087 | ||||||
FIXED ASSETS | ||||||||
Property and Equipment, net | 6,340,113 | 6,873,320 | ||||||
OTHER ASSETS | ||||||||
3,382,108 | 3,382,108 | |||||||
Intangible Assets, net | 496,195 | 486,615 | ||||||
Deferred Tax Asset | 21,582 | 211,386 | ||||||
Total Other Assets | 3,899,885 | 4,080,109 | ||||||
Total Assets | $ | 53,012,942 | $ | 51,841,516 |
Consolidated Balance Sheets (Continued)
2024 | 2023 | |||||||
Unaudited | ||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
CURRENT LIABILITIES | ||||||||
Accounts Payable | $ | 1,110,284 | $ | 1,308,201 | ||||
Accrued Expenses and Other Current Liabilities | 855,977 | 995,630 | ||||||
Deferred Revenue | 786,466 | 975,537 | ||||||
Total Current Liabilities | 2,752,727 | 3,279,368 | ||||||
LONG TERM LIABILITIES | ||||||||
Deferred Revenue, less current portion | 110,538 | 133,382 | ||||||
Total Liabilities | 2,863,265 | 3,412,750 | ||||||
Commitments and contingencies | ||||||||
STOCKHOLDERS’ EQUITY | ||||||||
Common Stock, | | | 11,165 | | | | 11,118 | |
Treasury Stock | (61,933 | ) | (46,300 | ) | ||||
63,036,013 | 62,958,984 | |||||||
Accumulated Other Comprehensive Loss | (2,412,969 | ) | (3,442,549 | ) | ||||
Accumulated Deficit | (10,422,599 | ) | (11,052,487 | ) | ||||
Total Stockholders’ Equity | 50,149,677 | 48,428,766 | ||||||
Total Liabilities and Stockholders’ Equity | $ | 53,012,942 | $ | 51,841,516 |
Consolidated Statements of Income and Comprehensive Income
(Unaudited)
Three Months Ended | ||||||||
2024 | 2023 | |||||||
Net Revenues | $ | 4,461,191 | $ | 5,596,284 | ||||
Cost of Revenues | 1,374,455 | 1,843,279 | ||||||
Gross Profit | 3,086,736 | 3,753,005 | ||||||
OPERATING EXPENSES | ||||||||
Research & Development | 485,977 | 444,458 | ||||||
Selling, General & Administrative | 2,045,375 | 1,962,451 | ||||||
Total Operating Expenses | 2,531,352 | 2,406,909 | ||||||
INCOME FROM OPERATIONS | 555,384 | 1,346,096 | ||||||
OTHER INCOME (EXPENSE) | ||||||||
Other Income | 35,020 | 2,904 | ||||||
Interest Income | 192,540 | 12,861 | ||||||
Total Other Income | 227,560 | 15,765 | ||||||
INCOME BEFORE INCOME TAX EXPENSE | 782,944 | 1,361,861 | ||||||
INCOME TAX (EXPENSE) BENEFIT | ||||||||
Current Tax Benefit (Expense) | 34,015 | (11 | ) | |||||
Deferred Tax (Expense) Benefit | (187,071 | ) | 36,007 | |||||
Total Income Tax (Expense) Benefit | (153,056 | ) | 35,996 | |||||
NET INCOME | $ | 629,888 | $ | 1,397,857 | ||||
NET INCOME PER SHARE: | ||||||||
Basic | $ | 0.06 | $ | 0.13 | ||||
Diluted | $ | 0.06 | $ | 0.12 | ||||
WEIGHTED AVERAGE SHARES: | ||||||||
Basic | 11,125,061 | 10,946,683 | ||||||
Diluted | 11,264,478 | 11,379,356 | ||||||
NET INCOME | $ | 629,888 | $ | 1,397,857 | ||||
Foreign Currency Translation Adjustment | 1,029,580 | 1,607,650 | ||||||
Total Other Comprehensive Income | $ | 1,029,580 | $ | 1,607,650 | ||||
COMPREHENSIVE INCOME | $ | 1,659,468 | $ | 3,005,507 |
Consolidated Statements of Changes in Stockholders’ Equity
For the Three Months Ended
Additional | Other | |||||||||||||||||||||||||||
Common Stock | Paid-in | Comprehensive | Accumulated | |||||||||||||||||||||||||
Shares | Amount | Capital | Income (Loss) | Deficit | Stock | Total | ||||||||||||||||||||||
Balance, | 10,916,853 | $ | 10,918 | $ | 62,313,988 | $ | (4,737,124 | ) | $ | (14,176,636 | ) | $ | (28,337 | ) | $ | 43,382,809 | ||||||||||||
Employee stock-based compensation | - | - | 182,153 | - | - | - | 182,153 | |||||||||||||||||||||
Stock issued for options exercised and stock grants | 25,500 | 25 | (25 | ) | - | - | - | - | ||||||||||||||||||||
Foreign currency translation adjustment | - | - | - | 1,607,650 | - | - | 1,607,650 | |||||||||||||||||||||
Net Income | - | - | - | - | 1,397,857 | - | 1,397,857 | |||||||||||||||||||||
Balance, | 10,942,353 | $ | 10,943 | $ | 62,496,116 | $ | (3,129,474 | ) | $ | (12,778,779 | ) | $ | (28,337 | ) | $ | 46,570,469 | ||||||||||||
Balance, | 11,117,695 | $ | 11,118 | $ | 62,958,984 | $ | (3,442,549 | ) | $ | (11,052,487 | ) | $ | (46,300 | ) | $ | 48,428,766 | ||||||||||||
Employee stock-based compensation | - | - | 77,076 | - | - | - | 77,076 | |||||||||||||||||||||
Stock issued for options exercised and stock grants | 46,788 | 47 | (47 | ) | - | - | - | - | ||||||||||||||||||||
Treasury Stock | - | - | - | - | - | (15,633 | ) | (15,633 | ) | |||||||||||||||||||
Foreign currency translation adjustment | - | - | - | 1,029,580 | - | - | 1,029,580 | |||||||||||||||||||||
Net Income | - | - | - | - | 629,888 | 629,888 | ||||||||||||||||||||||
Balance, | 11,164,483 | $ | 11,165 | $ | 63,036,013 | $ | (2,412,969 | ) | $ | (10,422,599 | ) | $ | (61,933 | ) | $ | 50,149,677 | ||||||||||||
Consolidated Statements of Cash Flows
Three Months Ended | ||||||||
2024 | 2023 | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||
Net income | $ | 629,888 | $ | 1,397,857 | ||||
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | ||||||||
Depreciation of property, plant and equipment | 173,292 | 148,565 | ||||||
Amortization of intangible assets | 17,246 | 15,442 | ||||||
Stock-based compensation | 77,076 | 182,153 | ||||||
Deferred income taxes | 187,071 | (36,007 | ) | |||||
Gain on sale of asset | (30,244 | ) | - | |||||
(Increase) decrease in operating assets: | ||||||||
Accounts receivable | (337,120 | ) | (161,980 | ) | ||||
Inventory | (556,975 | ) | (602,467 | ) | ||||
Unbilled receivables | 134,697 | (37,958 | ) | |||||
Prepaid expenses | (207,389 | ) | (128,140 | ) | ||||
Other current assets | (135,850 | ) | (84,586 | ) | ||||
Increase (decrease) in operating liabilities: | ||||||||
Accounts payable and other current liabilities | (17,505 | ) | 446,526 | |||||
Deferred revenue | (232,146 | ) | (154,519 | ) | ||||
(297,959 | ) | 984,886 | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||
Purchases of property and equipment | (135,651 | ) | (84,422 | ) | ||||
Purchases of other intangible assets | (26,825 | ) | (21,485 | ) | ||||
Proceeds from the sale of property and equipment | 771,807 | - | ||||||
609,331 | (105,907 | ) | ||||||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||
Purchase of treasury stock | (15,633 | ) | - | |||||
(15,633 | ) | - | ||||||
EFFECT OF CURRENCY TRANSLATION ON CHANGES IN CASH AND CASH EQUIVALENTS | 259,404 | 716,033 | ||||||
NET INCREASE IN CASH AND CASH EQUIVALENTS | 555,143 | 1,595,012 | ||||||
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD | 24,448,841 | 22,927,371 | ||||||
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD | $ | 25,003,984 | $ | 24,522,383 | ||||
SUPPLEMENTAL CASH FLOW INFORMATION | ||||||||
Cash paid for taxes | $ | 74,118 | $ | - |
Source:
2024 GlobeNewswire, Inc., source