Coda Octopus Group, Inc. reported its unaudited financial results for the fiscal first quarter ended January 31, 2025, with total revenue increasing 16.8% to $5.2 million compared to $4.5 million in FQ2024. The newly acquired Acoustic Sensors and Material segment, Precision Acoustics Limited, contributed $1.3 million, representing 25.2% of consolidated revenue.
Despite overall revenue growth, the core Marine Technology Business experienced a 35.8% decrease in product revenues to $2.3 million, attributed to international headwinds and the U.S. Administration's suspension of offshore renewable permits. However, the Services segment saw a 76.6% increase in revenue to $1.6 million.
Gross margin for the quarter was 65.8%, a decrease from 69.2% in FQ2024, primarily due to changes in the sales mix between segments. Operating income increased 19.2% to $0.7 million, and net income after taxes rose 44.9% to $0.91 million, resulting in diluted earnings per share of $0.08.
A pivotal milestone was reached with the first order for approximately $800,000 for 16 DAVD untethered systems (DUS). These systems are slated for integration into the MK16 Underwater Breathing Apparatus (UBA) for SPECWAR and EOD applications, and for pre-adoption within the untethered diving naval community.
Management noted that the DUS represents a significant market opportunity, with 75% of the U.S. Navy's 4,000 active divers and an estimated 10,000 Public Safety and Law Enforcement divers using compatible full-face mask untethered systems. The company also observed increased defense spending commitments in Europe, which are expected to benefit the business in the medium to long term, potentially offsetting short-term disruptions from U.S. policy changes.
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