The following is a summary of the Coda Octopus Group, Inc. (CODA) Q1 2024 Earnings Call Transcript:
Financial Performance:
Coda Octopus reported Q1 2024 total revenue of $4.5 million, a drop of 20.3% from Q1 2023, mainly due to supply chain issues and reduced orders.
Marine Technology and Marine Engineering business segments saw a reduction in revenue by 7.4% and 48.2%, respectively compared to Q1 2023.
Gross profit was at $3.1 million with a margin of 69.2%.
Total operating expenses marginally rose to $2.5 million from $2.4 million in Q1 2023 due to new staff hires and management expansion.
Operating income for Q1 2024 was $0.6 million, a 58.7% decrease compared to Q1 2023.
Pre-tax net income stood at $0.8 million, and post-tax net income at $0.6 million, or $0.06 per diluted share.
The firm ended the quarter with $25 million in cash, no debt, and working capital increased to $40 million.
Business Progress:
Despite a slight drop in the first quarter of 2024, Coda Octopus is optimistic for an improvement in revenue for FY 2024.
The Company is seeing increased order consumption in its UK engineering business and is making recovery progress in Marine Technology business.
The firm anticipates final funding of $1.25 million in Q2 for its DAVD untethered system customization program following promising feedback.
Coda is focusing on expanding the application of its Echoscope technology, bringing the engineering business to its pre-Covid revenue profile, and is looking to undertake potential mergers and acquisitions for growth in 2024.
More details: Coda Octopus Group IR
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