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Coda Octopus Group, Inc. (ticker: CODA)
Coda Octopus Group, Inc. (ticker: CODA), a leading provider of underwater technology solutions, has reported a total revenue of $5.3 million for the quarter ended April 30, 2023. The revenue was generated from sales and rental of underwater technologies and equipment, as well as engineering services provided via sub-contracts.
Marine Technology Business
The Marine Technology Business, which includes the sale and rental of underwater technology sonar solutions, contributed $3.58 million to the total revenue. The revenue from the Marine Technology Business is derived from sales of stand-alone products, including hardware and software. The Company also offers subscription packages and rental of equipment.
The Services Business consists of providing engineering services primarily as sub-contractors to prime defense contractors. The Services Business contributed $1.72 million to the total revenue for the quarter ended April 30, 2023. Revenue from these contracts is recognized based on the percentage of completion method.
Geographical Revenue Breakdown
In terms of geographical revenue breakdown, the Company operates in four geographic locations: Americas, Europe, Australia/Asia, and Middle East/Africa. However, the financial report does not provide specific revenue figures for each region.
Segment Operating Income
The Company’s segment operating income, which is the total segment revenue reduced by operating expenses identifiable with each business segment, was $855,108 for the quarter ended April 30, 2023. The Marine Technology Business reported an operating income of $1.3 million, while the Services Business reported an operating income of $261,921. However, the overall operating income was offset by overhead expenses amounting to $708,494.
Inventory and Property and Equipment
Coda Octopus Group also disclosed information about its inventory and property and equipment. As of April 30, 2023, the Company’s inventory consisted of raw materials and parts worth $8.57 million, work in progress worth $366,485, and finished goods worth $2.30 million. The Company’s property and equipment, which includes buildings, land, office machinery and equipment, rental assets, and furniture, fixtures, and improvements, had a net value of $6.07 million.
Accounting Pronouncements and Changes
Furthermore, the financial report states that there have been no new accounting pronouncements or significant changes in accounting policies that would impact the Company’s consolidated financial statements.
Overall, Coda Octopus Group’s quarterly report showcases its strong performance in generating revenue from both the Marine Technology Business and the Services Business. The Company’s commitment to providing high-quality underwater technology solutions and engineering services has contributed to its success in the market. With a diverse range of offerings and a focus on customer satisfaction, Coda Octopus Group continues to be a leader in the industry.
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