Coda Octopus Group Reports Fiscal 2020 Second Quarter and First Half Year Financial Results

ORLANDO, FL, June 15, 2020 (GLOBE NEWSWIRE) -- Coda Octopus Group, Inc. (CODA) (Nasdaq: CODA) today reported its unaudited financial results for its fiscal second quarter ended April 30, 2020 and the first half of the 2020 fiscal year.

Annmarie Gayle, CODA’s Chairman and CEO commented: “Although in the fiscal second quarter our business operations, and those of many of our customers, were severely curtailed due to the unprecedented global health, economic, and containment challenges brought about by the coronavirus pandemic, we have managed to limit our losses while, at the same time, conserving cash. We have also progressed a number of our defense projects which are key for our growth prospects. These include Phase II development of the Diver Augmented Vision Display (DAVD) system and the first delivery of small-batch production quantities of the Thermite Octal in a Foreign Airforce program, both of which I will expand on after the financial discussion.”

Coda Octopus Group reported total revenue of approximately $3.289 million for the quarter ended April 30, 2020, compared to $6.783 million for the comparable period of the prior fiscal year, a decrease of 52%. The Company reported net loss before taxes of approximately $340,204 for the second quarter ended April 30, 2020, or $(0.03) per share of earnings, compared to a net income of $2.285 million, or $0.21 per share, for the comparable period of 2019. Net loss after taxes was $265,080 for the second quarter ended April 30, 2020, or $(0.02) per share, compared to a net income of $1.973 million, or $0.18 per share, in the prior year comparable period. Net loss before tax as a percentage of revenues in the second quarter was 10%. Research and Development expenditures for the second quarter were $713,641, a decrease of 4.2%, compared to $745,227, for the comparable period of 2019. Selling, General & Administrative Expenses (SG&A) for the second quarter were $1.533 million, compared to $1.697 million for the comparable period last year, a decrease of 9.6%.

Our first half fiscal results have been affected by the global pandemic’s curtailment of our and our customers’ businesses during the second quarter. Coda Octopus Group reported total revenue of approximately $9.970 million for the six months ended April 30, 2020, compared to $12.542 million for the comparable period of the prior fiscal year, a decrease of 20.5%. The Company reported net income before taxes of approximately $1.108 million for the six months ended April 30, 2020, or $0.10 per share of earnings, compared to a net income of $3.635 or $0.34 per share, for the comparable prior year period. Net income after taxes was $1.082 million for the six months ended April 30, 2020, or $0.10 per share, compared to a net income of $3.213 million, or $0.30 per share, in the comparable period. Net income before tax as a percentage of revenues for the six months ended April 30, 2020 was 11.1%. Research and Development expenditures for the six months ended April 30, 2020 were $1,641,906, an increase of 24.71%, compared to $1,316,553, for the comparable period of 2019. The increase is in line with the Company’s budgetary plans and reflects the investments undertaken to advance CODA’s products and the development costs associated with the successful prototyping of the DAVD system, under the terms of the project’s Cooperative Research and Development Agreement (CRADA). SG&A for the six months ended April 30, 2020 were $3.425 million compared to $3.316 million for the comparable period in the last fiscal year, an increase of 3.3%.