Coda Octopus Group Announces Increase in Scope of Supply Under Key Defense Program, Resulting in Increased Order Value
News provided byCoda Octopus Group, Inc.
Sep 18, 2023, 6:00 AM ET
ORLANDO, FL, Sept. 18, 2023 (GLOBE NEWSWIRE) -- Coda Octopus Group, Inc. (“CODA” or the “Company”) (Nasdaq: CODA), a global market leader in real-time 3D/4D/5D and 6D imaging sonar technology for real-time subsea intelligence and diving technology, is reporting an increase in purchase contract value under one of its subsidiary’s longstanding key Defense Programs.
CODA reported that in September 2023, its subsidiary, Coda Octopus Colmek, Inc (which forms part of its engineering services business), received orders for approximately $1m for the production of proprietary sub-assemblies and support relating to one of its longstanding Defense Programs. The Company also reported that it has now received a total of $2.9m in orders from this Program alone in fiscal year 2023.
Coda Octopus Colmek specializes in the design, manufacturing and long-term support of software and firmware for defense applications and has been a supplier to this Program for over 20 years, with a focus on servicing key systems and modernization needs. In the current fiscal year, the Company has increased its scope of supply under this Program and continues to strengthen its long-term relationship with the Prime Defense contractor, who is the lead for this Program.
Kevin Kane, Coda Octopus Colmek’s CEO, said: “We have a strong record of performance on these longstanding programs – some of which extend over 40 years. I am very pleased that we have broadened our scope of supply under this Program, resulting in increased purchase orders in fiscal 2023. Additionally, due to ongoing industry-wide supply chain and obsolescence issues, we see increased opportunities to grow our scope under this and our other longstanding programs. We believe these new opportunities would enable us to grow our footprint in these programs and drive greater benefits for our business.”
About Coda Octopus Group, Inc.
The Company, founded in 1994, innovates, develops, manufactures and markets subsea products (hardware and software) and solutions including its flagship real-time 3D, 4D, 5D and 6D underwater imaging sonar technology, marketed under the name “Echoscope®” and Echoscope PIPE® and its recently launched Diver Augmented Vision Display system (“CodaOctopus® DAVD”). Our Echoscope PIPE® sonar generates real-time 3D, 4D, 5D and 6D imaging data for inspection, mapping, and real time 3D monitoring underwater in zero visibility water conditions and is used globally for numerous applications including the commercial and defense underwater markets. Applications for the Echoscope® technology include complex mapping underwater, subsea intervention, subsea asset placements, offshore renewables cable installations and surveys, marine construction, subsea infrastructure installation, mining applications, robotics (3D Perception and Depth), breakwater construction and monitoring, decommissioning, diving applications and port and harbor security.
The recently launched new generation of diving technology, DAVD, is expected 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. In addition to the Marine Technology Business, the Company has two Defense engineering businesses (Coda Octopus Martech Ltd (UK based) and Coda Octopus Colmek, Inc. (US based) whose primary business model is to supply sub-assemblies into broader mission critical programs in the capacity of sub-contractors to the Prime Defense Contractors. Our scope of supply under these programs typically includes concept, design, prototype, manufacturing, and post-sale support. This gives them the opportunity to have repeat orders for these sub-assemblies through the life of the program.
Forward Looking Statement
This press release contains forward-looking statements concerning Coda Octopus Group, Inc. within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. When used in this document, the words “may”, “would”, “could”, “will”, “intend”, “plan”, “anticipate”, “believe”, “estimate”, “expect” and similar expressions are intended to identify forward‐looking statements. Those forward-looking statements include, without limitation, statements regarding the Company's expectations for the growth of the Company's operations and revenue. Such statements are subject to certain risks and uncertainties, and actual circumstances, events or results may differ materially from those projected in such forward-looking statements. Factors that could cause or contribute to differences include, but are not limited to, restrictions on our business operations due to the Pandemic, customer demand for our products and market prices; the outcome of our ongoing research and development efforts relating to our products including our patented real time 3D solutions; our ability to develop the sales force required to achieve our development and other examples of forward looking statement set forth in our Annual Report on Form 10-K for the year ended October 31, 2022, filed with the Securities and Exchange Commission on January 30, 2023, and the Company’s subsequently filed Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. Coda Octopus Group, Inc. does not undertake, and specifically disclaims any obligation to update or revise such statements to reflect new circumstances or unanticipated events as they occur.
Cody Slach or Jackie Keshner
Gateway Group, Inc.
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