Coda Octopus Group Reports Fiscal 2022 Second Quarter and six-Month Period Financial Results

About this update from Coda Octopus Group, Inc.

[{"type":"text","content":"ORLANDO, FL, June 14, 2022 (GLOBE NEWSWIRE) -- Coda Octopus Group, Inc. (CODA) (Nasdaq: CODA) today reported its unaudited financial results for its second quarter ended April 30, 2022 (“SQ2022”) and the six months then ended (“YTD 2022”). Annmarie Gayle, CODA’s Chairman and CEO, commented: “Our financial results for the SQ2022 were not in-line with our internal Management Business Plan for the period or published Management Revenue Targets (See Form 8-K filed with the SEC on October 4, 2021) and were down over the comparable period last year (“SQ2021”). One of our key performance measures for our business is the level of proposals submitted to prospective customers for orders in the period. In the reporting period, our level of proposals submitted to customers has increased over the comparable SQ2021. We are therefore disappointed that the conversion of these opportunities into firm sales has been slower than anticipated in the SQ2022 period. We believe that some of the factors which are slowing down the placement of orders by our customers, particularly for our Services Business, relate to uncertainties arising from the supply chain where there is significant scarcity of components and raw materials in conjunction with sharp price increases. This results in multiple iterations of the same proposals, resulting in delay in the placement of these orders. In addition, we believe that the Pandemic has caused delays in receiving orders from Europe which has resulted in a sharp fall in revenues generated from Europe in the SQ2022 period compared to the SQ2021. Further details can be found in our Form 10-Q for the SQ2022 period. Key milestones included in our internal Business Plan for the SQ2022 period included the roll out of our newly launched Diver Augmented Vision Display (“DAVD”) to other divisions of US Navy, foreign navies and the commercial diving companies in FQ2022. Even though expected timing for these opportunities has moved out, we are still anticipating adoption of the DAVD from foreign navies and commercial diving companies in this fiscal year. Furthermore, we have secured customization funding from a new command in the US Department of Defense and anticipate completing the required workscope and delivering systems under this project within this fiscal year. This new command is by far the biggest opportunity for the DA...

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