Coda Octopus Group, Inc. ("CODA" or the "Company") (Nasdaq: CODA), a global leader in 4D/5D/6D imaging sonar technology and acoustic sensors for real-time subsea intelligence, has announced that its Salt Lake City-based Defense Engineering Services Business, Coda Octopus Colmek, has received two significant orders from the U.S. Government. These orders, totaling $1.3 million, involve the supply of proprietary parts that will be used as sub-components in a larger, mission-critical defense program.
Coda Octopus Colmek has been a trusted supplier and partner to the Department of Defense (DoD) for over 25 years. The recent orders mark an important development for the company, as they have been contracted directly with CODA, rather than through the prime contractor. This shift opens the door for more direct contract opportunities in the future.
Annmarie Gayle, Chairman and CEO of CODA, commented, “We are very pleased to see some of the delays that we have been experiencing under U.S. Defense Programs since fiscal year 2024 gradually easing. These two orders are important as they have been contracted directly with the Company and not via the Prime contractor and therefore opens the possibility of increased direct contract opportunities. The Engineering Business is an important part of our Group, and we continue to execute against our strategy to restore this Business to its pre-COVID $10m revenue profile. These orders, in conjunction with increasing the number of programs that it supplies proprietary sub-components to and increasing the number of funded programs for its tactical mission computers, Thermite®, is a step in the right direction.”
These new orders come as part of CODA’s ongoing strategy to grow its defense engineering services division, specifically focusing on enhancing its revenue profile and expanding its portfolio of mission-critical products. The company continues to execute on its goal of restoring this segment to its pre-COVID revenue levels while increasing the number of programs it supports with its proprietary sub-components and tactical mission computer systems like Thermite®.
The announcement of this $1.3 million order reflects the continued growth and resilience of Coda Octopus Colmek in the highly competitive and mission-critical defense sector.
