Coda Octopus Group Inc (CODA)

[tiedyed1]

Coda Octopus Group Reports Fiscal 2017 Financial Results

http://www.nasdaq.com/symbol/coda/sec-filings

https://www.codaoctopusgroup.com/press-releases/detail/125/coda-octopus-group-reports-fiscal-2017-financial-results

CODA reported total revenue of approximately $18.025 million for the Current Year, compared to $21.118 million for the Prior Year ended October 31, 2016, a reduction of 14.6%. The Company reported net income of approximately $3.339 million for the Current Year, compared to $4.930 million for the Prior Year, a reduction of 32.3%. Net Income as a percentage of revenues was 18.5%, versus 23.3% during the Prior Year. Operating expenses for the Current Year were $8.150 million compared to $7.114 million for the Prior Year, an increase of 14.6%, attributed to an increase in R&D of $367,256 and an increase in Selling, General and Administrative (SG&A) expenditures of $668,100 reflecting costs associated with becoming a reporting company and listing on NASDAQ.

EPS .37 (.36 diluted). Although notably lower than prior year, based on this following statement anticipating notable growth, the current PE of 16 still may be low, or at least very reasonable. (Will see what markets think tomorrow!)

Annmarie Gayle, CODA’s Chairman and CEO commented: “Our business plan called for fiscal 2017 to be a year of investment in our technological advancement. We invested heavily in R&D to position the Company for breakout growth in capturing a greater share of the multibillion-dollar markets for our products and services, and developing new markets across all our offerings in fiscal 2018-2019. Having completed our turnaround and established the past five years of consistent growth and profit, our fiscal 2017 results reflect this strategic investment in the future. Our products business performed very well but, regrettably due to the U.S. defense budgets not being adopted, our engineering businesses did not receive some of the key contracts that we had anticipated. Our engineers across both businesses have done a tremendous job, accomplishing new technical breakthroughs that position the Group well for our springboard stage of growth, one we are very excited about.”