Coda Octopus Group Inc (CODA) 2026 Q1 法說會逐字稿

Good morning, and welcome to Coda Octopus Group's first-quarter fiscal 2026 earnings conference call. My name is Melissa, and I will be your operator today. Before this call, Coda Octopus issued its financial results for its first quarter ended January 31, 2026, including a press release, a copy of which will be furnished in a report filed with the SEC and will be available in the Investor Relations section of the company's website.

早上好，歡迎參加 Coda Octopus Group 2026 財年第一季財報電話會議。我叫梅麗莎，今天由我來為您接聽電話。在本次電話會議之前，Coda Octopus 發布了截至 2026 年 1 月 31 日的第一季財務業績，包括一份新聞稿，該新聞稿的副本將包含在提交給美國證券交易委員會的報告中，並可在公司網站的投資者關係部分查閱。

Joining us on today's call from Coda Octopus are its Chair and CEO, Annmarie Gayle; its Interim CFO, Gayle Jardine; its President of Technology, Blair Cunningham; and Dillon King from their Investor Relations team. Following their remarks, we will open the call for questions. Before we begin, Dillon King from the company's internal Investor Relations team will make a brief introductory statement. Dillon, please go ahead.

今天參加 Coda Octopus 電話會議的有：董事長兼執行長 Annmarie Gayle；臨時財務長 Gayle Jardine；技術總裁 Blair Cunningham；以及投資者關係團隊的 Dillon King。在他們發言結束後，我們將開放提問環節。在正式開始之前，公司內部投資者關係團隊的 Dillon King 將作簡短的介紹性演講。迪倫，請繼續。

Thank you, operator. Good morning, everyone, and welcome to Coda Octopus' first-quarter fiscal 2026 earnings conference call.

謝謝接線生。各位早安，歡迎參加 Coda Octopus 2026 財年第一季財報電話會議。

Before management begins their formal remarks, we'd like to remind everyone that some statements we're making today may be considered forward-looking statements under securities law and involve a number of risks and uncertainties. As a result, we caution you that there are a number of factors, many of which are beyond our control, that could cause actual results or events to differ materially from those described in the forward-looking statements. For more detailed risks, uncertainties and assumptions relating to our forward-looking statements, please see the disclosures in our earnings release and public filings made with the Securities and Exchange Commission.

在管理階層開始正式發言之前，我們想提醒大家，我們今天所作的一些陳述可能被視為證券法意義上的前瞻性陳述，並涉及許多風險和不確定性。因此，我們提醒您，有許多因素（其中許​​多因素是我們無法控制的）可能導致實際結果或事件與前瞻性聲明中所述的結果或事件有重大差異。有關我們前瞻性聲明的更詳細的風險、不確定性和假設，請參閱我們的獲利報告和向美國證券交易委員會提交的公開文件中的揭露資訊。

We disclaim any obligation are undertaken to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made, except as may be required by law. We refer you to our filings with the Securities and Exchange Commission for detailed disclosures and descriptions of our business as well as uncertainties and other variable circumstances, including, but not limited to, risks and uncertainties identified in our Form 10-K for the year ended October 31, 2025, and Form 10-Q for the first quarter of our fiscal year 2026. You may get Coda Octopus' Securities and Exchange Commission filings free by visiting the SEC website, www.sec.gov.

除法律另有規定外，我們不承擔任何義務更新前瞻性陳述以反映前瞻性陳述發布之日後發生的情況或事件。有關我們業務的詳細揭露和描述，以及不確定性和其他可變情況，包括但不限於截至 2025 年 10 月 31 日止年度的 10-K 表格和 2026 財年第一季的 10-Q 表格中確定的風險和不確定性，請參閱我們向美國證券交易委員會提交的文件。您可以造訪美國證券交易委員會網站 www.sec.gov 免費取得 Coda Octopus 向美國證券交易委員會提交的文件。

I would also like to remind everyone that this call is being recorded and will be made available for replay via a link in the Investor Relations section of Coda Octopus' website. Finally, as a reminder, this is our first quarter fiscal 2026 reporting, and all comparisons, unless explicitly stated otherwise, are with our first quarter fiscal 2025.

我還要提醒大家，本次電話會議正在錄音，錄音將透過 Coda Octopus 網站投資者關係部分的連結提供回放。最後提醒大家，這是我們 2026 財年第一季的報告，除非另有明確說明，所有比較均與 2025 財年第一季進行比較。

Now I will turn the call over to the company's Chair and CEO, Annmarie Gayle.

現在我將把電話交給公司董事長兼執行長安瑪莉‧蓋爾。

Thanks, Dillon, and good morning, everyone. Thank you for joining us for our first quarter fiscal year 2026 earnings call.

謝謝你，迪倫，大家早安。感謝您參加我們2026財年第一季財報電話會議。

Despite the challenging global policy environment, our revenue in the first quarter 2026 increased by 28.8% and I believe that we have delivered a solid set of results. For those who are new to the Coda Octopus story, our business is made up of three discrete business operations: the Marine Technology Business, the Defense Engineering Services Business and our Acoustics Sensors and Materials Business units.

儘管全球政策環境充滿挑戰，但我們2026年第一季的營收成長了28.8%，我相信我們已經取得了一系列穩健的業績。對於那些還不了解 Coda Octopus 的人來說，我們的業務由三個獨立的業務部門組成：海洋技術業務、國防工程服務業務以及聲學感測器和材料業務部門。

Within our group, our core business is the Marine Technology Business. This business generates most of our revenue. And in the first quarter 2026, it generated 50% of our consolidated net revenue. It is around this business that we're building our growth strategy.

在我們集團內部，核心業務是海洋技術業務。這項業務為我們帶來了大部分收入。2026 年第一季度，它貢獻了我們合併淨收入的 50%。我們正是圍繞這項業務建立我們的成長策略。

The Marine Technology Business operates in the subsea market and is home to key disruptive underwater technologies. These technologies are bringing the smartphone revolution underwater by providing a comprehensive real-time information platform, which provides vision underwater and allows our customers to make real-time decisions. This technology is a key enabler for the AI-enabled autonomous capability required by the subsea market as it provides real-time 3D perception, enabling these autonomous systems to perceive, navigate and make decisions independently underwater. This technology reduces the cost of these operations and increases safety.

海洋技術業務在海底市場運營，並擁有關鍵的顛覆性水下技術。這些技術透過提供全面的即時資訊平台，將智慧型手機革命帶到了水下，該平台能夠提供水下視覺，並允許我們的客戶做出即時決策。這項技術是水下市場所需的人工智慧自主能力的關鍵推動因素，因為它提供了即時 3D 感知，使這些自主系統能夠在水下獨立感知、導航和做出決策。這項技術降低了這些手術的成本，並提高了安全性。

The specific addressable markets that we operate in are the imaging sonar market and diving market. It is these market segments that our growth strategy is built around.

我們營運的具體目標市場是成像聲吶市場和潛水市場。我們的成長策略正是圍繞這些細分市場所建構的。

Turning to our imaging sonar, the Echoscope. The Echoscope is a real-time, 3-dimensional volumetric imaging sonar that can generate real-time 3-dimensional images on the water in zero visibility water conditions. This is widely used in the commercial offshore marine market for a range of underwater applications. A significant part of our annual revenue is derived from the commercial offshore marine market.

接下來我們來看看成像聲吶，迴聲儀。Echoscope 是一款即時三維體積成像聲吶，即使在能見度為零的水域條件下，也能在水面上產生即時三維影像。這種技術廣泛應用於商業海上市場的各種水下應用領域。我們年度收入的很大一部分來自商業海上船舶市場。

To achieve the growth that shareholders want to see from our company, we have to increase our market share for underwater imaging sensors in the defense space. There are many ongoing defense programs globally where new classes of underwater vehicles are being adopted. Significant budgets are appropriated for this. The Echoscope's uniqueness of being a single sensor for multiple undersea activities presents a significant advantage over other technologies. It allows the consolidation of multiple sensors into a single power-efficient unit without compromising the various missions to be executed. We recently launched our next generation of ultra-small form 3-dimensional sonars, the NANO Gen Series, which expands the swift of the imaging sonar market we can address, large and small payloads.

為了實現股東希望看到的公司成長，我們必須提高我們在國防領域水下成像感測器的市場份額。目前全球有許多國防項目正在採用新型水下航行器。為此撥出了相當可觀的預算。Echoscope 的獨特之處在於，它只需一個感測器即可進行多種水下活動，這使其比其他技術具有顯著優勢。它可以將多個感測器整合到一個節能單元中，而不會影響要執行的各種任務。我們最近推出了下一代超小型三維聲吶——NANO Gen 系列，這擴大了我們能夠服務的成像聲吶市場範圍，無論有效載荷大小。

Our second key technology is for DAVD, the Diver Augmented Vision Display system. The DAVD provides a real-time information platform for diving operations, increasing safety and efficiency. The addressable market for the DAVD technology includes both the defense and commercial diving sectors.

我們的第二個關鍵技術是用於 DAVD，即潛水員增強視覺顯示系統。DAVD 為潛水作業提供即時資訊平台，提高安全性和效率。DAVD技術的目標市場包括國防和商業潛水領域。

The untethered DAVD variant addresses the special forces type of divers, and we believe constitutes the largest addressable market for the technology. This variant is now going through approved Navy Use Assessment, and we are hopeful that this will be concluded in our second quarter 2026. Once approved, this paves the way for broader adoption of the DAVD technology by the military diving market.

無線 DAVD 型號主要針對特種部隊潛水員，我們認為這是該技術最大的潛在市場。該型號目前正在接受海軍批准的使用評估，我們希望能在 2026 年第二季完成評估。一旦獲得批准，這將為軍用潛水市場更廣泛地採用 DAVD 技術鋪平道路。

Now turning to first quarter 2026 highlights relating to our core business, the Marine Technology Business. This business sells its products and solutions worldwide, and increased revenue in the first quarter 2026 by 47.4%. Key highlights include hardware sales increased by 31% and were $2.3 million, compared to $1.7 million in the first quarter 2025, with a strong focus on Echoscope sales from the Asia region. Rental assets utilization improved, increasing rental revenue by 232.8% to approximately $0.7 million, compared to approximately $0.2 million in the previous quarter and was a factor in the increase in gross profit margin for this business unit.

現在讓我們來看看與我們的核心業務——海洋技術業務相關的 2026 年第一季亮點。該公司向全球銷售其產品和解決方案，2026 年第一季營收成長了 47.4%。主要亮點包括硬體銷售額成長 31%，達到 230 萬美元，而 2025 年第一季為 170 萬美元，重點是亞洲地區的迴聲鏡銷售。租賃資產利用率提高，租賃收入成長了 232.8%，達到約 70 萬美元，而上一季約為 20 萬美元，這是該業務部門毛利率上升的一個因素。

Now turning to highlights relating to the Defense Engineering Services Business. In the first quarter 2026 [revenue increased] by 9.2%. This business has long-standing relationships with prime defense contractors and has served the defense market for over 48 years. It is reliant on receiving funding on the defense programs.

接下來，我們將重點放在與國防工程服務業務相關的內容。2026 年第一季[營收成長] 9.2%。這家公司與主要國防承包商建立了長期合作關係，並已為國防市場服務超過 48 年。它依賴國防項目的資金支持。

Many defense programs are currently being funded through the use of continuing resolutions. In practical terms, this reduces the funding available for many programs, and as such, this business has experienced delays in receiving contract awards. Although a federal budget is in place, line items appropriations are still pending, and this continues to impact our Defense Engineering Services Business.

目前許多國防項目都是透過持續撥款決議獲得資金的。實際上，這減少了許多項目的可用資金，因此，該企業在獲得合約授予方面遇到了延誤。儘管聯邦預算已經制定，但各項撥款仍在審批中，這繼續影響著我們的國防工程服務業務。

Now turning to highlights relating to our Acoustics Sensors and Materials Business. This business sells its products and solutions worldwide and increased revenue in the quarter 2026 by 20.7%. Gross profit margin was higher at 66.8%, compared to 61.7%. We continue to be very pleased with the performance of this unit.

接下來，我們將重點介紹與我們的聲學感測器和材料業務相關的亮點。該公司向全球銷售其產品和解決方案，並在 2026 年季度實現了 20.7% 的收入成長。毛利率為 66.8%，高於先前的 61.7%。我們對這台設備的性能一直非常滿意。

Blair Cunningham, our President of Technology, who is the market maker for our technologies, will be updating you on progress and various milestones around our core technologies. Blair will also be available to answer any questions you have about our technologies. I will now turn the call over to Blair Cunningham.

我們的技術總裁布萊爾·坎寧安（Blair Cunningham）是我們技術的市場開拓者，他將向大家報告我們核心技術的進展和各個里程碑。布萊爾也會隨時解答您關於我們技術的任何問題。現在我將把電話交給布萊爾·坎寧安。

Thank you, Annmarie, and good morning, everyone. Our core business focus is expanding market share for our disruptive underwater technologies, specifically our real-time 3D sonar systems and our DAVD technology. Today, I will keep my remarks brief and concentrate on the key milestones that will help us achieve this objective.

謝謝你，安瑪麗，大家早安。我們的核心業務重點是擴大我們顛覆性水下技術的市場份額，特別是我們的即時 3D 聲吶系統和 DAVD 技術。今天，我將言簡意賅，並重點介紹有助於我們實現這一目標的關鍵里程碑。

As we have noted on previous earnings calls, the DAVD untethered variant represents the largest market opportunity for this technology. In the US alone, there are approximately 14,000 divers across the government and defense community who are potential users of this DAVD untethered system. We successfully completed the [hardening] program for the DAVD untethered variant in fiscal year 2025.

正如我們在先前的財報電話會議中所指出的，DAVD 無線版本代表了這項技術最大的市場機會。光是在美國，政府和國防界就有大約 14,000 名潛水員是這種 DAVD 無線系統的潛在使用者。我們在 2025 財政年度成功完成了 DAVD 無束縛版的[加固]計劃。

Based on this, we delivered the first batch of the new generation of DAVD untethered system to our Navy customer. This delivery has now placed the US Navy in a position to commence the safety qualification for the product. We are, therefore, currently awaiting the Authorization for Navy Use, or ANU, assessment to be completed. We are hopeful that this will be in place in our second quarter.

基於此，我們向海軍客戶交付了第一批新一代 DAVD 無線系統。此次交付使美國海軍能夠開始對該產品進行安全鑑定。因此，我們目前正在等待海軍使用授權（ANU）評估完成。我們希望這項措施能在第二季到位。

ANU approval is an important milestone as it's a requisite for the broader adoption within the military untethered diving community. We are on schedule to perform DAVD site acceptance testing with a key European navy in the second quarter, which we expect will serve as a precursor to broader technology adoption discussions. This naval diving group represents an influential European defense customer, and we are encouraged that they have already made an initial investment in DAVD tethered systems and are evaluating the data technology platforms for wider fleet adoption.

澳洲國立大學的批准是一個重要的里程碑，因為它是軍方無線潛水界更廣泛採用該技術的必要條件。我們計劃在第二季度與歐洲一支重要的海軍進行 DAVD 現場驗收測試，我們預計這將成為更廣泛的技術採用討論的先導。這個海軍潛水小組代表歐洲一個有影響力的國防客戶，我們感到鼓舞的是，他們已經對 DAVD 系留系統進行了初步投資，並且正在評估數據技術平台，以便更廣泛地應用於艦隊。

We continue to work on several defense programs which are seeking to leverage DAVD as a critical life support and visualization component, and which we believe are strong indicators that DAVD is now considered a mature technology. We continue to see strong global momentum around our NANO Gen Series. And we believe that in the third quarter, we will begin to see initial adoption of NANO through several defense funded product improvement programs. The initial quantities will be a small batch for continued fleet assessment.

我們繼續推進幾個國防項目，這些項目旨在利用 DAVD 作為關鍵的生命支持和視覺化組件，我們認為這有力地表明 DAVD 現在被認為是一項成熟的技術。我們的 NANO Gen 系列產品在全球範圍內持續保持強勁的成長勢頭。我們相信，在第三季度，我們將開始看到 NANO 透過幾個國防部資助的產品改進計劃得到初步應用。首批供貨量將較小，用於持續評估艦隊狀況。

NANO represents an important step forward for our business. This ultracompact form factor built on the proven Echoscope technology lineage is capable of supporting multiple mission profiles with a single system. This positions it well for a market increasingly seeking to consolidate imaging sonar capabilities whilst also addressing the growing demand from foreign navies for multi-utility sensors capable of performing multiple independent tasks rather than relying on the traditional one-sensor-per-task approach.

奈米技術代表著我們業務向前邁出的重要一步。這款基於成熟的 Echoscope 技術打造的超緊湊型外形設計，能夠透過單一系統支援多種任務設定檔。這使其在市場中佔據了有利地位，該市場越來越希望整合成像聲吶能力，同時滿足外國海軍對能夠執行多個獨立任務的多用途感測器的日益增長的需求，而不是依賴傳統的每個任務使用一個感測器的方法。

The NANO technology further advances our business through its inherent AI readiness, an ability to deliver deployable 3D data for AI workflows. This aligns well with the new generation of subsea AI platforms, which are smaller, lower-powered and often operating in swarms to cover large areas quickly and efficiently.

NANO 技術憑藉其固有的 AI 就緒性，能夠為 AI 工作流程提供可部署的 3D 數據，從而進一步推進我們的業務發展。這與新一代水下人工智慧平台的發展趨勢非常契合，這些平台體積更小、功耗更低，並且通常以叢集方式運行，以便快速有效地覆蓋大片區域。

NANO's AI readiness goes beyond simply providing 3D perception data. It generates multiple real-time 3D data sets and imaging that can be tailored to specific AI tasks, enabling more efficient and accurate analysis of real-time decision-making.

NANO 的人工智慧準備工作不僅體現在提供 3D 感知資料上。它可產生多個即時 3D 資料集和影像，這些資料集和影像可根據特定的 AI 任務進行定制，從而實現更高效、更準確的即時決策分析。

For example, an autonomous platform inspecting a seabed pipeline may need to detect structural damage, identify unsupported stands or burial and locate leaks. NANO can provide three separate AI-ready real-time data sets and 3D images optimized for each task, without additional sensors or processing, rather than relying on a single image that must first be processed and segmented to extract the required information. At the same time, NANO continues to provide a standard real-time imaging and 3D forward-looking obstacle avoidance.

例如，用於檢查海底管道的自主平台可能需要檢測結構損壞、識別無支撐支架或埋設情況以及定位洩漏點。NANO 可以提供三個獨立的 AI 就緒即時資料集和針對每個任務優化的 3D 影像，無需額外的感測器或處理，而不是依賴必須先處理和分割才能提取所需資訊的單一影像。同時，NANO 繼續提供標準的即時成像和 3D 前視避障功能。

Another strong area of customer engagement for us is the protection of undersea cables and subsea infrastructure, which are increasingly at risk and are paramount for national connectivity and security. The Echoscope technology is uniquely positioned to support continuous monitoring of these critical assets through real-time 3D visualization while also enabling rapid damage assessment, repair support and protection, further reinforcing the multi-mission capability of our technology.

我們與客戶密切合作的另一個重要領域是保護海底電纜和海底基礎設施，這些設施正面臨越來越大的風險，對國家互聯互通和安全至關重要。Echoscope 技術具有獨特的優勢，可透過即時 3D 視覺化支援這些關鍵資產的持續監控，同時也能快速進行損壞評估、維修支援和保護，進一步增強了我們技術的多任務能力。

By way of example, Japan relies on subsea cables for approximately 99% of international communications, underscoring both the importance of these assets and the challenge of monitoring, protecting and rapidly repairing them. Sabotage, increased heavy shipping traffic and natural disasters all present great risks to this critical infrastructure.

例如，日本約 99% 的國際通訊都依賴海底電纜，這不僅凸顯了這些資產的重要性，也凸顯了監控、保護和快速修復這些資產所面臨的挑戰。蓄意破壞、日益繁忙的航運交通以及自然災害都對此關鍵基礎設施構成巨大風險。

For fiscal year 2026, our goal is to achieve key milestones with our disruptive technologies, including expanded DAVD adoption in the global commercial market and by foreign navies and the deployment of our Echoscope technology, including NANO, on next-generation autonomous, AI-enabled platforms as a primary perception sensor for navigation, obstacle avoidance and target guidance.

2026 財年，我們的目標是利用我們的顛覆性技術實現關鍵里程碑，包括在全球商業市場和外國海軍中擴大 DAVD 的應用，以及在下一代自主、人工智慧平台上部署我們的 Echoscope 技術（包括 NANO），作為導航、避障和目標引導的主要感知感測器。

I will turn the call over to Annmarie and I will be available to take your questions during the Q&A session of this call.

我將把電話轉給安瑪麗，我會在本次電話會議的問答環節回答大家的問題。

Thank you, Blair. Let me now turn the call over to our Interim CFO, Gayle Jardine, to take you through our financials for our first quarter 2026, before I provide my closing remarks.

謝謝你，布萊爾。現在，我將把電話交給我們的臨時財務長蓋爾賈丁，由她為大家介紹我們 2026 年第一季的財務狀況，之後我將作總結發言。

Thank you, Annmarie, and good morning, everyone. Let me take you through our first quarter 2026 financial results. Starting with revenue. In the first quarter 2026, we recorded total revenue of $6.7 million, compared to $5.2 million in first quarter 2025, an increase of 28.8%. Our core business, the Marine Technology Business, generated revenue of $3.4 million compared to $2.3 million, representing a 47.4% increase over first quarter 2025. Our Acoustics Sensors and Materials Business recorded revenue of $1.6 million this period compared to $1.3 million in first quarter 2025, an increase of 20.7%. Our Defense Engineering Services Business generated revenue of $1.8 million compared to $1.6 million, representing a 9.2% increase over first quarter 2025.

謝謝你，安瑪麗，大家早安。讓我帶您了解我們2026年第一季的財務表現。首先從營收說起。2026 年第一季度，我們的總收入為 670 萬美元，而 2025 年第一季為 520 萬美元，成長了 28.8%。我們的核心業務——海洋技術業務——創造了 340 萬美元的收入，而 2025 年第一季為 230 萬美元，成長了 47.4%。本季度，我們的聲學感測器和材料業務收入為 160 萬美元，而 2025 年第一季為 130 萬美元，成長了 20.7%。我們的國防工程服務業務創造了 180 萬美元的收入，而 2025 年第一季為 160 萬美元，成長了 9.2%。

Moving on to gross profit and margin. In the first quarter 2026, we generated gross profit of $4.4 million, compared to $3.4 million in the first quarter 2025. Consolidated gross margin was 65.1%, versus 65.8% in the first quarter 2025. This reduction reflects the composition of revenue derived from the Defense Engineering Services Business.

接下來討論毛利和毛利率。2026 年第一季度，我們實現了 440 萬美元的毛利，而 2025 年第一季為 340 萬美元。綜合毛利率為 65.1%，而 2025 年第一季為 65.8%。這一減少反映了國防工程服務業務收入的組成。

In our Marine Technology Business, gross margin increased to 75.3% in first quarter 2026 compared to 73.1% in the prior period, largely reflecting the increase in rental sales, which grew by 232.8% over the first quarter of 2025. The Acoustics Sensors and Materials Business increased gross margin to 66.8% in the first quarter 2026, compared to 61.7% in first quarter 2025, reflecting the mixed type of sales. In our Defense Engineering Services Business, gross margin decreased to 44.1% in the first quarter 2026, versus 58.9% in the prior period, reflecting the change in the mix of engineering projects during first quarter of 2026.

在我們的海洋技術業務中，2026 年第一季的毛利率從上一季的 73.1% 成長至 75.3%，這主要反映了租賃銷售額的成長，該銷售額比 2025 年第一季度增長了 232.8%。2026 年第一季度，聲學感測器和材料業務的毛利率從 2025 年第一季的 61.7% 提高到 66.8%，這反映了銷售類型的多樣化。在我們的國防工程服務業務中，2026 年第一季的毛利率下降至 44.1%，而上一季為 58.9%，這反映了 2026 年第一季工程項目組合的變化。

Now looking at our operating expenses. Total operating expenses for the first quarter 2026 increased by 21.3% to $2.4 million, compared to $2.8 million in the first quarter of 2025. The main factor for the increase in total operating expenses was the weakening of the US dollar against both the British pound and Danish krone. This impacted on our costs when translated into dollars from the base currencies for reporting purposes.

現在來看我們的營運費用。2026 年第一季總營運支出成長 21.3%，達到 240 萬美元，而 2025 年第一季為 280 萬美元。導致總營運費用增加的主要因素是美元對英鎊和丹麥克朗貶值。為了方便報告，我們將成本從基準貨幣轉換為美元。

Our selling, general and administrative costs in the first quarter of 2026 totaled $2.8 million, an increase of 23.7% from $2.2 million in first quarter of 2025. This is reflecting a swing of $0.5 million from an exchange rate gain in the first quarter 2025 to an exchange rate expense in the first quarter 2026. SG&A as a percentage of consolidated net revenue in first quarter 2026 was 41.0%, compared to 42.7% in first quarter 2025.

2026 年第一季度，我們的銷售、一般及行政費用總計 280 萬美元，比 2025 年第一季的 220 萬美元成長了 23.7%。這反映出 2025 年第一季的匯兌收益為 50 萬美元，而 2026 年第一季的匯兌支出為 50 萬美元。2026 年第一季銷售、一般及行政費用佔合併淨收入的百分比為 41.0%，而 2025 年第一季為 42.7%。

Operating income in first quarter this year was $1.0 million, compared to $0.6 million in first quarter 2025, an increase of 52.6%. Operating margin was 15.1%, compared to 12.7% in first quarter 2025, reflecting the increase in our consolidated net revenue in the first quarter.

今年第一季的營業收入為 100 萬美元，而 2025 年第一季為 60 萬美元，成長了 52.6%。營業利潤率為 15.1%，而 2025 年第一季為 12.7%，這反映了我們第一季合併淨收入的成長。

Pretax income in first quarter 2026 was $1.2 million, compared to $0.9 million in first quarter 2025. Net income after taxes this period was $0.93 million or $0.08 per diluted share, compared to $0.91 million, also $0.08 per diluted share in first quarter 2025. In this period, we provided for a tax expense of $0.3 million, compared to $0.05 million in first quarter of 2025.

2026 年第一季稅前收入為 120 萬美元，而 2025 年第一季為 90 萬美元。本期稅後淨收入為 0.93 億美元，即每股攤薄收益 0.08 美元，而 2025 年第一季稅後淨收入為 0.91 億美元，也是每股攤薄收益 0.08 美元。在此期間，我們提列了 0.3 百萬美元的稅項支出，而 2025 年第一季提列的稅項支出為 0.05 百萬美元。

Moving now to our balance sheet. As of January 31, 2026, we had $30.5 million in cash and cash equivalents on hand, and no debt. This represents an increase of $1.8 million from October 31, 2025, where the comparable figure was $28.7 million. Total assets increased by $1.1 million to $65.6 million in the first quarter of 2026.

接下來我們來看資產負債表。截至 2026 年 1 月 31 日，我們手頭上有 3,050 萬美元現金及現金等價物，且無債務。這比 2025 年 10 月 31 日增加了 180 萬美元，當時的相應數字為 2,870 萬美元。2026年第一季總資產增加110萬美元，達6,560萬美元。

Now let me turn the call back over to Annmarie for her closing remarks.

現在我把電話交還給安瑪麗，請她做總結發言。

Thank you, Gayle. I am very pleased with the increase in revenue in the first quarter 2026 and our overall financial results. I'm also pleased with the progress we're making against our key milestones for growing our business, both around our DAVD and Echoscope technologies. We believe real progress is being made in getting broader adoption of these technologies in the defense space.

謝謝你，蓋爾。我對2026年第一季的營收成長以及我們的整體財務表現感到非常滿意。我對我們在實現業務成長的關鍵里程碑方面取得的進展感到滿意，無論是在 DAVD 技術還是 Echoscope 技術方面。我們相信，在國防領域更廣泛地採用這些技術方面，正在取得真正的進展。

In terms of cash deployment, we will also continue to prosecute our M&A strategy in fiscal year 2026 and are continuing to build our M&A pipeline of opportunities. We're very keen to close another acquisition in fiscal year 2026.

在現金部署方面，我們將在 2026 財年繼續推動我們的併購策略，並繼續拓展我們的併購機會管道。我們非常希望在 2026 財政年度完成另一項收購。

Through our strategy, we aim to pivot the revenue model of the marine technology business towards a multiyear program-based adoption, supporting a multiple sale model over the life of major programs as we have started to see with our DAVD product line. We continue to work to create stable, long-term shareholder value and execute against our strategy to grow the business, which is our single biggest priority as a group.

透過我們的策略，我們旨在將海洋技術業務的收入模式轉向基於多年專案的採用模式，支援在主要專案的生命週期內進行多次銷售，正如我們在 DAVD 產品線中已經開始看到的那樣。我們將繼續努力創造穩定、長期的股東價值，並執行我們的業務成長策略，這是我們集團最重要的優先事項。

To conclude, we would like to thank our shareholders for their continued support. We are now happy to answer any questions.

最後，我們要感謝各位股東一直以來的支持。我們現在很樂意回答任何問題。

(Operator Instructions) Brian Kinstlinger, Alliance Global Partners.

（操作說明）布萊恩·金斯特林格，Alliance Global Partners。

Thanks so much for taking my questions. You've highlighted there are 14,000 divers in the United States. So with that said, can you size the total addressable market in dollar terms in the US for the DAVD?

非常感謝您回答我的問題。您提到美國有 14,000 名潛水員。綜上所述，您能否以美元為單位估算 DAVD 在美國的潛在市場規模？

Brian, thank you very much for that question. Look, that's a difficult question actually, Brian, because then that is predicated on our sale price, what the Navy accepts as the purchase price for the item. So this is still being negotiated, so it's very difficult for us to provide a number at this stage. Although in the past for the military diving system, we have been providing this at a price at $50,000 per unit. But as I said, we're always looking at how to sharpen our pencil on that, and it really depends on the customer accepting that price.

布萊恩，非常感謝你的提問。布萊恩，這其實是個很難回答的問題，因為這取決於我們的售價，也就是海軍接受的該物品的購買價格。此事仍在協商中，因此現階段我們很難提供一個具體數字。雖然過去我們為軍用潛水系統提供的這種設備，每台售價為 5 萬美元。但正如我所說，我們一直在研究如何降低成本，而這實際上取決於客戶是否接受這個價格。

Got it. Thank you. And then you highlighted, and you've been for a bit, the unmanned underwater vehicle market is going through some exciting changes. What is the timing as to when this could be an opportunity for Coda from a revenue perspective? Are there any design wins to speak of for Coda? And when do you see production for UUVs possibly beginning?

知道了。謝謝。然後你強調了（而且你已經強調了一段時間了），無人水下航行器市場正在經歷一些令人興奮的變化。從營收角度來看，Coda何時才能迎來這樣的機會？Coda在設計上有哪些值得一提的成功案例？您認為無人水下航行器（UUV）的生產何時可能開始？

Well, as Blair reported to the market in first -- in our last earnings call and today, really, for the NANO Gen Series, we're seeing some very near-term opportunities on the product improvement program, the so-called PIP. So we would expect in third and fourth quarter to see small batches of NANO being acquired under some of these programs.

正如布萊爾在上次財報電話會議上以及今天向市場報告的那樣，對於 NANO Gen 系列，我們看到產品改進計劃（即所謂的 PIP）帶來了一些非常近期的機會。因此，我們預計在第三季和第四季度，將透過其中一些項目採購小批量的 NANO。

So those are replacements under existing vehicles, is that what you're saying?

所以這些是現有車輛的替換零件，是嗎？

I wouldn't say replacement, but they're certainly going on some of these existing vehicles that are looking for more capabilities. And Blair can expand on that a little bit more.

我不會說是替換，但它們肯定會被應用到一些現有車輛上，以滿足這些車輛對更多功能的需求。布萊爾可以就此再詳細闡述。

Hi, Brian. I'll completely emphasize that point actually. So there's going to be a combination of new platforms that are coming online that are looking for 3D perception, which is where we really fulfill a significant gap in the market, as well as, as Annmarie said, these existing platforms through this PIP program where they're looking to enhance the fleet they have, and when they're adding new vehicles to that same fleet, then they're going to be adding this with this new capability. And that's what we are seeing, as Annmarie noted, in the kind of third and fourth quarters, that's what we see starting to come in.

嗨，布萊恩。我確實要強調這一點。因此，將會有一些新的平台上線，這些平台需要 3D 感知功能，而這正是我們真正填補市場巨大空白的地方。正如 Annmarie 所說，這些現有平台也將透過 PIP 計劃來增強其車隊，當他們向同一車隊添加新車輛時，他們也將添加這項新功能。正如安瑪麗指出的那樣，在第三季度和第四季度，我們看到這種情況開始出現。

Maybe you could help us understand, do you need to be part of a design win for the new generation of vehicles? Are those conversations ongoing? And when is the targeted date for some of the vehicles? Are we a year out? Are we two years out?

或許您可以幫我們了解一下，您是否需要參與新一代汽車的設計專案？這些對話還在進行嗎？部分車輛的目標交付日期是什麼時候？距離現在還有一年嗎？兩年後情況會怎樣？

It's an interesting question. I think, obviously, as people are designing new vehicles and platforms, generally, we'll be in the discussion realm in terms of what sensors they need upfront. And we're seeing that increasing and increasing at the moment. So that's encouraging that people are looking,

這是一個有趣的問題。我認為，很顯然，當人們設計新車輛和平台時，我們通常會討論他們需要預先配備哪些感測器。我們看到這種情況目前還在不斷加劇。所以，人們都在關注這個問題，這令人鼓舞。

We're not being added to the vehicle after all the decisions are made, as an afterthought. We're now being built into the outfront of the vehicles. And I think there's probably 2 or 3 platforms I can think of right now that are in design phase where that is going to be a consideration.

我們不是在所有決定都做出之後，作為事後考慮才被添加到車輛中的。我們現在正被安裝到車輛的前部。我認為目前至少有兩三個平台正處於設計階段，這會是需要考慮的因素。

In terms of the timeline, I think the defense community, especially in Europe, is pivoting from a long-duration design phase where perhaps they go through a cycle of two, three years. And they're looking to try and to say, well, let's buy smaller quantities and then we can develop those on in further years. So I believe that's going to benefit us from having some initial sales in the shorter period. So certainly, I expect to see that picking up beyond the fourth quarter.

就時間安排而言，我認為國防界，尤其是歐洲的國防界，正在從長期的設計階段（可能長達兩到三年）轉向其他階段。他們正在嘗試說，好吧，讓我們先購買小批量產品，然後我們可以在未來幾年繼續開發這些產品。所以我相信，在較短時間內獲得一些初始銷售額對我們是有利的。因此，我預計這種情況在第四節之後會有所改善。

Yes. And I guess just as a quick note, Brian, just to say, the programs we are most excited about currently are those under the so-called PIPs because they are more nearer-term opportunities. When there's a program at the design phase, that can be multiyear program, right? So we're particularly excited about the PIP opportunities because they are already established programs looking to improve their capability.

是的。布萊恩，我還要補充一點，我們目前最感興趣的是所謂的 PIP 項目，因為它們提供了更近期的機會。當一個項目處於設計階段時，它可以是一個多年期的項目，對嗎？因此，我們對 PIP 專案的機會感到格外興奮，因為這些專案已經成熟，正在尋求提高自身能力。

Great. How does rising oil prices impact demand for your products? And are you seeing any changes this quickly on demand right now?

偉大的。油價上漲對貴公司產品的需求有何影響？您目前是否看到任何如此迅速的按需變更？

Well, not really because then it is really just think about development cycle is not that responsive, it saying we're going to start with new development on the price of oil so not really. It's not as fluid as that. So we're not seeing any increased demand because of what's happening to date.

嗯，其實不是，因為那樣的話，你會發現開發週期並沒有那麼靈敏，它說我們要根據石油價格開始新的開發，所以實際上並非如此。並沒有那麼流暢。所以，就目前的情況來看，我們並沒有看到任何需求增加。

Great. And then kind of a more difficult question, sorry. If I look in fiscal 2021, Marine Technology peaked at almost $16 million. Here we are five years later, Echoscope sales haven't gotten back to that level and maybe haven't even got back to fiscal '22 contribution. We know the impact of COVID, but the technology seems so differentiated and so value-add, I'm curious your thoughts what's holding back the product from scaling today? And how do you think about the long-term growth potential of this product?

偉大的。接下來還有一個比較難的問題，抱歉。如果我查看 2021 財年，海洋科技產業的營收高峰接近 1,600 萬美元。五年過去了，Echoscope 的銷售額還沒有恢復到當時的水平，甚至可能還沒有恢復到 2022 財年的貢獻水準。我們知道新冠疫情的影響，但這項技術似乎非常獨特且具有很高的附加價值，我很想知道您認為是什麼阻礙了該產品目前的規模化發展？您如何看待這款產品的長期成長潛力？

So as I've said over and over, Brian, so the bread and butter for the business currently is in the commercial marine market. And that we do very well and we are well known in the commercial offshore marine market. But as I've always said, for the business to grow, because if you really want multiple recurring fees, we need to get on to these programs.

正如我一再強調的，布萊恩，目前公司的主要收入來源是商業船舶市場。我們在這方面做得非常好，在商業海上船舶市場也享有盛名。但我一直都說，為了讓業務發展壯大，因為如果你真的想要獲得多項經常性收入，我們就需要參與這些計畫。

Now these programs can take a very long time to mature. And I think that this is mainly a reflection of the gestation period for a lot of these programs. So again, I come back and I say, well, yes, but if I think of this quarter sales within the mix, there was a very, very strong bias towards Echoscope sales. So heartened and I continue to see the progress we're making on some of these defense programs. Some of these are closer than others, but again, our focus then is on the near-term opportunity for the PIP where we can start seeing a little bit of volume.

這些項目可能需要很長時間才能成熟。我認為這主要反映了許多此類項目都需要一段時間才能完成。所以，我又回來表示，嗯，是的，但如果我把本季的銷售額放在整體來看，就會發現 Echoscope 的銷售額佔非常非常高。我感到非常鼓舞，並且繼續看到我們在一些國防項目上的進展。有些機會比其他機會更近，但我們的重點仍然是 PIP 的近期機會，我們可以開始看到一些交易量。

In addition to that, really where we see with like the DAVD product line where we're seeing pull-through sales of Echoscope from the DAVD. So the long and short is that I feel that the overriding barrier has been the time that it takes for some of these programs to mature. And we still have lots of opportunities that we are pursuing for the (inaudible) newly designed programs, but they get -- they can be quite long-winded. But we also have now within the mix closer-term or nearer-term opportunities on the some of these PIP programs.

除此之外，我們也看到，像 DAVD 產品線這樣的產品，帶動了 Echoscope 的銷售。總而言之，我認為最大的障礙是這些專案成熟所需的時間。我們仍然有很多機會正在為（聽不清楚）新設計的項目而努力，但是它們——它們可能會非常冗長。但我們現在也有一些 PIP 專案的近期或更近的機會。

(Operator Instructions)

（操作說明）

Ladies and gentlemen, at this time, this concludes our question-and-answer session. I'd now like to turn the call back over to Annmarie Gayle.

女士們、先生們，我們的問答環節到此結束。現在我想把電話轉回給安瑪莉·蓋爾。

Thank you, operator. Thank you, everyone, for your attendance. Have a great day. Thank you.

謝謝接線生。謝謝各位的出席。祝你有美好的一天。謝謝。

Thank you. This concludes today's call. You may now disconnect your lines. Thank you for your participation.

謝謝。今天的電話會議到此結束。現在您可以斷開線路了。感謝您的參與。