Coda Octopus Group Inc (CODA) 2026 Q2 法說會逐字稿

Good morning, and welcome to Coda Octopus Group's second quarter fiscal 2026 earnings conference call. My name is Robert, and I'll be your operator today. Earlier this morning, Coda Octopus issued its financial results for the second quarter ended April 30, 2026, including a press release and a copy of which will be furnished in the report filed with the SEC and will be available in the Investor Relations section of the company's website.

早安，歡迎參加 Coda Octopus Group 2026 會計年度第二季財報電話會議。我叫 Robert，今天將擔任會議接線員。今天稍早，Coda Octopus 已公布截至 2026 年 4 月 30 日止第二季的財務結果，並發布新聞稿；其副本將隨同提交給美國證券交易委員會（SEC）的報告一併提供，並可於公司網站的投資人關係專區查閱。

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 and Director; Blair Cunningham; and Dillon King from their Investor Relations team. Following the 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 proceed.

今天與會的 Coda Octopus 代表包括：董事長兼執行長 Annmarie Gayle；代理財務長 Gayle Jardine；技術總裁兼董事 Blair Cunningham；以及投資人關係團隊的 Dillon King。在管理層致詞後，我們將開放提問。在開始之前，公司內部投資人關係團隊的 Dillon King 將先做簡短開場說明。Dillon，請開始。

Thank you, operator. Good morning, everyone, and welcome to Coda Octopus's second quarter fiscal 2026 earnings conference call. Before management begins their formal remarks, we would like to remind everyone that some statements made today may be considered forward-looking statements under US securities laws. These statements are subject to 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, which could cause actual results and 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.

謝謝，接線員。各位早安，歡迎參加 Coda Octopus 2026 會計年度第二季財報電話會議。在管理層開始正式發言之前，我們提醒各位，今天所做的部分陳述可能依據美國證券法被視為前瞻性陳述。這些陳述受到多項風險與不確定性影響。因此，我們提醒您注意，存在許多因素（其中許多超出我們的控制範圍）可能導致實際結果與事件與前瞻性陳述中所描述者出現重大差異。關於與前瞻性陳述相關的更詳細風險、不確定性與假設，請參閱我們的財報新聞稿以及向美國證券交易委員會提交的公開文件中的揭露內容。

We disclaim any obligation or undertaking 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 year ended October 31, 2025, and Form 10-Q for the first and second quarters of our fiscal year 2026. You may get Coda Octopus's Securities and Exchange Commission filings free by visiting the SEC website at www.sec.gov.

除非法律另有要求，我們不承擔亦不承諾更新前瞻性陳述以反映在該等陳述作出之日後發生的情況或事件。我們請您參閱我們向美國證券交易委員會提交的文件，以取得對本公司業務的詳細揭露與說明，以及不確定性與其他可變情況之描述，包括但不限於：我們截至 2025 年 10 月 31 日止年度的 Form 10-K，以及 2026 會計年度第一季與第二季的 Form 10-Q 中所識別的風險與不確定性。您可造訪 SEC 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 through the Investor Relations section of Coda Octopus's website. Finally, as a reminder, this is our second quarter fiscal 2026 reporting and all comparisons, unless explicitly stated otherwise, are with our second quarter fiscal 2025. With that, I will now turn the call over to the company's Chair and CEO, Annmarie Gayle.

同時提醒各位，本次電話會議將被錄音，並將於 Coda Octopus 網站的投資人關係專區提供重播。最後提醒，這是我們 2026 會計年度第二季的財務報告；除非另有明確說明，所有比較均以 2025 會計年度第二季為基準。接下來，我將把電話交給公司董事長兼執行長 Annmarie Gayle。

Thanks, Dillon, and good morning, everyone. Thank you for joining us for our second quarter fiscal year 2026 earnings call. I believe we have delivered a solid set of results with improvements in gross profit margins net income and earnings per share, even though our consolidated net revenue decreased slightly by 1.6%. The geopolitical situation in Iran and the resulting instability across the Middle East have softened demand from customers in the region and parts of Asia. Despite this, our performance highlights the resilience of our revenue base and the strength of our financial fundamentals. I am very pleased with how the business has continued to perform in a challenging environment.

謝謝你，Dillon，各位早安。感謝各位參加我們 2026 會計年度第二季財報電話會議。我認為我們交出了一組穩健的成績：儘管合併淨營收小幅下降 1.6%，但毛利率、淨利與每股盈餘均有所改善。伊朗的地緣政治局勢以及由此造成的中東地區整體不穩定，已使該地區及亞洲部分地區客戶的需求趨緩。儘管如此，我們的表現凸顯了營收基礎的韌性以及財務基本面的強勁。我對公司在充滿挑戰的環境中仍能持續展現的營運表現感到非常滿意。

Our business is made up of 3 discrete business operations: the Marine Technology Business, the Defense Engineering Services Businesses and our Acoustics Sensors and Materials Business units. Our Marine Technology business remains the core of our company, generating the majority of our revenue and accounting for 41.1% of our consolidated net revenue in the second quarter 2026, and it remains the strategic center piece of our long-term growth ambitions. The specific addressable markets that we operate in are the imaging sonar market and diving markets where the opportunity for technological disruption is significant. With our disruptive underwater technologies, we are positioning ourselves to be at the forefront.

我們的業務由 3 個獨立的營運板塊組成：海事科技業務、國防工程服務業務，以及聲學感測器與材料業務單元。海事科技業務仍是公司的核心，貢獻我們大部分營收，並在 2026 年第二季占合併淨營收的 41.1%；同時也是我們長期成長企圖的策略核心。我們所服務的特定可觸及市場包括成像聲納市場與潛水市場，這些領域具有顯著的技術顛覆機會。憑藉我們具顛覆性的水下技術，我們正定位自己站上產業最前沿。

At the heart of this business are technologies that are redefining what is possible on the water we are effectively bringing the real-time data-rich experience of the smartphone era on the water, delivering instant visibility, intelligence and real-time decision-making capability to our users. Our Echoscope, DAVD and our digital audio communication system are not just products. They are building blocks of a new underwater operating paradigm. For example, the DAVD enables divers operators and mission-critical teams to work with unprecedented clarity, safety and efficiency. As these technologies evolve, they are opening new markets, expanding our addressable opportunities and setting the stage for the next chapter of our growth for our company.

此業務的核心，是一系列正在重新定義水上作業可能性的技術；我們實質上把智慧型手機時代即時、資料豐富的體驗帶到水上，為使用者提供即時可視性、洞察力與即時決策能力。我們的 Echoscope、DAVD 以及數位音訊通訊系統不僅僅是產品。它們是全新水下作業典範的基石。例如，DAVD 讓潛水員、操作人員與任務關鍵團隊能以前所未有的清晰度、安全性與效率執行任務。隨著這些技術持續演進，它們正在開啟新市場、擴大我們可觸及的機會，並為公司下一階段的成長奠定舞台。

Growth is a process, not an event, and we are executing the strategies that position our company to deliver it consistently over time. Our Echoscope technology 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 markets. To deliver the level of growth that shareholders expect, we must continue expanding our market share in underwater imaging sensors within the defense sector, and we are directing efforts and resources toward that objective.

成長是一個過程，而非單一事件；我們正執行能讓公司長期穩定交付成長的策略。我們的 Echoscope 技術在商業離岸海事市場被廣泛使用，涵蓋多種水下應用。我們年度營收中相當大的一部分來自商業離岸海事市場。為了達到股東所期待的成長水準，我們必須持續擴大在國防領域水下成像感測器的市占率，並正將努力與資源導向該目標。

Around the world, multiple defense programs have allocated budgets for the new classes of underwater vehicles, creating a significant long-term opportunity. Our Echoscope is well positioned for adoption in these programs. As a single sensor capable of supporting multiple undersea activities, it offers a clear advantage over traditional technologies by providing a multi-application sensor in one power-efficient units without compromising mission performance.

在全球範圍內，多項國防計畫已為新一代水下載具編列預算，帶來顯著的長期機會。我們的 Echoscope 非常適合在這些計畫中被採用。作為一款可支援多種海底活動的單一感測器，它透過在不影響任務效能的前提下，以一個高能效單元提供多用途感測能力，相較傳統技術具備明顯優勢。

We recently introduced the NANO Gen series, our next generation of ultra miniaturized 3D sonar which expands the family of imaging sonar within our portfolio. NANO provides a purpose-built solution for highly compact platforms, opening new opportunities in the emerging light and autonomous systems. We mentioned in our first quarter earnings call that we anticipated a small number of NANO Gen sonar to be included in a new vehicle program. We're very excited to report that during the quarter, we received an initial order for a small number of NANO Gen sonars for integration into an established vehicle program.

我們近期推出 NANO Gen 系列，這是我們下一代超微型化 3D 聲納，並擴充了我們產品組合中的成像聲納家族。NANO 為高度緊湊的平台提供量身打造的解決方案，為新興的輕型與自主系統開啟新機會。我們在第一季財報電話會議中提到，預期會有少量 NANO Gen 聲納被納入一項新載具計畫。我們非常高興地報告，本季期間我們已收到一筆初始訂單，採購少量 NANO Gen 聲納，用於整合至一項既有的載具計畫中。

These systems provide a significant upgrade to this vehicle program, which will undergo extensive evaluation. If successful, we believe this opportunity could scale rapidly. For additional detail on our underwater technologies that at the center of our growth strategy, I would refer you to our previous earnings calls where we provided a comprehensive overview of these technologies and our approach to expanding market share.

這些系統為此載具計畫帶來顯著升級，該計畫將接受廣泛評估。若成功，我們相信此機會可迅速擴大規模。如需進一步了解我們作為成長策略核心的水下技術，我建議您參考我們先前的財報電話會議，我們在其中對這些技術以及我們擴大市占率的方法提供了全面概述。

Now turning to second quarter 2026 highlights relating to our core business, the Marine Technology Business. This business sells its products and solutions globally with the Middle East and Asia, representing strategically important markets for our technology. The ongoing conflict in Iran and the resulting instability across the Middle East have reduced customer activity in the region and Asia. In addition, the effective closure of the Strait of Hormuz moves through which a significant share of global maritime shipping passes has disrupted commercial operations, further softening demand for our goods and services. This is the main factor which has resulted in this business segment reported revenue decreasing by 26.8% in our second quarter.

接著談到與我們核心業務——海事科技事業——相關的2026年第二季重點。該事業在全球銷售其產品與解決方案，其中中東與亞洲是對我們技術具有策略重要性的市場。伊朗持續的衝突以及由此造成的中東地區廣泛不穩定，已降低該地區與亞洲的客戶活動。此外，荷姆茲海峽實質關閉——全球海運相當大比例的航運需經由此通道——已擾亂商業營運，進一步削弱對我們商品與服務的需求。這是導致本事業部在第二季所報告營收下降26.8%的主要因素。

Notable features of our core business revenue structure in second quarter '26 include hardware sales decreased by 46.9% and were USD1.8 million in the second quarter 2026 compared to USD3.3 million in the 2025 period. Rental assets utilization in the second quarter 2026 improved, increase in rental revenue by 351.1% to approximately USD0.7 million compared to approximately USD0.2 million in the previous quarter. This is a factor in the increase in gross profit margin in the second quarter for this business unit.

我們核心業務在2026年第二季的營收結構之顯著特徵包括：硬體銷售下降46.9%，2026年第二季為180萬美元，而2025年同期為330萬美元。2026年第二季租賃資產使用率改善，使租賃收入增加351.1%至約70萬美元，相較於前一季約20萬美元。這也是該事業單位第二季毛利率上升的因素之一。

Now turning to highlights relating to the Defense Engineering Services Business. In the second quarter 2026, our Defense Engineering Services Business revenue increased by 37.9%. This business has long-standing relationships with prime defense contractors and has served the defense market for over 48 years.

接著談到國防工程服務事業的重點。2026年第二季，我們國防工程服務事業營收增加37.9%。該事業與主要國防承包商維持長期合作關係，並已服務國防市場超過48年。

Its performance is closely tied to funding on the defense programs. The UK arm of this business saw an increase in opportunities and delivered higher revenue during the quarter. In the United States, however, many defense programs continue to be funded on the continuing resolutions, which has delayed contract awards and consequently, the timing of revenue.

其表現與國防計畫的資金撥付密切相關。該事業在英國的部門本季機會增加，並帶來較高營收。然而在美國，許多國防計畫仍以「持續決議」方式獲得資金，導致合約授予延後，進而影響營收認列時點。

Now turning to highlights related to our Acoustics Sensors and Materials Business. This business sells its products and solutions worldwide and increased revenue in the second quarter 2026 by 17.5%. 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.

接著談到與我們聲學感測器與材料事業相關的重點。該事業在全球銷售其產品與解決方案，並於2026年第二季將營收提高17.5%。我們的技術總裁Blair Cunningham——亦是推動我們技術市場化的關鍵人物——將向各位更新我們核心技術的進展與各項里程碑。Blair也將回答各位對我們技術的任何問題。現在我把電話會議交給Blair Cunningham。

Thank you, Annmarie, and good morning, everyone. Our core focus as a business is to increase our market share for our disruptive technologies, our real-time 3D sonar and our DAVD technology. I will be brief today and focus on our key milestones to achieve these goals. For those who would like more information on our underwater technologies, I would refer you to our previous earnings call where we provided a comprehensive overview of these technologies and our approach to expanding market share.

謝謝你，Annmarie，各位早安。我們作為一家企業的核心重點，是提升我們顛覆性技術的市占率——即時3D聲納與我們的DAVD技術。我今天會簡要說明，聚焦於達成這些目標的關鍵里程碑。若各位希望了解更多我們的水下技術，我建議參考我們先前的財報電話會議，我們在其中對這些技術以及我們擴大市占率的方法提供了全面概述。

DAVD progress. A key milestone for the broader adoption of the DAVD in the military diving sector is the completion of the Approved Navy Use assessment. I'm pleased to confirm that the DAVD uncovered system has been approved for Navy use. This is a meaningful inflection point since the product is now available for acquisition by any command and supporting full fleet deployment of the 20 systems previously issued. The approval validates the system's operational suitability and paves the way for wider adoption across the naval diving community.

DAVD進展。DAVD在軍事潛水領域更廣泛採用的一項關鍵里程碑，是完成「核准海軍使用」（Approved Navy Use）評估。我很高興確認，DAVD無遮蔽系統已獲核准供海軍使用。這是一個重要的轉折點，因為該產品現在可供任何單位採購，並支援先前已發放的20套系統在全艦隊部署。此項核准驗證了系統的作業適用性，並為在海軍潛水社群中更廣泛採用鋪路。

Another important milestone has been the expansion of DAVD adoption beyond the United States. In support of this objective, we have successfully delivered training to our European Navy that recently acquired an initial number of systems. With training now complete, we continue to engage closely with this influential naval customer and are encouraged by the positive feedback received to date. We remain optimistic about the opportunities to further expand the deployment and operational use of the DAVD within this Navy, establishing a strong foundation for future growth in the international military diving market.

另一項重要里程碑，是DAVD在美國以外的採用擴展。為支持此目標，我們已成功為近期採購首批系統的歐洲海軍提供訓練。訓練現已完成，我們持續與這位具影響力的海軍客戶密切互動，並對迄今收到的正面回饋感到鼓舞。我們仍對在該海軍內進一步擴大DAVD部署與作業使用的機會保持樂觀，並為未來在國際軍事潛水市場的成長奠定堅實基礎。

The DAVD program continues to expand, and we continue to work on several awards for 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 are still awaiting final US Navy DAVD procurement budget approval, while the approval and associated procurement activity has been delayed beyond this quarter, we currently anticipate receiving the corresponding orders during the third quarter. We also received an initial order for a small number of NANO Gen Series sonar, our ultra miniaturized 3D sonar for an established vehicle program delivery.

DAVD計畫持續擴展，我們也持續推進多項國防計畫的授標案，這些計畫希望將DAVD作為關鍵的生命維持與可視化組件；我們認為這些都是DAVD如今被視為成熟技術的強力指標。我們仍在等待美國海軍DAVD採購預算的最終核准；雖然核准及相關採購活動已延後至本季之後，我們目前預期將在第三季收到相應訂單。我們也收到一筆初始訂單，為既有載具計畫交付少量NANO Gen系列聲納——我們超微型化的3D聲納。

These initial systems offer a significant upgrade to the vehicle with full 3D perception visualization and vehicle control, 3D obstacle avoidance and will be used for extensive evaluation. If successful, we believe the opportunity for NANO on this vehicle program could grow quite quickly. We're pleased to see continued interest in our latest NANO Gen CV sonar with a growing number of credible vehicle integration opportunities emerging across both the US and European defense market. These opportunities reflect increasing recognition of the unique capabilities offered by NANO, including its ultra compact form factor, real-time 3D perception and advanced autonomous navigation support. We remain encouraged by the level of engagement with prospective customers and partners and believe these opportunities have the potential to drive meaningful growth in the defense sector.

這些初始系統可為該載具帶來顯著升級，具備完整3D感知可視化與載具控制、3D避障功能，並將用於廣泛評估。若成功，我們相信NANO在此載具計畫上的機會可相當快速地成長。我們很高興看到市場對我們最新的NANO Gen CV聲納持續展現興趣，在美國與歐洲國防市場兩端，正浮現愈來愈多可信的載具整合機會。這些機會反映出市場對NANO獨特能力的日益認可，包括其超緊湊外形尺寸、即時3D感知，以及先進的自主導航支援。我們對潛在客戶與合作夥伴的互動程度感到鼓舞，並相信這些機會有潛力推動國防領域的實質成長。

For our fiscal year 2026, our main goal is to reach new milestones with our disruptive technologies, such as broader adoption of DAVD by foreign Navy and the Echoscope technology being adopted on some of the new autonomous AI-enabled platforms as a core perception sensor for navigation, obstacle avoidance and target guidance. 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.

在2026會計年度，我們的主要目標是讓顛覆性技術達成新的里程碑，例如：DAVD獲外國海軍更廣泛採用，以及Echoscope技術在部分新型、具AI能力的自主平台上被採用，作為導航、避障與目標導引的核心感知感測器。我將把電話會議交回Annmarie，並會在本次電話會議的問答環節中回答各位的問題。

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

謝謝你，Blair。在我做結語之前，現在讓我把電話會議交給我們的代理財務長Gayle Jardine，帶各位回顧我們2026年第二季的財務表現。

Thank you, Annmarie, and good morning, everyone. Let me take you through our second quarter 2026 financial results. Starting with revenue, in the second quarter 2026, we recorded total revenue of USD6.9 million compared to USD7.0 million in second quarter of 2025, a slight decrease of 1.6%.

謝謝你，Annmarie，各位早安。我將帶各位回顧我們 2026 會計年度第二季的財務結果。先從營收開始，2026 年第二季我們錄得總營收 690 萬美元，較 2025 年第二季的 700 萬美元略降 1.6%。

Our core business, the Marine Technology Business, generated revenue of USD2.8 million compared to USD3.9 million, representing a 26.8% decrease over second quarter 2025. Our Acoustic Sensors and Materials Business recorded revenue of USD1.5 million in second quarter 2026 compared to USD1.3 million in second quarter 2025, an increase of 17.5%. Our Defense Engineering Services Business generated revenue of USD2.5 million compared to USD1.8 million, representing a 37.9% increase over second quarter 2025.

我們的核心業務—海事科技業務—營收為 280 萬美元，較 390 萬美元減少 26.8%，相較 2025 年第二季下滑。我們的聲學感測器與材料業務在 2026 年第二季錄得營收 150 萬美元，較 2025 年第二季的 130 萬美元成長 17.5%。我們的國防工程服務業務營收為 250 萬美元，較 180 萬美元增加 37.9%，相較 2025 年第二季成長。

Moving on to gross profit and margin. In the second quarter of 2026, we generated gross profit of USD4.6 million compared to USD4.5 million in the second quarter of 2025. Consolidated gross margin was 66.3%, versus 64.1% in the same quarter last year. This increase reflects the composition of our revenue. Notable factors include the increase in our rental revenue and reduction in net commission costs.

接著看毛利與毛利率。2026 年第二季我們的毛利為 460 萬美元，較 2025 年第二季的 450 萬美元略增。合併毛利率為 66.3%，高於去年同季的 64.1%。此一提升反映了我們營收組合的變化。主要因素包括租賃營收增加，以及淨佣金成本下降。

In our Marine Technology Business, gross margin increased to 77.0% in second quarter 2026, compared to 67.7% in second quarter 2025, largely reflecting the increase in rental sales, which grew by 351.1% over the second quarter 2025 concurrent with the reduction in commission expenses by 68.7% or USD0.3 million due to less equipment sales via agents in Asia. Acoustics Sensors and Materials Business gross margin decreased to 53.7% in second quarter fiscal 2026 compared to 65.4% in the second quarter 2025, reflecting the mix of type of sales with an increase in our acoustic test environment product sales compared to second quarter 2025. Our Defense Engineering Services business gross margin increased to 62.0% in the second quarter 2026 versus 55.5% in the second quarter of 2025, reflecting a mix of engineering projects in the period presented.

在海事科技業務方面，2026 年第二季毛利率提升至 77.0%，高於 2025 年第二季的 67.7%，主要反映租賃銷售增加；租賃銷售較 2025 年第二季成長 351.1%，同時因亞洲透過代理商銷售設備減少，佣金費用下降 68.7%（或 30 萬美元）。聲學感測器與材料業務毛利率在 2026 會計年度第二季降至 53.7%，低於 2025 年第二季的 65.4%，反映銷售類型組合變化，與 2025 年第二季相比，我們的聲學測試環境產品銷售增加。國防工程服務業務毛利率在 2026 年第二季提升至 62.0%，高於 2025 年第二季的 55.5%，反映本期工程專案組合的變化。

Now looking at our operating expenses. Total operating expenses for the second quarter 2026 increased by 18.3% to USD2.8 million compared to USD2.4 million in the second quarter 2025. The primary driver of this reduction was the movement of the US dollar against the British pound and Danish krone, which lowered reported costs when translated into US dollars for financial reporting.

現在來看營業費用。2026 年第二季總營業費用較 2025 年第二季增加 18.3%，至 280 萬美元（2025 年第二季為 240 萬美元）。此項下降的主要驅動因素為美元兌英鎊與丹麥克朗的匯率變動，使得在財務報導換算為美元時，列報成本降低。

Selling, general and administrative expenses totaled USD2.1 million, a 21.4% decrease from USD2.7 million in the prior quarter. This improvement reflects a favorable USD0.4 million swing from an exchange rate expense in the second quarter 2025 to exchange rate gain in second quarter 2026, as well as lower employee-related costs due to reduced headcount. SG&A represented 30.9% of consolidated net revenue in the second quarter of 2026 compared to 38.8% in second quarter 2025.

銷售、一般及行政費用合計 210 萬美元，較前一年度同期的 270 萬美元下降 21.4%。此改善反映 2025 年第二季的匯兌費用在 2026 年第二季轉為匯兌收益，帶來 40 萬美元的有利變動，並且因人力編制縮減而使員工相關成本降低。2026 年第二季 SG&A 佔合併淨營收比重為 30.9%，相較 2025 年第二季為 38.8%。

Operating income in second quarter 2026 was USD1.8 million compared to USD1.1 million in second quarter 2025, an increase of 64.8%. Operating margin was 26.0% compared to 15.5% in second quarter 2025, reflecting the decrease in our SG&A and operating expenses in the second quarter.

2026 年第二季營業利益為 180 萬美元，較 2025 年第二季的 110 萬美元增加 64.8%。營業利益率為 26.0%，相較 2025 年第二季的 15.5%，反映我們在第二季 SG&A 與營業費用的下降。

Pretax income in second quarter 2026 was USD2.1 million compared to USD1.3 million in second quarter 2025. Net income after taxes in second quarter 2026 was USD1.7 million or USD0.15 per diluted share compared to USD0.9 million or USD0.08 per diluted share in second quarter 2025. In second quarter 2026, we provided for a tax expense of USD0.44 million compared to USD0.36 million in second quarter of 2025.

2026 年第二季稅前利益為 210 萬美元，較 2025 年第二季的 130 萬美元增加。2026 年第二季稅後淨利為 170 萬美元，或稀釋後每股盈餘 0.15 美元；相較 2025 年第二季為 90 萬美元，或稀釋後每股盈餘 0.08 美元。2026 年第二季我們認列所得稅費用 44 萬美元，較 2025 年第二季的 36 萬美元增加。

Moving now to our balance sheet. As of April 30, 2026, with USD30.6 million in cash and cash equivalents on hand and no debt. This represents an increase of USD1.9 million from October 31, 2025, with a comparable figure was USD28.7 million. Total assets increased by USD2.8 million to USD67.3 million in the second quarter of 2026. That completes my financial summary. So let me turn the call back over to Annmarie for her closing remarks. Thank you.

接著談資產負債表。截至 2026 年 4 月 30 日，我們持有現金及約當現金 3,060 萬美元，且無負債。相較 2025 年 10 月 31 日增加 190 萬美元；當時可比較數字為 2,870 萬美元。2026 年第二季總資產增加 280 萬美元至 6,730 萬美元。以上為我的財務摘要。接下來我把電話交回 Annmarie，請她做結語。謝謝。

Thank you, Gayle. Despite the challenge in geopolitical environment, which has affected parts of our customer base, particularly in the Middle East and Asia, I am very pleased with our second quarter financial performance and importantly, the resilience and diversification reflected in our revenue structure. I'm also encouraged by the progress we're making against our key milestones for expanding the business, especially around our DAVD and Echoscope technologies. Most notably, the Navy's approval of the DAVD on tape system as an Approved for Navy Use item marks a pivotal milestone for the DAVD, one of our core technology offerings that anchor our long-term growth ambition.

謝謝你，Gayle。儘管地緣政治環境帶來挑戰，並影響我們部分客戶群，尤其在中東與亞洲，我仍對我們第二季的財務表現感到非常滿意；更重要的是，我們的營收結構展現出的韌性與多元化。我也對我們在擴展業務關鍵里程碑上的進展感到鼓舞，特別是在 DAVD 與 Echoscope 技術方面。最值得一提的是，海軍核准 DAVD 磁帶系統為「核准供海軍使用」項目，這標誌著 DAVD 的關鍵里程碑；DAVD 是我們核心技術產品之一，支撐我們長期成長的企圖。

The recent orders for our NANO Gen sonars, which will upgrade an existing vehicle programs are another positive indicator of our technology traction. If post-purchase integration and evaluations proceed as expected, this opportunity has the potential to scale quickly. We believe meaningful progress is being made towards broader adoption of these technologies within the defense sector.

近期我們的 NANO Gen 聲納獲得訂單，將用於升級既有載具計畫，這是我們技術獲得市場牽引力的另一項正面指標。若購後整合與評估如預期推進，這項機會有望快速擴大規模。我們相信，這些技術在國防領域更廣泛採用方面，正取得實質進展。

On capital deployment, we will continue to advance our M&A strategy in fiscal year 2026 and are actively building and progressing a pipeline of opportunities. We remain keen to close a transaction this fiscal year while maintaining a disciplined approach to due diligence and strategic fit. Through this strategy, we aim to pipe the revenue model of the marine technology business toward multiyear program-based adoption, supporting a recurring multisale model over the life of major programs as we are beginning to see with the DAVD product line.

在資本配置方面，我們將在 2026 會計年度持續推進併購（M&A）策略，並正積極建立與推動一系列機會管線。我們仍希望在本會計年度完成一筆交易，同時在盡職調查與策略契合度上維持嚴謹、紀律性的做法。透過此策略，我們旨在推動海事科技業務的營收模式，朝向以多年期、以計畫為基礎的採用模式發展，並在重大計畫的全生命週期中支持可重複的多次銷售模式；正如我們在 DAVD 產品線上開始看到的趨勢。

We remain focused on creating stable long-term shareholder value and executing against our growth strategy, which continues to be our highest priority as a group. To conclude, we thank our shareholders for their continued support. We are now ready to take your questions.

我們仍專注於創造穩健的長期股東價值，並落實我們的成長策略；這仍是我們集團的最高優先事項。最後，我們感謝股東持續的支持。我們現在準備好回答各位的提問。

(Operator Instructions) Brian Kinstlinger, Alliance Global Partners.

(接線員指示) Brian Kinstlinger，Alliance Global Partners。

I have a bunch. The first one with the authorization for Navy Use. How do you see demand for the untethered DAVD ramping in the second half of the year and fiscal '27 maybe some kind of range of units or revenue? And is there a contract in place like a BPA or an IDIQ, where the Navy can purchase? And if not, what is needed for the procurement process, now that the authorizations in place.

我有好幾個問題。第一個是關於海軍使用（Navy Use）的授權。您如何看待今年下半年無繫纜 DAVD 的需求爬升，以及在 27 財年（fiscal '27）可能的出貨量或營收區間？另外，是否已有像 BPA 或 IDIQ 這類合約架構，讓海軍可以採購？如果沒有，在授權到位之後，採購流程還需要哪些條件？

Look, the approval of the untethered system for use as a Navy Use item is really a meaningful inflection point for the DAVD technology because, as you know, without this approval in place, procurement could not go ahead for the untethered variant. It's difficult to predict the exact timing, but we do know that DAVD funding is included in this fiscal year's budget, and we expect to see some orders in our third quarter. What we don't know yet is the mix of configurations where the commands will procure tethered or on untethered variance.

你看，無繫纜系統獲准作為海軍使用項目，對 DAVD 技術而言確實是一個重要的轉折點，因為如你所知，若沒有這項核准，無繫纜版本就無法進行採購。很難預測確切時點，但我們知道本財年的預算已包含 DAVD 的資金，我們預期在第三季會看到一些訂單。我們目前還不清楚的是各種配置的組合，也就是各單位會採購有繫纜或無繫纜的不同版本。

Importantly, also, the 20 untethered systems previously purchased can now be allocated and fielded following Navy Use approval, which is a very important step. Once divers begin using the system operationally, we expect the real-world deployment will help to drive further demand for the DAVD untethered system in this very, very important market sector for our technology. We do not have an IDIQ in place at the moment, and we do not anticipate on for the DAVD untethered system. These orders were placed directly with our company, and we believe it will be the same going forward.

同樣重要的是，先前已採購的 20 套無繫纜系統，現在在海軍使用核准後可以進行分配並部署，這是非常重要的一步。一旦潛水員開始在作業中使用該系統，我們預期實際部署將有助於在這個對我們技術非常、非常重要的市場領域，進一步帶動對 DAVD 無繫纜系統的需求。我們目前沒有 IDIQ，也不預期會為 DAVD 無繫纜系統建立 IDIQ。這些訂單是直接向我們公司下單，我們相信未來也會是同樣的方式。

That's helpful. Now you described slower demand due to the Iran conflict in certain regions, has that pressure continued into the current quarter? And once a resolution is in place, maybe we have one today, maybe we don't, how quickly do you expect demand in these regions might recover?

這很有幫助。你們提到因伊朗衝突導致某些地區需求放緩，這種壓力在本季是否仍在持續？而一旦有了某種解決方案——也許今天有、也許沒有——你們預期這些地區的需求會多快恢復？

First of all, it's difficult for anyone to predict the duration of the geopolitical instability in the region. What we can see is that we're staying very, very close to our customers. And one thing is clear about this, Brian, it's not structural. It's a timing issue. What we see the fundamentals are there for the projects. It's just timing and security. For example, in the UAE, a lot of offshore projects are on hold because of the safety aspect. So we believe as soon as the pressure is alleviated, these projects are live projects, and we would hope that they would resume swiftly.

首先，任何人都很難預測該地區地緣政治不穩定會持續多久。我們能看到的是，我們與客戶保持非常、非常緊密的聯繫。而有一點很清楚，Brian，這不是結構性的問題。這是時點問題。我們看到專案的基本面仍然存在。只是時機與安全性的問題。例如在阿聯酋，許多離岸專案因安全因素而暫停。因此我們相信，一旦壓力緩解，這些專案都是仍在進行中的專案，我們希望它們能迅速恢復。

Great. And you highlighted the initial orders for the NANO Gen, Echoscope, which sounds like a retrofit to a current underwater (inaudible) vehicle type. How long do you think that a valuation process might be? And then once the evaluation is complete, are there other steps necessary for full integration or full retrofit? How many underwater vehicles of these are sold a year also?

很好。你們也提到 NANO Gen、Echoscope 的初始訂單，聽起來像是對現有某種水下（聽不清）載具的改裝。你認為評估流程大概會多久？然後評估完成後，是否還需要其他步驟才能完成全面整合或全面改裝？另外，這類水下載具一年大概會賣出多少台？

How -- sorry, what was your last question? I'm curious.

怎麼——抱歉，你最後一個問題是什麼？我有點好奇。

What -- how many vehicles are in production already right now? And how many maybe are sold annually?

什麼——目前已經在生產中的載具有多少？以及每年大概賣出多少？

So in terms of the NANO Gen sonars that we see, it's really too early to say the annual volume because the customer is still defining the final configuration of the platform. What we can see is that if the valuation is successful and the system is written into the vehicle specification. For us, it becomes a recurring production opportunity aligned with the platform's development cycle.

就我們看到的 NANO Gen 聲納而言，現在要談年度量還太早，因為客戶仍在定義該平台的最終配置。我們能看到的是，如果評估成功，且系統被寫入載具規格中。對我們而言，這就會成為一個與平台開發週期相一致的、可重複的量產機會。

And more importantly, for us, why we're excited. It dovetails with our broader strategy to grow the number of underwater vehicle programs which include our real-time 3D volumetric imaging sonar. Now why this program is exciting, it is because it's already an established program. And what this is an upgrade of the existing technology on the platform.

更重要的是，這也是我們感到興奮的原因。它與我們更廣泛的策略相契合，也就是擴大採用我們即時 3D 體積成像聲納的水下載具專案數量。而這個專案之所以令人振奮，是因為它已經是一個既有的成熟專案。而這次是對該平台既有技術的升級。

Right. But can you tell us how many of these actual underwater vehicles are potential to be retrofit and/or how many are sold annually new?

了解。但你能否告訴我們，實際上有多少這類水下載具有可能進行改裝，和／或每年新售出多少？

Well, at this stage, I really -- cannot say really. I really cannot say. But needless to say that we would think this would be meaningful for us on a year-on-year basis. This is a long-term opportunity of fitting out these vehicles and we believe year-on-year, it would be meaningful for us if we pass the valuation phase.

嗯，在這個階段，我真的——不能說。我真的不能說。但不用說，我們認為這對我們在逐年（year-on-year）的基礎上會是有意義的。這是一個長期的機會，為這些載具進行配備；我們相信如果通過評估階段，逐年而言會對我們相當有意義。

Okay. And then can you talk about progress in other next-generation underwater core vehicles? We've talked about this for a while, maybe how many OEMs you're in discussions with. It sounds like Blair said you hope to get something announced by the end of the year. What stages are you in, in discussions with these OEMs?

好的。那你能談談其他下一代水下核心載具的進展嗎？我們談這個有一段時間了，例如你們正在與多少家 OEM 討論？聽起來 Blair 說你們希望在年底前能宣布一些消息。你們與這些 OEM 的討論目前處於哪些階段？

Well, Blair can talk a little bit more about the evaluation process. But as you know, as soon as there is an active ongoing conflict that affects the world, so spending priorities and pace always shift when those dynamics are ongoing. What was yesterday's priority is not today's priority. So really, what we've seen is a slowing of pace somewhat because the current priorities would be to deal with the ongoing conflicts, and we see less pace on procurement. But as soon as we believe that as soon as the issue is resolved with the conflict then we could see some more pace ongoing.

嗯，Blair 可以再多談一些評估流程。但如你所知，只要有影響全球的持續衝突，支出優先順序與推進速度就會在這些動態持續時發生變化。昨天的優先事項不一定是今天的優先事項。因此我們看到進度在某種程度上放緩，因為目前的優先事項會是處理持續中的衝突，我們也看到採購節奏變慢。但我們相信，一旦衝突相關問題解決，我們就可能看到進度再次加快。

Blair, can you talk about a little bit about some of the programs and the process involved please?

Blair，你能否談談一些專案以及相關流程？

Yes, sure. Absolutely. Thanks again, Brian, for the question. So I think they really fall into two camps, really is one -- one is generally customer instigated such as the one we just announced the sale of the initial orders for where the customer who we've been working with for some time as really wanted to embed the Echoscope technology into their vehicles. So these are new vehicles that are being procured for an existing program, as Annmarie stated.

好的，當然可以。沒問題。再次感謝你的提問，Brian。我認為它們大致可分為兩類：其中一類通常是由客戶主導，例如我們剛宣布的初始訂單銷售；我們與該客戶合作已有一段時間，客戶確實希望將 Echoscope 技術嵌入其載具中。因此，正如 Annmarie 所說，這些是為既有專案所採購的新載具。

And this is really at the start, this is why it's exciting for us. This is really at the start, we're providing basic perception, obstacle avoidance and navigation control, but they're already knowing the capabilities of the Echoscope as they been involved with us for some years now, understand where they can take the capabilities of their vehicle. So that's one example.

而這其實才剛開始，這也是為什麼我們感到興奮。這真的才剛起步；我們提供的是基本的感知、避障與導航控制，但他們已經了解 Echoscope 的能力，因為他們多年來一直與我們合作，並且明白他們能如何運用其載具的能力。所以這是一個例子。

The other -- I would say there's another three or four examples where the NANO technology is providing different capabilities to each vehicle. And I think that's one of the unique things is we're not just do mapping. We don't just do forward-looking obstacle avoidance. We can perform all of these tasks. So there's another three vehicle companies who are looking to integrate our sensor. And they are at various stages of maturity.

另外——我會說還有另外三到四個例子，NANO 技術正在為每一種載具提供不同的能力。而我認為其中一個獨特之處在於，我們不只是做測繪。我們也不只是做前視式避障。我們可以執行所有這些任務。所以還有另外三家載具公司正在考慮整合我們的感測器。而他們目前處於不同的成熟階段。

But as Annmarie noted, we can plan the best. We're generally quite aggressive when we get involved with these types of opportunities. We want to try and see these move quickly and try and support the end customer as much as we can. However, again, they have their own priorities as well. So sometimes, things could take a little while to be able to, a, get in the water and have the necessary technical trials that are required to be able to understand how well the technology fits between the two. But I would say two or three of those are fairly advanced stages, which is positive.

但如 Annmarie 所提到的，我們可以把計畫做得再好。一般而言，當我們參與這類機會時，我們的作風相當積極。我們希望盡可能讓這些案子快速推進，並盡可能支援終端客戶。然而，他們也有自己的優先順序。所以有時候，事情可能需要一點時間，才能夠，a，實際下水並進行必要的技術測試，以了解兩者之間技術的契合度。但我會說其中兩到三個已經進展到相當成熟的階段，這是正面的。

And then I think the second camp for underwater vehicles are ones where we have had a collaborative discussion with a manufacturer not because they're necessarily involved in direct programs, but where we can see and they can see the benefit of joining the two technologies together. So that's almost like an internally funded opportunity for us to take those forward and to be able to provide our capability on their platform to some extent. So some are customer-driven and some are technology manufacturer driven.

接著我認為，水下載具的第二類，是我們與某家製造商進行合作性討論的情況；並不是因為他們一定參與了直接的專案，而是因為我們與他們都看得到把兩項技術結合在一起的效益。所以這幾乎像是我們內部自籌資金的機會，去推動這些案子，並在某種程度上把我們的能力提供到他們的平台上。因此，有些是客戶驅動，有些則是技術製造商驅動。

That was really helpful, Blair. And are you going to generate the revenue this current quarter from those NANO Gen Series deliveries? I think there are a couple of hundred thousand dollars a pop. Is that a this quarter event?

這真的很有幫助，Blair。那你們會在本季從那些 NANO Gen Series 的交付中認列營收嗎？我想每套大概是幾十萬美元。這會是本季發生的事嗎？

So can I just answer. So for the initial order that we received, these are clearly not material in terms of our revenue contribution in this quarter. The significance here isn't the initial volume. It's the opportunity ahead if the post-integration and evaluation proceed as planned. So in the quarter, we did deliver the initial systems to the customer. So that revenue is included in our quarter's revenue.

那我可以回答一下。就我們收到的初始訂單而言，這些在本季對我們的營收貢獻顯然並不重大。這裡的重要性不在於初始數量。而是在於若整合後與評估能如計畫進行，未來的機會。所以在本季，我們確實已將初始系統交付給客戶。因此，該筆營收已包含在我們本季的營收中。

I see. Two more quick ones. You highlighted SG&A, it's the lowest it's been since April '24. Can you break down maybe compared to the first quarter? How much was lower employee cost that you mentioned? How much was foreign exchange? And did you say there was a onetime gain as well?

了解。再兩個快問。你提到 SG&A，這是自 24 年 4 月以來最低。你能否拆解一下，可能相較第一季？你提到的員工成本降低是多少？外匯是多少？你也有提到一次性收益嗎？

Gayle, did you want to take that question?

Gayle，你要回答這個問題嗎？

We'll come back to that one in a second. Maybe she's muted. My last question is on M&A, which you spoke pretty clearly about. My one question would be are there a couple of companies you're evaluating in these discussions? Do you have identified a target? I just want to kind of understand where you are in this process?

我們等一下再回到這題。也許她把麥克風靜音了。我最後一個問題是關於併購（M&A），你們已經講得很清楚。我想問的是，在這些討論中你們是否正在評估幾家公司？你們是否已經鎖定目標？我只是想大致了解你們目前在這個流程中的進度？

Right. Yes. We do have two active opportunities that we're going through (inaudible) at the moment -- sorry, sorry. So we do have two active opportunities that we are going through due diligence at the moment, Brian. So yes, we're quite close in terms of our process, but it's still ongoing.

好的。是的。我們目前有兩個正在進行的機會，正在（聽不清）——抱歉、抱歉。所以我們目前確實有兩個正在進行盡職調查的機會，Brian。所以是的，就流程而言我們相當接近，但仍在進行中。

Can you hear me now?

你現在聽得到我嗎？

I can.

聽得到。

Sorry. I was muted and I had that understood myself. Apologies for that slight delay. Yes, I can deal with the question for you, Brian. Do you want us to understand the SG&A reduction? Correct?

抱歉。我剛剛靜音了，我自己也意識到了。為這個小延遲致歉。是的，我可以替你處理這個問題，Brian。你是想了解 SG&A 的下降原因？對嗎？

That's right.

沒錯。

So there's three main elements in SG&A. We have an exchange rate swing of about USD400,000 between Q2 last year and Q2 this year which is basically due to the exchange rate markets, we have less spend on our stock-based compensation, and we have lower spend on wages and salaries because we've a slightly lower head count of in the region of, I think, it's about USD100,000, something like that. So other than that, everything else is fairly similar that's the main drivers.

SG&A 主要有三個要素。我們在去年第二季與今年第二季之間有大約 40 萬美元的匯率波動，基本上是因為外匯市場匯率變動；我們在以股票為基礎的薪酬支出較少；另外，由於人數略有下降，我們在工資與薪資上的支出也較低，大約是 10 萬美元左右，我想大概是這個數字。除此之外，其他項目都相當類似，這些就是主要驅動因素。

You also asked about the gain that's through other income. We had a sale of a vessel that we made a significant gain on in the quarter as well, but that's through the other income line, not through the SG&A line.

你也問到其他收入中的收益。我們在本季出售了一艘船舶，並取得一筆可觀的收益，但那是列在其他收入項下，而不是列在 SG&A 項下。

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

此時，我們的問答環節到此結束。現在我想把電話交回給 Annmarie Gayle。

Thank you, operator. Thank you for your participation today, and have a great day. Thank you.

謝謝你，接線員。感謝各位今天的參與，祝各位有美好的一天。謝謝。

Thank you for joining today for Coda Octopus conference call. You may now disconnect. Thank you.

感謝各位今天參加 Coda Octopus 的電話會議。你現在可以掛線。謝謝。