Sep 14, 2026 earnings call — DAVID and Nano adoption progress
Consolidated revenue rose 9.2% to $7.7 million in the quarter.
Revenue $0.0B (est $0.0B) · EPS $0.12 (est $0.12)
Key quotes
"Since our last earnings call, we have received approximately $1.4 million of orders from the U. S. Navy for DAVID Tethered Systems and related peripherals."
"Our defense engineering services business delivered a strong quarter with revenue increasing 68.3% compared with the prior year period."
"Partially offsetting this decline was significantly improved rental asset utilization with increased rental revenue by 131.1% to approximately $700 thousand compared with approximately $300 thousand in the prior year period."
Analyst Q&A 2
ROV testing, DAVID feedback, revenues, and strategy
Q (Brian Kinstlinger · Alliance Global Partners): He asked for feedback and timing on the underwater ROV OEM tests of the NanoGen Echoscopes and whether the tests will lead to a design win. He also asked how ANU approval changed the sales cycle, what customers say about DAVID, how the regional war may affect Marine Technologies revenue, whether marine engineering revenue will stay steady or remain lumpy, and the company’s investment versus cost control strategy.
A: Management said the ROV program is making very good progress and is entering SAT trials; they are actively testing in the water now. They said ANU approval removed a major hurdle and enables deployment and user acceptance testing, and customer feedback on DAVID is very positive with potential training and integration uses. They said regional conflict is causing timing delays and deferrals but not structural change, marine engineering will remain lumpy with growing spare-and-repair demand, and the company plans continued R&D and SG&A investment to win more defense programs.
"The SAT trials will be imminent, and actually, I am I am with the customer as we speak at the moment." — Blair Cunningham (PRESIDENT)
DAVID rollout and US Coast Guard exposure
Q (Zahra · Freedom): She asked what determines whether the European Navy moves from an initial DAVID deployment to a broader rollout and whether other navies can use that qualification. She also asked how exposed the defense engineering business is to lower US Coast Guard vessel procurement spending in the 2027 budget.
A: Management said they are making very good progress with a very influential European Navy and expect procurement visibility later this year. They noted DAVID can pull through Echoscope and other inspection systems already used in over 30 ports, and if the influential navy adopts broadly, other European navies would likely follow. On the US Coast Guard, they said they are encouraged because they are working with no less than 4 prime defense contractors and see demand for new technologies despite possible budget reallocations.
"And, yes, they are also very influential and therefore, if they move forward to broader adoption, which we expect, we would see also other European navies follow suit because they are really the trendsetter here in diving." — Annmarie Gayle (CEO·CHAIR)