ST. JOHN’S, Newfoundland, May 31, 2019 (GLOBE NEWSWIRE) -- Kraken Robotics Inc. (TSX-V: PNG, OTCQB: KRKNF) announced it has filed its financial results for the first quarter ended March 31, 2019. Additional information concerning the Company, including its unaudited condensed consolidated financial statements and related management’s discussion and analysis (“MD&A”) for the quarter ended March 31, 2019, can be found at www.sedar.com. Unless otherwise stated, all dollar amounts are Canadian dollar denominated.  

Q1 2019 Financial Highlights

  • Revenue of $1.4 million for the 3 months ended March 31, 2019, as compared to nil in Q1 2018;  
  • Net loss of $0.8 million, versus net loss of $1.5 million in Q1, 2018;
  • Quarter end cash balance of $5.0 million, up slightly from $4.9 million at the end of 2018;
  • Quarter end total assets of $18.7 million as compared to $14.0 million at the end of 2018;
  • Kraken has $2.1 million in previously awarded funding to draw upon from government agencies. This amount is not recorded in our financial statements until the cash is received and as such is an off-balance sheet asset at the end of Q1, 2019.

“Q1 2019 was a busy quarter for Kraken as we ramped headcount and capacity in both Canada and Germany to meet increasing demand and expected contract awards,” said Kraken CEO Karl Kenny. “We shipped our first commercial SeaVision unit, and near the end of the quarter, we shipped our first battery system to Ocean Infinity. We expect battery shipments to Ocean Infinity and other customers to ramp throughout the year. In our sensor and systems business, we are working towards closing on several contracts; are nearing the final stages of several large military pursuits; and have made our final submission on an Ocean Supercluster initiative. Our pipeline remains robust and we are confident we will have success on at least some of our larger contract pursuits. Given this visibility, we are reiterating our fiscal 2019 revenue forecast of at least $15 million, more than doubling our 2018 revenue and expect to be profitable.”

Q1 Highlights

  • Announced that long-standing customer, ECA Group, is part of the winning consortium for Belgium and Dutch Navy mine hunting program. ECA Group’s share of the contract is valued at approximately €450 million. Upon successful contract executions and if all contract options are exercised as quoted, Kraken’s portion of the program is expected to be in excess of C$35 million;
  • $0.6 million contract from Public Works and Procurement Canada under the Defence Innovation Research Program to develop a low frequency, ultra-wideband Synthetic Aperture Sonar (SAS) for use in underwater operational environments;
  • $1.7 million of purchase orders from Ocean Infinity for AquaPix SAS sensors and support;
  • Received proceeds of more than $3.2 million from the exercise of 5.8 million warrants at $0.40 per share (Ocean Infinity) and 3.1 million warrants at $0.30 (investors from April 2017 private placement);
  • $1 million contract for ThunderFish® from Government of Canada under Canada’s BCIP program;
  • $1 million financial contribution from the Government of Newfoundland and Labrador under the Innovation and Business Development Funding program. The funding will be used for the initial phase of the OceanVision™ project that Kraken plans to pursue as part of the Ocean Supercluster initiative;
  • Subsequent to Q1, Kraken was awarded a $0.6 million contract for subsea battery solution for a military customer;
  • Recently moved into a new 19,000 square foot facility in Mt. Pearl, Newfoundland and a 4,000 square foot assembly facility in Dartmouth, Nova Scotia. 

Forward Looking Guidance

While Kraken is still an early stage company and quarterly results can be variable, we entered 2019 with a backlog of approximately $10.5 million, all of which is expected to get recognized in revenue in 2019. Our guidance for the fiscal year remains unchanged, and we expect revenues of at least $15.0 million and to be net income positive. Our guidance excludes any benefit of larger program opportunities we are pursuing such as the Ocean SuperCluster and various large foreign navy minehunting program upgrades.  The timing and scope of major contract wins remains variable and increased investments in product development, manufacturing capacity, and sales development may impact net income.

ABOUT KRAKEN ROBOTICS INC.

Kraken Robotics Inc. (TSX.V:PNG) (OTCQB: KRKNF) is a marine technology company that is dedicated to the production and sale of software-centric sensors and underwater robotic systems. The company is headquartered in St. John’s, Newfoundland with offices in Dartmouth, Nova Scotia; Toronto, Ontario; Bremen & Rostock, Germany; and Boston, Massachusetts. Kraken is ranked as a Top 100 marine technology company by Marine Technology Reporter. For more information, please visit www.krakenrobotics.com, www.krakenrobotik.de, www.krakenpower.de. Find us on social media on Twitter (@krakenrobotics), Facebook (@krakenroboticsinc) and LinkedIn.

This news release contains forward-looking information. Often, but not always, forward-looking information can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "estimates", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Kraken or its subsidiaries and customers to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information contained in this news release. Examples of such statements include statements with respect to the Company’s anticipated revenue growth; completion of industry contracts between the Company and its clients, and between its clients and other industry partners; anticipated impact of industry upgrade cycles in naval mine warfare and the anticipated and timely adoption of underwater robotics; the Company’s ability to capitalize on existing and future bids for services, including the Ocean Supercluster; among others.  Risks, uncertainties and other factors involved with forward-looking information could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information including such risks contained in the Company's management’s discussion and analysis for the fiscal year ended December 31, 2018 and filed with Canadian securities regulators available on the Company's issuer profile on SEDAR at www.sedar.com. Although the Company believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information and no assurance can be given that such events will occur in the disclosed time frames or at all.

Certain forward-looking information in this press release constitutes future-oriented financial information or financial outlooks, within the meaning of securities laws. Such information is being provided to demonstrate the potential of the Company and readers are cautioned that this information may not be appropriate for any other purpose. Future-oriented financial information and financial outlooks, as with forward-looking information generally, are based on assumptions and subject to risks, uncertainties and other factors. Actual results may differ materially from what the Company currently expects. Readers are cautioned that any such future oriented financial information contained herein should not be used for purposes other than those for which it is disclosed herein. The Company and its management believe that that the prospective financial information as to the Company’s anticipated 2019 financial results has been prepared on a reasonable basis, reflecting management’s best estimates and judgments. However, because this information is highly subjective, it should not be relied on as necessarily indicative of future results.

The forward-looking information included in this news release are made as of the date of this news release and the Company does not undertake an obligation to publicly update such forward-looking information to reflect new information, subsequent events or otherwise unless required by applicable securities legislation. The reader should not place undue importance on forward-looking information and should not rely upon this information as of any other date. All forward-looking information contained in this press release is expressly qualified in its entirety by this cautionary statement.

Neither the TSX Venture Exchange Inc. nor its Regulation Services Provide (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release, and the TSX Venture Exchange has neither approved nor disapproved the contents of this press release.

For further information, please contact:

Greg Reid, Chief Financial Officer
(416) 818-9822
greid@krakenrobotics.com

Sean Peasgood, Investor Relations
(647) 955-1274
sean@sophiccapital.com

Glenda Leyte, Marketing Manager
(709) 757-5757 extension 288
gleyte@krakenrobotics.com