ST. JOHN’S, Newfoundland, May 01, 2018 (GLOBE NEWSWIRE) -- Kraken Robotics Inc. (TSX-V:PNG) (OTCQB:KRKNF) announced it has filed its financial results for the fourth quarter and year ended December 31, 2017. Additional information concerning the Company, including its audited consolidated financial statements and related management’s discussion and analysis (“MD&A”) for the year ended December 31, 2017, can be found at www.sedar.com. Unless otherwise stated, all dollar amounts are Canadian dollar denominated.
2017 Highlights
- Revenue growth of 56% to $3.5 million for the 12 months ended December 30, 2017 versus $2.2 million in 2016;
- Received multi-unit AquaPix® order with a $3 million contract announced in Q3 2017;
- Received $2 million order for a military version of KATFISH™ towed underwater vehicle in Q3 2017;
- Introduced our industry leading SeaVision® laser imaging system, with first commercial shipments expected in 2018;
- Completed our first RaaS job with our ThunderFish® AUV prototype in Q3 2017;
- Signed our first contract for sensors and robotics for ship hull inspections in Q4 2017;
- Saw a successful first year of R&D and business development efforts from our German subsidiary, Kraken Robotik GmbH (KRG), which is co-developing sensors and software, including our SeaVision® underwater laser system;
- Our investee company, Kraken Power GmbH, completed its first year of operations under new ownership structure and is seeing strong potential for its deep-sea pressure tolerant batteries and thrusters.
- Kraken Power GmbH recently received initial prototype orders from two multi-billion dollar industrial companies which offer potential for significant revenue, and;
- At year-end 2017, Kraken had $1.7 million of funding awards to draw upon from the National Research Council of Canada Industrial Research Assistance Program (NRC-IRAP) and Innovate Newfoundland.
Subsequent Highlights after Year-End 2017
- Completed a non-brokered private placement. Investors exercised warrants, resulting in gross proceeds of $1.9 million;
- Pre-qualified for a Build in Canada Innovation Program (BCIP) contract for our ThunderFish® AUV platform, and;
- Formed a strategic partnership with US-based defense integrator Thayer Mahan.
CEO Comments
“For 2018, we are targeting at least a doubling of revenue to more than $7 million, after 56% revenue growth in 2017,” said Karl Kenny, Kraken’s President and CEO. “This growth target excludes upside from several, large, multi-unit defense industry bids that are currently in progress. We base our forecast on 2017’s significant business development activity that positions us for a step change in top line growth for Kraken’s underwater sensors, systems and services. We are excited about the growth potential for our new products, KATFISH™ and SeaVision,® which are seeing strong interest across both military and commercial markets. Our AquaPix® sensors continue to gain traction in these markets. With the upcoming launch of our Tentacle™ Intelligent Winch products and continued development of the ThunderFish® Autonomous Underwater Vehicles (AUV), we are rounding out our sensor and robotics technology portfolio. We believe we are nicely positioned as the defense market undergoes an upgrade cycle and commercial markets are increasing adoption of underwater robotic technology.”
Outlook for 2018
- Targeting to at least double revenues in 2018 to more than $7 million. This target excludes any contribution from the Company’s current major defense bids;
- Strong KATFISH™ traction. We are seeing considerable interest from both military and commercial market sectors, and we have bids out representing more than 30 units. To date, we have built three KATFISH™ towed systems. In addition to defense market opportunities, we are seeing emerging opportunities in the oil and gas sector, offshore wind, ocean mapping and science;
- Launch of Tentacle™ Intelligent Winch products. Kraken’s Nova Scotia-based Handling Systems Group designs intelligent winches and autonomous launch and recovery systems. After more than two years of development, Kraken expects this group to move into revenue-generating mode during 2018 with product price points ranging from $200,000 to $1 million;
- First commercial units of SeaVision® available for sale at the end of Q2 2018. SeaVision® is the world’s first red-green-blue (RGB) underwater laser imaging system that offers the resolution, range and scan rate to deliver dense full-colour 3D point cloud images of subsea infrastructure in real time, with millimetre accuracy. The initial system is designed for deployment on underwater robotic platforms such as Remotely Operated Vehicles (ROVs) and AUVs;
- Anticipate first major contracts to be awarded to Kraken Robotik GmbH in 2018;
- Expect to see first benefits from the Canadian Government’s Ocean Supercluster. Announced in February 2018, the Ocean Supercluster will see more than $400 million of government and industry contributions over the next 5 years;
- Continued evolution of the ThunderFish® AUV platform; and
- Pursuit of further Robotics as a Service (RaaS) contracts
Transition to IFRS 15 revenue recognition rules. While not affecting cash flows, implementation of new revenue recognition rules will negatively affect the timing of reported revenue as it ends the use of “percentage of completion” accounting. Annual revenues will be more back-end loaded, and quarterly revenues will be lumpy. Notwithstanding our positive revenue outlook, we anticipate a soft Q1.
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; Bremen, Germany; and Fairfax, Virginia. 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.
Certain information in this news release constitutes forward-looking statements. When used in this news release, the words "may", "would", "could", "will", "intend", "plan", "anticipate", "believe", "seek", "propose", "estimate", "expect", and similar expressions, as they relate to the Company, are intended to identify forward-looking statements. In particular, this news release contains forward-looking statements with respect to, among other things, business objectives, expected growth, results of operations, performance, business projects and opportunities and financial results. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Such statements reflect the Company's current views with respect to future events based on certain material factors and assumptions and are subject to certain risks and uncertainties, including without limitation, changes in market, competition, governmental or regulatory developments, general economic conditions and other factors set out in the Company's public disclosure documents. Many factors could cause the Company's actual results, performance or achievements to vary from those described in this news release, including without limitation those listed above. These factors should not be construed as exhaustive. Should one or more of these risks or uncertainties materialize, or should assumptions underlying forward-looking statements prove incorrect, actual results may vary materially from those described in this news release and such forward-looking statements included in, or incorporated by reference in this news release, should not be unduly relied upon. Such statements speak only as of the date of this news release. The Company does not intend, and does not assume any obligation, to update these forward-looking statements. The forward-looking statements contained in this news release are expressly qualified 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 OTCQB 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