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Kraken Robotics Inc. is pleased to announce new contracts for batteries, sonar sensors, and support totalling $2.8 million. We are also pleased to provide a corporate update on business activity.
Kraken has recently received orders from four US companies and one Canadian company totalling $2.8 million. The Company expects to fulfill these contracts in the first half of 2020. Due to confidentiality reasons, our customers cannot be named but are characterized below:
- A new customer primarily targeting the defense industry will be using Kraken SeaPower® batteries in its autonomous underwater vehicles (“AUVs”).Kraken currently expects another battery order from this customer in Q3 of this year.
- An existing defense industry customer is acquiring additional SeaPower® batteries. This is the customer’s third order of Kraken batteries.
- An existing customer, a large defense contractor, is acquiring another AquaPix® MINSAS sensor.
- An existing Canadian commercial customer contracted Kraken for further offshore asset inspection using Kraken’s SeaVision® laser scanning services.
- An existing commercial customer contracted Kraken for offshore support.
2019 was a very strong year of growth for Kraken, and we expect to report Q4 and full year financial results for the period ended December 31, 2019 in the second half of April 2020. While the auditors have recently started their field work and final results are subject to change, we expect 2019 revenue to be between $14.5 million and $15.5 million. This is more than double the $6.7 million we achieved in 2018. We expect strong growth to continue in 2020 and 2021 based on existing orders, orders we expect to close in the near term, and strategic wins with defense and commercial customers.
While we experienced delays in getting certain contracts signed (delays not related to Kraken or our products), we are excited about the opportunities ahead as military and commercial adoption of our products continues to increase. We have invested significantly in R&D as well as sales and marketing. We expect relationships with strategic partners such as ThayerMahan and Ocean Infinity and numerous customer sea trials to continue to generate revenue growth.
While we are not currently experiencing major impacts from the recent oil price collapse and Coronavirus pandemic, we are aware that this could affect our supply chain, customers, employees, and operations. That could impact the number of contracts we close, sales cycle lengths, and our ability to deliver product and services in a timely manner. However, we will continue to prudently monitor the situation and manage our business accordingly.