Kraken Reports Q3 2020 Results - Seite 2

“While Q3 2020 revenue was below the prior year, revenue is relatively unchanged on a year-to-date basis. However, going forward, we are very pleased to have secured and are now strongly focused on executing the recent $40 million+ of orders we have received from both the Danish and Polish navies. We are also involved in active discussions with other NATO navies. We are seeing continued and solid interest for our KATFISH and ALARS products within the global defense and commercial markets. While year-over-year comparisons for our battery products are down, order activity for our subsea batteries is now improving as we add additional customers predominantly in the defense market. For our sonar sensor products that we sell to AUV manufacturers, we expect to build on the positive feedback we have received on our light-weight SAS under the Foreign Comparative Test program with the US Navy and additional interest we are seeing for our sensors across numerous AUV OEM and defense customers,” said Karl Kenny, Kraken’s President and CEO.

“We recently completed our third successful OceanVision offshore campaign, a project that is accelerating our efforts to develop a more significant recurring revenue base which we characterize as Robotics as a Service. During the campaign, Kraken collected data in a variety of areas focusing on marine habitats, iceberg scours and other objects of interest, operating the KATFISH and ALARS in up to Sea State 6 conditions. In addition to capturing large amounts of ultra-high definition seafloor data, Kraken was very pleased with the performance of its ALARS system which had recently completed successful sea trials in Nova Scotia on Kraken’s Ocean Seeker vessel. The OceanVision campaign provided the first opportunity to deploy the system in real-world offshore environmental conditions.”

“With a strong balance sheet from our recent financing as well as incoming customer deposits and third party project funding, we are well positioned to deliver on existing product orders and near to medium term opportunities on both the product and RaaS front. Our sensor and robotics technology significantly reduce cost, timelines and carbon emissions which is proving to be of keen interest in the offshore sector.”

*Adjusted EBITDA and Adjusted EBITDA margin do not have standardized meaning under IFRS and may not be comparable to similar measures used by other issuers. We define Adjusted EBITDA as revenue less costs of sales, administrative expenses, research and development costs plus investment tax credits. We define Adjusted EBITDA margin as Adjusted EBITDA divided by revenues.