Kraken Robotics reports net profit
Kraken Robotics Inc. likes what is reflected in the rearview mirror.
The publicly traded Mount Pearl-based marine technology company released financial results for the first three months of this year, which show a healthy increase in revenue that helped Kraken record its first net profit.
Overall revenue for the quarter was $6.4 million, compared to $1.4 million in the same period in 2019. Earnings before interest, taxes, depreciation and amortization was $1.3 million, compared to a loss of $300,000 in the same quarter a year ago.
That led to $700,000 in net income for the quarter. A year ago, there had been a loss of $900,000 over the same period.
President and CEO Karl Kenny stated in a news release it was “an extremely well-balanced quarter” for Kraken, which provides services to both military and offshore energy customers.
In the first months of 2020, that included a second delivery to Thayermahan, a Connecticut firm specializing in underwater security, of the Katfish, Kraken’s highspeed towfish that maps the seabed in ultra-hd resolution. There was also delivery of undersea batteries to a military client.
“I am very proud of our team, which has been executing extremely well in a challenging operating environment,” Kenny stated. “We have many high-value projects we are pursuing which will continue to drive growth and value for shareholders.”
Kraken (CVE: PNG) said it hasn’t felt any effects yet from the COVID-19 pandemic, but the coronavirus “could affect our supply chain, customers, employees and operations.”
“This could impact the number of contracts we close, sales cycle lengths and our ability to deliver product and services in a timely manner. We will continue to prudently monitor the situation and manage our business accordingly.”
Kraken, which also has offices in Toronto, Dartmouth, Boston, and Rostock and Bremen in Germany, came out of the quarter with a cash balance of $2.1 million, unchanged from the end of 2019,
The company saw its credit line, which hasn’t been used, increased to $1.5 million from $1 million, and including federal funding it is due to receive in the Oceanvision project, Kraken said, it will have $6.2 million in preawarded funds to draw upon from government agencies. Until that money is received, it isn’t included in financial statements.