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KRAKEN Kraken Reports Q1 2021 Results ST . JOHN'S , Newfoundland , May 27 , 2021 ( GLOBE NEWSWIRE ) -- Kraken Robotics Inc. ( TSX - V : PNG , OTCQB : KRKNF ) , Canada's Ocean Company , announced it has filed its financial results for the quarter ended March 31 , 2021. Additional information concerning the Company , including its consolidated financial statements and related management's discussion and analysis ( " MD & A ” ) for the quarter ended March 31 , 2021 , can be found at www.sedar.com . Unless otherwise stated , all dollar amounts are Canadian dollar denominated . Q1 2021 Financial Highlights • Revenue for the quarter was $ 3.6 million compared to $ 6.4 million in the year ago quarter . Revenue in the quarter was driven by continued progress of the Danish Navy order as well as our third delivery of subsea batteries to a military customer . Revenue in the prior year consisted of the delivery of a KATFISH ™ 180 system , the sale of subsea batteries , acoustic signal processing software for a defense contractor as well as Robotics as a Service and data analytics for offshore energy customers . • Adjusted EBITDA * in the quarter was positive at $ 0.1 million , compared to Adjusted EBITDA * of $ 1.3 million in the year ago quarter . • Net loss in the quarter was $ 0.6 million compared to Net income of $ 0.7 million in the year ago quarter . • • Net working capital at the end of Q1 , 2021 was $ 10.5 million , compared to $ 10.9 million at the end of 2020. Kraken exited the quarter with a cash and restricted cash of $ 10.0 million , compared to $ 13.9 million at December 31 , 2020 . Including federal funding we will receive for our Ocean Vision project , Kraken had $ 8.1 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 . CEO Comments " With a strong backlog driven by wins last year with the Danish and Polish Navy , we are on track to meet our 2021 financial guidance . This would represent more than 100 % organic revenue growth . Due diligence and finalizing the share purchase agreement with PanGeo Subsea continues , and we are now targeting to close this acquisition in the first half of June . We are very excited about the revenue synergies we expect from this acquisition . Together with PanGeo , we expect strong growth in providing Robotics as a Service to the offshore services market with a focus on offshore renewable energy and offshore oil and gas customers , " said Karl Kenny , Kraken's President and CEO . 2021 Financial Guidance • Financial guidance for fiscal 2021 is unchanged from guidance provided on May 11 , 2021. Revenue for the year ended December 31 , 2021 is expected to be $ 24.0 million to $ 28.0 million . The greater than 100 % expected growth is due to recent contract wins for KATFISHTM 180 towed sonars and ALARS for the Danish and Polish Navies , and various orders and expected orders for AquaPix® MINSAS and SeaPowerTM batteries . We have strong visibility into 2021 , with contracts already signed accounting for more than 80 % of the $ 26 million midpoint of our 2021 revenue forecast range . • Our revenue guidance excludes any contribution from the proposed acquisition of PanGeo which we announced on April 9 , 2021. Upon completion of this proposed acquisition , we will update our guidance to account for expected PanGeo results . • Gross margins for 2021 are expected to be in the 47 % -50 % range versus 47 % in 2020 . • Adjusted EBITDA * for 2021 is expected to be in the range of $ 2.0 million to $ 4.5 million compared to an Adjusted EBITDA * loss of $ 2.7 million in 2020. The year over year improvement is expected as a result of higher revenue offset by increased expenses on headcount and infrastructure related spending , and overall costs due to the growth of the business . • Net income for 2021 is expected to range from a net loss of $ 1.5 million to net income of $ 1.5 million . This compares to a net loss of $ 5.5 million in 2020 . * 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 and share based compensation . We define Adjusted EBITDA margin as Adjusted EBITDA divided by revenues . LINKS www.krakenrobotics.com SOCIAL MEDIA LinkedIn : www.linkedin.com/company/krakenrobotics Twitter : www.twitter.com/krakenrobotics Facebook : www.facebook.com/krakenroboticsinc YouTube : www.youtube.com/channel/UCEMyaMQnneTelr71HYgrT2A Instagram : www.instagram.com/krakenrobotics