Kraken Sonar (PNG.V) reported Q1 2016 results yesterday, with a Press Release this morning, that indicates that the company is continuing to make significant progress in scaling its business. While there is no recurring revenue base for the company of any significance (thus quarter to quarter numbers can be lumpy) the company is well ahead of 2015 in overall revenues already booked and backlogs from customers with revenues that will come due and payable in 2016. The company has over $700k in cash (with no debt) on the balance sheet as well, so the company should be able to continue to operate without a need for capital, unless they choose to do so to finance additional growth or new product development.
There were a lot of great little nuggets of information in the release that suggests significant events are right around the corner for Kraken, including several partnerships.
CEO Karl Kenny said the following regarding his business outlook for the remainder of 2016:
"We are very excited about our pipeline of opportunities and continue to expect a material ramp in bookings and revenues versus 2015," said Mr. Kenny. "Our KATFISH™ is receiving excellent market feedback and we expect to ship our first product to Elbit Systems Ltd. later this year. We are seeing significant other multi-unit sales opportunities for KATFISH™ and our AquaPix® sensors. At an average selling price of US$1.5 million per unit, KATFISH™ should drive considerable revenues compared to our historical financials. In addition, we anticipate concluding additional strategic partnerships in 2016, both for new products and distribution, across both military and commercial channels. Based on current discussions, we expect to conclude at least two of these partnerships within the next three months."
I will likely be a buyer of additional shares (thus averaging up on my cost basis) on the back of this report.