ST. JOHN'S, NL--(Marketwired - November 02, 2015) - Kraken Sonar Inc. ("Kraken") (TSX VENTURE: PNG) is pleased to announce that its wholly-owned subsidiary, Kraken Sonar Systems Inc. has received a $1.5 million contract from a major international defence contractor for a KATFISH sonar system. Along with spare parts and support, the initial order could exceed $2 million. Due to the sensitivity of its business, the client's name cannot be disclosed.
The agreement includes multiple stages, starting with a first phase for the manufacture and supply of Kraken's KATFISH system. The customer will make an advance payment on the contract in 2015. Approximately 75% of the contract revenue is expected be realized in 2016. Subject to contract options, the next phases will position Kraken as a primary sonar supplier to the Unmanned Maritime Systems (UMS) market.
Karl Kenny, President and CEO of Kraken said, "This is a very significant award for us and demonstrates that KATFISH is a key objective in delivering on our "sensors-to-systems" strategy. This contract further establishes Kraken's underwater technologies in the Unmanned Maritime Systems industry and positions us for future contracts on UMS platforms."
KRAKEN'S KATFISH SURPASSES CONVENTIONAL SONAR SYSTEMS
Kraken's KATFISH is an actively controlled, intelligent towfish platform used to generate real-time, ultra-high resolution seabed imagery and maps for a variety of military and commercial applications. The system's primary sensors are based on Kraken's Interferometric Synthetic Aperture Sonar technology, real-time Synthetic Aperture Sonar (SAS) processing algorithms and acoustic velocity sensors.
Conventional side scan systems are limited in that they only provide high resolution imagery at short range. KATFISH produces ultra-high resolution seabed imagery with constant resolution to very long range. The additional information provided by the KATFISH system delivers a detection and classification capability that cannot be achieved with a conventional sidescan sonar. The entire system is designed to be quickly installed and removed from craft of opportunity platforms and is packaged for easy transportation.
Kraken's sonar and underwater systems are targeted to the rapidly growing Unmanned Maritime Systems drone market which is primarily comprised of Unmanned Underwater Vehicles (UUVs) and Unmanned Surface Vessels (USVs).
KRAKEN'S KATFISH ADDRESSES A NAVAL WARFARE INFLECTION
The future of naval warfare continues to evolve toward smaller vessels, littoral operations and underwater intelligence, surveillance and reconnaissance missions. Advanced sonar technologies, such as the SAS produced by Kraken, have matured to support solutions that can economically survey and detect small objects hidden on the seabed and can enter into confined spaces where underwater explosives are likely to be hidden.
The underwater defence market is evolving rapidly; responding to changing threats, tensions in the Middle East and Asia, economic and budgetary pressures and a growing eagerness by modern navies and developing countries alike to procure and deploy ocean drones such as UUVs and USVs.
UUVs are a proven technology that have been used for many years, mostly for mine countermeasures, oceanographic research and oil & gas surveys. In contrast, USVs, the naval equivalent of unmanned aerial vehicles (air drones) have not been widely used. While the technology for USVs is in its infancy compared with the aerial drones, this situation is about to significantly change.
Unmanned vessels, like unmanned aerial vehicles, provide military forces with reach and capability without the risk of manned systems. They keep the dull, dirty and dangerous jobs away from human personnel.
USV technology is maturing rapidly, and a number of USVs are market-ready, signaling a coming sea change in the makeup of the overall Unmanned Maritime Systems (UMS) market.
Industry analysts Market Info Group LLC estimate that the global Unmanned Maritime Systems market will reach US$11 Billion (cumulative) by 2020.
To view "Unmanned Maritime Systems Market Growth": http://media3.marketwire.com/docs/UnmannedMaritimeSystemsMarketGrowth.jpg
ABOUT KRAKEN SONAR INC.
Kraken Sonar Inc. (TSX VENTURE: PNG) is an industrial technology company, founded in 2012, that is dedicated to the production and sale of software-centric Synthetic Aperture Sonar (SAS) sensors and systems. The Company's products are sold to leading defence contractors, commercial survey companies and research institutions for producing real-time, ultra high resolution imagery and bathymetry of the seabed. For more information, please visit www.krakensonar.com.
Certain information in this news release constitutes forward-looking statements. When used in this news release, the words "may", "would", "could", "will", "intend", "plan", "anticipate", "believe", "seek", "propose", "estimate", "expect", and similar expressions, as they relate to the Company, are intended to identify forward-looking statements. In particular, this news release contains forward-looking statements with respect to, among other things, business objectives, expected growth, results of operations, performance, business projects and opportunities and financial results. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Such statements reflect the Company's current views with respect to future events based on certain material factors and assumptions and are subject to certain risks and uncertainties, including without limitation, changes in market, competition, governmental or regulatory developments, general economic conditions and other factors set out in the Company's public disclosure documents. Many factors could cause the Company's actual results, performance or achievements to vary from those described in this news release, including without limitation those listed above. These factors should not be construed as exhaustive. Should one or more of these risks or uncertainties materialize, or should assumptions underlying forward-looking statements prove incorrect, actual results may vary materially from those described in this news release and such forward-looking statements included in, or incorporated by reference in this news release, should not be unduly relied upon. Such statements speak only as of the date of this news release. The Company does not intend, and does not assume any obligation, to update these forward-looking statements. The forward-looking statements contained in this news release are expressly qualified by this cautionary statement.
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For further information, please contact:
Sean Peasgood, Investor Relations
Greg Reid, Chief Financial Officer
Glenda Leyte, Marketing Manager
(709) 757-5757 extension 288