RE:RE:Kraken Robotics Needs To Promote KATFISH More The Q3 financials are a cause for concern as Kraken Robotics quarterly revenue and net profit have declined.
Only reason why net profit didn't go down significantly as expected are due to the use of the "Absorption Method" where lower cost of goods sold results in higher gross profit (a bit of a Planning and Control lesson in Accounting) leads to higher gross margins, and higher service revenue.
At the same time, lower sales also results in lower Contribution Margins, a more reliable gross profit measure than the "Absoruption Method".
The 2024 YTD sales of just under $64 million is also a cause for concern as they might not reach its minimum annual sales target of $90 million.
Mathematically speaking, to reach that minimum target, Kraken Robotics will need a "Christmas Miracle" Q4 sales of at least $27 million to reach $90 million, and $37 million in Q4 sales to reach $37 million.