Kraken Robotics reported a widened loss in the second quarter on the back of a legal charge, offsetting stronger deliveries that lifted revenue.

The Canadian marine technology company on Thursday posted a widened net loss of 7.5 million Canadian dollars ($5.4 million), or C$0.02 a share, compared with a loss of C$700,000 in the comparable quarter a year ago.

The company said the loss included a provision for probable costs tied to a continuing arbitration proceeding regarding a supplier contract entered in 2017.

Adjusted earnings, which exclude one-off costs and exceptional items, were zero, in line with analyst forecasts, according to FactSet.

Adjusted earnings before interest, taxes, depreciation and amortization came to C$5 million, up from C$4.7 million.

Revenue rose 4% to C$27.3 million, ahead of consensus expectations of C$26.3 million. The growth was driven by strong product sales, including the delivery of a Katfish sonar system for a naval mine-hunting program. Kraken also benefited from modest gains in its subsea services division.