PRINCETON, N.J., Nov. 14, 2016 (GLOBE NEWSWIRE) -- Mikros Systems Corporation (OTCQB:MKRS) today announced its
third quarter and year to date 2016 financial results.
For the three months ended September 30, 2016, revenues were $1.18 million, compared to $1.24 million for the
third quarter of 2015. Cost of sales was $446,810 compared to $529,303 for the third quarter of 2015. The Company
reported net income of $20,726 for the third quarter of 2016 as compared to net income of $36,736 in the third quarter of 2015.
For the nine months ended September 30, 2016, revenues were $3.15 million, compared to $5.45 million for the
nine months ended September 30, 2015. Cost of sales for the nine months ended September 30, 2016 was $1,120,664 compared to
$2,868,377 for the nine months ended September 30, 2015. The Company reported net income of $30,559 for the nine months ended
September 30, 2016 as compared to net income of $298,238 in the nine months ended September 30, 2015. The decreases were
primarily due to the completion of the production contracts for 64 ADEPT units in 2015 and significant delays in the award of
several Navy contracts.
As in the first and second quarters, Mikros continued to invest considerable resources in the development and
marketing of its commercial software products, Diagnostic Profiler and Prognostics Framework. These software offerings, coupled
with Mikros hardware products, provide a complete solution for advanced maintenance applications designed to service FAA radar
surveillance and support systems, power distribution and utilities infrastructure, commercial shipping, and other complex
distributed systems. Current customers for these systems include major multinational corporations and Mikros continues to
receive repeat orders from existing customers and inquiries from new potential commercial customers.
During the third quarter, the Company completed a recapitalization transaction pursuant to which all issued and
outstanding shares of preferred stock were exchanged or redeemed for a combination of cash and shares of common stock. In
this transaction, the Company made aggregate cash payments of $544,017, a net issuance of 3,089,806 additional shares of common
stock, and eliminated $2,955,433 of aggregate liquidation preferences applicable to its previously outstanding shares of preferred
stock.
Recent Contract Awards
Mikros also received several important Navy contract awards in the third quarter which continue to support both
new development and continuing production of its ADEPT and ADSSS product lines.
- In July and August 2016, the Company received two (2) additional contract modifications which added $4.65 million for ongoing
development of its current service contract for LCS systems using the ADSSS. This funding will extend the program
until June 2018 and allow Mikros to perform installations and support for the LCS ships.
- On September 12, 2016, the Company was awarded a multi-year IDIQ contract with the Naval Surface Warfare Center, Port Hueneme
Division, relating to the ADSSS product. The contract provides for the purchase and sale of up to $48 million of ADSSS units and
related engineering and logistics support. On September 15, 2016, Mikros received a $3,032,993 delivery order under this
contract, to support installations, support and logistics for the LCS ships.
- In September 2016, Mikros received multiple contracts totaling almost $0.4 million to continue logistics support of the ADEPT
maintenance workstation. These contracts include general engineering support, repair, calibration and training.
Tom Meaney, Mikros President and CEO, commented, “These recent contract awards from our Navy customers will
continue to support our ADEPT and ADSSS products and fund the first deployments of our production Condition Based Maintenance
system on the Littoral Combat Ships. We continue to invest resources to support our business development efforts in
several new commercial market segments with a view to generating new commercial applications and expanding our defense business
base. As a direct result of these efforts, we recently received our first commercial manufacturing contract at our
Manufacturing and Depot Center in Largo FL, where we are focused on developing more third-party production business.”
Additional information regarding the Company’s financial data may be found in the Company's Quarterly Report on
Form 10-Q for the quarter ended September 30, 2016 filed with the U.S. Securities and Exchange Commission. The Form 10-Q may
be accessed at www.sec.gov or at the Company's website at www.mikrossystems.com.
About Mikros
Mikros Systems Corporation is an advanced technology company specializing in the research and development of
electronic systems technology primarily for military applications. Classified by the U.S. Department of Defense as a small
business, its capabilities include technology management, electronic systems engineering and integration, radar systems
engineering, command, control, communications, computers and intelligence systems engineering, and communications
engineering. Mikros’ primary business is to pursue and obtain contracts from the Department of Homeland Security, U.S. Navy,
and other governmental authorities. For more information on Mikros, please visit: www.mikrossystems.com.
CONTACT: Thomas J. Meaney - (609) 987-1513
Important Information about Forward-Looking Statements
All statements in this news release other than statements of historical facts are forward-looking statements
which contain our current expectations about our future results. Forward-looking statements involve numerous risks and
uncertainties. We have attempted to identify any forward-looking statements by using words such as "anticipates," "believes,"
"could," "expects," "intends," "may," "should" and other similar expressions. Although we believe that the expectations reflected
in all of our forward-looking statements are reasonable, we can give no assurance that such expectations will prove to be correct.
Such statements are not guarantees of future performance or events and are subject to known and unknown risks and uncertainties
that could cause the Company's actual results, events or financial positions to differ materially from those included within or
implied by such forward-looking statements. Such factors include, but are not limited to, changes in business conditions, a decline
or redirection of the U.S. Defense budget, significant delays or reductions in appropriations for our projects, the
termination of any contracts with the U.S. Government, changes in our sales strategy and product development plans, changes in the
marketplace, continued services of our executive management team, our limited marketing experience, competition between us and
other companies seeking SBIR grants, competitive pricing pressures, market acceptance of our products under development, delays in
the development of products, our ability to adequately integrate our new software offerings into our business model, statements of
assumption underlying any of the foregoing, and other factors disclosed in our annual report on Form 10-K for the year ended
December 31, 2015 and other filings with the SEC. Readers are cautioned not to place undue reliance on these forward-looking
statements, which speak only as of the date made. Except as required by law, we undertake no obligation to disclose any revision to
these forward-looking statements.