PRINCETON, N.J., May 17, 2017 (GLOBE NEWSWIRE) -- Mikros Systems Corporation (OTCQB:MKRS) today announced first quarter 2017 results.
Revenues for the first quarter of 2017 were $1,754,973, as compared to $987,929 for the first quarter of 2016, an increase of $767,044 or 78%. Cost of sales for the three months ended March 31, 2017 was $651,536 compared to $324,328 for the three months ended March 31, 2016, an increase of $327,208 or 101%. As a percentage of revenue, cost of sales increased to 37% of revenues for the three months ended March 31, 2017 as compared to 33% of revenues for the three months ended March 31, 2016. Finally, the Company reported net income of $90,307 for the first quarter of 2017 as compared to net income of $1,846 for the first quarter of 2016.
The increases in profits and revenue were largely the result of a new production order for the Company’s ADEPT systems and the receipt of six additional contracts for engineering services, support, repairs, and calibration services for the US Navy.
During the first quarter, Mikros continued to invest considerable resources in the further development and marketing of its Diagnostic Profiler® and Prognostics Framework® commercial offerings. This is a natural extension of the technology Mikros has developed for the US Navy to the commercial sector.
Highlights for the quarter included:
- production of 11 ADEPT Units which will be delivered in the fourth quarter
- extending our ADSSS® system to a second ship class, the Aegis surface combatant fleet, and to a fourth Navy radar system (the MK 99)
- receipt of multiple new contract awards and deliver orders, including providing training for our ADEPT® product line at Navy facilities throughout the world.
Tom Meaney, Mikros President and CEO, commented, “We are very pleased to deliver another strong quarter for our investors. We are now starting to see tangible results from the $83 million of IDIQ contracts we were awarded in the fourth quarter of 2016 and the first quarter of 2017. As we continue to generate additional delivery orders under these contracts, we expect increases in both revenue and net profit through the balance of the year.”
Mr. Meaney continued, “Another important element of our business plan is to deliver the benefits of condition based maintenance support to commercial customers. We continue to pursue select opportunities in these markets which have the potential to greatly expand the reach of our services and generate meaningful returns for our stockholders.”
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 March 31, 2017 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.
Mikros Systems Corporation is an advanced technology company specializing in the development and production of electronic systems technology for advanced maintenance in military, industrial and commercial 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. For more information on Mikros, please visit: www.mikrossystems.com.
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, our ability to market our solutions to commercial customers, numerous other matters of national, regional and global scale, including those of a political, economic, business and competitive nature, 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, 2016 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.
CONTACT: Thomas J. Meaney - (609) 987-1513
Source:Mikros Systems Corp.