- Q2 revenue increased 78% to $1.74 million
- Q2 net income increased 854% to $76,224
PRINCETON, N.J., Aug. 15, 2017 (GLOBE NEWSWIRE) -- Mikros Systems Corporation (OTCQB:MKRS) reported financial results for the second quarter of 2017. Second-quarter revenue increased 78% to $1.74 million from $978,372 in 2016. Cost of sales as a percentage of revenue was 36%, consistent with the second quarter of 2016. Net income increased 854% to $76,224 from $7,987 in 2016.
The increases in profits and revenue resulted primarily from a large production order for the Company’s ADEPT system received in February 2017 and the receipt of additional contracts for engineering services, support, repairs, and calibration services for the U.S. Navy.
During the second quarter, the Company continued to invest in the research, development, marketing and leadership of its key commercial offerings, Diagnostic Profiler® and Prognostics Framework®. In addition to this progress in the commercial initiatives, Mikros also announced over $2 million in new defense orders. Announcements included:
- a $1.5 million contract from the U.S Navy to extend the capabilities of the ADEPT Distance Support Sensor Suite (ADSSS) Condition-Based Maintenance (CBM) system to support a fourth U.S. Navy radar system, the MK-99;
- a delivery order from the U.S. Navy to provide training services for the Adaptive Diagnostic Electronic Portable Testset (ADEPT®) product line at Navy facilities worldwide;
- a contract valued at $500,000 to develop a new upgrade to the ADSSS product line for the U.S. Navy;
- a fifth consecutive annual renewal contract with HP Indigo Division for Mikros’ Diagnostic Profiler software; and
- retaining Mark Malone in May to serve as corporate Vice President, commercial markets.
“Second-quarter revenue and profitability growth reflect the strength of our backlog and our customer relationships,” said Mikros President and CEO, Tom Meaney. “As we continue to execute on our long-term IDIQ contracts valued at over $80 million, generate new contracts from our Navy customers, and extend our ADSSS and ADEPT offerings to additional radar systems and ship classes, we expect continued growth in both revenue and profitability through the second half of the year.”
“The strength of our defense business has enabled us to significantly advance our strategic expansion into select commercial markets. Mikros is investing in technology, key personnel and high-value industry partnerships to expand our condition-based maintenance software solutions to commercial customers and generate meaningful returns for our shareholders.”
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 June 30, 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
ABOUT MIKROS SYSTEMS CORPORATION
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.
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.