PRINCETON, N.J., April 02, 2018 (GLOBE NEWSWIRE) -- Mikros Systems Corporation (OTCQB:MKRS), an advanced technology company specializing in electronic systems technology for advanced maintenance in military, industrial and commercial applications, today announced financial results for 2017.
Revenues for 2017 were $7,196,131 compared to $5,067,365 in 2016, an increase of $2,128,766, or 42%. The increase was due primarily to production orders for 37 Adaptive Diagnostic Electronic Portable Testset (ADEPT) units in 2017 and the receipt of additional contract awards and task orders for engineering services, support, repairs and calibration services.
Costs of sales were $2,994,087 in 2017 compared to $2,047,002 in 2016, an increase of $947,085, or 46%, largely in line with the increase in revenues. As a percentage of revenue, cost of sales increased marginally to 42% as compared to 40% in 2016, due primarily to an increase in production costs and other direct contract costs. Engineering costs increased 34% to $2,180,003 in 2017 as compared to $1,632,228 in 2016 while general and administrative expenses increased 29% to $1,565,240 from $1,213,718 in 2016 as the Company continued to grow its core defense business and invest in commercial markets.
Net income increased 186% to $236,000 in 2017 as compared to $82,490 in 2016.
Highlights for 2017 included:
- Award of $35.1 million multi-year indefinite delivery, indefinite quantity contract from the Naval Surface Warfare Center at Crane, IN for delivery and support of Mikros’ ADEPT product
- Successful completion of the first ship and shore installation and testing of Mikros’ ADEPT Distance Support Sensor Suite (ADSSS) on the Littoral Combat Ship USS INDEPENDENCE
- Both major product lines of the Company received official Navy nomenclature – ADEPT is now designated the “AN/PSM-132” and ADSSS is designated “AN/SYM-3”.
- A memorandum of understanding with Elliot-Lewis Corporation to offer a condition-based maintenance solution for heating ventilation, air conditioning and refrigeration (HVAC) equipment
- Extending the capabilities of the ADSSS Condition-Based Maintenance system to support a fourth Navy radar system, the MK 99
- Former United States Congressman David W. Jolly joining Mikros’ Board of Directors
Mikros CEO, Tom Meaney stated, “We are pleased to report another strong year of financial performance for our shareholders. We nearly tripled our profits, increased our revenues by over 40%, and generated new contract awards and task orders from the United States Department of Defense.”
Mikros President Mark Malone added, “2017 was a transformational year for Mikros on a number of fronts. In February, we were awarded a second multi-year IDIQ contract. In August, our commercial division developed a product to provide our condition maintenance solutions to HVAC systems and deployed two pilot programs to monitor such systems in the Philadelphia area. Our Manufacturing and Depot Center in Largo, Florida is operating at full capacity servicing and calibrating ADEPT units as they cycle through the Navy for scheduled maintenance. We also expanded our engineering, research and development office in Fort Washington, PA and made a number of strategic hires in our engineering department. We have built a first-class team of professionals and program managers dedicated to serving our important Government customers and remain well-positioned to continue to grow both our defense and commercial businesses in 2018 and beyond.”
Additional information regarding the Company’s financial data may be found in the Company's Annual Report on Form 10-K for fiscal year 2017 filed with the U.S. Securities and Exchange Commission. The Form 10-K 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.
Source: Mikros Systems Corporation
CONTACT: Mark Malone (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 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, 2017 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.
Source:Mikros Systems Corp.