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Princeton, NJ /PRNewswire-FirstCall/ May 15, 2008 – Mikros Systems Corporation (OTCBB: MKRS – News), announced today the results of the fiscal quarter ended March 31, 2008. The Company reported revenue for the period of $651,282 and net income of $10,753. During the period, the Company experienced delays in subcontractor services and materials delivery resulting in a $143,668 decrease in revenues during the quarter. Based on current activity, the Company expects increased material and subcontractor costs throughout 2008 to support anticipated ADEPT deliveries.
As a result of the extensive testing of ADEPT both at-sea and in land-based installation, the customer plans to move forward with fielding the equipment on all Aegis ships. This will be done mainly through the cruiser and destroyer modernization programs, which could result in the fielding of several hundred ADEPT units over the next few years. The Company expects to begin delivery of ADEPT units in the current quarter.
During the quarter ended March 31, 2008, Mikros also invested additional resources in business development activities, including bid and proposal efforts and indirect research and development, in order to build a more effective marketing operation and more responsive engineering team. Although these investments resulted in a decrease in net income during the current quarter, the Company remains committed to growing its volume of federal government contracts and will continue to aggressively pursue new business.
As a direct result of these efforts, earlier this month Mikros landed two significant contracts from the US Navy which are expected to produce incremental revenue and profit in 2008. The first is a subcontract to the Navy’s Classified Wireless Networks for Embedded Forces program. AIRchitect-EMC will be used to help design a shipboard network for use by US Marine Expeditionary Forces, and networks will be installed on two LHD ships. This program is funded initially at $50,000 in 2008, with additional funding expected in 2009. The second program is funded directly by the Navy’s PMW750 CVN program office, and covers network design studies for the new aircraft carrier USS Gerald R. Ford. This program is valued at $100,000 in 2008, and if successful may also result in additional funding in 2009.
Reflecting on the first quarter, Thomas J. Meaney, Chief Executive Officer of Mikros stated, Although we recorded less revenue in the first quarter than we did last year, the decrease resulted from the timing of revenue rather than any slowdown in our business. In fact, our business is as strong as ever. We are continuing to invest in building an organization that can effectively compete for and obtain meaningful contracts from the Department of Defense. We expect revenue and profit to increase in the second quarter and we are on track to generate record revenues and earnings in 2008.”
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, combat/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.
Source: Mikros Systems Corporation
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 the forward-looking statements. Such factors include, but are not limited to, changes in business conditions, 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, statements of assumption underlying any of the foregoing, and other factors disclosed in our annual report on Form 10-KSB for the year ended December 31, 2007 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 to reflect events or circumstances after the date hereof.