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Princeton, New Jersey, May 15, 2020: 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 the first quarter of 2020.
Mikros generated revenues of $1,081,163 during the three months ended March 31, 2020 compared to $2,020,265 during the three months ended March 31, 2019, a decrease of $939,102, or 46%. This resulted primarily from delays in follow-on funding and the delivery of direct components. Revenues in the first quarter of 2020 and 2019 consisted entirely of engineering support services contracts. Cost of sales for the three months ended March 31, 2020 was $357,473 compared to $778,542 for the three months ended March 31, 2019, a decrease of $421,069 or 54%.
Mikros reported a net loss of $216,285 in the three months ended March 31, 2020 as compared to net income of $80,805 in three months ended March 31, 2019. The decrease was attributable primarily to the decrease in revenues in the first quarter of 2020.
“Because of the COVID-19 pandemic, we have asked most of our employees to work from home and we have been quite successful in continuing daily operations to serve our defense customers,” said Mikros CEO Tom Meaney. “Unfortunately, funding cycles and COVID-19 related delays in the delivery of critical components from certain suppliers have combined to reduce our revenues significantly thus far in 2020.”
“After many years of consistent profitability, we are disappointed to be reporting a net loss in the first quarter,” added Mikros President Chuck Bristow. “We are monitoring events on a daily basis and believe that there is great potential for a strong recovery during the balance of the year. We are working with our U.S. Navy customers to adjust schedules and generate additional funding for our ongoing programs. These efforts have resulted in additional incremental funding for our Condition-Based Maintenance development program which has increased our current backlog to over $4 million.”
Mikros VP of Business Development Lori Ogles added, “We recently received a new Small Business Innovation Research (SBIR) contract to apply the commercial technology we have developed for remote monitoring to Navy facilities. We believe this will help to jump-start our commercial business sector and lead to broader applications.” Jeffry McClenton, the Lead Engineer on this program, added “This new system will use our Mikros MindR™ technology, which we developed for commercial building management applications and deployed in two pilot projects. This is an excellent opportunity for us to demonstrate the benefits of MindR in a real-world system and expand to other applications.”
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, 2020 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.
Source: Mikros Systems Corporation
CONTACT: Chuck Bristow (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 position 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, the duration and severity of the current coronavirus COVID-19 pandemic and its effect on our business operations, personnel, supply chain, Federal Government procurement process and the geographic markets in which we operate, 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, 2019 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.