SEE HOW THEY WORK TOGETHER
REVENUE MORE THAN DOUBLES FROM THE SECOND QUARTER OF 2006 AND NET INCOME SOARS
Mikros Systems Corporation (OTCBB: MKRS), Princeton, New Jersey, August 20, 2007 — Mikros Systems Corporation announced today significant increases in both revenues and net income for the quarter ended June 30, 2007. Revenues for the quarter ended June 30, 2007 more than doubled to $844,935 from $411,403 for the quarter ended June 30, 2006. The Company reported net income of $119,997 for the second quarter of 2007, as compared to a net loss of $1,457 for the second quarter of 2006.
Results for the first six months of 2007 showed similar significant growth. Revenues for the six months ended June 30, 2007 increased more than 70% to $1,639,885 from $949,993 for the six months ended June 30, 2006. Net income for the first six months of 2007 increased more than seven fold to $150,611 from $18,710 for the first six months of 2006.
At June 30, 2007, the Company reported working capital of $420,430 as compared to $263,353 at June 30, 2006, and backlog in excess of $3.6 million.
The revenues were mainly from the Company’s two major contracts: (1) the development and manufacture of the ADEPT(R) test and maintenance tool for the SPY-1 radar; and (2) the development of the AIRchitect-EMC wireless network afloat planning tool under the Radar Wireless Spectral Efficiency (RWSE) Small Business Innovation Research (SBIR) Phase II program.
The ADEPT (Adaptive Diagnostic Electronic Portable Testset) product line grew out of an SBIR Phase I award in 2002 and now encompasses two variants, the ADEPT(V)1 with its flexible expansion capabilities and the more portable ADEPT(V)2 which is half the size and weight. Both units can be viewed on the Mikros website at http://www.mikros.us/ADEPT.htm.
ADEPT has been extensively and successfully tested at both land-based facilities and aboard U.S. Navy ships, including the USS BUNKER HILL (CG-52), the USS SAN JACINTO (CG-56) and the USS PHILIPPINE SEA (CG-58). Mikros is currently funded to extend the applicability of ADEPT to all the AN/SPY-1 variants in the Aegis fleet of 84 warships. Its Navy customer is also encouraging Mikros, and Mikros has begun, to study the applicability of ADEPT to other complex electronic systems aboard these ships, such as certain electronic warfare equipment which is part of every warship’s complement. The Company continues to aggressively market ADEPT, which has been proven to improve the maintainability and readiness of our Aegis warships. The Company is working with its Navy customer to plan for future procurements through Navy program funding and hopes to continue to receive congressional support for this program.
Mikros will be showing ADEPT this September in Baltimore, MD at the AUTOTESTCON Systems Readiness Technology Conference, the premier tradeshow for automatic test systems for U.S. military systems. At this show, Mikros will be introducing its new product, a virtual instrumentation chassis based on the ADEPT(V)2 custom design, for the commercial and military automated test system markets.
The RWSE program began as an SBIR Phase I award in 2004 and has progressed to a Phase II program which has resulted in the software product AIRchitect-EMC. Based on wireless (RF) surveys aboard the USS GEORGE WASHINGTON (CVN-73), the USS BATAAN (LHD-5), and the USS KEARSARGE (LHD-3), AIRchitect-EMC is an interference aware planning tool for commercial wireless networks (Wi-Fi and WiMAX) aboard U.S. Navy warships. This contract was expanded in May 2007 to perform U.S. Navy weaponry kill chain vulnerability analyses based on the RF interference expertise gained during the AIRchitect-EMC development.
Under new programs, Mikros was recently awarded a $30,000 subcontract from Mobilisa, Inc. as a result of an SBIR Phase I proposal teaming effort for the U.S. Air Force SBIR topic entitled Radio Frequency/Microwave Hazard Assessment Tool. Also, last week Mikros was notified of its being selected for an SBIR Phase I award for a communications buoy. For this SBIR Phase I proposal, Mikros teamed with Ocean Power Technologies, a leader in ocean power devices. Contract award for this program is expected in the October/November time frame and contract value is expected to be approximately $100,000.
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.