SEE HOW THEY WORK TOGETHER
Princeton, NJ / PRNewswire-FirstCall / August 14, 2009 – Mikros Systems Corporation (OTCBB:MKRS – News), announced today the results of operations for the fiscal quarter ended June 30, 2009. The Company reported second quarter revenue of $636,476 and net income of $18,966. Year to date revenue and net income were $1,143,785 and $9,117, respectively.
Although revenue and profit were down as compared to 2008, the decrease resulted from the timing of the award of Government research and development contracts, rather than any decrease in expected business. Throughout 2009, Mikros has maintained its experienced workforce at current levels to support anticipated contract awards later this year. As a result, expenses have remained relatively flat in comparison to the temporary decrease in revenue. Cash reserves and cash flow remain healthy and the Company has not incurred any debt during this period of delayed contract awards.
Mikros reported that it is well positioned for a strong second half of 2009. The Company recently received a request for proposal from the Navy for the Company’s Adaptive Diagnostic Electronic Portable Testset (ADEPT). This five-year indefinite-delivery, indefinite-quantity contract provides for immediate and future procurement of ADEPT systems, as well as continued research, development, and lifecycle support. This opportunity is on track with previous estimates, with an award decision anticipated within the next 60 days. The first delivery order under this contract is expected to include procurement of between 10 and 20 ADEPT systems with continued funding for development and support. Additional procurements are expected within the first six months of award which could cover up to 30 units by year end. Mikros believes that this contract, if awarded, could generate up to $4-5 million annually for the Company over each of the next 5 years.
ADEPT’s distance support capabilities were demonstrated during the US Navy’s Trident Warrior 2009 exercise this past June. This event marked the first time that remote test equipment information had been used in real time and controlled from a shore installation while on an operational ship underway off the Virginia Capes. Chuck Bristow, Mikros’ Vice President of Engineering who participated in this historic test, stated, We are leading with these successes as we expand our marketing efforts of ADEPT to include other radar and electronic systems, as well as other international navies. We have set up future demonstrations of ADEPT’s distance support capabilities for another primary radar system used by the US Navy. We expect to be initiating new development of ADEPT later this year to support this radar system as well.”
Mikros reported the following additional contract opportunities that occurred in August 2009:
“This is a very exciting time for Mikros and our pipeline has never been stronger,” stated Tom Meaney, President of Mikros. “We are working hard to secure these SBIR contracts by year end. Even though we have experienced some initial delays in setting up these opportunities, the fact that these proposals have finally been submitted is important. Additionally, our flagship program, ADEPT, is on track and moving forward as expected. We are excited to be moving beyond the low-rate initial production phase and realize the increased procurement and development opportunities available for this expanding program.”
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. For more information on Mikros visit: www.mikros.us
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.