Mikros Systems Corporation Announces Third Quarter Financial Results

PRINCETON, N.J., Nov. 14, 2019 (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 the three and nine months ended September 30, 2019.

Revenues for the three and nine months ended September 30, 2019 were $1,017,121 and $4,890,889, respectively, compared to $1,893,945 and $6,626,716 for the three months and nine months ended September 30, 2018, respectively, a decrease of $876,824, or 46% for the third quarter, and a decrease of $1,735,827, or 26% year-to date. The decreases were due principally to delays of follow-on contract awards and no ADEPT production in 2019.

Costs of sales for the three and nine months ended September 30, 2019 were $317,015 and $1,887,708 respectively, compared to $776,493 and $3,055,932 for the three months and nine months ended September 30, 2018, respectively, a decrease of $459,478, or 59% for the third quarter, and a decrease of $1,168,224, or 38% year-to date. The decreases were due primarily to a change in the mix of revenues. In 2019, revenues consisted entirely of engineering support services compared to a mix of engineering support and ADEPT production in 2018.

Mikros reported net losses of $209,532 and $132,448 for the three and nine months ended September 30, 2019, respectively, compared to net income of $37,029 and $274,161 for the three and nine months ended September 30, 2018, respectively. The decrease was due primarily to lower revenues.

Recent highlights included:

  • Completed installation of the Navy’s AN/SYM-3 Condition-Based Maintenance (CBM) system on another Littoral Combat Ship platform in September, 2019.
  • Awarded third delivery order under the multi-year ADEPT Distance Support Sensor Suite (ADSSS) IDIQ (Indefinite Delivery Indefinite Quantity) contract in the amount of up to $15 million to install condition-based maintenance systems on the Littoral Combat Ship class.
  • Awarded additional contract under the ADSSS IDIQ providing up to $6 million to develop a new variant of the AN/SYM-3 CBM system and install the new CBM system on two additional ship classes; the Aircraft Carriers (CVN class) and the “Big Deck” Amphibious Assault Ships (LHD/LHA class).

 

Tom Meaney, Mikros Chief Executive Officer, commented, “Although this was a very challenging quarter, over the past 30 days we have secured up to $21 million of funding to develop and install our ADSSS system on multiple Navy ship classes. Fulfilling these orders will get us back on track in delivering the revenue and profit our shareholders have come to expect. We believe these new orders, coupled with our recent bid and proposal efforts, will more than offset lost revenue under the ADEPT program in 2020 and beyond. We remain focused on our mission to be a premium provider of CBM and prognostics solutions to the United States Navy and confident that we can grow both our core defense business and expand into commercial markets. During the third quarter we invested considerable engineering resources to drive further development and marketing of our Diagnostic Profiler® and Prognostics Framework® offerings to commercial customers. We continue to work with businesses across multiple industries to tailor applications to remotely monitor, predict failures and efficiently deploy resources to maintain complex mechanical systems. We look forward to keeping you informed on these exciting initiatives.”

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 September 30, 2019 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

About Mikros Systems

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

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, 2018 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.

CONTACT: Mark Malone – (609) 987-1513

Mikros Systems Corporation, 220 Commerce Drive Suite 300, Fort Washington, PA 19034 Phone 215.371.3913