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Mikros Systems Corporation (OTCBB: MKRS), Princeton, New Jersey, April 5, 2005 — Mikros Systems Corporation is pleased to report the results for the year ended December 31, 2004. The Company’s revenues were approximately $1,044,000 with net income of approximately $92,000 compared to $231,000 in revenues in 2003 with a net loss of approximately $114,000. The Company’s current backlog is approximately $2,000,000.
In June 2004, the Company was awarded a Small Business Innovation Research (SBIR) Phase I contract from the Office of Naval Research. Valued at approximately $100,000, the contract is for researching and evaluating techniques to minimize interference between U.S. Navy radars and commercial wireless communication systems. A final report and proposal for a Phase II program was submitted in January 2005. The Company is anticipating a Navy invitation for a Phase II proposal.
In September 2004, the Company was awarded an SBIR Phase III contract from the Naval Weapons Center Dahlgren Division, Dahlgren, VA, valued at approximately $2,400,000. The contract is to complete the development and to begin initial production of an intelligent test tool for naval radars. The Multi-Function Distributed Analysis Tool (MFDAT) has been designed by the Company under a $1,000,000 SBIR Phase II contract, which began in August 2003. This Phase II contract will be complete in 2005 with all of the follow-on development and production being contained on the Phase III contract. Under the SBIR regulations, Mikros will retain exclusive intellectual property rights to the new design for five years after the completion of the Phase III contract.
We believe this product has wide applications to other Naval and Department of Defense radars as well as commercial radars (FAA) and other complex electronic equipment such as radio and TV stations, cell phone stations, and airline maintenance equipment.
Under this MFDAT Phase III program, the Company has subcontracted the manufacturing to DRS Laurel Technologies in Johnstown, PA. A contract for $876,000 has been awarded by Mikros to DRS Laurel Technologies. This new equipment is to be marketed under the ADEPT(R) (Adaptive Diagnostic Electronic Portable Testset) product name, and is planned for installation in the US Navy’s Aegis Cruisers.
Mikros has also teamed with In-Phase Technologies, Inc. in Clarksburg, NJ, for software support under the program.
Mikros signed a lease for 4,000 sq. ft. of R&D Research Center in Conshohocken, PA. The Company’s technical team currently consists of four engineers. The Company intends to increase technical staffing over the next several months in order to execute the new backlog.
The Company is currently in the process of improving its website (www.Mikros.us) in order to provide more timely information for shareholders, as well as customers and potential investors.
Mikros Systems Corporation is a high technology company focused upon the development and application of new technologies in the defense industry and commercial markets.
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.