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Mikros Systems Corporation (OTCBB: MKRS.OB), Princeton, New Jersey, April 3, 2007 — Mikros Systems Corporation (Mikros or the Company) is pleased to announce the financial results from its most recent fiscal year ended December 31, 2006. Revenues for the year are up by nearly 50% over 2005 increasing from approximately $1,550,000 in 2005 to approximately $2,275,000 in 2006. Net income remained about the same for 2006 at $130,000 compared to $135,000 for 2005, but this was due to a one-time deferred tax benefit posted in 2005 increasing net income for that year. Income from operations in 2006 actually increased by 95% over 2005, from $82,000 in 2005 to $160,000 in 2006. Complete 2006 financial statements of the Company can be found in its Form 10-KSB Annual Report filed with the SEC. This Annual Report can be accessed through the Mikros website at www.Mikros.us.
Under continuing business, Mikros reported two major awards from the U.S. Navy during 2006. The first was a $2.95M amendment to its Phase III SBIR (Small Business Innovation Research) contract with the Naval Surface Warfare Center, Dahlgren Division (NSWC DD) for the development of ADEPT(R), an automated maintenance and alignment tool for the Navy’s AN/SPY-1 Aegis radar system. In addition to developing ADEPT application software for all the SPY-1 variants within U.S. Navy inventory, this amendment, awarded March 1, 2006, calls for the development of a second production version of ADEPT approximately one-half the size and weight of the original version with the same functionality as the original. This amendment opens up the total market for ADEPT to all 84 ships of the Aegis fleet.
The second major award in 2006 was an SBIR Phase II contract from Space and Naval Warfare Systems Command (SPAWAR), San Diego, awarded on May 1, 2006 as a follow-on to the SBIR Phase I work performed under the SBIR topic entitled Radar Wireless Spectral Efficiency (RWSE). Focusing on the real world implications of incorporating wireless networking aboard U.S. Navy warships, this $750,000 award ($600,000 base with a $150,000 option) is for the development of a prototype interference-aware wireless network planning tool in support of implementing wireless networking within the already crowded RF shipboard environment.
In addition to the above contract awards, other major milestones achieved by Mikros during 2006 included the registration of the product name ADEPT with the U.S. Patent and Trademark Office making it a registered trademark of the Company; ADEPT testing aboard the USS SAN JACINTO, Aegis cruiser CG-56; wireless networking surveys aboard the USS GEORGE WASHINGTON, CVN-73, and the USS BATAAN, LHD-5; and the gathering of empirical data on the radio frequency (RF) shipboard environment on board a warship, the USS KEARSAGE, LHD-3, while underway.
Mikros expects 2007 to be another profitable year with the continuation of its two major SBIR programs, ADEPT and RWSE. Under ADEPT, Mikros is seeking additional funding to continue the development of an Integrated Logistics Support Plan to enable the operational fielding of ADEPT aboard U.S. Navy ships and to produce ten (10) version 2 ADEPT units for introduction to the fleet. The Company also anticipates additional funding from the U.S. Navy to expand its RWSE research to areas beyond the shipboard environment. In addition to press releases, Mikros intends to keep its shareholders abreast of any developments in these and other areas through the periodic posting of “What’s New” snippets on its website at 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.