Mikros Systems Corporation Reports Third Quarter Financial Results; Generates Multiple New Contract Awards During The Quarter

PRINCETON, N.J., Nov. 14, 2016 (GLOBE NEWSWIRE) -- Mikros Systems Corporation (OTCQB:MKRS) today announced its third quarter and year to date 2016 financial results.

For the three months ended September 30, 2016, revenues were $1.18 million, compared to $1.24 million for the third quarter of 2015.  Cost of sales was $446,810 compared to $529,303 for the third quarter of 2015.  The Company reported net income of $20,726 for the third quarter of 2016 as compared to net income of $36,736 in the third quarter of 2015.

For the nine months ended September 30, 2016, revenues were $3.15 million, compared to $5.45 million for the nine months ended September 30, 2015.  Cost of sales for the nine months ended September 30, 2016 was $1,120,664 compared to $2,868,377 for the nine months ended September 30, 2015. The Company reported net income of $30,559 for the nine months ended September 30, 2016 as compared to net income of $298,238 in the nine months ended September 30, 2015.  The decreases were primarily due to the completion of the production contracts for 64 ADEPT units in 2015 and significant delays in the award of several Navy contracts. 

As in the first and second quarters, Mikros continued to invest considerable resources in the development and marketing of its commercial software products, Diagnostic Profiler and Prognostics Framework. These software offerings, coupled with Mikros hardware products, provide a complete solution for advanced maintenance applications designed to service FAA radar surveillance and support systems, power distribution and utilities infrastructure, commercial shipping, and other complex distributed systems.  Current customers for these systems include major multinational corporations and Mikros continues to receive repeat orders from existing customers and inquiries from new potential commercial customers.

During the third quarter, the Company completed a recapitalization transaction pursuant to which all issued and outstanding shares of preferred stock were exchanged or redeemed for a combination of cash and shares of common stock.  In this transaction, the Company made aggregate cash payments of $544,017, a net issuance of 3,089,806 additional shares of common stock, and eliminated $2,955,433 of aggregate liquidation preferences applicable to its previously outstanding shares of preferred stock.