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.
Recent Contract AwardsMikros also received several important Navy contract awards in the third quarter which continue to support both new development and continuing production of its ADEPT and ADSSS product lines.
- In July and August 2016, the Company received two (2) additional contract modifications which added $4.65 million for ongoing development of its current service contract for LCS systems using the ADSSS. This funding will extend the program until June 2018 and allow Mikros to perform installations and support for the LCS ships.
- On September 12, 2016, the Company was awarded a multi-year IDIQ contract with the Naval Surface Warfare Center, Port Hueneme Division, relating to the ADSSS product. The contract provides for the purchase and sale of up to $48 million of ADSSS units and related engineering and logistics support. On September 15, 2016, Mikros received a $3,032,993 delivery order under this contract, to support installations, support and logistics for the LCS ships.
- In September 2016, Mikros received multiple contracts totaling almost $0.4 million to continue logistics support of the ADEPT maintenance workstation. These contracts include general engineering support, repair, calibration and training.
Important Information about Forward-Looking StatementsAll 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 new software offerings into our business model, 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, 2015 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.