PRINCETON, N.J., May 16, 2016 (GLOBE NEWSWIRE) -- Mikros Systems Corporation (OTCQB:MKRS) today announced first quarter 2016 results.
Revenues for the first quarter of 2016 were $987,929, as compared to $2.4 million for the first quarter of 2015. Cost of sales for the first quarter of 2016 was $324,328 compared to $1,461,905 for the first quarter of 2015. As a percentage of revenue, cost of sales decreased to 33% of revenues during the first quarter of 2016 as compared to 59% of revenues during the first quarter of 2015. Finally, the Company reported net income of $1,846 for the first quarter of 2016 as compared to net income of $140,789 for the first quarter of 2015.
The decreases in profits and revenue were largely the result of Mikros’ strong performance in 2015, particularly the fourth quarter in which the Company generated approximately $1.9 million of revenue and completed a large production order of ADEPT units, and significant delays in the award of several Navy contracts. Since the end of the first quarter, Mikros has received close to $500,000 of new contract awards for continued logistics support and general engineering support for deployed ADEPT units and technical support on the USS Fort Worth (LCS3) using the latest version of the Company’s Adaptive Distance Support Sensor Suite or ADSSS.
During the first quarter, Mikros invested considerable resources in the further development and marketing of its Diagnostic Profiler® and Prognostics Framework® commercial offerings. 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.
Tom Meaney, Mikros President and CEO, commented, “After coming off of our biggest year ever in terms of revenue, we experienced a bit of slowdown during the first quarter. We believe this is temporary as we are now beginning to see new awards from the United States Navy, substantial interest in our commercial offerings, and a general uptick in activity. As we continue to expand the reach of ADEPT to the MK 99 U.S. Navy radar system and pursue new IDIQ contracts for both ADEPT and ADSSS, our prospects for future growth over the next one to three years have never been stronger and we expect to deliver another profitable year for our shareholders in 2016.”
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 March 31, 2016 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
Mikros Systems Corporation is an advanced technology company specializing in the research and development of electronic systems technology primarily for military 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. Mikros’ primary business is to pursue and obtain contracts from the Department of Homeland Security, U.S. Navy, and other governmental authorities. For more information on Mikros, please visit: www.mikrossystems.com.
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 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.