PRINCETON, N.J., Aug. 15, 2014 (GLOBE NEWSWIRE) -- Mikros Systems Corporation (OTCBB:MKRS) announced its financial results for the three and six months ended June 30, 2014.
The Company reported substantial increases in revenue and net profit for both the second quarter and first half of 2014. Second quarter revenues were $1,209,802, representing an increase of $842,244 or 229% from the comparable prior year period. For the first half of 2014, the Company reported revenues of $2,093,142 as compared to $1,269,274 for the corresponding period of 2013, an increase of $823,868 or 65%. Net income for the three and six months ended June 30, 2014, was $130,284, and $122,249, respectively, as compared to losses of $181,185 and $200,811 during the corresponding periods in 2013. The Company continued to report increases in both cash and working capital and added professionals to its engineering staff to meet increased customer demand.
During the second quarter, the Company completed an initial production order under its existing ADEPT Indefinite Delivery, Indefinite Quantity (IDIQ) contract to design and deliver "v3" ADEPT units. Three Low-Rate Initial Production (LRIP) units of the new design were delivered to the Navy. Work continues on extending the ADEPT system to a second Navy radar system and upgrading the capabilities of the 69 ADEPT units currently deployed in the fleet. These efforts include installing a faster and more capable controller module and upgrading the Operating System software from Windows XP to Windows 7.
The Company was awarded four new direct labor contracts during the second quarter valued at approximately $1.0 million to be funded over the next two years. These awards include funding for continued training of Navy personnel regarding the ADEPT product, upgrading ADEPT instrumentation functions for data acquisition, and upgrading the Adaptive Distance Support Sensor Suite, or ADSSS, for the Navy's new Littoral Combat Ship.
Tom Meaney, Mikros President and CEO, commented, "We are very pleased with our second quarter results. We tripled our revenue as compared to the second quarter of 2013 and delivered our most profitable quarter in over five years. Landing four new direct labor contracts contributed nicely to both our top line and profitability and should keep us near full capacity in the coming quarters. Our strategy over the past eighteen months of enhancing our expertise and capabilities by investing in our people and technology is starting to deliver results. Although the defense contracting environment remains very challenging, we remain cautiously optimistic that we can continue to accelerate both revenues and profits during the third and fourth quarter."
Additional information regarding the company's financial data may be found in the Company's Quarterly Report on Form 10-Q for the second quarter ended June 30, 2014 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, combat/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 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, the termination of any contracts with the U.S. Government, continuation of the Federal automatic sequestration cuts, 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-K for the year ended December 31, 2013 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.