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$MKRS - Mikros Systems Announces Strong Second Quarter Results

Tue August 15, 2017 9:00 AM|GlobeNewswire|About: MKRS
Q2 revenue increased 78% to $1.74 million
Q2 net income increased 854% to $76,224
PRINCETON, N.J., Aug. 15, 2017 (GLOBE NEWSWIRE) -- Mikros Systems Corporation (OTCQB:MKRS) reported financial results for the second quarter of 2017. Second-quarter revenue increased 78% to $1.74 million from $978,372 in 2016. Cost of sales as a percentage of revenue was 36%, consistent with the second quarter of 2016. Net income increased 854% to $76,224 from $7,987 in 2016.

The increases in profits and revenue resulted primarily from a large production order for the Company’s ADEPT system received in February 2017 and the receipt of additional contracts for engineering services, support, repairs, and calibration services for the U.S. Navy.

During the second quarter, the Company continued to invest in the research, development, marketing and leadership of its key commercial offerings, Diagnostic Profiler® and Prognostics Framework®. In addition to this progress in the commercial initiatives, Mikros (MKRS) also announced over $2 million in new defense orders. Announcements included:

a $1.5 million contract from the U.S Navy to extend the capabilities of the ADEPT Distance Support Sensor Suite (ADSSS) Condition-Based Maintenance (CBM) system to support a fourth U.S. Navy radar system, the MK-99;
a delivery order from the U.S. Navy to provide training services for the Adaptive Diagnostic Electronic Portable Testset (ADEPT®) product line at Navy facilities worldwide;
a contract valued at $500,000 to develop a new upgrade to the ADSSS product line for the U.S. Navy;
a fifth consecutive annual renewal contract with HP Indigo Division for Mikros’ Diagnostic Profiler software; and
retaining Mark Malone in May to serve as corporate Vice President, commercial markets.
“Second-quarter revenue and profitability growth reflect the strength of our backlog and our customer relationships,” said Mikros President and CEO, Tom Meaney. “As we continue to execute on our long-term IDIQ contracts valued at over $80 million, generate new contracts from our Navy customers, and extend our ADSSS and ADEPT offerings to additional radar systems and ship classes, we expect continued growth in both revenue and profitability through the second half of the year.”

“The strength of our defense business has enabled us to significantly advance our strategic expansion into select commercial markets. Mikros is investing in technology, key personnel and high-value industry partnerships to expand our condition-based maintenance software solutions to commercial customers and generate meaningful returns for our shareholders.”

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 June 30, 2017 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 SYSTEMS CORPORATION

Mikros Systems Corporation is an advanced technology company specializing in the development and production of electronic systems technology for advanced maintenance in military, industrial and commercial 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.