Revenue increases 42% to $2.5 million; Net Income increases 70% to $153,000
PRINCETON, N.J., May 15, 2018 (GLOBE NEWSWIRE) — Mikros Systems Corporation (OTCQB:MKRS), an advanced technology company specializing in electronic systems technology for advanced maintenance in military, industrial and commercial applications, today announced financial results for the first quarter of 2018.
Revenues for the three months ended March 31, 2018 were $2,490,660 compared to $1,754,973 for the three months ended March 31, 2017, an increase of $735,687, or 42%. The increase was due primarily to increased revenue from engineering contracts, and the receipt of additional contracts for engineering services, support, repairs and calibration services.
Costs of sales were $1,177,032 in the three months ended March 31, 2018 compared to $651,536 in the three months ended March 31, 2017, an increase of $525,496, or 81%. As a percentage of revenue, cost of sales increased to 47% as compared to 37% during the three months ended March 31, 2017, due primarily to a change in the mix of costs in 2018, specifically increases in direct labor, material and subcontract costs related to engineering service contracts. Engineering costs increased 24% to $451,678 in the first quarter of 2018 compared to $408,903 in the first quarter of 2017 due to increases in salaries, recruiting costs, and incentive compensation incurred in connection with the growth of the engineering department. General and administrative expenses increased 10% to $451,678 in the first quarter of 2018 from $408,903 in first quarter of 2107 due primarily to increased bid and proposal costs, insurance costs, and professional fees.
Mikros reported net income of $153,305 for the three months ended March 31, 2018 representing a 70% increase over first quarter 2017 net income of $62,998.
During the quarter, the Company continued to hire additional engineers. The Mikros Manufacturing and Depot Center in Largo, FL expanded operations and is operating at near full capacity servicing ADEPT units cycling through the U.S. Navy fleet.
“After a very successful 2017, we maintained our momentum and delivered another very strong quarter for our stockholders,” stated Chief Executive Officer Tom Meaney. “For the fourth straight quarter, we reported increased revenues and profits over the comparable period of the prior year. During the quarter, we increased our cash reserves by 20% and generated multiple orders under our $80 million of IDIQ contracts with the Department of Defense. After completing the expansion of our research and development office in Fort Washington, PA and bulking up our engineering and project management staffs, we are well positioned to take operations to the next level during the remainder of 2018.”
Mikros President Mark Malone added, “We continue to see opportunities to expand our business in both the defense and commercial markets. In this regard, we have expanded our bid and proposal capabilities and have allocated additional R&D resources to develop commercial applications of our core technology.”
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, 2018 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 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.
Source: Mikros Systems Corporation
CONTACT: Mark Malone (609) 987-1513
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 software offerings into our business model, our ability to market our solutions to commercial customers, numerous other matters of national, regional and global scale, including those of a political, economic, business and competitive nature, 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, 2017 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.