Revenue increases 19%; Net Income increases 39.6%
Princeton, N.J., April 01, 2019 (GLOBE NEWSWIRE) -- Mikros Systems Corporation (MKRS), an advanced technology company specializing in electronic systems technology for advanced maintenance in military, industrial and commercial applications, today announced financial results for 2018.
Revenues for 2018 were $8,561,346 compared to $7,196,131 in 2017, an increase of $1,365,215, or 19%. The increase was due primarily to a production order for 26 ADEPT maintenance workstation units received in September 2017, increased revenues from engineering contracts, and the receipt of additional contracts for engineering services, support and repairs and calibration services.
Costs of sales were $3,602,555 in 2018 compared to $2,994,087 in 2017, an increase of $608,468, or 20% which was generally in line with the increase in revenues. As a percentage of revenue, cost of sales was 42% in both 2018 and 2017. Engineering costs were $ 2,712,810 in 2018 as compared to $2,180,003 in 2017, an increase of $532,807, or 24%. The increase was due to increases in engineering salaries and fringe benefits for additional employees, incentive compensation, and engineering consulting fees.
Net income increased 39.6% to $329,210 in 2018 as compared to $235,805 in 2017.
Highlights for 2018 included:
- Award of $2.5 million follow-on contract for the Navy’s MK 99 Fire Control System (FCS) as a second delivery order under Mikros’ existing ADEPT Distance Support Sensor Suite (ADSSS) IDIQ (Indefinite Delivery Indefinite Quality) contract administered out of Naval Surface Warfare Center (NSWC), Port Hueneme.
- The first shipboard testing of the new ADSSS variant for the Navy’s MK 99 FCS as part of the Navy’s biennial at-sea RIMPAC exercise.
- Successful completion of the second ship installation of Mikros’ ADSSS on the Littoral Combat Ship USS Freedom.
- Renewal of annual contracts with Northrop Grumman, HP Indigo and Saab Grintek Defence for Mikros’ Diagnostician software maintenance and support.
- Award of $140K contract from Northrop Grumman to perform updates on Mikros’ existing Diagnostic Reasoner software.
- Continued pilot program with Elliott-Lewis in Philadelphia, Pennsylvania.
“2018 was another very successful year for Mikros and our stockholders. We delivered substantial growth in both revenue and net profits while making significant investments in our engineering and bid and proposal infrastructure which will provide a strong platform for future growth,” stated Chief Executive Officer Tom Meaney. “Our engineering and technical staff is the strongest in our company’s history and is delivering broader and deeper expertise to our valued DoD customers on a daily basis. Through these efforts, we have started to extend our Condition Based Maintenance systems to the Navy’s Aegis fleet and continued to install our AN/SYM-3 systems on Littoral Combat Ships. Our technical team is also busy driving innovation through our internal research and development efforts. These efforts include continued refinement of our commercial offerings and working with businesses across multiple industries to tailor applications to remotely monitor, predict failures and efficiently deploy resources to maintain complex mechanical systems. We see opportunities to both continue to grow our core defense business and build a successful commercial business.”
Additional information regarding the Company’s financial data may be found in the Company's Annual Report on Form 10-K for the year ended December 31, 2018 filed with the U.S. Securities and Exchange Commission. The Form 10-K may be accessed at www.sec.gov or at the Company's website at www.mikrossystems.com.
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
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, 2018 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.
CONTACT: Mark Malone (609) 987-1513