Mikros Systems Corporation Reports First Quarter 2019 Financial Results
PRINCETON, N.J., May 17, 2019 (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 2019.
Revenues for the three months ended March 31, 2019 were $2,020,265 compared to $2,490,660 for the three months ended March 31, 2018, a decrease of $470,395, or 19%. Revenues in the first quarter of 2019 consisted entirely of engineering and support services which exceeded service revenue in the first quarter of 2018 by $444,642 or 28%. The decrease in total revenues was due primarily to ADEPT unit orders in the first quarter of 2018 without corresponding orders in the first quarter of 2019.
Costs of sales were $778,542 in the three months ended March 31, 2019 compared to $1,177,032 in the three months ended March 31, 2018, a decrease of $398,490, or 34%. The reduction resulted from a change in the mix of revenue from a combination of production and engineering services in the first quarter of 2018 to engineering and support services in the first quarter of 2019.
Mikros reported net income of $80,805 for the three months ended March 31, 2019 as compared to $153,305 for the three months ended March 31, 2018.
Recent operational highlights included:
- $850,000 of additional funding under Mikros’ multi-year $35.1 million IDIQ Contract with the Naval Surface Warfare Center
- Commencement of a pilot program with an energy consulting firm to utilize Mikros’ condition-based maintenance solutions to collect consumption data, decrease system downtime, and proactively manage maintenance for commercial energy users.
“We are very pleased to have delivered another profitable quarter for our stockholders by continuing to provide best in class engineering and support services to our important Navy customer while making substantial progress in developing our commercial business,” stated Chief Executive Officer Tom Meaney. “Revenue was less than expected in the first quarter due to the timing of production orders for ADEPT units which we have no control over. However, we did see growth in our core engineering services and support operations and we remain on track to have another excellent year.”
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, 2019 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.
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