Company News: Page (1) of 1 - 11/14/12

Mikros Systems Announces Third Quarter Results

November 14, 2012 --

PRINCETON, N.J., Nov. 14, 2012 (GLOBE NEWSWIRE) -- Mikros Systems Corporation (OTCQB:MKRS) today announced results for the three and nine months ended September 30, 2012.



Highlights




  • Mikros posted revenue of $1.1 million for the third quarter of 2012, consistent with $1.1 million of revenue in the comparable period of 2011

     


  • Gross profit margin remained stable at 41.0% in the current quarter compared to 41.6% in the third quarter of 2011.

     


  • Gross profit margin for the nine months ended September 30, 2012 increased 13.4% to 52.6% as compared to 46.4% for the comparable period of 2011.

     


  • Net income for the third quarter increased to approximately $118,000 as compared to approximately $1,000 in the third quarter of 2011.

     


  • Mikros received $3.2 million of additional ADEPT orders from the U.S. Navy during the third quarter of 2012.



Third Quarter Results


Revenue for the three months ended September 30, 2012 was $1.1 million as compared to $1.1 million during the three months ended September 30, 2011, reflecting timing of contract awards related to the Company's ADEPT products in August and September of 2012. Gross profit also remained stable at $0.5 million, or 41.0% of revenue, during the three months ended September 30, 2012, as compared to $0.6 million, or 41.6% of revenue, in the prior-year period.  The Company posted net income of approximately $118,000, or $0.00 per diluted share, as compared to net income of approximately $1,000, or $0.00 per diluted share, in the third quarter of 2011. 




Nine Months Results



Revenue for the nine months ended September 30, 2012 was approximately $2.4 million, as compared to approximately $3.1 million during the prior year period, reflecting timing of contract awards related to the Company's ADEPT products.  Mikros realized gross profit of approximately $1.2 million, or 52.6% of revenue, during the nine months ended September 30, 2012, as compared to approximately $1.4 million, or 46.4% of revenue, in the prior-year period.  The Company posted net income of $13,000, or $0.00 per diluted share, during the nine months ended September 30, 2012 as compared to net income of $17,000, or $0.00 per diluted share, in the prior-year period. 



In commenting on the quarter, Chief Executive Officer Tom Meaney stated, "Although top line revenue in 2012 has not been what we expected, we are operating with increased margins, have maintained profitability, and continue to deliver mission critical equipment to U.S. Navy AEGIS cruisers and destroyers. Based on the combination of strong current orders, increased backlog, and multiple opportunities in the pipeline, we expect a profitable 2012 and strong start to 2013."



Additional information regarding the Company's financial results may be found in the Company's Quarterly Report on Form 10-Q for the nine months ended September 30, 2012 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 the 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 failure of Congress to approve a budget or a continuing resolution, 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, 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, 2011 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. 




















































































































































































































































Mikros Systems Corporation

Condensed Statements of Operations

 (Unaudited) 

 

 

 

 

 

 

Three Months Ended,

Nine Months Ended,

 

September 30,

September 30,

September 30,

September 30,

 

2012

2011

2012

2011

 

 

 

 

 

 Contract Revenues

 $ 1,124,211

 $ 1,098,430

 $ 2,362,703

 $ 3,057,406

 

 

 

 

 

 Cost of sales

662,812

641,865

1,119,994

1,639,322

 

 

 

 

 

 Gross margin

461,399

456,565

1,242,709

1,418,084

 

 

 

 

 

Expenses:

 

 

 

 

 Engineering

174,203

211,977

480,956

621,220

 General and administrative

251,712

247,796

854,100

778,875

 

 

 

 

 

 Total expenses

425,915

459,773

1,335,056

1,400,095

 

 

 

 

 

(Loss) income from operations

35,484

(3,208)

(92,347)

17,989

 

 

 

 

 

Other income:

 

 

 

 

Interest

0

 -- 

98

816

 

 

 

 

 

Net income (loss) before income taxes

35,484

(3,208)

(92,249)

18,805

 

 

 

 

 

Income tax (benefit) expense

(83,000)

(4,100)

(105,000)

1,400

 

 

 

 

 

Net income (loss)

 $ 118,484

 $ 892

 $ 12,751

 $ 17,405

 

 

 

 

 

(Loss) income per common share - basic and diluted

 $ -- 

 $ -- 

 $ -- 

 $ -- 

 

 

 

 

 

Basic weighted average number of shares outstanding

 31,782,786

 31,766,753

 31,772,136

 31,766,753

 

 

 

 

 

Diluted weighted average number of shares outstanding

 35,345,085

 35,329,052

 35,334,435

 35,329,052































































































































































































































































 Mikros Systems Corporation 

 Condensed Balance Sheets 

 (unaudited)

 

 

 

September 30,

December 31,

 

2012

2011

 

 

 

Assets

 

 

Current assets:

 

 

 Cash and cash equivalents

 $ 871,878

 $ 963,556

 Receivables on government contracts

 784,055

 1,478,103

 Prepaid expenses and other current assets

 85,062

 30,846

Total current assets

 1,740,995

 2,472,505

Property and equipment

 

 

Equipment

 38,172

 37,070

Furniture & fixtures

 9,264

 9,264

Less: accumulated depreciation

 (40,640)

 (35,167)

Property and equipment, net

 6,796

 11,167

Patents and trademarks

 1,383

 5,383

Less: accumulated amortization

 (862)

 (1,775)

Intangible assets, net

 521

 3,608

Deferred tax assets

 102,000

 21,000

Total assets

 $ 1,850,312

 $ 2,508,280

Liabilities and shareholders' equity

 

 

Current liabilities:

 

 

 Accrued payroll and payroll taxes

 $ 125,783

 $ 364,148

 Accounts payable and accrued expenses

 479,298

 904,217

 Accrued warranty expense

 52,338

 86,400

Total current liabilities

 657,419

 1,354,765

Long-term liabilities

 15,877

 16,708

Total liabilities

 673,296

 1,371,473

 

 

 

Redeemable series C preferred stock 

 

 

par value $.01 per share, authorized 150,000 shares, issued

 

 

and outstanding 5,000 shares (involuntary liquidation value

 

-- $80,450)

 80,450

 80,450 

Shareholders' equity:

 

 

Preferred stock, series B convertible, par value $.01 per share,

 

 

 authorized 1,200,000 shares, issued and outstanding 1,102,433

 

 

 shares (involuntary liquidation value -- $1,102,433)

 11,024

 11,024 

 Preferred stock, convertible, par value $.01 per share, authorized 

 

 

 2,000,000 shares, issued and outstanding 255,000 shares (involuntary 

 

 

 liquidation value -- $255,000)

 2,550

 2,550 

Preferred stock, series D, par value $.01 per share, 690,000 shares 

 

 

 authorized, issued and outstanding (involuntary liquidation value 

 

 

 -- $1,518,000)

 6,900

 6,900 

 Common stock, par value $.01 per share, authorized 60,000,000 shares,

 

 

 issued and outstanding 32,016,753 shares

 320,168

 320,168 

 Capital in excess of par value

 11,602,894

 11,575,436

 Accumulated deficit

(10,846,970)

 (10,859,721)

Total shareholders' equity

 1,096,566

 1,056,357

Total liabilities and shareholders' equity

 $ 1,850,312

 $ 2,508,280

CONTACT: Thomas J. Meaney, 609-987-1513

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