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.
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.
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
Three Months Ended,
Nine Months Ended,
Cost of sales
General and administrative
(Loss) income from operations
Net income (loss) before income taxes
Income tax (benefit) expense
Net income (loss)
(Loss) income per common share - basic and diluted
Basic weighted average number of shares outstanding
Diluted weighted average number of shares outstanding
Mikros Systems Corporation
Condensed Balance Sheets
Cash and cash equivalents
Receivables on government contracts
Prepaid expenses and other current assets
Total current assets
Property and equipment
Furniture & fixtures
Less: accumulated depreciation
Property and equipment, net
Patents and trademarks
Less: accumulated amortization
Intangible assets, net
Deferred tax assets
Liabilities and shareholders' equity
Accrued payroll and payroll taxes
Accounts payable and accrued expenses
Accrued warranty expense
Total current liabilities
Redeemable series C preferred stock
par value $.01 per share, authorized 150,000 shares, issued
and outstanding 5,000 shares (involuntary liquidation value
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)
Preferred stock, convertible, par value $.01 per share, authorized
2,000,000 shares, issued and outstanding 255,000 shares (involuntary
liquidation value -- $255,000)
Preferred stock, series D, par value $.01 per share, 690,000 shares
authorized, issued and outstanding (involuntary liquidation value
Common stock, par value $.01 per share, authorized 60,000,000 shares,
issued and outstanding 32,016,753 shares
Capital in excess of par value
Total shareholders' equity
Total liabilities and shareholders' equity
CONTACT: Thomas J. Meaney, 609-987-1513