(MKRS) research, news, and more from GeoInvesting

Company description

Mon, 19 Aug 2013 04:00:00 GMT

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.

Research

Fri, 13 Nov 2020 18:19:55 GMT

Mikros Systems (OTCQB:MKRS) ($0.11; $4.0M market cap), a defense technology company, announced it has entered into a definitive agreement to be acquired by McKean Defense for $0.13 a share.

MKRS has been one of our longest tenured microcap positions, with our initial long disclosure in August of 2013 at $0.09. The stock had several runs of over 100% gains, with the stock reaching a 2018 of $0.63 or peak return of 600%. While the takeover price is obviously not a desired premium, with the recent loss of a big government contract and possible delays in the receipt of government contracts due to COVID-19 , it would have taken time to rebuild a strong growth trajectory, despite some recent progress on diversifying the business. Regardless, we are considering taking an activist role to see if we can improve the price that McKean Defense is paying for Mikros.

Research

Mon, 17 Aug 2020 11:59:19 GMT

Mikros Systems Corp (OOTC:MKRS) (Remote Monitoring Technology For U.S. Navy)

Reported positive net income vs a slight loss on equal revenues of $1.84 million.

“We expect to continue the recovery through the rest of this year, and our current backlog remains strong at $5.2 million. We have hired four new engineers this year as our workload has increased, and recently our ISO 9001 quality certification was confirmed in a rigorous audit.”

With the company losing one of its large Navy contracts back in October 2019, the fact the company was able to report flat sales and return to profitability for the quarter is encouraging. Comments suggest sales momentum is starting to pick up.

Research

Thu, 16 Apr 2020 17:43:14 GMT

Mikros Systems (OTCQB:MKRS) ($0.12; $4.4M market cap), a defense technology company announced a $4.7 million award to expand its flagship AN/SYM3- program to additional LCS systems, new combat systems and two new ship classes.

"It's a big vote of confidence in Mikros that the Navy has decided to apply our AN/SYM-3 System to another critical weapons system, the NATO Seasparrow Surface Missile System, which is installed on two other ship classes," added Mikros President Chuck Bristow. "This gives us a great opportunity to expand deployments of the system and demonstrate its value across three different ship types and multiple combat systems."

Shares of MKRS have been beaten up since the company announced that it lost one of its navy contracts in October 2019. So, today's news is a very significant development and could give us reason to start adding to our position.

Expanding its offerings to different ship classes has been one of the major catalysts we have been discussing for a long time. We believe this is a major accomplishment for the Company and opens the door to a much larger market opportunity and the award of new and innovative larger IDIQs (contract funding vehicles).

Expanding into commercial markets would be the other major catalyst to expanding growth opportunities, an area the company continues to work towards.

Research

Tue, 31 Mar 2020 16:16:08 GMT

Mikros Systems (OTCQB:MKRS) ($0.11; $4.1M market cap), a defense technology company announced Q4 2019 results:

Sales of $1.5 million vs $1.9 million in the prior year
EPS of $0.00 vs $0.00

Comments from management indicate the Company may be in better shape to grow its business moving forward:

On lost contract and new awards:

We had a temporary setback last year," commented Mikros' newly appointed President Chuck Bristow. "After a seventeen-year run, the Navy decided to move on to a new generation of shipboard maintenance tools to replace our ADEPT product line. Now that the ADEPT program has ended, we are focused on advancing our ADSSS Condition-Based Maintenance solutions to serve additional ship classes and shipboard systems. These efforts resulted in an important new award to develop condition-based maintenance capabilities for the NATO Seasparrow Missile System, which will allow us to expand the SYM-3 system to two new Navy ship classes."

In September 2019, Mikros was awarded a follow-on Delivery Order for the AN/SYM-3 system, valued at up to $21 million... In 2020, Mikros expects to expand the SYM-3 program to include additional combat systems and accelerate the pace of installation on Navy ships.

"LCS installations will continue throughout 2020 and we expect to receive additional funding to extend the SYM-3 for other onboard LCS equipment. The new NATO Seasparrow version of the SYM-3 extends the system to aircraft carriers and "big deck" amphibious assault ships, which represents a great potential for follow-on production on these two new platforms."

On commercial expansion:

Mikros' Manufacturing and Depot facility in Largo FL will continue to manufacture "smart sensor" modules for the SYM-3 program and pursue new contract manufacturing opportunities. The Mikros MindR® product line, a low-cost commercial version of the SYM-3, has been deployed in several pilot projects, which may result in significant revenues over the next year.

Chief Executive Officer Tom Meaney added:

We expect to more than compensate for the closeout of the ADEPT program by pursuing new opportunities for the SYM-3. Emerging opportunities for condition-based maintenance systems can be found across the entire Navy fleet. We have also renewed our commitment to the SBIR program. We received one new award in 2019 and have already submitted multiple proposals this year, any of which may evolve into new and exciting business segments, particularly in the rapidly expanding field of unmanned vehicles. We are confident that we have in place the best people to execute our business plan and serve our important DoD customers, and we remain very optimistic about the future growth opportunities available to us."

While the loss of the Navy Adept program was certainly a setback, it seems the Company is well positioned to expand its existing offerings and begin new product roll-outs in both defense oriented and commercial applications that will help fuel growth moving forward.

Comments & Business Outlook

Thu, 21 Nov 2019 17:27:04 GMT

Mikros Systems (OTCQB:MKRS) ($0.09; $3.3M market cap), a defense technology company announced the receipt of a $150,000 Small Business Innovation Research Phase I contract delivery order from the Naval Sea Systems Command for topic number N193‑A02.

"The Navy's call for in-stride sensor degradation solutions aligns well with our AN/SYM-3 heritage on LCS," says Corey Friedenberger, Sr. Systems Engineer and Program Manager for this effort. "This Phase I award is an exciting opportunity for us to grow our capabilities with machine learning technology and support the future of autonomous vehicles."

This system could be used by the Navy to further advance unmanned, autonomous vehicles where sensor data quality can impact decision making and mission success. The requirements for near-real-time, unattended problem detection and correction are an opportunity for merging Mikros Systems' existing "expert system" techniques with machine learning capabilities. This approach could potentially be used on platforms such as the Medium Unmanned Surface Vehicle (MUSV), Large Unmanned Surface Vessel (LUSV), Large Displacement Unmanned Undersea eVhicle (LDUUV), and Extra Large Unmanned Undersea Vehicle (XLUUV).

"We see multiple future applications for this new technology across Navy and other DOD applications," says Tom Meany CEO. "We have built our business on developing new technologies through the SBIR process and continue to work diligently to seek additional awards which oftentimes lead to large DOD procurement programs."

Research

Thu, 14 Nov 2019 15:49:38 GMT

Mikros Systems (OTCQB:MKRS) ($0.10; $3.7M market cap), a defense technology company announced a $6 million delivery order on two new ship classes.

"We are very pleased to report that Mikros has been awarded this new Delivery Order as Design Agent for the Navy's AN/SYM-3 system. This substantial order extends the system to two additional classes of Navy ships," said Lori Ogles, Mikros Senior Program Manager. "This program will ensure that we continue to enhance the design and effectiveness of the system, and gives us the opportunity to prove its value on other Navy platforms...

...Extending the SYM-3 system to other ship classes has been an important strategic goal of ours since we started the ADSSS program in 2013. This important order is the result of our substantial experience in developing remote monitoring and condition- based maintenance solutions for the United States Navy over the past six years. There are many other Navy systems and ships where Condition-Based Maintenance capabilities are planned. Extending the program into two new ship classes represents a monumental achievement and provides Mikros with an opportunity to generate multiple additional task orders under our existing IDIQ contract and grow our business. We are working diligently to develop new applications for the SYM-3, which provides a cyber-secure environment for remote monitoring and data analytics and helps keep the ship and its systems ready to fight.

Expanding its offerings to other ships in the Navy fleet is one of the key growth factors we have discussed since we began following MKRS in 2013, with commercial expansion being the other. With the Navy recently discontinuing funding for MKRS’ ADEPT program, the expansion of the ADSSS contract with Navy is a significant step for MKRS to try and resume growth. Previous to this news, the company was only servicing two ship classes.

The company also reported its Q3 2019 results:

Sales of $1.02 million vs $1.89 million in the prior year
Loss per share of $0.01 vs break even in prior year

“Although this was a very challenging quarter, over the past 30 days we have secured up to $21 million of funding to develop and install our ADSSS system on multiple Navy ship classes. Fulfilling these orders will get us back on track in delivering the revenue and profit our shareholders have come to expect. We believe these new orders, coupled with our recent bid and proposal efforts, will more than offset lost revenue under the ADEPT program in 2020 and beyond.

Research

Wed, 16 Oct 2019 15:51:35 GMT

Mikros Systems (OTCQB:MKRS) ($0.14; $5.3M market cap), a defense technology company issued a release on the recent decision from the U.S. Navy to not continue funding its ADEPT program.

Development, production and sustainment of the ADEPT product line has been funded by the Navy since 2002. Over 200 ADEPT maintenance workstations have been delivered and used on Navy cruisers and destroyers to help maintain and optimize operation of the AN/SPY-1 radar, a key component of the Navy's Aegis combat system. There have also been two important spin-offs from the ADEPT program: ADSSS, the "SYM-3" Condition-Based Maintenance (CBM) system, now being installed on the Littoral Combat Ship (LCS), and a development program to extend the SYM-3 to the Navy's MK 99 Fire Control System. Neither of these SYM-3 programs is affected by this funding decision.

Mikros CEO Tom Meaney commented: "Last week we had some bad news and also some very good news from the Navy. On our flagship program, the SYM-3 CBM system, we received a new Delivery Order from the Navy in the amount of up to $15 million to continue development and LCS installations. We are actively growing the SYM-3 program for CBM applications on new equipment and new ship platforms, and we are confident that this recent order together with additional anticipated task orders under our $48 million IDIQ Contract with Naval Surface Warfare Center, Port Hueneme Division will help offset lost revenue from the ADEPT program in 2020. Our talented engineering staff continues to provide the highest level of the expertise and service to the United States Navy.

Research

Mon, 14 Oct 2019 15:26:20 GMT

Mikros Systems (OTCQB:MKRS) ($0.22; $7.8M market cap), a defense technology company filed an 8K on Friday after the close. The 8K states:

“On October 7, 2019, Mikros Systems Corporation (the “Company”) received notice from Program Executive Office Integrated Warfare Systems that the Adaptive Diagnostic Electronic Portable Testset (ADEPT) program will not be funded in fiscal year 2020. The Company will continue to fulfill its current obligations under outstanding engineering services task orders previously issued under the program.”

We need further clarity from management as the 8K is limited on the information it provides. The company has two IDIQ contracts it was awarded from the U.S Navy:

The most recent ADEPT IDIQ contract was awarded in February 2017 and was for up to $35.1 million. Since inception of the ADEPT IDIQ contract in March 2010, the Company has delivered 226 ADEPT units. As of June 30, 2019, there were 26 ADEPT units remaining under the limited warranty coverage.
In September 2016 MKRS was awarded an ADSSS IDIQ contract for up to $48 million from the U.S. Navy.

The ADEPT is an older program that might have been near the tail end of its lifecycle. There are better technologies that can address the remote monitoring maintenance solutions such as MKRS’ ADSSS product. ADSSS is a more pure remote monitoring system that company is working on expanding throughout the military.

At this point, we believe the ADSSS program is still strong, supported by the recent contract announcement for up to $15 million, announced just last week.

While there is no way to sugarcoat the news in the 8K, we feel the company can now put more effort into growing its more promising program (ADSSS).

Regardless, shares will likely remain weak for some time, until management can prove to the market that its reputation with the U.S Military is not damaged due to the loss of this contract.

We will be interested to see if activist investor Zeff Capital which disclosed a 5.1% stake in early 2018 will become more active in influencing the direction management should take the company.

We feel it's imperative that management let the market know that there is a future without ADEPT, and that its relationship with ADSS program is still very strong and that they are pursuing many more opportunities within the military.

We are reaching out to management to confirm that the loss of ADEPT will not damage their reputation and will ask management to address the following questions:

- ADSSS is much bigger portion of revenue
- Is ADSSS the type of tech where military is heading? Can still bid on Aegis fleet to install ADSSS
- Can management say ADSSS is much bigger opportunity and is a more diversified revenue stream?
- Does the loss of ADEPT damage credibility within the military or with ADSSS customers?

Can you pursue more IDIQ contracts before 2022?
Can the company use the ADEPT IDIQ on other programs?
We would like to see management and the Board should buy stock in the open market today and file form 4s immediately to portray a light of confidence in the direction the company is heading.
It would be nice if MKRS can provide a clear path to get on other ships and military programs quickly.
Will the company still be receiving engineering revenue from the government to continue funding research and development?

Research

Wed, 09 Oct 2019 14:20:05 GMT

Mikros Systems (OTCQB:MKRS) ($0.17; $6.3M market cap), a defense technology company announced a delivery order of up to $15 million under its ADSSS IDIQ contract with the U.S. Navy.

"We are very pleased to report that we have received a follow-on Delivery Order as Design Agent for the Navy's AN/SYM-3 system," said Lori Ogles, Mikros Senior Program Manager. "This new delivery order will ensure that we continue to serve our important Navy customer over the short term, continue to enhance the design and effectiveness of the system, and prove its value to other Navy platforms...

...The new Delivery Order covers new target systems and installations on multiple future ships. Mikros is also working to extend the technology to other platforms and Navy legacy equipment.

...There are many other Navy systems and ships where Condition-Based Maintenance capabilities are planned. We are working diligently to develop new applications for the AN/SYM-3, which provides a cyber-secure environment for remote monitoring and data analytics to help keep the ship and its systems ready to fight."

With trailing twelve month revenues of $8 million, this contract is a significant order for MKRS. However, it is unclear how long the order will take to fill and if it will be for the full $15 million.

Research

Thu, 15 Aug 2019 17:26:12 GMT

Mikros Systems (OTCQB:MKRS) ($0.22; $8.1M market cap), a defense technology company announced Q2 2019 results:

Sales of $1.8 million vs $2.2 million in the prior year
EPS of $0.00 vs $0.00

As has been the case with MKRS, its ability to expand its government business within and beyond the Navy, and into the commercial markets, will be key for the Company’s future success. The company has yet to gain traction in doing so. However, MKRS does have some commercial pilot projects in various phases of testing. We are curious to see if microcap activist investor, Zeff Capital, will increase its position in the stock as it continues to exhibit weak price action.

Research

Wed, 15 May 2019 16:57:34 GMT

Mikros Systems (OTCQB:MKRS) ($0.31; $11.3M market cap), a defense technology company, announced Q1 2019 results:

Sales of $2.0 million vs $2.5 million in the prior year
EPS of $0.00 vs $0.00 in the prior year

The company has not issued a press release. As has been the case with MKRS, its ability to expand its government business within and beyond the Navy, and overall into the commercial markets will be key for the Company’s future success.

The 10-Q echoes are sentiment:

“Our strategy for continued growth is based on continuing expansion of our defense business and executing new initiatives to apply our advanced maintenance technology in commercial markets. With regard to the defense industry, we expect to continue expanding our technology base, backlog and revenue by continuing our active participation in the DoD SBIR program and bidding on projects that fall within our areas of expertise.

Over the longer term, we intend to further develop advanced maintenance technologies and implement these technologies in products for deployment in defense applications and to expand into more commercial applications. We believe that many of our core capabilities, remote monitoring, rugged systems, predictive maintenance and communications expertise, are applicable to other industries that work with complex distributed systems, such as utilities, communications and transportation systems. We are currently in discussions with certain industry participants regarding this initiative.”

You can see our full coverage on MKRS here.

Research

Wed, 17 Apr 2019 04:00:00 GMT

Mikros Systems (OTCQB:MKRS) ($0.31; $11.0M market cap), a defense technology company announced that they, together with Energy Professionals, LLC, have commenced a pilot program to offer data collection for energy consumption and condition-based maintenance solutions for commercial and industrial applications.

Mikros will provide hardware and software development, installations, system integration and test services based on its defense-grade proprietary Prognostics Framework® solution. Energy Professionals will provide subject matter expertise, energy planning and budgeting and consulting services. This pilot system will provide key maintenance data on a daily basis to technicians and facility managers in commercial and industrial markets...

...Extending our proven military maintenance systems, which use remote monitoring, defense-grade cybersecurity and predictive analytics, to the building maintenance market is the logical next step for Mikros," said Mark Malone, President of Mikros Systems. "Together, with Energy Professionals, an industry-leading energy consultancy, we will provide a more cost-efficient, reliable and secure building monitoring system and an excellent energy program that provides savings to commercial property owners..

...Mikros Systems' monitoring technology brings a new level of rigor and security to the commercial and industrial energy market that has never been seen before. Their background in developing Energy Intelligence solutions for the U.S. Navy will bring about significant cost savings and operational efficiencies for our current and future clients."

MKRS’ ability to expand its government business within and beyond the Navy, and into commercial markets, is a key for the Company’s future success and growth, as we’ve touched upon in our past coverage of the company,

While this is yet another pilot project, it is a step in the right direction. This marks the second commercial customer over the last year or so where the company has entered into a pilot project. The first was with Elliot Lewis, a leading HVAC company.

Energy Professionals works closely to build a client-specific, comprehensive energy strategy that factors your goals and objectives. We then utilize our extensive network of suppliers, energy efficiency experts and renewable energy partners to bring the latest energy innovations and technologies to your benefit.

Research

Tue, 02 Apr 2019 17:23:25 GMT

Mikros Systems (OTCQB:MKRS) ($0.32; $11.3M market cap), a defense technology company. MKRS was one of our longest tenured GeoBargains. We identified as such it on May 6, 2014 at $0.09. While we maintain our long position, it currently does not meet enough GeoBargain criteria to remain on the list.

As we stated before, MKRS’ ability to expand its government business within and beyond the Navy, and overall into the commercial markets will be key for the Company’s future success.

The company announced Q4 2018 results:

Sales of $1.96 million vs $2.19 million in the prior year
EPS of $0.00 vs EPS of $0.01

See the above section, Model Portfolio and GeoBargain/GeoBargain Radar Updates, discussing why we are removing MKRS from the GeoBargain list. We have mentioned many times that MKRS’ ability to penetrate the commercial market will be key for its growth trajectory. Management again touches on this topic in its comments from its earnings release.

“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.”

Research

Wed, 14 Nov 2018 15:27:17 GMT

GB Mikros Systems (OTCQB:MKRS) ($0.40 14.2M market cap), a defense technology company, announced Q3 2018 results:

Sales of $1.9 million vs $1.5 million in the prior year
EPS of $0.00 vs $0.00 in the prior year

“We continued the upward trajectory of the Company in the third quarter with increased activity in all phases of our business. For the third straight quarter we reported year-over-year increases in both revenues and profits,” stated Chief Executive Officer Tom Meaney. “In addition to increased production of ADEPT Units, we generated incremental revenues in engineering services out of our Fort Washington, PA office, and increased calibration and maintenance services in our manufacturing and depot center in Largo, FL. We also continued to invest R&D dollars to develop commercial applications for our remote maintenance solutions. We look forward to a strong fourth quarter to deliver a record year of financial performance for our stockholders and have never been more excited about the growth opportunities available to us in both our core defense business and select commercial markets.”

MKRS’ ability to expand its government business within and beyond the Navy, and overall into the commercial markets will be key for the Company’s future success. You can see our full coverage on MKRS here.

Research

Tue, 02 Oct 2018 16:20:44 GMT

GB Mikros Systems (OTCQB:MKRS) ($0.48 17.3M market cap), a defense technology company announced additional funding of $1.6 million to provide engineering, technical and logistics support for its ADEPT® (Adaptive Diagnostic Electronic Portable Testset) maintenance workstation product. Year-to-date, Mikros Systems has received over $3.9 million in U.S. Navy funding to support production, engineering and technical support of the ADEPT product line.

MKRS also presented at the MicroCap Conference in NYC yesterday. A copy of the presentation can be seen here.

You can see our full coverage on MKRS here.

Research

Wed, 15 Aug 2018 14:39:45 GMT

GB Mikros Systems (OTCQB:MKRS) ($0.51 18.1M market cap), a defense technology company, announced Q2 2018 results:

Sales of $2.2 million vs $1.7 million in the prior year
EPS of $0.00 vs $0.00

"We are pleased to deliver another strong quarter for our stockholders. We once again reported increases in both revenues and profits over the comparable prior year period," stated Chief Executive Officer Tom Meaney. "We remain on pace to have a record year and continue to expand the reach of our products. We successfully installed our ADSSS system on the Littoral Combat Ship USS FREEDOM and have now installed this system on both of the LCS variants. We also received $2.5 million of funding to extend the ADSSS system to the Navy's MK 99 Fire Control System used in the Navy's Aegis surface combatant fleet of destroyers and cruisers."

Mikros President Mark Malone added, "We continue to expand our employee base and have added several new employees so far this year, including three new engineers. We feel our engineering and bid and proposal teams have never been stronger. The recent audit of our ISO 9001 Quality Management System found zero non-conformances. We are very proud of this achievement which is a testament to the quality and dedication of our valued employees in both Fort Washington, PA and Largo, FL. We continue to move forward on expanding our core defense business and our commercial initiatives."

It’s good to see that the company has been able to maintain revenue growth as it works through securing funding to receive task orders on contracts it has with the government. However, the company still needs to prove that it can consistently generate meaningful cash flow and EPS. A positive take away from the 10-Q is a reminder of the recurring revenue component as the sales of ADEPT and ADSSS installed base grows:

“As the substantial majority of our revenue in 2017, and expected revenue in 2018, is or will be from sales of ADEPT units and ADSSS systems under our IDIQs contract, continued generation of task orders and our ability to expand the market and potential customer base for ADEPT units will be a key indicator of future revenue. ADEPT units must be serviced and calibrated every two years. Accordingly, as we continue to increase the installed base of ADEPT units and expand the units to other radar systems, we expect to generate future recurring maintenance and service revenue.”

Research

Tue, 17 Jul 2018 14:43:49 GMT

GB Mikros Systems (OTCQB:MKRS) ($0.51 18.1M market cap), a defense technology company, announced that its board of directors has approved a stock repurchase program that will enable the Company to repurchase up to $250,000 of its common stock through June 30, 2020.

Quotes from management:

"We are pleased to announce that the board has authorized a share repurchase program. We believe this reflects the board's confidence in Mikros Systems' financial strength, overall commitment to shareholders, and its long-term corporate strategy."

Research

Mon, 09 Jul 2018 15:45:57 GMT

GB Mikros Systems (OTCQB:MKRS) ($0.49 17.4M market cap), a defense technology company announced it has received a follow-on $2.5 million contract from the U.S. Navy to continue to develop its Condition-Based Maintenance (CBM) systems for the Navy's MK 99 Fire Control System (FCS).

“Mikros is developing a new variant of its ADSSS system, an advanced network-based remote monitoring and maintenance system which collects performance data in real-time and uses it to detect and predict failures. The ADSSS system, which recently received official Navy nomenclature as the AN/SYM-3, is currently used on the Navy's Littoral Combat Ship (LCS) to monitor two other radars and combat system elements. The new variant of the SYM-3, which will monitor the Director in the MK 99 system, has been in development since 2017. The new contract award covers continued development, at-sea testing, and validation of the system. Under this contract, Mikros' CBM technology will be used for the first time in the Navy's Aegis surface combatant fleet of destroyers and cruisers.”

MKRS maintenance solutions have been used on the Aegis fleet for sometime. Adding the capability to support the MK 99 control system expands its offerings for this fleet. We will reach out to management to see how many additional ships this new offering adds as well as the opportunities to expand to other ships in the Navy fleet.

Research

Wed, 16 May 2018 14:43:33 GMT

GB Mikros Systems (OTCQB:MKRS) ($0.37; $13.1M market cap), a defense technology company announced Q1 2018 results:

Sales of $2.4 million vs $$1.7 million in the prior year
Net income of $153,305 vs $62,998 in the prior year
EPS of $0.00 vs $0.00

Quotes from management:

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.”

Research

Mon, 02 Apr 2018 14:52:17 GMT

GB Mikros Systems (OTCQB:MKRS) ($0.41; $14.5M market cap), a defense technology company announced Q4 2017 results:

Sales of $2.15 million vs $1.92 million in the prior year period
EPS of $0.00 vs $0.00 in the prior year

Quotes from management:

“We are pleased to report another strong year of financial performance for our shareholders. We nearly tripled our profits, increased our revenues by over 40%, and generated new contract awards and task orders from the United States Department of Defense.”

Mikros President Mark Malone added, “2017 was a transformational year for Mikros on a number of fronts. In February, we were awarded a second multi-year IDIQ contract. In August, our commercial division developed a product to provide our condition maintenance solutions to HVAC systems and deployed two pilot programs to monitor such systems in the Philadelphia area. Our Manufacturing and Depot Center in Largo, Florida is operating at full capacity servicing and calibrating ADEPT units as they cycle through the Navy for scheduled maintenance. We also expanded our engineering, research and development office in Fort Washington, PA and made a number of strategic hires in our engineering department. We have built a first-class team of professionals and program managers dedicated to serving our important Government customers and remain well-positioned to continue to grow both our defense and commercial businesses in 2018 and beyond.”

Research

Fri, 09 Mar 2018 16:06:27 GMT

GB Mikros Systems (OTCQB:MKRS) ($0.39; $13.8m market cap), a defense technology company and long standing Run to One candidate, saw activist investor Zeff Capital take a passive stake in the company. In a 13G filed yesterday, Zeff Capital disclosed a 5.1% stake.

We tracked stocks other Zeff Capital investments in the past ($TSRI, $IEHC) and know from experience that it is not unusual for them to start with a passive (13G) stake, then switch to an activist role (13D) over time.

It’s encouraging to see them get involved with MKRS and we will attempt to speak with them regarding their involvement with the company.

Research

Tue, 05 Dec 2017 16:07:56 GMT

GB Mikros Systems (OTCQB:MKRS) ($0.40; $14.2m market cap), a defense technology company announced it has completed its first ADSSS installation on the U.S. Navy Littoral Combat ship.

ADSSS provides condition-based maintenance for mission-critical complex distributed systems using smart sensors, model-based prognostics and secure fault-tolerant networking. ADSSS's model-based prognostics framework converts large amounts of data into actionable information for operations, maintenance and logistics, while a secure fault-tolerant network helps protect critical operational data.

Mikros has been a proud partner of the U.S. Navy for over fifteen years," said ADSSS Program Manager Lori Ogles. "We are honored to continue to support the readiness of U.S. Navy combat systems with our condition-based maintenance solution and we look forward to expanding the ADSSS technology to additional LCS and U.S. Naval platforms."

Comments & Business Outlook

Fri, 17 Nov 2017 16:18:39 GMT

GeoBargains (GB)/GeoBargains on the Radar (GBR)

GB Mikros Systems Cor (OTCQB:MKRS) ($0.40; $14.2m market cap), a defense technology company, announced several new hires and expanded headquarters to support growth. Quotes from management:

"These strategic hires and organizational changes position Mikros to meet and exceed the needs of our valued customers and better align our talent and investment strategy," said Chief Executive Officer Tom Meaney. "With more than $80 million in long-term U.S. government IDIQ contracts and opportunities to transition our military-grade technologies into commercial markets, these appointments put the right people in the right roles to drive continued business growth."

Comments & Business Outlook

Wed, 15 Nov 2017 16:51:36 GMT

GB Mikros Systems Cor (OTCQB:MKRS) ($0.42; $14.9 m market cap), a defense technology company, reported Q3 2017 results via its 10-Q during the trading day yesterday:

Sales of $1.5 million vs $1.1 million in the prior year
EPS of $0.00 vs $0.00 in the prior year

Research

Thu, 28 Sep 2017 15:10:27 GMT

MKRS ($0.50) announced it has received its second production order under its recent multi-year $35 million IDIQ contract with the Naval Surface Warfare Center. The order is for $2.4 million, bringing the year to date total from this contract to $3.5 million. Quotes from management:

"Our Largo facility is up and running after Hurricane Irma. We experienced minimal disruption from the storm and we are ready to execute this new production order. This is the eleventh round of production orders for ADEPT and will increase the total number of manufactured systems beyond 250. We expect to deliver additional ADEPT systems over the next year and continue to support the systems already deployed on U.S. Navy AEGIS surface combatants."

Research

Mon, 11 Sep 2017 14:54:35 GMT

MKRS ($0.54) announced more funds have been released to it from the U.S Navy. The Company announced that it has received $548,000 from the Naval Surface Warfare Center for additional services for its ADEPT workstation. So far, year to date, MKRS has received $3.2 million in U.S Navy funding for ADEPT services against its $83 million in IDIQ contracts. Quote from management:

"We appreciate our long-term relationship with the U.S Navy and look forward to providing continued support and sustainment to the fleet."

Research

Wed, 16 Aug 2017 15:25:57 GMT

GB $MKRS ($0.50) announced it has entered into a memorandum of understanding with Elliott-Lewis Corporation to offer a condition-based maintenance solution for Heating Ventilation, Air Conditioning and Refrigeration (HVAC) equipment.

“Mikros will provide hardware and software development, system integration and test services based on its proprietary Prognostics Framework solution. Elliott-Lewis will provide subject matter expertise and technical consulting services for requirements definition, on-site installation and testing. Currently, Mikros and Elliott-Lewis have two active pilot systems that are providing key maintenance data on a daily basis to their technicians.

Building management is the tip of the spear in the industrial internet-of-things,” commented Mark Malone, Mikros Vice President of Commercial Markets. “Extending our proven military maintenance systems, which use remote monitoring, defense-grade cybersecurity and predictive analytics to the building maintenance market is the logical next step for Mikros. Together with Elliott-Lewis, an industry-leading service provider, we will provide property managers with a more cost-efficient, reliable and secure HVAC system monitoring and maintenance solution.”

One of the most notable things about this pilot relationship is that Elliot Lewis is the largest mechanical service company in the Philadelphia Region. Common sense would tell you that this is a wide door for MKRS to enter and an opportunity to galvanize a footprint in a market that “is expected to reach over $90 billion by 2022.”

Research

Tue, 15 Aug 2017 14:31:23 GMT

GB MKRS ($0.47) reported Q2 2017 results via 10-Q

Sales of $1.7 million vs $0.98 million in the prior year
EPS of $0.00 vs $0.00 in the prior year

Comments from 10-Q filing (as of this writing no press release has been issued)

“Over the longer term, we intend to further develop advanced maintenance technologies and implement these technologies in products for deployment in defense applications and to expand into additional commercial applications. We believe that many of our core capabilities, remote monitoring, rugged systems, predictive maintenance and communications expertise, are applicable to other industries that work with complex distributed systems, such as utilities, communications and transportation systems, and building maintenance. We are currently in discussions with certain industry participants regarding this initiative.”

It’s good to see MKRS delivering some nice revenue growth. The real test for the company will be to show investors it can sustain growth, reach meaningful profitability and further advance its commercial market penetration goals.

Comments & Business Outlook

Tue, 11 Jul 2017 15:14:03 GMT

MKRS ($0.52) announced that Hewlett Packard signed up for a fifth year of software support.

“These software products generate recurring revenues when customers renew their software maintenance support contracts on a yearly basis. Recently, Hewlett Packard Indigo Division, which manufactures large printing presses, has renewed their software license for Mikros Diagnostic Profiler for the fifth year running. Mikros is also working with HP to design new software upgrades to the system.

First, these orders represent a major vote of confidence from our commercial customers. Second, they indicate that there is significant potential for recurring revenue streams and lasting relationships as we support both hardware and software products in real world applications for commercial customers. We thank our current customers for their continuing support, and believe that life-cycle support of our product lines will continue to be a successful and profitable enterprise.”

Research

Mon, 12 Jun 2017 14:43:43 GMT

MKRS ($0.50) received a new award, a Small Business Innovation Research (SBIR) contract, which provides an additional $500,000 to further supplement the $1.5 million contract it received in April of 2017 to extend the capabilities of the ADSSS system to support the MK 99 FIre Control System. This brings the total funding to $2 million for the product line. The release states:

"This will be the first time Mikros CBM technology, first introduced on the Littoral Combat Ship (LCS), has been applied to the Navy's Aegis Weapons System in the surface combatant fleet. Over 300 radars are currently installed on Navy cruisers and destroyers."

Management further commented:

"Working with the United States Navy to customize our ADSSS condition based maintenance solution for use on the Aegis surface combatant fleet marks an important milestone for Mikros Systems," said Henry Silcock, Mikros Chief Technology Officer. "Extending our product and service offerings to additional combat systems and ship classes is a critical element of our long term strategic plan and this new contract provides an excellent opportunity for us to prove the value of our condition based maintenance system to another ship class."

It's conceivable that increased tensions in the Sea of Japan may bring to the forefront the need for companies contracted by the Navy to provide increased product services and support. Whether this true in the case of MKRS remains to be seen. However, it can’t be argued that the Navy sees and trusts MKRS as a go to company to address ongoing needs for its fleets’ current infrastructure, something we see as a long term positive.

Research

Tue, 30 May 2017 14:52:57 GMT

MKRS ($0.48) - This morning, MKRS released an announcement discussing its endeavors to broaden its investor outreach with GeoInvesting’s Executive Casts.

“We are excited about speaking directly to the investment community about our recent progress,” said Mikros President and CEO Tom Meaney. “We expect continuing success in our established defense product lines, ADEPT and ADSSS, and the recent contracts are an important vote of confidence from the Navy. Extending our technology to industrial and commercial markets remains an integral component of our long-term strategy which we will continue to aggressively pursue throughout the year.”

As intimated in the release, we will be rolling out further interviews with other executives at the company (COO Chuck Bristow and CTO Henry Silcock). The most recently published videos with CEO Tom Meaney can be seen here.

Research

Wed, 17 May 2017 17:11:14 GMT

MKRS ($0.43) - Yesterday we highlighted MKRS Q1 results as they had released their 10-0Q. This morning, MKRS issued its press release. Management's commentary included:

“We are very pleased to deliver another strong quarter for our investors. We are now starting to see tangible results from the $83 million of IDIQ contracts we were awarded in the fourth quarter of 2016 and the first quarter of 2017. As we continue to generate additional delivery orders under these contracts, we expect increases in both revenue and net profit through the balance of the year.

Another important element of our business plan is to deliver the benefits of condition based maintenance support to commercial customers. We continue to pursue select opportunities in these markets which have the potential to greatly expand the reach of our services and generate meaningful returns for our stockholders.”

Research

Tue, 16 May 2017 15:24:05 GMT

MKRS ($0.44) announced Q1 2017 results via 10-Q, still awaiting press release

Sales of $1.7 million vs $0.98 million in the prior year
Net income of $90,307 vs $1,846 in the prior year
EPS of $0.00 vs $0.00

Outlook:

“In 2017, our primary strategic focus is to continue as a premium provider of R&D and product development services to the defense industry, generate multiple delivery orders under our two IDIQ contracts, and expand our commercial business through marketing and sales of our Prognostics Framework and Diagnostic Profiler software products. We will also seek to generate incremental revenue through providing light assembly and production services to commercial customers at our manufacturing and depot center in Largo, Florida.

Over the longer term, we intend to further develop advanced maintenance technologies and implement these technologies in products for deployment in defense applications and to expand into additional commercial applications. We believe that many of our core capabilities, remote monitoring, rugged systems, predictive maintenance and communications expertise, are applicable to other industries that work with complex distributed systems, such as utilities, communications and transportation systems, and building maintenance. We are currently in discussions with certain industry participants regarding this initiative.”

MKRS has won two large IDIQ contracts totaling $83 million since September 2016. While these contract awards are for 5 year periods, with TTM revenues of $5 million, these are significant wins no matter how the delivery orders come in.

Research

Wed, 10 May 2017 15:12:23 GMT

MKRS ($0.48) announced a new award, its fourth delivery order under its $35 million IDIQ contract, but offered no details on the size of this order. The $35 million IDIQ contract is just one of the two major contract awards MKRS has won over the last several months. The Company also won a $48 million award in September 2016. MKRS IDIQ contracts total $83 million.

Research

Tue, 25 Apr 2017 17:59:37 GMT

MKRS ($0.579) - Long time Geo members know we have been covering MKRS since mid-2013 when the Company was trading near cash levels at below $0.10 per share. Our original article, “MKRS - A Sea of Change on the Horizon” was published in May 2014. The technology company engages in the research and development of electronic systems technology primarily for military applications in the United States.

Today, we would like to highlight another investor's perspective on the story. Yesterday after the close, a bullish in depth Seeking Alpha article was published, titled, “Mikros Systems: Significant Optionality At A Reasonable Amount Of Additional Cost”. We encourage you to read the article. Here are the key points from the column:

This niche manufacturer of specialized radar maintenance equipment recently landed two major contracts with the US Navy which showcased the potential of MKRS’ products.
While the share price did jump on both occasions, I believe that the current valuation still offers opportunity.
Especially because the company is likely to be awarded further substantial contracts from the US Navy which could be in the same size or larger.
Investors are now able to get exposure to this at a reasonable cost given that the likely cash flows from the announced contracts rationalize a significant part of the current price.
Therefore I believe investors should benefit from initiating a statistical position and possibly accumulate further as the company starts to execute the new contracts.

See the remainder of the article here.

Research

Tue, 11 Apr 2017 15:57:42 GMT

MKRS ($0.44) announced it has received a $1.5 million condition based maintenance contract to offer support to the MK 99 radar system aboard the Aegis fleet. MKRS’ ability to expand its ADEPT and ADSSS systems to other Navy ships was one of the main catalysts that would ensure that the company could grow into other markets as it continued to prove the effectiveness of its products and services. We discussed this in our original bullish thesis released on May 13, 2014.

With respect to this latest development, management stated:

"This order extends our ADSSS prognostics capabilities to the Aegis ship classes," said Chuck Bristow, Mikros Chief Operating Officer. "It also provides a means to establish common data collection and analysis tools across the fleet. We look forward to expanding ADSSS capabilities to even more ship classes in the future."

Research

Mon, 03 Apr 2017 17:01:49 GMT

MKRS ($0.37) reported Q4 2016 results:

Sales of $1.9 million vs $1.9 in the prior year
EPS of $0.00 vs $0.00

Comments from management:

“After our biggest year ever in 2015, we used 2016 to position Mikros for continued growth by strengthening our engineering, contracting and quality departments, and investing R&D funds into developing commercial applications of our military product lines. In 2016, we also completed a recapitalization transaction in which we eliminated $2,955,433 of aggregate liquidation preferences applicable to our previously outstanding shares of preferred stock while limiting dilution to our existing shareholders to approximately 9.5%. This simplified our balance sheet and our common stock can now reflect the full equity value of the Company.

Mr. Meaney continued, “We solidified the foundation for future growth by generating multiple new contract awards from the United States Navy. In September, we received the largest contract in Company history when the Naval Surface Warfare Center in Port Hueneme, California awarded us a five year, $48,000,000 IDIQ contract for our ADSSS® system. We followed this up in February when we received a second five year IDIQ contract in the amount of $35,000,000 for our ADEPT® product line. Since then, we have received in excess of $14,000,000 of delivery orders under these IDIQ contracts, driving backlog to record levels. For 2017, we expect additional delivery orders under these IDIQ contracts, multiple new contract awards, as well as growth in our commercial business. The combination of two substantial long-term contracts, renewed emphasis on national defense, and the availability of condition based maintenance systems for complex distributed systems which both government and commercial customers are demanding, positions us well to have a very successful year in 2017.”

Research

Thu, 09 Mar 2017 18:22:04 GMT

MKRS ($0.33) announced it has received $11.5 million order from the U.S. Navy. This award is the second delivery order issued under MKRS recently announced $35.1 million IDIQ contract with the Naval Surface Warfare Center.

Recall, MKRS has won two large IDIQ contracts totaling $83 million since September 2016. While these contract awards are for 5 year periods, with TTM revenues of $5 million, these are significant wins no matter how the delivery orders come in.

MKRS is one of our longest tenured GeoBargains. We coded it on May 6, 2014 at $0.09. You can see our full coverage on MKRS here.

Contract Awards

Tue, 14 Feb 2017 17:48:59 GMT

PRINCETON, N.J., Feb. 14, 2017 /PRNewswire/ -- Mikros Systems Corporation (OTCQB: MKRS) announced today that it has received the first Delivery Order under its recent multi-year $35M contract with the Naval Surface Warfare Center in Crane, IN.

The order covers eleven new production deliveries of Mikros' Adaptive Diagnostic Electronic Portable Testset (ADEPT) and is valued at $1.1M. The ADEPT units will be produced at the Mikros Manufacturing and Depot Center in Largo, FL and be delivered to the Navy later this year.

"We are excited and ready to ramp up the ADEPT production line here in Largo," said Mark Laureigh, Mikros Director of Operations. "Having served in the U.S. Navy maintaining and operating an AN/SPY-1 radar system, I know full well the current value and future potential ADEPT brings to our sailors. We are proud for each opportunity we have to serve the men and women of our armed forces."

The Mikros Systems Manufacturing and Depot Center in Largo, Florida was established in 2009 to manufacture and provide sustainment and logistics support for the ADEPT system. The center has produced and delivered over 200 systems to the U.S. Navy and provides continuing life-cycle support for the systems including, calibration, repair, and training.

Research

Mon, 13 Feb 2017 16:01:04 GMT

MKRS ($0.32) - GeoBargain MKRS was mentioned in a Seeking Alpha article, “Defense Sector Update February 6th-12th”. The author states:

“The DoD awarded another contract that caught my eye to a company called Mikros Systems (OTCQB:MKRS). The contract is part of the Small Business Innovation Research Phase III program and is for the support of Adaptive Diagnostic Electronic Portable Test Sets used for the maintenance on several different military radar systems. The stock, which trades at $0.32, has already experienced a 28% pop since the contract was disclosed. What is remarkable about this contract is that in 2015 the company had just $7.3 million in revenue. Even after the 28% run the market cap is $11.4 million. The award length goes out five years and the company was given $1 million at the time of the award leaving $34 million on the table. This contract has the potential to provide what was an entire year's revenue for the next five years. The company looks healthy, and could finally have found a catalyst to break out.

The company has no debt, and this injection of revenue will help stabilize what is otherwise a lumpy figure. They have definitely caught my eye.”

The author failed to mention that this was the second large IDIQ contract MKRS has been awarded in the past 6 months. With the $48 million award from September 2016, coupled with the $35 million the author mentions, MKRS IDIQ contracts total $83 million. If the author was impressed that a company with TTM revenues of $7 million had a $35 million contract possibility. We assume he would be elated to learn that it is actually $83 million.

Research

Tue, 07 Feb 2017 16:33:56 GMT

MKRS ($0.26) - Per the Department of Defense site, MKRS has been awarded a new IDIQ contract in support of its ADEPT sets. The IDIQ is for $35 million over 5 years. MKRS ttm revenues are $5million. Investors should note, that this marks the second large IDIQ contract the company has been awareded in the past 6 months. In September 2016 the company announced a 5 year$48 million IDIQ contract. Award. These two awards along bring MKRS IDIQ backlog to $83 million to possibly be filled in the next 5 years, equating to roughly $16 million per year.

Research

Tue, 15 Nov 2016 18:27:04 GMT

MKRS ($0.24) announced Q3 2016 results (during the trading day yesterday)

Sales of $1.18 million vs $1.24 million in the prior year
EPS of $0.00 vs $0.00 in the prior year
Net income of $20,726 vs $36,736 in the prior year

Results were in line with our expectations. We believe the key takeaway and information arbitrage opportunity lies in the 10-Q filing commentary that was omitted from the press release. The company states:

“During the three months ended September 30, 2016, we received a $48 million IDIQ contract for our ADSSS system and expect additional contracts to be awarded during the fourth quarter and into 2017.”

While the size of the potential contracts is uncertain, with the last one being $48 million, a similar size contract could be significant for the Company. Recall, shares climbed from $0.14 to current levels on the $48 million contract win announced on the Department of Defense (DoD) website prior to MKRS’ press release. The stock briefly hit an intraday high of $0.39. Each new contract that MKRS wins adds to the visibility and expectations of financial consistency. The DoD website seems to be the key to getting the most up-to-date contract award announcements, so we are tracking site closely.

Research

Thu, 29 Sep 2016 14:59:05 GMT

MKRS ($0.23) - Yesterday, shortly after the open, MKRS announced it received its first commercial production order for its Florida manufacturing center. Management stated:

"Expanding the Largo facility's light manufacturing and integration services for commercial customers is a key component of our long-term growth strategy," said Mark Laureigh, Mikros Systems director of operations. "We continue to expand our custom manufacturing, build to print, box build and testing services and we look forward to continuing our work with the local high-tech community in Florida and beyond."

Expanding its products into commercial applications has been a key initiative we have highlighted as a possible major growth catalyst for the Company. In fact, in our original article in 2014, we stated:

“Our research indicates investors do not fully recognize that military applications for MKRS products actually parallel "hot sectors" in the commercial market that address the increasing desire of companies to implement remote monitoring/data analytics capabilities.”

While building the commercial business is certainly still in its infancy, we have reached out to management to learn more about this contract and future growth opportunities in the commercial setting.

Comments & Business Outlook

Wed, 28 Sep 2016 13:52:43 GMT

PRINCETON, N.J., Sept. 28, 2016 /PRNewswire/ -- Mikros Systems Corporation (OTCQB: MKRS), a provider of advanced maintenance and monitoring solutions for mission-critical systems, announced today that it has received its first commercial full-rate production order for its manufacturing and depot center in Largo, Florida.

"Expanding the Largo facility's light manufacturing and integration services for commercial customers is a key component of our long-term growth strategy," said Mark Laureigh, Mikros Systems director of operations. "We continue to expand our custom manufacturing, build to print, box build and testing services and we look forward to continuing our work with the local high-tech community in Florida and beyond."

The Mikros Systems manufacturing and depot center in Largo, Florida was established in 2009 to manufacture and provide sustainment and logistics support for the Mikros Systems Adaptive Diagnostic Electronic Portable Testset (ADEPT®) system for the U.S. Navy. The center has produced and delivered over 200 systems to date, and provides life-cycle support for all of these systems including calibration, repair and training.

Research

Mon, 26 Sep 2016 16:00:22 GMT

MKRS ($0.22) announced it was awarded the expected $3 million task order from the U.S. Navy, the first of which is part of the recently announced $48 million indefinite delivery, indefinite quantity (IDIQ) contract. Quote from management:

"This award is the result of our ground-breaking technology and processes to advance condition-based maintenance for combat systems. We are proud of our legacy of support in ensuring the readiness of U.S. Navy combat systems and we look forward to expanding the ADSSS technology to additional LCS and U.S. Naval platforms," said Mikros Systems President and CEO, Tom Meaney.

Research

Thu, 15 Sep 2016 18:48:26 GMT

MKRS ($0.26) - On September 6, 2016 we alerted you that the U.S. Department of Defense announced that MKRS won a $48 million Navy contract. The stock was at trading at $0.13 when we issued our research note. We stated that there was no 8-K or press release issued.

On September 13, 2016 MKRS issued a press release confirming the contract win. Here are some quotes from the release:

"This is the largest contract Mikros has ever been awarded, and it's a breakthrough for our predictive maintenance systems and software," said Tom Meaney, Mikros President and CEO. "We are breaking new ground in our work with condition-based maintenance for combat systems on the LCS, and we are working actively to transition this technology and expand our business into new commercial and industrial markets. These commercial markets have so far shown an interest in the Mikros distance support technology for monitoring and maintenance of remotely located equipment…

...The new IDIQ contract supporting Mikros' ADSSS system began with a limited pilot effort that expanded to eight ships. Assuming that Congress appropriates additional funding, the program is anticipated to cover all 28 LCS ships.”

Comments & Business Outlook

Tue, 13 Sep 2016 04:00:00 GMT

PRINCETON, N.J., Sept. 13, 2016 /PRNewswire/ -- Mikros Systems Corporation (OTCQB: MKRS) announced today that it has received a major new multi-year contract award from the U.S. Navy for production, logistics support and future development of its ADSSS® (ADEPT® Distance Support Sensor Suite) Condition Based Maintenance (CBM) system for the Navy's Littoral Combat Ship (LCS). The prime award is an IDIQ contract (Indefinite Delivery, Indefinite Quantity) with a ceiling value of $48M. The LCS is the U.S. Navy's latest combat warship, and the contract covers the first eight ships of the 28-ship program.

"This is the largest contract Mikros has ever been awarded, and it's a breakthrough for our predictive maintenance systems and software," said Tom Meaney, Mikros President and CEO. "We are breaking new ground in our work with condition-based maintenance for combat systems on the LCS, and we are working actively to transition this technology and expand our business into new commercial and industrial markets. These commercial markets have so far shown an interest in the Mikros distance support technology for monitoring and maintenance of remotely located equipment."

Like all IDIQ contracts, funding will become available for work as it is identified and authorized by the Navy customer. The award establishes a contracting vehicle and a ceiling, and multiple delivery orders are expected over the next five years. By comparison, for the past six years Mikros has manufactured and enhanced its ADEPT product line under a $26M IDIQ contract first issued by the Navy in 2010. This contract is about to expire, but over the period of performance the Company executed numerous Delivery Orders representing over 95% of the funding ceiling. The new IDIQ contract supporting Mikros' ADSSS system began with a limited pilot effort that expanded to eight ships. Assuming that Congress appropriates additional funding, the program is anticipated to cover all 28 LCS ships.

Mikros also recently launched a new corporate website at www.mikrossystems.com, which provides comprehensive information about all Mikros hardware and software offerings, including several examples of successful applications. The site's interactive features allow continuing communication with existing and prospective customers, and will feature periodic newsletters to keep everyone informed of the Company's progress.

Research

Tue, 06 Sep 2016 16:03:08 GMT

MKRS ($0.13) - The U.S Department of Defense website stated that long time GeoBargain MKRS has won a $48 million Navy “indefinite-delivery/indefinite-quantity” (IDIQ) contract. The IDIQ is the first step in the contract award process. Moving forward the government will release task orders against this IDIQ. The company has yet to release a press release or 8-K for this contract win.

It is unclear if the market will immediately recognize the importance of this win for MKRS. We view this as a significant development in the Company’s story for the following reasons:

It looks like this is the largest contract in in the Company’s history. It appears the last IDIQ was awarded in 2010 for $26 million for one of its other products (ADEPT).
The ADEPT IDIQ is nearing completion. However, the new award eliminates the near to mid-term risk of operation sustainability.
We are most excited about the fact that the new contract targets the Company’s newer, sexier remote monitoring product (ADSSS). Basically, the ADSSS improves the Navy’s ability to monitor the condition of its deployed ships from onshore locations. Think of it as and “Internet of Things” (IOT) application. The Company has been working for some time to win an award for this product.
This contract will give MKRS a chance to showcase the technology of the ADSSS product which could open doors into other areas of the DOD as well the possibility of commercial applications.
We are unsure how the contract will be filled over its 5 year life span. However, with the company currently tracking at around $5 million in annual sales, the IDIQ places the Company in a position to generate nearly $10 million in annual sales. This run rate does not include other potential sources of revenues the Company currently generates and has stated are in the works. See Maj Soueidan’s March 2016 interview with MKRS’ CEO Thomas Meaney and CTO Henry Silcock where they discussed how they intend to facilitate growth for the company by tapping into other various markets.

Caveats:

We need more details to analyze what the margins and EPS contribution from this new contract will have on the company.
The company still needs to be awarded task orders against the IDIQ contract.
Like any other government agency, the contract time could be extended.

We have been pressing management to increase shareholder value by issuing a special dividend or buying back stock. Hopefully this development will give them the confidence to consider one of these options.

Contract Awards

Tue, 30 Aug 2016 15:45:15 GMT

PRINCETON, N.J., Aug. 30, 2016 /PRNewswire/ -- Mikros Systems Corporation (MKRS) announced today that it has received several new contract awards and launched a new corporate website to support continuing future growth.

Mikros produces advanced maintenance systems for the Navy, including the ADEPT® (Adaptive Diagnostic Electronic Portable Testset) Maintenance Automation Workstation and the ADSSS® (ADEPT Distance Support Sensor Suite) Condition Based Maintenance (CBM) system for the Littoral Combat Ship.

In March and April of 2016, Mikros received multiple awards under its existing Indefinite Delivery Indefinite Quantity (IDIQ) contract to perform ADEPT Initial System Familiarization (Training) and General Engineering Support totaling $400,000. In April, two more contracts were awarded – a repair contract in the amount of $135,000 to support the deployed ADEPT units, and a follow on contract for LCS3 ADSSS Support on the USS Fort Worth (LCS 3), in the amount of $116,000.

Most recently, in June and July 2016 the Company received two contract modifications for additional funding on its ADSSS Contract Number N00024-13-C-4545 totaling $4,650,335. These modifications will cover final development, testing and installation of the production ADSSS systems on the first eight Littoral Combat Ships.

"Together, these orders for ongoing development and production of our products total in excess of $5,000,000. They include continuing logistics support for the more than 200 ADEPT units currently deployed by the United States Navy , as well as funding the first production units of our new ADSSS baseline system to equip the first eight Littoral Combat Ships," said Tom Meaney, Mikros President and CEO. "We have now successfully transitioned both of our major hardware product lines from the original development under the Small Business Innovation Research program to production of fully-qualified units for deployment. We thank our current customers for their continuing support, and believe that life-cycle support of our product lines will continue to be a successful and profitable enterprise."

Research

Tue, 16 Aug 2016 17:47:51 GMT

MKRS ($0.12) reported Q2 2016 results:

Sales of $0.98 million vs $1.7 million in the prior year
EPS of $0.03 vs $0.00 (majority of EPS is from discount upon exchange of preferred stock)
Non-GAAP EPS $0.00 vs $0.00 in the prior year

Quote from 10-Q:

“we acquired certain software and related assets from VSE Corporation. The software is used in our Prognostics Framework® (PF) and Diagnostic Profiler® (DP) products to analyze maintenance data collected from target systems, optimize maintenance procedures, and predict failures. These products provide software capabilities which complement our maintenance hardware products (ADEPT and ADSSS), and allow us to provide complete hardware/software solutions for advanced maintenance, particularly of complex distributed systems. Now that we have a complete hardware/software solution for advanced maintenance, we are expanding into commercial and industrial markets.”

As noted before, we felt the elimination of the convertible preferred shares and the associated dividend was a net positive for the Company after factoring in the minimal dilution resulting from the completion of this transaction.

While we are disappointed in the quarterly results, the Company’s plans of expansion into commercial and industrial markets has been a key point of focus for us. We will continue to press management to consider actions to maximize shareholder value.

Research

Wed, 13 Jul 2016 14:51:07 GMT

MKRS ($0.10) In our June 20, 2016 email we stated that MKRS filed an 8K stating that it was in the process of a recapitalization transaction to eliminate all its preferred stock. Today, the Company announced it has completed this transaction.

In connection with the preferred stock exchange, Mikros also repurchased 2,084,167 issued and outstanding shares of common Stock owned by the United States Small Business Association. As a result of these transactions, the Company will make aggregate cash payments of $544,017, issue 3,089,806 additional shares of common stock, and eliminate $2,955,433 of aggregate liquidation preferences applicable to its previously outstanding shares of preferred stock.

“These transactions have greatly simplified our capital structure and removed almost $3,000,000 of accrued dividends and liquidation preferences required to be paid prior to any distribution to holders of our common stock. We believe that the recapitalization, combined with our recent strategic corporate moves to diversify the markets and customers we serve, will accelerate the growth of our company and create long term value for our common shareholders,” said Tom Schaffnit, Mikros Director and Chairman of the Corporate Administration Committee of the Board of Directors, which negotiated the transactions.

As noted before, we view the elimination of the convertible preferred shares and the associated dividend as net positive for the Company after factoring in the minimal dilution resulting from the completion of this transaction. Eliminating the preferred also makes it easier for the Company to sell itself, in our opinion.

Research

Mon, 20 Jun 2016 14:28:58 GMT

MKRS ($0.11) - In an 8-K filed on Friday, MKRS is in the process of a recapitalization transaction that will eliminate all the convertible preferred shares the Company had issued.

“After closing the Recapitalization Transaction, including the Redemption and repurchase described above, we will have issued 5,173,973 shares of Common Stock, made cash payments of $544,017, repurchased 2,084,167 issued and outstanding shares of Common Stock from the SBA, and eliminated $2,955,433 of aggregate liquidation preferences applicable to our previously outstanding Preferred Shares. This will result in the net issuance of 3,089,806 additional shares of Common Stock.”

We view the elimination of the convertible preferred shares and the dividend liability associated with them as a net positive for the Company after factoring in the minimal dilution it took to complete this transaction. Eliminating the preferred also makes it easier for the Company to sell itself in our opinion.

Research

Tue, 17 May 2016 17:56:55 GMT

MKRS ($0.10) reported Q1 2016 results:

Sales of $0.98 million vs $2.4 million in the prior year period
Net income of $1,846 vs $140,789 in the prior year period

Quotes from management:

“After coming off of our biggest year ever in terms of revenue, we experienced a bit of slowdown during the first quarter. We believe this is temporary as we are now beginning to see new awards from the United States Navy, substantial interest in our commercial offerings, and a general uptick in activity. As we continue to expand the reach of ADEPT to the MK 99 U.S. Navy radar system and pursue new IDIQ contracts for both ADEPT and ADSSS, our prospects for future growth over the next one to three years have never been stronger and we expect to deliver another profitable year for our shareholders in 2016.”

While we are disappointed in the quarterly results, management's commentary about future outlook is very encouraging. We will continue to press management to consider actions to maximize shareholder value.

Comments & Business Outlook

Mon, 16 May 2016 18:50:54 GMT

First Quarter 2016 Results

Sales of $0.98 million vs $2.4 million in the prior year period
Net income of $1,846 vs $140,789 in the prior year period

Quotes from management:

“After coming off of our biggest year ever in terms of revenue, we experienced a bit of slowdown during the first quarter. We believe this is temporary as we are now beginning to see new awards from the United States Navy, substantial interest in our commercial offerings, and a general uptick in activity. As we continue to expand the reach of ADEPT to the MK 99 U.S. Navy radar system and pursue new IDIQ contracts for both ADEPT and ADSSS, our prospects for future growth over the next one to three years have never been stronger and we expect to deliver another profitable year for our shareholders in 2016.”

Comments & Business Outlook

Tue, 03 May 2016 04:00:00 GMT

PRINCETON, N.J., May 3, 2016 /PRNewswire/ -- Mikros Systems Corporation (OTCQB: MKRS) announced today that the U.S. Navy and several of its commercial customers have recently signed new contracts and orders for continued support of Mikros hardware and software products.

Mikros produces advanced maintenance systems for the Navy, including the ADEPT Maintenance Automation Workstation and the ADSSS Condition Based Maintenance system for the Littoral Combat Ship. To date over 200 ADEPT systems, produced at the Company's Manufacturing and Depot Center in Largo FL, have been delivered to the Navy and are in daily use for performance optimization of advanced radar systems. This established production program continues to generate recurring revenues for logistics support of ADEPT, and the Navy has recently issued new Task Orders to Mikros to provide ongoing calibration, repair, training and engineering support services for the ADEPT systems deployed on Navy destroyers and cruisers.

Mikros also provides two software products, Prognostics Framework and Diagnostic Profiler, to several commercial and defense customers for "Condition Based Maintenance" in various industrial applications. These software products also generate recurring revenues when customers renew their software maintenance support contracts on a yearly basis. Recently, Hewlett Packard, Saab and Northrop Grumman have each renewed their maintenance agreements with Mikros.

"Together these orders for ongoing support of our products total just over $600,000, but their significance extends far beyond the immediate revenues," said Tom Meaney, Mikros President and CEO. "First, they represent a major vote of confidence from both our established Navy customer and our new commercial customers. Second, they indicate that there is significant potential for recurring revenue streams as we support both hardware and software products in real world applications. We thank our current customers for their continuing support, and believe that life-cycle support of our product lines will continue to be a successful and profitable enterprise."

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, 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, please visit: www.mikrossystems.com.

Shareholder Letters

Mon, 11 Apr 2016 19:03:44 GMT

MKRS ($0.11) released its year end shareholder letter. While there are certainly some bullish takeaways, specifically its strategic initiative to expand their business into commercial and industrial markets, there was no clear indication on growth prospects for 2016.

Research

Thu, 31 Mar 2016 14:47:28 GMT

MKRS ($0.10) reported Q4 2015 results:

Sales of $1.91 million vs $2.37 million in the prior year
Net income of $163k vs $283k in the prior year
EPS of $0.00 vs $0.01 in the prior year

We are still waiting on a press release from the Company. It is little disappointing that the company did not issue a press release as of yet, since more investor awareness was talked about in a recent interview Geo Co-founder Maj Soueidan had with MKRS management on his weekly radio show, Monet Talk Radio. We have urged the CEO to correspond with investors ASAP. It’s worth noting that Q4 2014 was an unusually strong quarter for the company.

On March 17, 2016 the CEO and CTO went into detail explaining the company’s current undertakings and priorities.

MKRS CEO Thomas Meaney discusses the company’s history and market opportunity.
The company addresses commercial opportunities and expansion outside the Navy into other areas of military.
A recent acquisition in the commercial space is elaborated on.
Mikros Systems' CTO Henry Silcock joined the call to provide much needed perspectives on growth markets.
Enhancing shareholder value is voiced as a top priority in 2016.

You can hearthe interview in it’s entirety here.

Research

Thu, 17 Mar 2016 15:00:57 GMT

Yesterday, GeoInvesting Co-founder had the chance to interview $MKRS ($0.12) management on ‘The Everyday Investor’ on 740AM Moneytalk Radio. The CEO and CTO went into detail explaining the company’s current undertakings and priorities.

MKRS CEO Thomas Meaney discusses the company’s history and market opportunity.
The company addresses commercial opportunities and expansion outside the Navy into other areas of military.
A recent acquisition in the commercial space is elaborated on.
Mikros Systems' CTO Henry Silcock joined the call to provide much needed perspectives on growth markets.
Enhancing shareholder value is voiced as a top priority in 2016.

You can hear the interview in it’s entirety here.

Comments & Business Outlook

Mon, 16 Nov 2015 05:00:00 GMT

Third Quarter 2015 Results

Third quarter sales of $1.24 million vs $1.05 million in the prior year period
EPS of $0.00 vs $0.00 in the prior year

Quotes from managment:

Tom Meaney, Mikros President and CEO, commented, "We are delighted to deliver another very strong quarter for our shareholders and to maintain the momentum we have generated since the start of the year. We continue to execute our strong U.S. Navy production and development contracts. In addition, sales of our Prognostics Framework and Diagnostic Profiler software products to commercial customers have created a new incremental revenue stream for us. We expect that a combination of current ADEPT orders and sales of our new ADSSS system and maintenance software products will continue to drive increases in both sales and profits for the balance of 2015."

Mikros Obtains ISO 9001:20018 Certification

Mikros also announced today that the Company's Quality Management System (QMS) has been formally certified as compliant with the requirements of ISO 9001:2008. The ISO 9001 auditor found zero non-conformances at Mikros facilities in both Fort Washington, PA and Largo, FL. Earlier this year, Mikros QMS was certified by the Naval Sea Systems Command as compliant to NAVSEA Technical Specification 9090-310F, Appendix C and FY 2015 NAVSEA Standard Item 009-04. This Navy certification enables Mikros to form shipboard Alteration Installation Teams and perform shipboard equipment installation and maintenance tasks. The new ISO 9001:2008 certification extends the Company's NAVSEA certification to the leading industry-standard and applies across all Mikros business processes, for both development and manufacturing capabilities.

Mr. Meaney continued, "Achieving formal certification of our Quality Management System to ISO 9001 represents a tremendous milestone for the company and is a tribute to the qualifications and hard work of our dedicated employees. This certification will allow us to expand our future business for both shipboard installation work and new manufacturing opportunities. Taken together with our new diagnostic and prognostic software products, Mikros now offers comprehensive capabilities for advanced maintenance applications. We design and manufacture hardware to acquire maintenance data and provide software to process the data and predict failures. Together, these products provide a complete solution for remote monitoring and maintenance of complex distributed systems."

Comments & Business Outlook

Mon, 17 Aug 2015 15:43:17 GMT

MKRS ($0.17) reported second quarter 2015 results:

Sales of $1.7 million vs $1.2 million in the prior year
Net income of $120,712 vs $130,283

MKRS filed its 10-Q on friday, and released its press release this morning. Quotes from management:

"We are very pleased to deliver another very strong quarter for our shareholders and maintain the momentum generated during the first quarter. Year to date, both our revenues and net profits have more than doubled. In July, we completed the acquisition of the Prognostics Framework and Diagnostic Profiler programs which complement our current offerings and allow us to serve a new DOD customer, the United States Air Force. We expect that current ADEPT orders and sales of our newly acquired software products will continue to drive increases in both sales and profits in the coming quarters."

Comments & Business Outlook

Fri, 15 May 2015 04:00:00 GMT

Reported First Quarter 2015 Results

The Company reported that revenue increased almost three-fold to $2,476,039 in the first quarter of 2015 from $883,340 during the first quarter of 2014.
Net income for the first quarter of 2015 was $140,789 compared to a net loss of $8,034 during the corresponding period in 2014.

Tom Meaney, Mikros President and CEO, commented, "This was another tremendous quarter for Mikros. For the second time over the past four fiscal quarters, we nearly tripled our revenue as compared to the prior year period. We were able to efficiently manage general and administrative expenses and delivered another very profitable quarter for our shareholders. Our facility in Largo, FL remains at near full capacity as we fulfill ADEPT orders, support maintenance efforts on deployed units, and continue to work on extending the ADEPT capabilities to the US Navy's SPS-49 long-range air surveillance radar. We are confident that we have the product and the technical expertise to successfully extend ADEPT and further grow our business.

Comments & Business Outlook

Wed, 01 Apr 2015 04:00:00 GMT

$MKRS ($0.16) - GeoBargain MKRS, an advanced technology company which designs and manufactures specialized electronic systems for the Department of Defense, reported strong Q4 2014 results:

Q4 2014 revenues of $2.38 million vs $0.88 million in the prior year period.
Q4 2014 EPS of $0.01 vs $0.00 in the prior year
The backlog for future orders stood at $5.5 million, representing the highest backlog in the history of the Company.

Bullish commentary for 2015:

“During the first quarter of 2015, Mikros made further significant progress receiving an additional production order for ten ADEPT units and multiple task orders for ADEPT support and calibration. In addition, the performance period of the ADEPT IDIQ contract was extended through August 2016. Mr. Meaney continued, "Building on the 2014 comeback and these recent successes, we are well positioned to deliver another very profitable year for our shareholders in 2015."

Comments & Business Outlook

Mon, 17 Nov 2014 05:00:00 GMT

Third Quarter 2014 Results

Third quarter revenues were $1,057,442 as compared to $904,908 for the third quarter of 2013, an increase of $152,534 or 17%.
Net income of $127,435 as compared to a net loss of $109,628 for the third quarter of 2013.

Tom Meaney, Mikros President and CEO, commented, "After coming off our most profitable quarter in five years, our sole focus in the third quarter was to continue to serve our important defense customers and maintain the strong momentum built in the prior months. We are very pleased to report that we delivered on both counts by generating over $125,000 in net income, over $1,000,000 in revenue for the second straight quarter, and obtaining fifteen new labor contracts so far this year. The recent $5,000,000 task order for additional ADEPT units not only contributed to our third quarter results, but also provides us with a good start to the fourth quarter and into 2015. We continue to execute our strategy of expanding the reach of our ADEPT technology and are making meaningful strides in this endeavor. As we look towards year end, we expect to finish strong and deliver a very profitable year for our shareholders."

Comments & Business Outlook

Wed, 27 Aug 2014 04:00:00 GMT

PRINCETON, N.J., Aug. 27, 2014 /PRNewswire/ -- Mikros Systems Corporation, (OTCBB: MKRS), an advanced technology company specializing in the research and development of electronic systems for the Department of Defense, announced today the award of a major new production contract award valued at $5,000,000 for its ADEPT® equipment, used by the U.S. Navy to maintain advanced radar systems.

The Navy plans to purchase fifty-four (54) ADEPT units over the next year, for a total contract value of $5,000,000. These systems will be deployed on Navy "Aegis" destroyers and cruisers to support the AN/SPY-1 radar in air defense and ballistic missile defense missions. These systems will join the 130 ADEPT units already deployed and in everyday use by the Navy. This contract adds to the engineering backlog currently in place. Mikros' backlog is now at an all-time high of approximately $8,000,000. "We have been looking forward to this award for some time," said Mikros President Tom Meaney. "It's a major corporate milestone and validates all of the hard work we've done on ADEPT development. We are delighted that the Navy has chosen to move forward with ADEPT production."

The new contract is the first Full Rate Production contract for the third-generation ADEPT system. A low rate initial production (LRIP) run of three units was recently completed to validate the new design. The production systems will be assembled at the recently-expanded Mikros Manufacturing and Depot facility in Largo FL. Mark Laureigh, Mikros Director of Operations, who runs the Largo facility, said, "We are ready here in Florida to execute this contract. We are putting assembly and quality control systems in place to ensure on-time delivery of high-quality equipment to the Navy."

Comments & Business Outlook

Fri, 15 Aug 2014 04:00:00 GMT

Second Quarter 2014 Results

Second quarter revenues were $1,209,802, representing an increase of $842,244 or 229% from the comparable prior year period.
Net income for the three months ended June 30, 2014, was $130,284 as compared to loss of $181,185 during the corresponding period in 2013.

During the second quarter, the Company completed an initial production order under its existing ADEPT Indefinite Delivery, Indefinite Quantity (IDIQ) contract to design and deliver "v3" ADEPT units. Three Low-Rate Initial Production (LRIP) units of the new design were delivered to the Navy. Work continues on extending the ADEPT system to a second Navy radar system and upgrading the capabilities of the 69 ADEPT units currently deployed in the fleet. These efforts include installing a faster and more capable controller module and upgrading the Operating System software from Windows XP to Windows 7.

The Company was awarded four new direct labor contracts during the second quarter valued at approximately $1.0 million to be funded over the next two years. These awards include funding for continued training of Navy personnel regarding the ADEPT product, upgrading ADEPT instrumentation functions for data acquisition, and upgrading the Adaptive Distance Support Sensor Suite, or ADSSS, for the Navy's new Littoral Combat Ship.

Tom Meaney, Mikros President and CEO, commented, "We are very pleased with our second quarter results. We tripled our revenue as compared to the second quarter of 2013 and delivered our most profitable quarter in over five years. Landing four new direct labor contracts contributed nicely to both our top line and profitability and should keep us near full capacity in the coming quarters. Our strategy over the past eighteen months of enhancing our expertise and capabilities by investing in our people and technology is starting to deliver results. Although the defense contracting environment remains very challenging, we remain cautiously optimistic that we can continue to accelerate both revenues and profits during the third and fourth quarter."

Contract Awards

Tue, 03 Jun 2014 04:00:00 GMT

PRINCETON, N.J., June 3, 2014 /PRNewswire/ -- Mikros Systems Corporation, (OTCBB: MKRS), an advanced technology company specializing in the research and development of electronic systems for the Department of Defense, announced today the recent award of several new defense contracts.

Mikros develops and manufactures specialized test and maintenance equipment for the U.S. Navy, including the ADEPT test workstation and the network-based ADSSS system for Condition Based Maintenance (CBM). The new contracts include a total of four new awards – two to support and improve the Company's flagship ADEPT product line, and two to upgrade the ADSSS system for the Navy's new Littoral Combat Ship (LCS).

The two ADEPT awards provide funding for continued training of Navy personnel and a new development effort to upgrade ADEPT instrumentation functions for data acquisition.

Under a new ADSSS contract, Mikros will design a new portable maintenance device for shipboard use, working closely with the Naval Ship Systems Engineering Station (NAVSSES) office in Philadelphia. The second ADSSS award funds the installation of CBM equipment on the USS Fort Worth (LCS 3) and continued shipboard testing. This "Pilot Program" extends the Mikros' pilot installation of ADSSS on the USS Freedom (LCS 1), a project that was described by Mikros' Navy customer as "completely successful".

The total value of the new contracts is approximately $975,000, to be funded over the next two years. Mikros President Tom Meaney said, "We are delighted that the Navy has continued to support the LCS Condition Based Maintenance program. Our goal is that these projects will transition into production orders after the initial sea tests of this new ADSSS system which are currently planned for next year. We continue to make excellent progress in 2014 and expect that these new development projects and production orders, will provide a firm foundation for continued growth over the next few years."

Comments & Business Outlook

Thu, 15 May 2014 04:00:00 GMT

First Quarter 2014 Results

Revenues for the first quarter 2014 of $883,340 vs $902,196 in the prior year
Net loss of 8,034 vs net loss of 19,626

Quotes from management:

"Our strategy for continued growth is three-fold. First, we expect to continue expanding our technology base, backlog and revenue by continuing our active participation in the DoD SBIR program and bidding on projects that fall within our areas of expertise. These areas include electronic systems engineering and integration, radar systems engineering, combat/C4I (Command, Control, Communications, Computers & Intelligence) systems engineering, and communications engineering. We believe that we can utilize the intellectual property developed under our various SBIR awards to develop proprietary products, such as the ADEPT described above, with broad appeal in both the government and commercial marketplace. This state-of-the-art test equipment can be used by many commercial and governmental customers such as the FAA, radio and television stations, cellular phone service providers and airlines. Second, we will continue to pursue SBIR projects with the Department of Homeland Security, the U.S. Navy, and other government agencies. Third, we believe that through our marketing of products such as ADEPT, we will develop key relationships with prime defense contractors. Our strategy is to develop these relationships into longer-term, key subcontractor roles on future major defense programs awarded to these prime contractors.

In 2014, our primary strategic focus is to continue to: (i) establish ourselves as a premium provider of research and development and product development services to the defense industry; and (ii) grow our business, generate profits and increase our cash reserves through obtaining additional SBIR contracts and positioning ourselves to obtain future SBIR contracts. From an operational prospective, we expect to focus substantial resources on generating purchase orders under the IDIQ contract for ADEPT units, expanding ADEPT to support other radar systems, and exploring commercialization opportunities. We intend to capitalize on the Navy modernization program which could result in two or three ADEPT units being placed on each destroyer and cruiser in the U.S. Navy, with the potential to install multiple units on additional U.S. Navy ships and submarines. As the installed base increases, we expect additional and recurring revenue for calibration and other maintenance and support. In January 2014, we were awarded a contract to extend the ADEPT system to a second U.S. Navy radar system, the SBS-49, which is exptected to assist in optimizing performance for the Ballistic Missile Defense Mission.

Over the longer term, we expect to further develop technology based on existing and additional SBIR contracts and to develop these technologies into products for wide deployment to DoD customers and contractors as well as developing potential commercial applications. We believe that many of our core capabilities, remote monitoring, rugged systems, predictive maintenance and communications expertise, are applicable to other industries that work with complex distributed systems, such as utilities, communications and transportation systems. We are currently in discussions with certain industry participants regarding this initiative."

Investor Alert

Tue, 13 May 2014 04:00:00 GMT

Our research indicates investors do not fully recognize that military applications for MKRS products actually parallel “hot sectors” in the commercial market that address the increasing desire of companies to implement remote monitoring/data analytics capabilities. Aside from liking the stock on its merits, we think it could be only a matter of time before a large defense contractor acquires the company. This potential move would enable a suitor to capitalize on MKRS’s technology, installed base of products (“installed base”) and recurring revenue stream. In the meantime, the GeoTeam has been accumulating shares while the rest of the market is sleeping.

See our full report here.

Shareholder Letters

Mon, 07 Apr 2014 04:00:00 GMT

8k letter to shareholder

Dear Shareholder:

I am pleased to report some important developments that occurred over the past year which we expect to lead to increased revenue and profitability for Mikros in 2014 and 2015. We have expanded the capability and reach of our core ADEPT product to other markets and ship classes, solidified our presence in Largo, Florida, a key defense industry hub, and aggressively explored commercialization of the core technology developed under our US Navy R&D partnership.

After nine years of profitability, Mikros sustained a loss in 2013 due to reduced contract activity which was caused in major part by the sequestration and Federal Government shut down. While we experienced significant contract shortfalls early in 2013, we increased our bookings and backlog to record levels in engineering work. As a result of this increased backlog, we have hired six new engineers and plan to hire more in the future. This relatively slow period also allowed us the opportunity to write additional proposals, develop new quality procedures, expand the ADEPT system, and set up a first-class production and repair facility in Largo, Florida. The time and money spent during this period was an investment in our company and in our people. As 2013 progressed, we managed to book more orders, regain a solid revenue stream, and turn a cash drain into positive cash flow and backlog as we entered 2014.

The foundation of our business continues to be our proprietary ADEPT technology. This system enables the US Navy to operate its most advanced radar/combat systems at truly optimized efficiency by providing a platform to service these complex systems remotely. With ADEPT, Navy personnel can troubleshoot and control the system via satellites reaching halfway around the world. This translates to not only improved fleet readiness, but also dollars saved flying technicians around the globe. We have shipped and installed over 100 ADEPT systems, on operating naval ships and we expect to deliver at least 150 additional units to the US Navy Aegis fleet (80-100 ships).

In addition to expanding the installed base of ADEPT systems, we provided extensive ADEPT training services in Japan, Norfolk VA and San Diego CA, and worked on several logistics support efforts for the product, including calibration and technical support. We demonstrated for the first time on an Aegis destroyer that the ADEPT system can be operated remotely by a shore-based expert. This distance support capability is destined to become even more important as the Navy reduces crew sizes on future ships, including the Littoral Combat Ship (LCS).

Two other recent developments hold promise for broader deployment of ADEPT and future production orders:

●

First, a new program to modify the ADEPT system for a different Navy radar (the AN/SPS-49). ADEPT is currently used with the AN/SPY-1 radar for Aegis ships and a version for the new radar system could be deployed on several other classes of Navy ships. Finding new ADEPT targets has been a business development priority for some time, and this is the first program to receive funding. We are also pursuing several opportunities for other new target systems.

●	Second, the network-based ADSSS CBM system we are currently developing for LCS has also generated interest in the Aegis community as a way of monitoring multiple shipboard systems. We are working with the Navy Integrated Warfare Systems (IWS) program offices to explore this further.

Additional operational highlights in 2013 included:

●	The development of a new generation of the flagship ADEPT product which is more flexible, easier to manufacture and recently passed the Navy’s tough environmental “shake and bake” tests.

●	Continued work on a new Condition Based Maintenance (CBM) system for the LCS. This was our largest in-house development effort in 2013, and was funded by the Office of Naval Research (ONR) under the highly-competitive Rapid Innovation Fund program (RIF).

●

Completion of the LCS Pilot Program on the USS Freedom (LCS 1). During the ship’s first major overseas cruise, the Mikros ADSSS system sent maintenance data back onshore throughout the deployment. Our Navy sponsor described this program as “completely successful” and we are now working closely with the LCS Program Office on future developments. Soon we plan to install a system on the USS Fort Worth (LCS 3) for further testing. After a pilot program for LCS-1, Mikros is developing the LCS class design on a $2.8M Naval Sea Sytems Command (NAVSEA) contract.

We also accelerated our pursuit of potential non-defense markets. We believe that many of our core capabilities, including remote monitoring, rugged systems, predictive maintenance and communications expertise, could be applied to other industries which work with complex distributed systems. Targeted industries include utilities, communications and transportation systems. As an initial test case, we are currently exploring applications in the railroad industry, including discussions with industry leaders about potential joint ventures.

In closing, we believe that we have weathered the worst of the storm and positioned Mikros well to resume future growth.

We thank all of our shareholders for their continued support. We welcome and invite your inquiries and ideas.

Sincerely,

Tom Meaney

President and CEO

Comments & Business Outlook

Mon, 31 Mar 2014 04:00:00 GMT

Fourth Quarter 2013 Results

The company reported revenue of approximately $880,000 compared to $2.4 million for the same quarter 2012.
The company reported EPS of $0.01 compared to a loss of $0.01 for the same quarter 2012.

Business Outlook

Our strategy for continued growth is three-fold. First, we expect to continue expanding our technology base, backlog and revenue by continuing our active participation in the DoD SBIR program and bidding on projects that fall within our areas of expertise. These areas include electronic systems engineering and integration, radar systems engineering, combat/C4I (Command, Control, Communications, Computers & Intelligence) systems engineering, and communications engineering. We believe that we can utilize the intellectual property developed under our various SBIR awards to develop proprietary products, such as the ADEPT described above, with broad appeal in both the government and commercial marketplace. This state-of-the-art test equipment can be used by many commercial and governmental customers such as the FAA, radio and television stations, cellular phone service providers and airlines. Second, we will continue to pursue SBIR projects with the Department of Homeland Security, the U.S. Navy, and other government agencies. Third, we believe that through our marketing of products such as ADEPT, we will develop key relationships with prime defense system contractors. Our strategy is to develop these relationships into longer-term, key subcontractor roles on future major defense programs awarded to these prime contractors.

Contract Awards

Mon, 24 Feb 2014 05:00:00 GMT

PRINCETON, N.J., Feb. 24, 2014 /PRNewswire/ -- Mikros Systems Corporation, (OTCBB: MKRS), an advanced technology company specializing in the research and development of electronic systems technology for the Department of Defense, announced today the award of multiple new defense contracts to start 2014.

Mikros develops and manufactures specialized test and maintenance equipment for the U.S. Navy, including the ADEPT test workstation and the network-based ADSSS system for Condition Based Maintenance. The new contracts include a production order, extended support service task order, and a development program award to upgrade the systems for new ships and equipment.

The production contract includes the first order for three (3) of our upgraded ADEPT (V)3 units, which recently passed environmental testing to extreme Navy shipboard standards. This new generation system is being assembled and tested at the Mikros facility in Largo, Florida. Additionally, a new task order under a current Mikros IDIQ (Indefinite Delivery Indefinite Quantity) contract will fund ongoing product support services, including calibration, repair and upgrades, for over 100 ADEPT systems already deployed by the Navy on over 50 ships.

ADEPT is currently used to help maintain the Navy's Aegis SPY-1 radar and optimize performance for the Ballistic Missile Defense (BMD) mission. An important new Mikros development contract, awarded by the U.S. Navy in January, will extend the ADEPT system to a second Navy radar system, the SPS-49. If this development is successful, production orders for a new ADEPT product line in future years could follow.

The total value of the new contracts is $1.2M, to be funded over the next two years. Mikros President Tom Meaney said, "We are delighted that this new work has been awarded after the delays caused by sequestration and budget problems last year. We are hiring new staff now and look forward to continuing to grow our relationship with the Navy and our other DOD customers. We are off to a very strong start in 2014 and these new awards not only build our pipeline and backlog, but also position us well to compete for additional work throughout the new year."

The initial production order for three (3) ADEPT systems will be the first production order with the newly developed chassis. It is anticipated that a much larger order will follow later this year to further outfit the Aegis combatants.

Comments & Business Outlook

Thu, 14 Nov 2013 05:00:00 GMT

Third Quarter 2013 Results

The company reported revenue of $904,908 as compared to $1,124,211 during the third quarter of 2012.
The company reported EPS of $0.00 for both third quarter 2013 and 2012.

Commenting on the quarter, Tom Meaney, Mikros President and CEO, said, "A combination of changes in the revenue mix and continued contract delays and funding gaps resulted in a disappointing quarter for us. Now that the negative effects of the sequestration and government shutdown are diminishing, we expect increased task order awards and continued fulfillment of existing ADEPT orders. Throughout this difficult year, we have maintained our core strength in engineering and focused our resources on locating and pursuing both prime and subcontracting opportunities. On the broader front, we continue to pursue the expansion of the ADEPT product line and introduction of our engineering expertise to international and commercial markets."

Comments & Business Outlook

Thu, 15 Aug 2013 04:00:00 GMT

PRINCETON, N.J., Aug. 15, 2013 (GLOBE NEWSWIRE) -- Mikros Systems Corporation (OTCBB:MKRS) announced its financial results for the quarter ended June 30, 2013.

Due to extensive delays in contract awards from the U.S. Government, the Company reported a decrease in revenue and profit for the second quarter of 2013 as compared to 2012. However, year-to-date revenue was slightly higher than the first half of 2012. During the first six months of 2013, the Company reported revenue of $1,269,754, compared to $1,238,492 for the corresponding period of 2012. For the second quarter of 2013, the Company reported revenue of $367,558, compared to $479,369 in the second quarter of 2012. The Company reported a loss of $181,185 for the second quarter of 2013 as compared to a loss of $119,745 in second quarter of 2012, and a year-to-date loss of $200,811.

Since the end of the second quarter, Mikros reported a new $2.8 million contract award from the U.S. Navy and is today reporting a $5.5 million order under the Company's existing ADEPT Indefinite Delivery, Indefinite Quantity (IDIQ) contract. Of this amount, $800,000 was immediately funded, additional funding for engineering services is anticipated by end of the third quarter, and the balance of the order is expected to be funded throughout 2014. As a result of these recent and anticipated awards, the Company expects to report record backlog by year-end.

Tom Meaney, Mikros' President and CEO, said, "Government contract delays and funding gaps due to the budget process have affected our ability to deliver consistent revenues and profits on a quarterly basis. However, we expect to see acceleration of both revenues and profits during the third and fourth quarters and into next year. We continue to balance the inconsistent contract awards with the need for maintaining our team and capabilities to successfully compete for, win, and complete future anticipated work. We remain confident that we can meet or exceed our revenue and profit objectives for the year, and anticipate additional ADEPT production orders in late 2013 or early 2014."

Marc Dalby, Mikros' VP Business Development and Operations, added, "We are continuing to expand the ADEPT product line to other customers. The ADEPT system is currently used on three different classes of U.S. Navy ships to streamline maintenance of complex electronic systems and provide support for conditioned-based maintenance technologies. We anticipate additional development and contract awards for other Navy ships in the near future. We also continue to market the ADEPT product and the unique engineering expertise we have gained supporting the U.S. Navy to international and commercial markets with a view to generating incremental revenue."