MIKROS SYSTEMS CORP (OTC:MKRS)

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."

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.

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.

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."

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.”

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."

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."

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

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."

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."

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.”

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.”

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.

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.

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.

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.

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.

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."

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:

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.

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."

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."

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.

$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."

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." 

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."

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."

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."

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."

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.

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:

Additional operational highlights in 2013 included:

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

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.

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.

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."