EX-99.1 2 ex99-1.htm EXHIBIT 99.1 ex99-1.htm
Exhibit 99.1
 
 
 
Mikros Systems Announces Fourth Quarter & Full Year Results
 
Record Revenue in 2011; Company Positioned for Continued Growth
 
PRINCETON, N.J., March 30, 2012 (GLOBE NEWSWIRE) -- Mikros Systems Corporation (OTCBB:MKRS.OB - News) today announced results for the fourth quarter and twelve months ended December 31, 2011.
 
Highlights
 
 
·
Achieved record revenue of $5.3 million in 2011, up 11% from $4.8 million in 2010
 
 
·
Increased gross profit to $2.1 million from $2.0 million in 2010
 
 
·
Ended 2011 with $1.0 million in cash and cash equivalents, an increase of over 50% from 2010
 
 
·
Currently pursuing a number of new contracts expected to accelerate growth in 2012 and beyond
 
"Mikros finished 2011 very well positioned for continued expansion and profitability, with record revenue of $5.3 million and a growing reputation for providing high quality products and services to our customers," said Tom Meaney, Mikros President and CEO. "Our core ADEPT applications are performing well across the U.S. fleet, and we anticipate increasing demand for units under the current contract that runs through 2015 -- as we are not even halfway through the total ceiling value of $26 million. We remain very active in the market and are currently bidding on a number of potential opportunities that leverage our unique technical expertise and can assist the Navy in modernizing its shipboard network infrastructure. Overall, we are confident about where we stand and believe that 2012 will be a year of continued growth, higher profitability, and additional program wins."
 
Fourth Quarter Results
 
Revenue for the fourth quarter of 2011 increased 56% to $2.3 million, as compared with $1.5 million for the fourth quarter of 2010, reflecting higher revenues related to the Company's ADEPT products. Mikros realized gross profit of $0.7 million, or 31.4% of revenue, as compared to $0.6 million, or 44.2% of revenue, in the prior-year period. The Company posted net income of $0.2 million, or $0.005 per diluted share, as compared to net income of $0.1 million, or $0.003 per diluted share, in the fourth quarter of 2010. Mikros ended the year with $1.0 million in cash and cash equivalents, as compared to $0.6 million at the end of 2010.
 
 
 

 
 
Full Year Results
 
Revenue for the full year 2011 increased 11% to $5.3 million, as compared with $4.8 million for 2010, reflecting higher revenues related to the Company's ADEPT products. Mikros reported gross profit of $2.1 million, or 39.9% of revenue, as compared to $2.0 million, or 41.8% of revenue, in the prior year. The Company posted net income of $0.2 million, or $0.005 per diluted share, as compared to net income of $0.3 million, or $0.007 per diluted share, in 2010. The effective income tax rate was 30.2% for 2011 versus 1.4% for 2010; the increase in the tax rate was attributable to an increase in income from operations that are offset by the continued utilization of federal net operating loss carry forwards and the reduction in the valuation allowance for deferred tax assets.
 
Additional information regarding the Company's financial data may be found in the Company's Annual Report on Form 10-K for the twelve months ended December 31, 2011 filed with the U.S. Securities and Exchange Commission. The Form 10-K may be accessed at www.sec.gov or at the Company's website at www.mikrossystems.com.
 
About Mikros
 
Mikros Systems Corporation is an advanced technology company specializing in the research and development of electronic systems technology, primarily for military applications. Classified by the U.S. Department of Defense as a small business, its capabilities include technology management, electronic systems engineering and integration, radar systems engineering, combat/command, control, communications, computers and intelligence systems engineering, and communications engineering. Mikros' primary business is to pursue and obtain contracts from the Department of Homeland Security, U.S. Navy, and other governmental authorities. For more information on Mikros visit: www.mikrossystems.com
 
 
Important Information about Forward-Looking Statements: All statements in this news release other than statements of historical facts are forward-looking statements which contain our current expectations about our future results. Forward-looking statements involve numerous risks and uncertainties. We have attempted to identify any forward-looking statements by using words such as "anticipates," "believes," "could," "expects," "intends," "may," "should" and other similar expressions. Although we believe that the expectations reflected in all of our forward-looking statements are reasonable, we can give no assurance that such expectations will prove to be correct. Such statements are not guarantees of future performance or events and are subject to known and unknown risks and uncertainties that could cause the Company's actual results, events or financial positions to differ materially from those included within the forward-looking statements. Such factors include, but are not limited to, changes in business conditions, a decline or redirection of the U.S. Defense budget, the failure of Congress to approve a budget or a continuing resolution, the termination of any contracts with the U.S. Government, changes in our sales strategy and product development plans, changes in the marketplace, continued services of our executive management team, our limited marketing experience, competition between us and other companies seeking SBIR grants, competitive pricing pressures, market acceptance of our products under development, delays in the development of products, statements of assumption underlying any of the foregoing, and other factors disclosed in our annual report on Form 10-K for the year ended December 31, 2011 and other filings with the SEC. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date made. Except as required by law, we undertake no obligation to disclose any revision to these forward-looking statements.
 
 
 

 
 
MIKROS SYSTEMS CORPORATION
 
BALANCE SHEETS
 
             
   
DECEMBER 31,
   
DECEMBER 31,
 
   
2011
   
2010
 
Current assets
           
             
Cash and cash equivalents
    963,556       638,106  
Certificate of deposit, securing line of credit
    --       50,000  
Receivables on government contracts
    1,478,103       549,116  
Prepaid expenses and other current assets
    30,846       45,284  
Total current assets
    2,472,505       1,282,506  
                 
                 
Patents and trademarks
    5,383       5,383  
Less: accumulated amortization
    (1,775 )     (1,437 )
      3,608       3,946  
Property and equipment
               
Equipment
    37,070       34,642  
Furniture & fixtures
    9,264       9,264  
      46,334       43,906  
                 
Less: accumulated depreciation
    (35,167 )     (26,936 )
Property and equipment, net
    11,167       16,970  
Deferred tax assets
    21,000       59,000  
                 
Total assets
  $ 2,508,280     $ 1,362,422  

 
 
 

 
 
MIKROS SYSTEMS CORPORATION
 
BALANCE SHEETS
 
(continued)
 
             
             
   
DECEMBER 31,
   
DECEMBER 31,
 
   
2011
   
2010
 
Current liabilities
           
             
Accrued payroll and payroll taxes
  $ 364,148     $ 332,823  
Accounts payable and accrued expenses
    904,217       38,046  
Accrued warranty expense
    86,400       50,000  
                 
Total current liabilities
    1,354,765       420,869  
                 
Long term portion of rent payable
    16,708       2,714  
                 
Total liabilities
    1,371,473       423,583  
                 
Redeemable series C preferred stock par value $.01 per share, authorized 150,000 shares, issued and outstanding 5,000 shares (involuntary liquidation value -- $80,450)
    80,450       80,450  
                 
Shareholders' equity
               
Preferred stock, series B convertible, par value $.01 per share, authorized 1,200,000 shares, issued and outstanding 1,102,433 shares (involuntary liquidation value -- $1,102,433)
    11,024       11,024  
                 
Preferred stock, convertible, par value $.01 per share, authorized 2,000,000 shares, issued and outstanding 255,000 shares (involuntary liquidation value -- $255,000)
    2,550       2,550  
                 
Preferred stock, series D, par value $.01 per share, 690,000 shares authorized, issued and outstanding (involuntary liquidation value -- $1,518,000)
    6,900       6,900  
                 
                 
Common stock, par value $.01 per share, authorized 60,000,000 shares, issued and outstanding 32,016,753 shares
    320,168       317,668  
                 
Capital in excess of par value
    11,575,436       11,549,587  
                 
Accumulated deficit
    (10,859,721 )     (11,029,340 )
                 
Total shareholders' equity
    1,056,357       858,389  
                 
Total liabilities and shareholders' equity
  $ 2,508,280     $ 1,362,422  
 
 
 

 
 
MIKROS SYSTEMS CORPORATION
 
STATEMENTS OF INCOME
 
             
   
Years Ended December 31,
 
   
2011
   
2010
 
             
Contract Revenues
  $ 5,347,564     $ 4,802,393  
                 
Cost of sales
    3,213,476       2,796,764  
                 
Gross margin
    2,134,088       2,005,629  
                 
Expenses:
               
Engineering
    757,307       725,706  
General and administrative
    1,134,667       1,025,928  
                 
Total expenses
    1,891,974       1,751,634  
                 
Income from operations
    242,114       253,995  
                 
Other income:
               
Interest
    830       1,316  
                 
Net income before income taxes
    242,944       255,311  
                 
Income tax expense
    73,325       3,633  
                 
Net income
  $ 169,619     $ 251,678  
                 
Basic earnings per share
  $ 0.01     $ 0.01  
                 
                 
Weighted basic average number of shares outstanding
    31,847,328       31,766,753  
                 
Diluted earnings per share
  $ 0.00     $ 0.01  
                 
Weighted dilutive average number of shares outstanding
    35,409,627       35,329,052  
 
Contact:
Investor Relations Contact:
Chris Witty, Darrow Associates
646-438-9385
cwitty@darrowir.com