Mikros Systems Corporation Announces First Quarter Financial Results

PRINCETON, N.J., May 15, 2020 (GLOBE NEWSWIRE) --  Mikros Systems Corporation (OTCQB: MKRS), an advanced technology company specializing in electronic systems technology for advanced maintenance in military, industrial and commercial applications, today announced financial results for the first quarter of 2020.

Mikros generated revenues of $1,081,163 during the three months ended March 31, 2020 compared to $2,020,265 during the three months ended March 31, 2019, a decrease of $939,102, or 46%. This resulted primarily from delays in follow-on funding and the delivery of direct components. Revenues in the first quarter of 2020 and 2019 consisted entirely of engineering support services contracts.  Cost of sales for the three months ended March 31, 2020 was $357,473 compared to $778,542 for the three months ended March 31, 2019, a decrease of $421,069 or 54%.

Mikros reported a net loss of $216,285 in the three months ended March 31, 2020 as compared to net income of $80,805 in three months ended March 31, 2019. The decrease was attributable primarily to the decrease in revenues in the first quarter of 2020.

“Because of the COVID-19 pandemic, we have asked most of our employees to work from  home and we have been quite successful in continuing daily operations to serve our defense customers,” said Mikros CEO Tom Meaney.  “Unfortunately, funding cycles and COVID-19 related delays in the delivery of critical components from certain suppliers have combined to reduce our revenues significantly thus far in 2020.”

“After many years of consistent profitability, we are disappointed to be reporting a net loss in the first quarter,” added Mikros President Chuck Bristow.  “We are monitoring events on a daily basis and believe that there is great potential for a strong recovery during the balance of the year.  We are working with our U.S. Navy customers to adjust schedules and generate additional funding for our ongoing programs.  These efforts have resulted in additional incremental funding for our Condition-Based Maintenance development program which has increased our current backlog to over $4 million.”

Mikros VP of Business Development Lori Ogles added, “We recently received a new Small Business Innovation Research (SBIR) contract to apply the commercial technology we have developed for remote monitoring to Navy facilities. We believe this will  help to jump-start our commercial business sector and lead to broader applications.” Jeffry McClenton, the Lead Engineer on this program, added “This new system will use our Mikros MindR technology, which we developed for commercial building management applications and deployed in two pilot projects.  This is an excellent opportunity for us to demonstrate the benefits of MindR in a real-world system and expand to other applications.”