Press Release 13 November 2009

 

Mikros Systems Corporation Announces Third Quarter Results; Reports Net Profit and Expects New Contract for Procurement, Installation, and Support of ADEPT Systems

Princeton, NJ / PRNewswire-FirstCall / November 13, 2009 – Mikros Systems Corporation (OTCBB: MKRS – News), announced today the results of operation for the fiscal quarter ended September 30, 2009.   The Company reported third quarter revenue of $588,719 and net income of $5,954.  Year to date revenue and net income were $1,732,505 and $15,071, respectively.

The Company anticipates the award of a five-year indefinite-delivery, indefinite-quantity (IDIQ) contract for immediate and future procurement of ADEPT systems, as well as continued research, development, and lifecycle support. “We continue to work through the Government contracting process for ADEPT,” stated Tom Meaney, Mikros President. “The Government’s review of our proposal has taken much longer than expected, but we are steadily proceeding through the process.  As a result of the contracting delays, revenue growth was limited this quarter.  However, cash reserves and cash flow remain at healthy levels and we have not incurred any debt during this period. We anticipate better revenue growth in the fourth quarter of 2009 due to the completion of ADEPT units ordered earlier this year.”

The initial delivery order under the anticipated IDIQ contract is expected to include procurement of between 10 and 35 ADEPT systems with continued funding for development and support.  Procurements for up to 30 additional ADEPT units are expected within the first six-months of award. By the end of calendar year 2010, Mikros could see orders for up to 60 units.  Mikros believes that, if awarded, this contract could generate up to $4-5 million of revenue annually for the Company over the next five years.

Mikros has also submitted proposals to the Government for continued development of the Network Vulnerability to Electronic Attack analysis and autonomous PowerBuoy technologies. These contract awards are anticipated within the next three to six months.  If awarded, these contracts would initially provide up to $2 million of revenue for additional research and development work on these projects. The Company has also recently received multiple subcontracts to support Ocean Power Technologies, Inc., DRS C3 Systems, Inc., and Technology Service Corporation on various projects.

“We believe that we are well positioned for a very positive 2010,” stated Tom Meaney.  “We are finally beginning to see some closure on the Government contracts anticipated all year, and are prepared to finally deliver ADEPTs in significant quantities to the US Navy.  We are also pleased to see such strong interest from our customers in the NVEA and PowerBuoy technologies.  Mikros will continue to pursue other avenues for revenue growth as well, including international sales of ADEPT and strategic partnerships into new business areas.” 

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.mikros.us

Source: Mikros Systems Corporation

CONTACT:  Thomas J. Meaney - (609) 987-1513

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, 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-KSB for the year ended December 31, 2007 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 to reflect events or circumstances after the date hereof.  

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