Mikros Systems Announces New Contract Awards in 2014

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Feb 24, 2014, 07:00 ET

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.

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, please 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 or implied by such 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, significant delays or reductions in appropriations for our projects, 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, 2012 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.

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SOURCE Mikros Systems Corporation