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.
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.
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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 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, our ability to adequately integrate our new software offerings into our business model, 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, 2015 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.
SOURCE Mikros Systems Corporation