Mikros Systems (OOTC:MKRS) ($0.16) – GeoBargain MKRS is an advanced technology company specializing in the research and development of electronic systems technology primarily for military applications. The company announced

that it is awarded a major new production contract valued at $5,000,000 for its ADEPT® equipment, used by the U.S. Navy to maintain advanced radar systems. According to the release, the Navy plans to purchase 54 ADEPT units over the next year for a total contract value of $5,000,000.  The contract will make the backlog of the company to an all-time high of approximately $8,000,000.

Quotes from management,

“We have been looking forward to this award for some time,” said Mikros President Tom Meaney. “It’s a major corporate milestone and validates all of the hard work we’ve done on ADEPT development.  We are delighted that the Navy has chosen to move forward with ADEPT production.”

The new contract is the first Full Rate Production contract for the third-generation ADEPT system.  A low rate initial production (LRIP) run of three units was recently completed to validate the new design.  The production systems will be assembled at the recently-expanded Mikros Manufacturing and Depot facility in Largo FL. Mark Laureigh, Mikros Director of Operations, who runs the Largo facility, said, “We are ready here in Florida to execute this contract. We are putting assembly and quality control systems in place to ensure on-time delivery of high-quality equipment to the Navy.”

Recall that a major contract win was one of the catalyst we discussed in our our bullish thesis on GeoBargain MKRS titled, “A Sea of Change on the Horizon For Mikros Systems” released on 5/13/2014 when the stock was trading at $0.10.