mpss 3.4 - No Mic cards found or specified on command line

I bet this is most common issue. We have installed the Card and the MPSS software. We are getting this message.

# micctrl --initdefaults
[Warning] No Mic cards found or specified on command line

We are able to detect the module:

# find /lib/modules -name mic.ko
/lib/modules/3.10.0-123.el7.x86_64/extra/mic.ko

OS sees the card:

 lspci | grep coprocessor

04:00.0 Co-processor: Intel Corporation Xeon Phi coprocessor SE10/7120 series (rev 11)

And here are other details:

# lsmod | grep mic
mic                   666125  0

# micinfo

MicInfo Utility Log

Created Wed Oct 29 04:36:53 2014

       System Info

                HOST OS                 : Linux

                OS Version              : 3.10.0-123.el7.x86_64

                Driver Version          : 3.4-1

                MPSS Version            : 3.4

               Host Physical Memory    : 131754 MB

What could be the issue? Please help.