DULUTH, Minn., Aug. 1, 2012 (GLOBE NEWSWIRE) -- IKONICS Corporation (Nasdaq:IKNX), a Duluth based imaging technology company, reported sales of $4,547,000 in the second quarter of 2012, down slightly from the 2011 second quarter record sales of $4,587,000. For the quarter, earnings fell 21% to $243,000, or $0.12 per share, compared to $0.16 per share for the corresponding 2011 quarter.
IKONICS CEO, Bill Ulland stated, "Sales rebounded this quarter from the first quarter of 2012 to $4,547,000, our second-best quarter ever, and only 1% below our record second quarter in 2011." Ulland continued, "The earnings decline, compared to last year, primarily reflects a lucrative, but non-repeating Micro-Machining contract we had in 2011. As our Micro-Machining business grows, it will be less influenced by any single customer, and we believe that much of our new business has the potential to yield long-term, repeat sales."
Ulland added, "Sales and earnings are up substantially over the first quarter led by our domestic Chromaline business; there is reason to believe this upward trend will continue. We have recently introduced a new generation of DTX transfer films, engineered for high resolution printers. Market acceptance has been strong, and we are receiving orders for these products as well as for our digital prototyping offering."
Ulland concluded, "We are also receiving increasing interest in our Micro-Machining technology. We have extended production hours to meet the demand for electronic and composite parts, as well as for samples and prototypes. Although not all this work is revenue generating, it does represent interest from major aerospace and electronics companies who recognize the value of our unique technology. We are increasing our manufacturing capacity to meet anticipated market demand."
This press release contains forward-looking statements regarding sales, gross profits, net earnings, and new products and businesses that involve risks and uncertainties. The Company's actual results could differ materially as a result of domestic and global economic conditions, competitive market conditions, acceptance of new products, availability of equipment sold by the Company or for use with its products, raw materials costs, the ability to identify and make suitable acquisitions, the ability to control costs without impacting growth, as well as the factors described in the Company's Forms 10-K, and 10-Q, and other reports on file with the SEC.
The IKONICS Corporation logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=5654
| IKONICS Corporation | ||||
| CONDENSED STATEMENTS OF OPERATIONS (unaudited) | ||||
| For the Three Months and Six Months Ended June 30, 2012 and 2011 | ||||
| Three Months Ended | Six Months Ended | |||
| 6/30/12 | 6/30/11 | 6/30/12 | 6/30/11 | |
| Net sales | $4,547,080 | $4,587,432 | $8,556,704 | $8,240,531 |
| Cost of goods sold | 2,743,794 | 2,733,442 | 5,247,858 | 4,919,698 |
| Gross profit | 1,803,286 | 1,853,990 | 3,308,846 | 3,320,833 |
| Operating expenses | 1,438,636 | 1,405,183 | 3,040,547 | 2,848,735 |
| Income from operations | 364,650 | 448,807 | 268,299 | 472,098 |
| Interest income | 3,079 | 4,781 | 6,805 | 9,343 |
| Income before income taxes | 367,729 | 453,588 | 275,104 | 481,441 |
| Income tax expense | 124,646 | 144,042 | 94,427 | 134,553 |
| Net income | $243,083 | $309,546 | $180,677 | $346,888 |
| Earnings per common share-diluted | $0.12 | $0.16 | $0.09 | $0.17 |
| Average shares outstanding-diluted | 1,991,311 | 1,987,662 | 1,990,129 | 1,984,040 |
| Condensed Balance Sheets | ||
| As of June 30, 2012 and December 31, 2011 | ||
| 6/30/12 | 12/31/11 | |
| (unaudited) | ||
| Assets | ||
| Current assets | $8,535,161 | $8,404,194 |
| Property, plant and equipment, net | 5,523,328 | 5,436,902 |
| Intangible assets, net | 296,057 | 326,362 |
| $14,354,546 | $14,167,458 | |
| Liabilities and Stockholders' Equity | ||
| Current liabilities | $824,064 | $838,915 |
| Deferred income taxes | 338,000 | 338,000 |
| Long term debt | -- | -- |
| Stockholders' equity | 13,192,482 | 12,990,543 |
| $14,354,546 | $14,167,458 | |
| CONDENSED STATEMENTS OF CASH FLOWS (unaudited) | ||
| For the Six Months Ended June 30, 2012 and 2011 | ||
| 6/30/12 | 6/30/11 | |
| Net cash used in operating activities | $ (187,898) | $ (83,848) |
| Net cash used in investing activities | (152,675) | (170,311) |
| Net cash provided by financing activities | 11,250 | 66,131 |
| Net decrease in cash | (329,323) | (188,028) |
| Cash at beginning of period | 1,867,165 | 1,291,383 |
| Cash at end of period | $1,537,842 | $1,103,355 |