EXHIBIT 99.1
| | 
Contact: Scott Drill, President and CEO
(763) 392-6200; (800) 874-4648 |
FOR IMMEDIATE RELEASE
Insignia Systems, Inc. Reports Second Quarter Loss of $(508,000)
on Second Quarter Net Sales of $5,396,000
MINNEAPOLIS– July 20, 2005– Insignia Systems, Inc. (Nasdaq: ISIG) today reported net sales of $5,396,000 for the second quarter ended June 30, 2005, an increase of 6.4%, compared to net sales of $5,072,000 for the second quarter of 2004. The net loss for the second quarter of 2005 was $(508,000) or $(0.03) per share, compared to $(2,144,000), or $(0.17) per share, for the second quarter of 2004. Insignia Point-of-Purchase Services®(POPS) revenues for the second quarter were $4,641,000, an increase of 14.5%, compared to second quarter 2004 POPS revenues of $4,054,000.
For the six months ended June 30, 2005, net sales were $10,368,000, an increase of 6.0%, compared to net sales of $9,778,000 for the first half of 2004. The net loss for the first half of 2005 was $(1,565,000) or $(0.10) per share, compared to $(3,601,000), or $(0.29) per share for the same period of 2004. Insignia POPS revenues for the first six months of 2005 were $8,778,000, an increase of 13.8%, compared to the first six months of 2004 POPS revenues of $7,713,000.
CEO Scott Drill commented, “We continue to be encouraged that for the third quarter in a row we have achieved a favorable year-to-year quarterly comparison. We are optimistic this trend will continue in that we have POPS customer orders for approximately $4,380,000 for the current quarter with six weeks of selling time left. POPS revenue in the third quarter of 2004 was $4,524,000.”
Drill went on to state, “Our cash position at quarter end was $2,770,000, a decrease of $287,000 versus $3,057,000 at the end of the first quarter. We expect cash to be at slightly over $2,000,000 at the end of the third quarter. Legal expense in the second quarter was $270,000. Discovery continues to be on hold in both New York and Minnesota pending rulings by the judges on key motions in both cases.”
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Insignia Systems, Inc. • 6470 Sycamore Court North, Maple Grove, MN 55369 • Phone 763-392-6200 • Fax 763-392-6222
http://www.insigniasystems.com • email: info@insigniasystems.com
| July 20, 2005 | Insignia Systems, Inc. Reports Second Quarter Loss | Page 2 |
Conference Call
The Company will host a conference call today, July 20, at 4:00 p.m. Central Time. To access the live call, dial 800-930-1344. The conference code is 1986544. Please be sure to call in about 5-10 minutes before the call is scheduled to begin. Audio replay will be available approximately three hours after the call through July 29, 2005. To access the replay, dial 888-203-1112 and reference the passcode 1986544.
Insignia Systems, Inc. is an innovative developer and marketer of in-store advertising products, programs and services to retailers and consumer goods manufacturers. Through its Point-Of-Purchase Services (POPS) business, Insignia is contracted with more than 12,000 chain retail supermarkets and drug stores, including A&P, Kroger, Pathmark, Safeway and Rite Aid. Through the nationwide POPS network, over 190 major consumer goods manufacturers, including General Mills, Hormel Foods, Kellogg Company, Nestlé, Pfizer, S.C. Johnson & Son and Tyson Foods, have taken their brand messages to the point-of-purchase. For additional information, contact 888-474-7677, or visit the Insignia POPS Web site atwww.insigniapops.com.
Except for the historical information contained herein, the matters discussed in this news release are forward-looking statements. The Company’s actual results could differ materially from these forward-looking statements as a result of a number of factors, including risks and uncertainties as described in the Company’s SEC Form 10-K for the year ended December 31, 2004 and SEC Form 10-Q for the quarter ended March 31, 2005. The Company wishes to caution readers not to place undue reliance upon any such forward-looking statements, which speak only as of the date made.
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Insignia Systems, Inc. • 6470 Sycamore Court North, Maple Grove, MN 55369 • Phone 763-392-6200 • Fax 763-392-6222
http://www.insigniasystems.com • email: info@insigniasystems.com
| July 20, 2005 | Insignia Systems, Inc. Reports Second Quarter Loss | Page 3 |
Insignia Systems, Inc.
STATEMENTS OF OPERATIONS
(Unaudited)
| Three Months Ended
June 30,
| | Six Months Ended
June 30,
|
|---|
| 2005
| | 2004
| | 2005
| | 2004
|
|---|
| Net Sales | | | $ | 5,396,000 | | $ | 5,072,000 | | $ | 10,368,000 | | $ | 9,778,000 | |
| Cost of Sales | | | | 3,288,000 | | | 3,190,000 | | | 6,528,000 | | | 6,536,000 | |
| Gross Profit | | | | 2,108,000 | | | 1,882,000 | | | 3,840,000 | | | 3,242,000 | |
| Operating Expenses: | | |
| Selling | | | | 1,438,000 | | | 1,501,000 | | | 2,878,000 | | | 3,013,000 | |
| Marketing | | | | 332,000 | | | 272,000 | | | 665,000 | | | 540,000 | |
| General & administrative | | | | 842,000 | | | 1,262,000 | | | 1,859,000 | | | 2,313,000 | |
| Impairment of goodwill | | | | — | | | 960,000 | | | — | | | 960,000 | |
| |
| Operating Loss | | | | (504,000 | ) | | (2,113,000 | ) | | (1,562,000 | ) | | (3,584,000 | ) |
| Other Income (Expense) | | | | (4,000 | ) | | (31,000 | ) | | (3,000 | ) | | (17,000 | ) |
| |
| Net Loss | | | $ | (508,000 | ) | $ | (2,144,000 | ) | $ | (1,565,000 | ) | $ | (3,601,000 | ) |
| |
| Net Loss Per Share | | |
| Basic and diluted | | | $ | (0.03 | ) | $ | (0.17 | ) | $ | (0.10 | ) | $ | (0.29 | ) |
| |
| Shares used in calculation of | | |
| net loss per share: | | |
| Basic and diluted | | | | 15,002,000 | | | 12,476,000 | | | 15,002,000 | | | 12,474,000 | |
SELECTED BALANCE SHEET DATA
| June 30,
2005
| | December 31,
2004
|
|---|
| Cash and cash equivalents | | | $ | 2,770,000 | | $ | 6,156,000 | |
| Working capital | | | | 3,343,000 | | | 4,813,000 | |
| Total assets | | | | 7,780,000 | | | 9,921,000 | |
| Total liabilities | | | | 3,960,000 | | | 4,588,000 | |
| Shareholders' equity | | | | 3,820,000 | | | 5,333,000 | |
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Insignia Systems, Inc. • 6470 Sycamore Court North, Maple Grove, MN 55369 • Phone 763-392-6200 • Fax 763-392-6222
http://www.insigniasystems.com • email: info@insigniasystems.com
