| EXHIBIT 99.1 |
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FOR IMMEDIATE RELEASE Contact: Scott Drill, President and CEO (763) 392-6200; (800) 874-4648 | 
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Insignia Systems, Inc. Reports Record Third Quarter POPS Revenue;
An Increase of 39.9%; Fourth Quarter Revenue Outlook Strong;
MINNEAPOLIS – October 29, 2008 – Insignia Systems, Inc. (Nasdaq: ISIG) today reported net sales of $8,597,000 for the third quarter ended September 30, 2008, an increase of 33.1%, compared to net sales of $6,461,000 for the third quarter of 2007. The net loss for the third quarter of 2008 was $(254,000) or $(0.02) per share (basic and fully diluted), compared to a net loss of $(907,000), or $(0.06) per share (basic and fully diluted), for the third quarter of 2007. Insignia Point-of-Purchase Services® (POPS) revenue for the third quarter of 2008 was $7,999,000, an increase of 39.9%, compared to third quarter 2007 POPS revenue of $5,718,000.
For the nine months ended September 30, 2008, net sales were $22,738,000, an increase of 16.6%, compared to net sales of $19,495,000 for the first nine months of 2007. The net loss for the first nine months of 2008 was $(84,000) or $(0.01) per share (basic and fully diluted), compared to a net income of $718,000, or $0.05 per basic share ($0.04 per fully diluted share) for the same period of 2007. Insignia POPS revenue for the first nine months of 2008 was $20,830,000, an increase of 20.5%, compared to POPS revenue of $17,281,000 for the first nine months of 2007.
CEO Scott Drill commented, “Our record third quarter POPS revenue was offset by record legal expense for the third quarter of $1,526,000. We continue to be optimistic about our case in the News America litigation which now is scheduled to be trial ready May 1, 2009. Our POPS business is strong in that we have POPS customer orders of approximately $7,000,000 for the fourth quarter of 2008 with roughly four weeks of selling time left. Cash at September 30, 2008 was $8,336,000.”
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October 29, 2008 | Insignia Systems, Inc. Reports Third Quarter Results | Page 2 |
Conference Call
The Company will host a conference call today, October 29, at 4:00 p.m. Central Time. To access the live call, dial 877-681-3376. The conference code is 1370024. Please be sure to dial in about 5-10 minutes prior to the scheduled start time. Audio replay will be available approximately three hours after the call for 10 days. To access the replay, dial 888-203-1112 and reference the passcode 1370024.
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 10,200 chain retail supermarkets and drug stores, including A&P, Kroger and Safeway. Through the nationwide POPS network, over 200 major consumer goods manufacturers, including General Mills, Reckitt Benckiser, Kellogg Company, Nestlé, Pfizer and Tyson Foods, have taken their brand messages to the point-of-purchase. For additional information, contact (888) 474-7677, or visit the Insignia website at www.insigniasystems.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, 2007 and other recent filings with the Securities and Exchange Commission. 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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October 29, 2008 | Insignia Systems, Inc. Reports Third Quarter Results | Page 3 |
Insignia Systems, Inc.
STATEMENTS OF OPERATIONS
(Unaudited)
| | Three Months Ended
September 30, | | Nine Months Ended
September 30, | |
| | 2008 | | 2007 | | 2008 | | 2007 | |
| | | | | | | | | | | | | |
Net Sales | | $ | 8,597,000 | | $ | 6,461,000 | | $ | 22,738,000 | | $ | 19,495,000 | |
Cost of Sales | | | 4,098,000 | | | 2,853,000 | | | 10,411,000 | | | 8,369,000 | |
Gross Profit | | | 4,499,000 | | | 3,608,000 | | | 12,327,000 | | | 11,126,000 | |
Operating Expenses: | | | | | | | | | | | | | |
Selling | | | 2,561,000 | | | 1,400,000 | | | 5,878,000 | | | 4,295,000 | |
Marketing | | | 451,000 | | | 357,000 | | | 1,211,000 | | | 1,052,000 | |
Warrant expense (sales & marketing) | | | - | | | 1,521,000 | (1) | | - | | | 1,521,000 | (1) |
General & administrative | | | 1,992,000 | | | 1,245,000 | | | 5,457,000 | | | 3,569,000 | |
| | | | | | | | | | | | | |
Operating Income (Loss) | | | (505,000 | ) | | (915,000 | ) | | (219,000 | ) | | 689,000 | |
Other Income | | | 44,000 | | | 52,000 | | | 135,000 | | | 89,000 | |
| | | | | | | | | | | | | |
Income (Loss) before Taxes | | | (461,000 | ) | | (863,000 | ) | | (84,000 | ) | | 778,000 | |
Income Taxes | | | (207,000 | ) | | 44,000 | | | - | | | 60,000 | |
| | | | | | | | | | | | | |
Net Income (Loss) | | $ | (254,000 | ) | $ | (907,000 | ) | $ | (84,000 | ) | $ | 718,000 | |
| | | | | | | | | | | | | |
Net Income (Loss) Per Share | | | | | | | | | | | | | |
Basic | | $ | (0.02 | ) | $ | (0.06 | ) | $ | (0.01 | ) | $ | 0.05 | |
Diluted | | $ | (0.02 | ) | $ | (0.06 | ) | $ | (0.01 | ) | $ | 0.04 | |
| | | | | | | | | | | | | |
Shares used in calculation of | | | | | | | | | | | | | |
net income (loss) per share: | | | | | | | | | | | | | |
Basic | | | 15,527,000 | | | 15,454,000 | | | 15,569,000 | | | 15,367,000 | |
Diluted | | | 15,527,000 | | | 15,454,000 | | | 15,569,000 | | | 16,178,000 | |
| (1) | Represents a one-time non-cash charge related to a warrant issued to Valassis Communications, Inc. for the development and integration of new retailer relationships. |
SELECTED BALANCE SHEET DATA
(Unaudited)
| | September 30,
2008 | | December 31,
2007 | |
Cash and cash equivalents | | $ | 8,336,000 | | $ | 7,393,000 | |
Working capital | | | 6,916,000 | | | 7,751,000 | |
Total assets | | | 16,922,000 | | | 13,340,000 | |
Total liabilities | | | 7,302,000 | | | 3,663,000 | |
Shareholders’ equity | | | 9,620,000 | | | 9,677,000 | |
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