EXHIBIT 99.1
[LOGO]
INSIGNIA SYSTEMS, INC.
Contact: Scott Drill, President and CEO
(763)392-6200; (800)874-4648
FOR IMMEDIATE RELEASE
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Insignia Systems, Inc. Reports First Quarter Loss of $(1,117,880) on First
Quarter Net Sales of $6,461,503 - Continues to Anticipate Improved Second
Quarter Results and Strong Second Half
MINNEAPOLIS - APRIL 17, 2003 - Insignia Systems, Inc. (Nasdaq: ISIG) today
reported net sales of $6,461,503 for the first quarter ended March 31, 2003, an
increase of 7%, compared to net sales of $6,015,117 for the first quarter of
2002. The net loss for the first quarter of 2003 was $(1,117,880) or $(.09) per
share, compared to net income of $319,905, or $.03 per share, for the first
quarter of 2002. Insignia Point-of-Purchase Services (POPS) revenues for the
first quarter were $5,391,037, an increase of 12%, compared to first quarter
2002 POPS revenues of $4,811,159.
CEO Scott Drill commented, "Since our pre-announcement on April 1, we have
continued to see a higher level of sales activity with our consumer packaged
goods customers. We currently have approximately $6.0 million of POPSign
business booked for the second quarter with six weeks of selling time
remaining."
Mr. Drill went on to state, "Second quarter results should be significantly
better than in the first quarter given the combination of higher revenue with
lower expenses. Further, we believe the second half of the year will be strong
with VALUStix beginning to contribute revenue, which it did not in the first
quarter. Fiscal year 2004 should be another year of significant growth as we
build our retail distribution system and achieve deeper penetration of the
brands' promotional budgets with our expanded product offering."
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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
April 17, 2003 INSIGNIA SYSTEMS, INC. REPORTS FIRST QUARTER LOSS Page 2
Insignia Systems, Inc. is an innovative developer and marketer of in-store
promotional 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 160 major consumer goods manufacturers, including General
Mills, Hormel Foods, Kellogg Company, Nestle, Pfizer, Procter & Gamble, 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 at www.insigniapops.com.
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This press release, as it relates to expectations regarding future sales and
profitability, contains forward-looking statements regarding future performance
of the Company. 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/A for the year
ended December 31, 2002. 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.
- more -
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
April 17, 2003 INSIGNIA SYSTEMS, INC. REPORTS FIRST QUARTER LOSS Page 3
INSIGNIA SYSTEMS, INC.
RESULTS OF OPERATIONS
(UNAUDITED)
Three Months Ended
March 31,
2003 2002
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Net Sales $ 6,461,503 $ 6,015,117
Cost of Goods Sold 3,887,751 3,074,173
Gross Profit 2,573,752 2,940,944
Operating Expenses:
Selling 2,312,193 1,688,564
Marketing 386,065 310,491
G&A 1,009,948 614,839
Operating Income (Loss) (1,134,454) 327,050
Other Income (Expense) 16,574 (7,145)
Net Income (Loss) $ (1,117,880) $ 319,905
Net Income (Loss) Per Share
Basic $ (.09) $ .03
Diluted $ (.09) $ .03
Shares used in calculation of
net income (loss) per share:
Basic 12,012,808 10,700,131
Diluted 12,012,808 11,773,798
SELECTED BALANCE SHEET DATA
March 31, December 31,
2003 2002
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Cash and cash equivalents $ 5,141,343 $ 6,471,581
Working capital $ 6,140,383 $ 7,324,154
Total assets $ 14,971,893 $ 16,722,330
Total liabilities $ 4,269,644 $ 5,464,252
Shareholders' equity $ 10,702,249 $ 11,258,078
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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