EXHIBIT 99.1
[LOGO]
INSIGNIA(R) 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 Second Quarter Net Income
of $23,818 on POPS Revenue Increase of 38%
MINNEAPOLIS - JULY 16, 2003 - Insignia Systems, Inc. (Nasdaq: ISIG) today
reported net sales of $7,260,958 for the second quarter ended June 30, 2003, an
increase of 25%, compared to net sales of $5,822,882 for the second quarter of
2002. Net income for the second quarter of 2003 was $23,818 or $.00 per share,
compared to net income of $201,713, or $.02 per share, for the second quarter of
2002. Insignia Point-of-Purchase Services (POPS) revenue for the second quarter
was $6,242,576, an increase of 38%, compared to second quarter 2002 POPS revenue
of $4,536,590.
For the six months ended June 30, 2003, net sales were $13,722,461, an increase
of 16%, compared to net sales of $11,837,999 for the first half of 2002. The net
loss for the first half of 2003 was $(1,094,062) or $(.09) per share, compared
to net income of $521,618, or $.04 per share for the same period of 2002. POPS
revenue for the first six months of 2003 was $11,633,613, an increase of 24%,
compared to the first six months of 2002 POPS revenue of $9,347,749.
CEO Scott Drill commented, "We are pleased with the improved results relative to
our first quarter performance. Brand spending picked up in late March, resulting
in sequential quarterly POPS revenue growth of 16%. The revenue increase, in
conjunction with lower operating expenses, resulted in a modest profit of
$23,818. The current quarter should show an acceleration in the quarterly
year-to-year POPS revenue growth rate. With respect to the fourth quarter, at
this juncture we do not have good visibility as to what POPS revenue will be. We
have four and one-half months of selling time remaining for business which can
be executed in the fourth quarter."
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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 16, 2003 INSIGNIA SYSTEMS, INC. REPORTS SECOND QUARTER NET INCOME Page 2
Drill went on to state, "Our VALUStix business has not developed as quickly as
anticipated. We ran our first program with Winn Dixie in late June and early
July. The revenue for this program of approximately $70,000 will be recognized
in the third quarter. We continue to be optimistic about the prospects for
VALUStix and anticipate ramping this business up the second half of the year.
Finally, we remain optimistic with regard to adding retail distribution in the
near future."
Insignia Systems, Inc. is an innovative developer and marketer of in-store
promotional 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, Shaw's Supermarkets and Rite Aid. Through the
nationwide POPS network, over 180 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.
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.
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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 16, 2003 INSIGNIA SYSTEMS, INC. REPORTS SECOND QUARTER NET INCOME Page 3
INSIGNIA SYSTEMS, INC.
RESULTS OF OPERATIONS
(UNAUDITED)
Three Months Ended Six Months Ended
June 30, June 30,
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2003 2002 2003 2002
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Net Sales $ 7,260,958 $ 5,822,882 $ 13,722,461 $ 11,837,999
Cost of Sales 3,987,184 2,790,588 7,874,935 5,864,761
Gross Profit 3,273,774 3,032,294 5,847,526 5,973,238
Operating Expenses:
Selling 2,157,885 1,662,845 4,470,078 3,351,409
Marketing 354,302 411,645 740,367 722,136
G&A 755,993 662,451 1,765,941 1,277,290
Operating Income (Loss) 5,594 295,353 (1,128,860) 622,403
Other Income (Expense) 18,224 (93,640) 34,798 (100,785)
Net Income (Loss) $ 23,818 $ 201,713 $ (1,094,062) $ 521,618
Net Income (Loss) Per Share
Basic $ .00 $ .02 $ (.09) $ .05
Diluted $ .00 $ .02 $ (.09) $ .04
Shares used in calculation of
net income (loss) per share:
Basic 12,272,876 10,801,128 12,141,950 10,750,692
Diluted 12,605,750 11,744,213 12,141,950 11,670,733
SELECTED BALANCE SHEET DATA
June 30, December 31,
2003 2002
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Cash and cash equivalents $ 4,632,722 $ 6,471,581
Working capital $ 6,492,448 $ 7,324,154
Total assets $ 14,874,242 $ 16,722,330
Total liabilities $ 3,971,352 $ 5,464,252
Shareholders' equity $ 10,902,890 $ 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