EXHIBIT 99.1
- --------------------------------------------------------------------------------
NEWS RELEASE
- --------------------------------------------------------------------------------
[LOGO] MOCON(R)
FOR MORE INFORMATION CONTACT
FOR IMMEDIATE RELEASE DANE ANDERSON, CFO/VP
JULY 22, 2003 763-493-6370
www.mocon.com
-------------
MOCON ANNOUNCES SECOND QUARTER RESULTS
--------------------------------------
MINNEAPOLIS, MN, JULY 22, 2003 - MOCON, INC. (Nasdaq:MOCO) today reported
revenue and earnings for the quarter ending June 30, 2003.
Sales for the second quarter of 2003 were $5,132,000, an increase of 4% compared
to $4,955,000 for the second quarter of 2002. Net income was $609,000, up 1%
compared to $605,000 in the second quarter of 2002. Net income per share was 11
cents (diluted) for both the second quarters of 2003 and 2002. Six-month sales
also increased 4% to $10,161,000 compared to $9,784,000 for the first six months
of 2002. Net income and net income per share were $1,216,000 and 22 cents
(diluted), respectively, for the first half of 2003, compared to $1,203,000 and
21 cents (diluted) during the same period in 2002.
"Sales and net income were up in both the second quarter and first half of 2003,
due primarily to increased sales of our permeation products," said Robert L.
Demorest, MOCON President and CEO, "offset somewhat by decreases in sales of our
sample preparation and gas analyzer products. We are pleased to be able to
report an overall increase in sales and profitability, despite a challenging
economic environment. In the second quarter we announced a $1,200,000 increase
in our stock repurchase program, bringing the program total to $3,200,000. With
approximately $6,977,000 in total cash, current and non-current marketable
securities, and no long-term debt, we believe that we are well-positioned to
take advantage of opportunities as they arise in the second half of 2003."
MOCON is a leading provider of instrumentation and consulting and laboratory
services to medical, pharmaceutical, food and other industries worldwide. See
www.mocon.com for more information.
- -------------
This press release contains forward-looking statements that are made pursuant to
the safe harbor provisions of the Private Securities Litigation Reform Act of
1995. These statements include, but are not limited to, the above statement
regarding our belief we are well-positioned to take advantage of opportunities
as they arise in the second half of 2003, and can otherwise be identified by
words such as "will," "may," "expect," "believe," "anticipate," "estimate,"
"continue," or other similar expressions. There are important factors that could
cause actual results to differ materially from those anticipated by the
forward-looking statements made in this press release. These factors include,
but are not limited to, uncertainties relating to competition and technological
change, worldwide economic and political stability, setbacks in product
development programs, slower-than-anticipated customer acceptance of new
products, dependence on certain key industries, risk associated with the
Company's acquisition strategy and international operations, and other factors
set forth in the Company's Annual Report on Form 10-K for the year ended
December 31, 2002 and other filings with the Securities and Exchange Commission.
MOCON'S SHARES ARE TRADED ON THE NASDAQ STOCK MARKET UNDER THE SYMBOL MOCO.
MOCON is a registered trademark of MOCON, Inc.
MOCON, INC.
SUMMARY CONSOLIDATED FINANCIAL DATA
(IN THOUSANDS, EXCEPT PER SHARE DATA)
INCOME STATEMENT DATA: (UNAUDITED)
- ----------------------
QUARTER ENDED SIX MONTHS ENDED
JUNE 30, JUNE 30,
2003 2002 2003 2002
------- ------- ------- -------
SALES
PRODUCTS $ 4,638 $ 4,453 $ 9,230 $ 8,841
CONSULTING SERVICES 494 502 931 943
------- ------- ------- -------
TOTAL SALES 5,132 4,955 10,161 9,784
COST OF SALES
PRODUCTS 2,009 2,013 4,064 3,975
CONSULTING SERVICES 233 283 449 554
------- ------- ------- -------
TOTAL COST OF SALES 2,242 2,296 4,513 4,529
------- ------- ------- -------
GROSS PROFIT 2,890 2,659 5,648 5,255
------- ------- ------- -------
RESEARCH AND DEVELOPMENT EXPENSE 345 305 691 605
SELLING AND ADMINISTRATIVE EXPENSE 1,641 1,506 3,152 2,976
------- ------- ------- -------
OPERATING INCOME 904 848 1,805 1,674
INVESTMENT INCOME 33 55 65 115
------- ------- ------- -------
INCOME BEFORE INCOME TAXES 937 903 1,870 1,789
INCOME TAXES 328 298 654 586
------- ------- ------- -------
NET INCOME $ 609 $ 605 $ 1,216 $ 1,203
======= ======= ======= =======
NET INCOME PER COMMON SHARE:
BASIC $ 0.11 $ 0.11 $ 0.22 $ 0.22
DILUTED $ 0.11 $ 0.11 $ 0.22 $ 0.21
WEIGHTED AVERAGE SHARES:
BASIC 5,396 5,495 5,426 5,487
DILUTED 5,463 5,675 5,497 5,654
BALANCE SHEET DATA: (UNAUDITED)
- -------------------
JUNE 30, 2003 DECEMBER 31, 2002
ASSETS:
CASH AND MARKETABLE SECURITIES $ 4,668 $ 5,298
ACCOUNTS RECEIVABLE, NET 3,248 4,003
INVENTORIES 3,649 3,755
OTHER CURRENT ASSETS 464 589
------- -------
TOTAL CURRENT ASSETS 12,029 13,645
MARKETABLE SECURITIES, NONCURRENT 2,309 861
FIXED ASSETS, NET 2,013 2,088
OTHER ASSETS, NET 3,092 3,227
------- -------
TOTAL ASSETS $19,443 $19,821
======= =======
LIABILITIES AND STOCKHOLDERS' EQUITY:
TOTAL CURRENT LIABILITIES 2,818 3,115
DEFERRED INCOME TAXES 315 326
STOCKHOLDERS' EQUITY 16,310 16,380
------- -------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $19,443 $19,821
======= =======