EXHIBIT 99.1
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NEWS RELEASE
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[LOGO] MOCON(R)
FOR MORE INFORMATION CONTACT
FOR IMMEDIATE RELEASE DANE ANDERSON, CFO/VP
OCTOBER 21, 2003 763-493-6370
www.mocon.com
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MOCON ANNOUNCES THIRD QUARTER RESULTS
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MINNEAPOLIS, MN, OCTOBER 21, 2003 - MOCON, INC. (Nasdaq:MOCO) today reported
revenue and earnings for the quarter ending September 30, 2003.
Sales for the third quarter of 2003 were $4,778,000, a decrease of 2% compared
to $4,853,000 for the third quarter of 2002. Net income was $534,000, a decrease
of 1% compared to $537,000 in the third quarter 2002, and net income per share
was even at 10 cents (diluted) for both the third quarters of 2003 and 2002.
Nine-month sales increased 2% to $14,939,000 compared to $14,637,000 for the
first nine months of 2002. Net income for the first nine months of 2003 was
$1,750,000, up 1% compared to $1,740,000 for the first nine months of 2002, and
net income per share was 32 cents (diluted), a 3% increase over the 31 cents
(diluted) earned during the same period in 2002.
"Our results for the first nine months of 2003 were up slightly over 2002,"
commented Robert L. Demorest, MOCON President and CEO, "despite what appears to
be continuing slowness in capital equipment spending by many of our customers.
The overall increase was due primarily to increases in sales of our permeation
and weighing products, offset by decreases in sales of our sample preparation
and gas analyzer products. With approximately $6,398,000 in total cash, current
and non-current marketable securities, and no long-term debt, we are actively
looking for opportunities for profitable growth, and feel that we are
well-positioned to take advantage of such opportunities should they arise.
The quarter ended September 30, 2003 marks our 88th consecutive quarter of
profitability and over 15 years of consecutive quarterly dividend payments. We
as a Company are proud of both of these achievements, which reflect our ongoing
commitment to providing shareholder value."
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 that we are well-positioned to take advantage of
opportunities should they arise, 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)
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QUARTER ENDED SEPTEMBER 30, NINE MONTHS ENDED SEPTEMBER 30,
2003 2002 2003 2002
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SALES
PRODUCTS $ 4,318 $ 4,364 $13,548 $13,205
CONSULTING SERVICES 460 489 1,391 1,432
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TOTAL SALES 4,778 4,853 14,939 14,637
COST OF SALES
PRODUCTS 1,952 2,121 6,016 6,096
CONSULTING SERVICES 217 215 666 769
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TOTAL COST OF SALES 2,169 2,336 6,682 6,865
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GROSS PROFIT 2,609 2,517 8,257 7,772
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RESEARCH AND DEVELOPMENT EXPENSE 315 306 1,006 911
SELLING AND ADMINISTRATIVE EXPENSE 1,499 1,446 4,651 4,422
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OPERATING INCOME 795 765 2,600 2,439
INVESTMENT INCOME 27 43 92 158
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INCOME BEFORE INCOME TAXES 822 808 2,692 2,597
INCOME TAXES 288 271 942 857
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NET INCOME $ 534 $ 537 $ 1,750 $ 1,740
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NET INCOME PER COMMON SHARE:
BASIC $ 0.10 $ 0.10 $ 0.32 $ 0.32
DILUTED $ 0.10 $ 0.10 $ 0.32 $ 0.31
WEIGHTED AVERAGE SHARES:
BASIC 5,391 5,498 5,414 5,491
DILUTED 5,501 5,594 5,498 5,634
BALANCE SHEET DATA: (UNAUDITED)
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SEPTEMBER 30, 2003 DECEMBER 31, 2002
ASSETS:
CASH AND MARKETABLE SECURITIES $ 5,367 $ 5,298
ACCOUNTS RECEIVABLE, NET 3,877 4,003
INVENTORIES 3,704 3,755
OTHER CURRENT ASSETS 683 589
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TOTAL CURRENT ASSETS 13,631 13,645
MARKETABLE SECURITIES, NONCURRENT 1,031 861
FIXED ASSETS, NET 1,925 2,088
OTHER ASSETS, NET 3,037 3,227
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TOTAL ASSETS $ 19,624 $ 19,821
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LIABILITIES AND STOCKHOLDERS' EQUITY:
TOTAL CURRENT LIABILITIES 2,785 3,115
DEFERRED INCOME TAXES 310 326
STOCKHOLDERS' EQUITY 16,529 16,380
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TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 19,624 $ 19,821
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