EXHIBIT 99
[IKONICS CORPORATION LOGO]
4832 Grand Ave. - Duluth, MN 55807
PH: 218-628-2217 - Fax: 218-628-3245 NEWS RELEASE
www.ikonics.com - info@ikonics.com
News Contact: BILL ULLAND For Immediate Release
Chairman, President & CEO August 6, 2003
(218) 628-2217
IKONICS REPORTS 19% INCREASE IN PROFITS
FOR SECOND QUARTER
DULUTH, MN - IKONICS Corporation, a Duluth based imaging technology company,
announced sales and earnings for the second quarter of 2003.
IKONICS reported profits for the second quarter of 2003 of $0.13 per share, a
19% increase over the second quarter of 2002 and well above the $0.02 cents per
share earned in the first quarter of 2003. Sales in the second quarter of 2003
were $3,162,000 - basically even with those of the 2002 period.
Bill Ulland, IKONICS CEO, said that the flat sales are attributable to a
fall-off in some segments of the export market and the discontinuance of an
unprofitable domestic operation. This was offset by increased sales of higher
margin products in North America and Europe.
Ulland anticipates sales to Asia will pick-up in the third quarter. The SARS
epidemic delayed the opening of the company's training center in Singapore by a
month. The first session was held in June, with further sessions in Singapore
and India scheduled for the fall. "Asia remains an important part of our plans
and we regard the second quarter slump to be an anomaly in the sales growth we
have been seeing there," stated Ulland.
During the quarter the company recorded a $75,000 charge to earnings for a write
down of its investment in Apprise Technologies Inc. and recognized a tax benefit
of $42,000 related to an adjustment of the company's extraterritorial tax
benefits.
During the quarter, IKONICS completed the first redesign of the RapidMask
technology acquired from DuPont. "This has given us three new products for the
abrasive etching market which are being launched in the third quarter," said
Ulland. "We are ahead of schedule with these products and I am increasingly
optimistic they will grow sales and lead us into new markets."
IKONICS stock is listed on the Nasdaq SmallCap market under the symbol IKNX.
This press release contains forward-looking statements regarding sales,
earnings, and new products that involve risks and uncertainties. The company's
actual results could differ materially as a result of domestic and global
economic conditions, competitive market conditions, acceptance of new products,
the ability to identify and make suitable acquisitions, as well as the factors
described in the company's filings with the SEC.
IKONICS CORPORATION
STATEMENTS OF INCOME
For the Three Months Ending June 30, 2003 and 2002
THREE MONTHS ENDED
6/30/03 6/30/02
Sales $3,161,731 $3,164,255
Costs, expenses, and other income $2,911,455 $2,964,043
---------- ----------
Income before income taxes $ 250,276 $ 200,212
Loss on investment $ 74,666 $ 0
Federal and state income tax expense $ 19,131 $ 68,971
---------- ----------
Net income $ 156,479 $ 131,241
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Earnings per common share - diluted $ 0.13 $ 0.11
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Average shares outstanding - diluted 1,254,299 1,248,127
UNAUDITED INTERIM FINANCIAL STATEMENTS