EXHIBIT 99
[IKONICS LOGO] [NEWS RELEASE LOGO]
News Contact: BILL ULLAND For Immediate Release
Chairman, President & CEO October 29, 2003
(218) 628-2217
IKONICS REPORTS 62% INCREASE IN PROFITS
FOR THIRD QUARTER
DULUTH, MN - IKONICS Corporation, a Duluth based imaging technology company,
reported a 62% increase in profits for the third quarter of 2003 to $139,000, or
$0.11 per share. Sales in the quarter were $3,062,000, a 3% increase over the
third quarter of 2002.
Bill Ulland, IKONICS CEO, said that these results were led by a broad based
improvement in margins related to product mix and the discontinuance of some
marginally profitable business earlier in the year.
"During the quarter we introduced our reformulated RapidMask(TM) photo resist
films to customers in North America and Asia. The reaction has exceeded my
expectations," said Ulland. "The new RapidMask makes abrasive etching an easier
process and gives our customers the ability to take etched products to a new
level of quality. We are actively investigating the applications of this new
technology to the architectural, gift/collectables, and signage markets."
The company's financial health continues to be excellent. Year to date, IKONICS
has generated a positive net cash flow of $866,000 and now holds cash and cash
equivalents of $1,250,000. "Although cash flow is affected by investments and
the timing of payments, we believe these results reflect the strength of our
business," said Ulland.
IKONICS stock is listed on the Nasdaq SmallCap market under the symbol IKNX.
-30-
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 OPERATIONS
For the Three Months Ending September 30, 2003 and 2002
THREE MONTHS ENDED
9/30/03 9/30/02
Sales $ 3,061,503 $ 2,970,798
Costs, expenses, and other income $ 2,871,804 $ 2,844,372
------------ -----------
Income before income taxes $ 189,699 $ 126,426
Federal and state income tax expense $ 50,858 $ 40,614
------------ -----------
Net income $ 138,841 $ 85,812
============ ===========
Earnings per common share - diluted $ 0.11 $ 0.07
============ ===========
Average shares outstanding - diluted 1,266,964 1,248,963
STATEMENTS OF CASH FLOW
For the Nine Months Ending September 30, 2003 and 2002
9/30/03 9/30/02
Cash flows from operating activities $ 1,061,979 $ 122,517
Cash flows used in investing activities $ (195,779) $ (156,990)
Cash flows used in financing activities $ $ (72,492)
------------ -----------
Net (decrease) increase in cash and cash equivalents $ 866,200 $ (106,965)
Cash and cash equivalents at beginning of period $ 384,107 $ 543,679
------------ -----------
Cash and cash equivalents at end of period $ 1,250,307 $ 436,714
============ ===========
UNAUDITED INTERIM FINANCIAL STATEMENTS