EXHIBIT 99
[IKONICS CORPORATION LOGO]
4832 Grand Ave. - Duluth, MN 55807
PH: 218-628-2217 - Fax: 218-628-3245
www.ikonics.com - info@ikonics.com
[NEWS RELEASE]
NEWS CONTACT: Bill Ulland FOR IMMEDIATE RELEASE
Chairman, President & CEO April 20, 2004
(218) 628-2217
IKONICS REPORTS 20% INCREASE IN SALES
DULUTH, MN - IKONICS Corporation, a Duluth based imaging technology company,
announced record sales for the first quarter of 2004. IKONICS reported sales of
$3,383,000, a 20% increase over the first quarter of 2003, and earnings of
$161,000, or $0.12 per share, compared to $0.02 per share for the comparable
quarter of 2003. The company also generated $254,000 in cash flow from
operations for the quarter compared to $49,000 in the first quarter of 2003.
Sales growth was experienced across all product groups and market areas. New
products, increasing market share, a strong Euro, and economic growth in Asia
and North America all contributed to these results. Bill Ulland, IKONICS CEO,
said "This performance is in line with our plan for 2004 and we are optimistic
about our prospects for the year."
During the quarter, the company introduced a line of advanced equipment to
complement its new RapidMask photoresist film. "The marriage of Crystal Blast
equipment and RapidMask is enhancing the sales of both products by increasing
the capabilities of abrasive etching," said Ulland.
The company also reported continued progress towards the commercialization of
IKONMetals, its newly developed suite of composite metals that can be imaged
through abrasive etching.
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 Form 10-KSB, Forms 10-QSB and other reports on file
with the SEC.
IKONICS CORPORATION
STATEMENTS OF OPERATIONS
For the Three Month Periods Ended March 31, 2004 and 2003
THREE MONTHS ENDED
3/31/04 3/31/03
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Sales $ 3,382,798 $ 2,830,649
Costs and expenses, net of interest income 3,163,173 2,784,991
Income before income taxes $ 219,625 $ 45,658
Federal and state income tax expense 58,967 15,980
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Net income $ 160,658 $ 29,678
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Earnings per common share-diluted $ .12 $ .02
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Average shares outstanding-diluted 1,288,369 1,254,045
BALANCE SHEETS
AS OF MARCH 31, 2004 AND DECEMBER 31, 2003
ASSETS 3/31/04 12/31/03
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Current assets $5,971,876 $5,597,674
Property, plant and equipment 1,087,783 1,110,159
Investment 112,834 112,834
Intangible assets 302,350 308,017
Deferred taxes 66,000 66,000
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$7,540,843 $7,194,684
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LIABILITIES AND EQUITY
Current liabilities $ 932,387 $ 826,334
Long term debt 0 0
Stockholders' equity 6,608,456 6,368,350
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$7,540,843 $7,194,684
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STATEMENTS OF CASH FLOW
For the Three Months Ended March 31, 2004 and 2003
3/31/04 3/31/03
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Cash flows from operating activities $ 253,516 $ 49,251
Cash flows provided by (used in) investing activities $ 6,857 $ (58,498)
Cash flows provided by financing activities $ 75,445 $ 0
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Net increase (decrease) in cash and cash equivalents $ 335,818 $ (9,247)
Cash and cash equivalents at beginning of period $ 1,507,794 $ 384,107
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Cash and cash equivalents at end of period $ 1,843,612 $ 374,860
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