EXHIBIT 99.1
NEWS RELEASE for April 17, 2003 at 5 PM EST
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Contact: Jack Davis (investor relations) 501-376-0044
Len Hall (media) 949-474-4300 len@allencaron.com
Allen & Caron Inc
KYZEN CORPORATION REPORTS FIRST QUARTER RESULTS
Third Consecutive Profitable Quarter;
Solid Year-Over-Year Increases in Net Income
NASHVILLE, TN (April 17, 2003) . . . . Kyzen Corporation (OTCBB: KYZN.OB), a
specialty chemical company and a leading provider of products and processes for
precision cleaning applications in high-technology manufacturing environments,
today announced results for the quarter ended March 31, 2003. This year's first
quarter revenue improved eight percent to $1.54 million with net income of
$46,031, or $0.01 per share, compared to revenue of $1.43 million with net
income of $2,221, or $0.00 per share, for the quarter ended March 31, 2002.
Kyle J. Doyel, Kyzen's President and CEO, said that this year's first
quarter was the Company's third consecutive profitable quarter and its
fourth profitable quarter in the last five. The Company has accomplished
this feat by executing its strategic plan of focusing on new product
introductions and diversification in new niche cleaning opportunities in
semiconductors, optics and metal finishing while continuing its efforts in
electronic cleaning. The result of this focus has been increased revenue in
most product lines.
"It has taken a lot of hard work," Doyel commented, "to increase our
sales and profits given the current economic environment. We are guardedly
optimistic about our ability to continue achieving consistent revenue
streams and profitability throughout 2003. As we continue to leverage our
marketing, sales, technical resources and infrastructure, we believe we
should gain even more traction in our business in the coming quarters.
"An example of this traction is the recent introduction of the
Company's new electronic cleaning product, Aquanox A 4512. This product recently
received the 2002 Vision Award for innovative products from a leading industry
magazine at Apex 2003, a major trade show in Anaheim, CA. While we already have
a full line of robust electronic cleaning products, our chemists and engineers
continue to advance our leadership position in this industry through new
products and technology to meet the ever-changing and more demanding needs of
our customers," said Doyel.
At today's Annual Meeting of Shareholders, Mr. Thomas M. Forsythe and
Mr. James R. Gordon were re-elected to serve on the Company's Board of Directors
until the 2006 Annual Meeting. Following the Annual Meeting, the Board of
Directors approved an expansion of the Company's stock repurchase program to
include the repurchase of the Company's common stock through privately
negotiated transactions in addition to open market purchases made at prevailing
market prices.
MORE-MORE-MORE-MORE
KYZEN REPORTS FIRST QUARTER
Page 2-2-2
The Company's balance sheet at March 31, 2003 showed a current ratio of
4.1:1, total assets of $2.28 million, working capital of $1.39 million, cash and
cash equivalents of approximately $385,000 and shareholders' equity of $1.83
million.
Kyzen Corporation is a specialty chemical company and a leading
provider of products and processes for precision cleaning applications in
high-technology manufacturing environments.
THE STATEMENTS IN THIS PRESS RELEASE THAT RELATE TO FUTURE PLANS, EVENTS OR
PERFORMANCE ARE FORWARD-LOOKING STATEMENTS THAT INVOLVE RISKS AND UNCERTAINTIES.
MANAGEMENT HAS INCLUDED IN THIS PRESS RELEASE CERTAIN FORWARD-LOOKING STATEMENTS
WITHIN THE MEANING OF SECTION 27A OF THE SECURITIES ACT OF 1933, AS AMENDED, AND
SECTION 21E OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. WHEN USED,
STATEMENTS WHICH ARE NOT HISTORICAL IN NATURE, INCLUDING THE WORDS "ANTICIPATE,"
"ESTIMATE," "SHOULD," "EXPECT," "BELIEVE," "INTEND" AND SIMILAR EXPRESSIONS ARE
INTENDED TO IDENTIFY FORWARD-LOOKING STATEMENTS. SUCH STATEMENTS ARE, BY THEIR
NATURE, SUBJECT TO CERTAIN RISKS AND UNCERTAINTIES. AMONG THE FACTORS THAT COULD
CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY FROM THOSE PROJECTED ARE THE
FOLLOWING: BUSINESS CONDITIONS AND THE GENERAL ECONOMY AS THEY AFFECT INTEREST
RATES AND MANUFACTURING OUTPUT; BUSINESS CONDITIONS AS THEY AFFECT MANUFACTURERS
OF CHEMICAL RAW MATERIALS; TRENDS TOWARD MINIATURIZATION AND THE USE OF NO-LEAD
SOLDERING AND SOLDER BUMPING TECHNIQUES BY ASSEMBLERS OF ELECTRONIC COMPONENTS;
GROWTH WITHIN THE COMPANY'S TARGET MARKETS; THE COMPANY'S ABILITY TO
SUCCESSFULLY IMPLEMENT ITS STRATEGIC PLAN; THE EMERGENCE OF NEW COMPETITORS; THE
ABILITY OF THE COMPANY TO ATTRACT AND RETAIN QUALIFIED EMPLOYEES; THE COMPANY'S
ABILITY TO CONTROL COSTS INCLUDING SELLING, MARKETING, GENERAL AND
ADMINISTRATIVE EXPENSES AND RESEARCH AND DEVELOPMENT EXPENSES; THE AVAILABILITY
OF RAW MATERIALS AND OTHER COMPONENTS UTILIZED; THE FEDERAL, STATE AND LOCAL
REGULATORY ENVIRONMENT; CHANGES IN THE IMPORT AND EXPORT RULES, REGULATIONS AND
TARIFFS AS THEY APPLY TO COUNTRIES WHERE THE COMPANY CONDUCTS ITS BUSINESS;
CHANGES IN THE COMPANY'S LIQUIDITY OR CAPITAL RESOURCES; CHANGES IN ACCOUNTING
POLICIES AND PRACTICES; THE ABILITY OF THE COMPANY TO OBTAIN FINANCING OR EQUITY
CAPITAL WITH FAVORABLE TERMS AND CONDITIONS; THE AVAILABILITY OF NEW EXPANSION
AND ACQUISITION OPPORTUNITIES; CHANGES IN THE FINANCIAL CONDITION, CORPORATE
STRATEGY OR TECHNOLOGY OF THE COMPANY'S PRIMARY CUSTOMERS; AND THE ABILITY OF
THE COMPANY TO DEVELOP NEW COMPETITIVE PRODUCT LINES OR ADD PRODUCT LINES
THROUGH ACQUISITIONS, MARKETING AGREEMENTS OR LICENSING AGREEMENTS. ACTUAL
RESULTS, EVENTS AND PERFORMANCE MAY DIFFER MATERIALLY FROM THOSE PROJECTED.
READERS ARE CAUTIONED NOT TO PLACE UNDUE RELIANCE ON THESE FORWARD-LOOKING
STATEMENTS, WHICH SPEAK ONLY AS OF THE DATE HEREOF. THE COMPANY UNDERTAKES NO
OBLIGATION TO RELEASE PUBLICLY THE RESULTS OF ANY REVISIONS TO THESE
FORWARD-LOOKING STATEMENTS THAT MAY BE MADE TO REFLECT EVENTS OR CIRCUMSTANCES
AFTER THE DATE HEREOF OR TO REFLECT THE OCCURRENCE OF UNANTICIPATED EVENTS.
TABLE FOLLOWS
KYZEN REPORTS FIRST QUARTER
Page 3-3-3
KYZEN CORPORATION
Statements of Operations (Unaudited)
Three Months Ended
March 31,
2003 2002
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Net sales $1,544,809 $1,427,360
Cost of sales 665,422 707,464
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Gross profit 879,387 719,896
Operating costs and expenses:
Selling, marketing, general and administrative expenses 687,807 581,396
Research and development expenses 146,271 137,887
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Total operating expenses 834,078 719,283
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Operating income 45,309 613
Other income 722 1,608
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Net income $ 46,031 $ 2,221
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Net income per share - basic $ 0.01 $ 0.00
Net income per share - diluted 0.01 0.00
Weighted average shares outstanding - basic 4,776,887 4,777,787
Weighted average shares outstanding - diluted 4,776,887 4,777,787
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