EXHIBIT 99.1
NEWS RELEASE for November 14, 2003 at 7:30 AM EST
CONTACT: JACK DAVIS (INVESTOR RELATIONS) 501-376-0044
Len Hall (media) 949-474-4300 len@allencaron.com
Allen & Caron Inc
KYZEN CORPORATION REPORTS THIRD QUARTER, NINE MONTHS RESULTS
Fifth Consecutive Profitable Quarter
NASHVILLE, TN (November 14, 2003) . . . . Kyzen Corporation (OTCBB: KYZN.OB), a
specialty chemical company that is a leading provider of products and processes
for precision cleaning applications in high-technology manufacturing
environments, today announced results for the third quarter and nine months
ended September 30, 2003. This year's third quarter revenues decreased nine
percent to $1.50 million with net income of $30,271, or $0.01 per share,
compared to revenues of $1.65 million and net income of $76,846, or $0.02 per
share, for the quarter ended September 30, 2002. For the nine months ended
September 30, 2003, revenues increased three percent to $4.58 million with net
income of $95,854 compared to revenues of $4.43 million and a net loss of
$16,768 for the nine months ended September 30, 2002.
Kyle J. Doyel, Kyzen's President and CEO, said, "This fifth consecutive
profitable quarter continues the turnaround for Kyzen. Though revenues for the
quarter were down, we are seeing solid gains from new products. Our Technical
Roads strategy continues to focus our efforts on profitable products and
attractive markets opportunities. We are delighted with the efforts that are
being made by all company personnel as we execute this strategy."
Doyel continued, "We are disappointed that our sales for the quarter
were not as strong as they were a year ago. The domestic markets for our
products have been sluggish, a situation we hope will improve as the US economy
continues to accelerate in the coming months.
"We are continuing to work hard to maintain balanced growth and are
optimistic that our products and sales efforts will produce new growth
opportunities while maintaining and strengthening our current base," said Doyel.
KYZEN REPORTS THIRD QUARTER, NINE MONTHS RESULTS
Page 2-2-2
The Company's balance sheet at September 30, 2003 showed a current
ratio of 3.6:1, total assets of $2.42 million, working capital of $1.42 million,
cash and cash equivalents of over $300,000 and shareholders' equity of $1.86
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;
THE RATE OF GROWTH WITHIN THE COMPANY'S TECHNICAL ROAD MARKETS; THE COMPANY'S
ABILITY TO SUCCESSFULLY IMPLEMENT ITS TECHNICAL ROADS 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; THE
ACCURACY OF THE COMPANY'S SALES ESTIMATES AS THEY RELATE TO THE IMPAIRMENT OF
PATENTS; 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; THE COMPANY'S ABILITY TO ATTRACT NEW CUSTOMERS; THE
ABILITY OF THE COMPANY TO DEVELOP NEW COMPETITIVE PRODUCT LINES OR ADD PRODUCT
LINES THROUGH ACQUISITIONS, MARKETING AGREEMENTS OR LICENSING AGREEMENTS; AND
ACCEPTANCE OF THE COMPANY'S NEW PRODUCTS BY THE COMPANY'S EXISTING AND POTENTIAL
CUSTOMERS. 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 THIRD QUARTER, NINE MONTH RESULTS
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KYZEN CORPORATION
Statements of Operations (Unaudited)
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
2003 2002 2003 2002
----------- ----------- ----------- ------------
Net sales $ 1,503,473 $ 1,649,311 $ 4,577,526 $ 4,433,244
Cost of sales 680,565 796,098 2,025,282 2,162,079
----------- ----------- ----------- -----------
Gross profit 822,908 853,213 2,552,244 2,271,165
Operating costs and expenses:
Selling, marketing, general and
administrative expenses 654,874 647,383 2,042,789 1,883,389
Research and development expenses 138,453 130,456 415,694 409,063
----------- ----------- ----------- -----------
Total operating expenses 793,327 777,839 2,458,483 2,292,452
----------- ----------- ----------- -----------
Operating income (loss) 29,581 75,374 93,761 (21,287)
Other income 690 1,472 2,093 4,519
----------- ----------- ----------- -----------
Net income (loss) $ 30,271 $ 76,846 $ 95,854 $ (16,768)
=========== =========== =========== ===========
Net income (loss) per share - basic $ 0.01 $ 0.02 $ 0.02 $ 0.00
=========== =========== =========== ===========
Net income (loss) per share - diluted $ 0.01 $ 0.02 $ 0.02 $ 0.00
=========== =========== =========== ===========
Weighted average shares outstanding
- basic 4,690,119 4,777,787 4,732,073 4,777,787
Weighted average shares outstanding
- diluted 4,736,287 4,777,787 4,761,909 4,777,787