EXHIBIT 99.1
NEWS RELEASE for May 5, 2004 at 7:30 AM EDT
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;
COMMENTS ON ANNUAL MEETING
SEVENTH CONSECUTIVE PROFITABLE QUARTER
NASHVILLE, TN (May 5, 2004) . . . . 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 first quarter ended March 31,
2004.
Revenues rose slightly to $1.60 million for the quarter ended March 31,
2004 as compared to revenues of $1.54 million during the same quarter in 2003.
Net income increased 28% from $46,031, or $0.01 per diluted share, in the first
quarter of 2003 to $59,067, or $0.01 per diluted share, for the first quarter of
2004.
Kyle J. Doyel, Kyzen's President and CEO, said, "Consistently improving
our revenues and controlling our costs have allowed Kyzen to achieve its seventh
consecutive quarter of profitability. We continue our sales and product focus on
the Technical Roads of Electronics, Semiconductors, Optics and Metal Finishing
by developing superior products and consistent delivery. We are also continuing
to develop our relationships with suppliers involved in other areas of the
cleaning industry, as well as relationships with companies using other channels
to the same market."
Doyel continued, "There appears to be more activity in our electronics
marketplace in the last six months. We see it in increased interest with our new
cleaning products, and we are also hearing that capital equipment suppliers are
confirming a similar upward movement in this market for their products."
For the first quarter ended March 31, 2004, gross profit margins were
55.9% versus gross margins of 56.9% for the first quarter in 2003. The Company
attributes the decline in gross margins to recent increases in the cost of
certain raw materials from suppliers due to increased energy costs.
On April 27, 2004, the Company held its Annual Meeting of Shareholders
in Brentwood, Tennessee. Directors Jack Davis and Kyle Doyel were re-elected to
serve as directors until the Company's Annual Meeting of Shareholders in 2007.
MORE-MORE-MORE
KYZEN REPORTS FIRST QUARTER RESULTS
Page 2-2-2
The Company's balance sheet at March 31, 2004 showed a current ratio of
3.1:1, total assets of $2.73 million, working capital of $1.50 million, cash and
cash equivalents of $509,421 and shareholders' equity of $1.96 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.
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
lead-free soldering and solder bumping techniques by assemblers of electronic
components; the rate of growth within the Technical Road markets; the Company's
ability to successfully implement its Technical Roads plan; the emergence of new
competitors; the Company's ability to control costs including selling,
marketing, general and administrative expenses and research and development
expenses; the availability of raw materials at favorable prices from suppliers;
the federal, state and local regulatory environment; changes in the Company's
liquidity or capital resources;; changes in accounting policies and practices;
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 marketing agreements or licensing agreements; the Company's
ability to capitalize on its existing relationships to expand into new markets;
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 FIRST QUARTER RESULTS
Page 3-3-3
KYZEN CORPORATION
Statements of Income (Unaudited)
Three Months Ended
March 31,
2004 2003
----------- -----------
Net sales $ 1,603,868 $ 1,544,809
Cost of sales 707,919 665,422
Gross profit 895,949 879,387
Operating costs and expenses:
Selling, marketing, general and administrative expenses 704,271 687,807
Research and development expenses 132,474 146,271
Total operating expenses 836,745 834,078
Operating income 59,204 45,309
Other (expense) income (137) 722
Net income $ 59,067 $ 46,031
Net income per share - basic $ 0.01 $ 0.01
Net income per share - diluted $ 0.01 $ 0.01
Weighted average shares outstanding - basic 4,690,119 4,776,887
Weighted average shares outstanding - diluted 4,740,450 4,776,887
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