IKONICS Reports Second Quarter Results

• Press Release
• Source: IKONICS Corporation
• On 1:01 pm EDT, Thursday August 13, 2009

DULUTH, Minn., Aug. 13, 2009 (GLOBE NEWSWIRE) -- IKONICS Corporation (Nasdaq:IKNX - News), a Duluth-based imaging technology company, reported a 13% decline in 2009 second quarter sales to $3,787,000 compared to the same period in 2008. Earnings per share decreased by 59% to $0.07 per share, down from the $0.17 per share earned in the second quarter of 2008. Despite the sales and earnings decreases, the Company generated over $730,000 in cash from operating activities for the first six months of 2009.

Related Quotes

Symbol	Price	Change
IKNX	6.92	0.00

{"s" : "iknx","k" : "c10,l10,p20,t10","o" : "","j" : ""}

Bill Ulland, IKONICS CEO, said, "The recession continues to impact our sales. Although we have recently experienced an increase in revenue from our new business initiatives, it has been insufficient to compensate for declines in some of our traditional markets, particularly European sales and our higher margin awards and recognition segment."

"I anticipate that our sales decline will begin to level off and start to trend upward in the second half of 2009, but gross profit will trail that trend until our new businesses accelerate their growth. In the meantime, we are controlling costs without neglecting our growth plans," added Ulland.

The IKONICS Corporation logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=5654

This press release contains forward-looking statements regarding sales, gross profits, net earnings, and new products and businesses 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, the ability to control costs without impacting growth as well as the factors described in the Company's Form s 10-K, and 10-Q, and other reports on file with the SEC.

                                IKONICS Corporation
                         CONDENSED STATEMENTS OF OPERATIONS 
        For the Three Months and Six Months Ended June 30, 2009 and 2008

                        Three Months Ended	   Six Months Ended
	              06/30/09     06/30/08	06/30/09     06/30/08
                     ----------   ----------   ----------   ----------
 Net sales           $3,786,501   $4,330,059   $7,349,713   $8,110,907
                                                                      
 Cost of goods sold   2,329,999    2,468,468    4,487,897    4,620,261
                     ----------   ----------   ----------   ----------
                                                                      
 Gross profit         1,456,502    1,861,591    2,861,816    3,490,646
                                                                      
 Operating expenses   1,251,832    1,322,705    2,640,696    2,904,640
                     ----------   ----------   ----------   ----------
                                                                      
 Income from                                                          
  operations            204,670      538,886      221,120      586,006
                                                                      
 Gain on sale                                                         
  of investment           9,631           --       29,762           --
                                                                      
 Interest income          2,050       23,697        2,120       67,372
                     ----------   ----------   ----------   ----------
                                                                      
 Income before                                                        
  income taxes          216,351      562,583      253,002      653,378
                                                                      
 Income tax expense      69,603      204,146       53,119      189,303
                     ----------   ----------   ----------   ----------
                                                                      
 Net income          $  146,748   $  358,437   $  199,883   $  464,075
                     ==========   ==========   ==========   ==========
                                                                      
 Earnings per                                                         
  common share-                                                       
  diluted            $     0.07   $     0.17   $     0.10   $     0.22
                     ==========   ==========   ==========   ==========
                                                                      
 Average shares                                                       
  outstanding-                                                        
  diluted             1,973,514    2,080,617    1,981,677    2,068,292



                              Condensed Balance Sheets
                       As of June 30, 2009 and December 31, 2008

                                          06/30/09 	  12/31/08
                                        -----------     -----------
 Assets                                                               
 Current assets                         $ 5,788,143     $ 5,562,130   
 Property, plant and equipment, net       5,429,097       5,602,063   
 Investment in non-marketable                                         
  equity securities                         918,951         918,951   
 Intangible assets                          367,092         403,285   
                                        -----------     -----------   
                                        $12,503,283     $12,486,429   
                                        ===========     ===========   
 Liabilities and Stockholders' Equity                                 
 Current liabilities                    $   805,208     $   909,789   
 Deferred income taxes                      178,000         143,000   
 Long term debt                                  --              --   
 Stockholders' equity                    11,520,075      11,433,640   
                                        -----------     -----------   
                                        $12,503,283     $12,486,429



                         CONDENSED STATEMENTS OF CASH FLOW
                  For the Six Months Ended June 30, 2009 and 2008

                                                6/30/09	      6/30/08
                                              ----------    ----------
 Net cash provided by operating activities    $  733,433    $  716,151
                                                                      
 Net cash provided by (used in) investing                             
  activities                                    (629,304)    2,695,420
                                                                      
 Net cash provided by (used in) financing                             
  activities                                    (123,844)      146,031
                                              ----------    ----------
                                                                      
 Net increase (decrease) in cash and cash                             
  equivalents                                    (19,715)    3,557,602
                                                                      
 Cash and cash equivalents at beginning                               
  of period                                      901,738     1,230,020
                                              ----------    ----------
                                                                      
 Cash and cash equivalents at end of period   $  882,023    $4,787,622
                                              ==========    ==========

IKONICS Corporation
Bill Ulland, Chairman, President & CEO
(218) 628-2217