Nov. 10, 2011: IKONICS REPORTS EARNINGS DIP ON RECORD QUARTERLY SALES

DULUTH, MN – IKONICS Corporation (NASDAQ:IKNX), a Duluth based imaging technology company, reported record third quarter sales in 2011 of $4,361,000, a 5% increase over the third quarter of 2010. For the quarter, earnings were down 25% to $215,000, or $0.11 per share, compared to $0.15 per share for the corresponding 2010 quarter.

Bill Ulland, IKONICS CEO, said, “The recent trend of record sales with trailing earnings continued into the third quarter. Rising petrochemical costs, an adverse product mix, the cost of launching our new businesses, and delays by the suppliers of DTX printers are the primary reasons for the earnings dip. I believe our recent price increases will help restore profit margins, and, now that DTX printers are being manufactured in Germany and the United States, we expect to see substantially increased sales of consumables as the printers enter the market. I anticipate that these actions, coupled with continued robust sales of our Micromachining business unit, will put us back on the track of profit growth in 2012.”

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