Apr. 24, 2009: IKONICS REPORTS FIRST QUARTER RESULTS – 2009

DULUTH, MN – IKONICS Corporation (NASDAQ:IKNX), a Duluth based imaging technology company, reported 2009 first quarter earnings of $53,000, or $0.03 per share, on sales of $3,563,000. Compared to the first quarter of 2008, sales were down 6%. Earnings also decreased from the $106,000, or $0.05 per share, earned during the same period last year.

Bill Ulland, IKONICS CEO, said, “We continue to be affected by the worldwide recession. Although our new business initiatives continue to show great promise and our domestic screen print segment performed very well during the quarter, export shipments and sales to the domestic awards and recognition market were poor. There is normally some volatility in export sales in the first quarter, but I do not expect sales to the awards and recognition industry to recover until the economy returns to growth.

“Our strategic plan is for our new business initiatives of Photo Machining, Acoustics, Digital Texturing, and Industrial Solutions to add new sales and profits to the company. This is happening, but not yet at a rate to compensate for the recession-related declines in our traditional markets. Our customers for the new businesses are giving us encouragement that we should see a pick up in orders in the second half of 2009, but some of them also are affected by the recession,” Ulland said.

“We are financially healthy and continue to generate a strong cash flow. We remain committed to our strategic plan and support for our traditional markets,” he continued. “I am optimistic that once this economic storm has passed, we will be well positioned for growth.”

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