Aug. 1, 2012: IKONICS REPORTS SECOND QUARTER RESULTS

DULUTH, MN – IKONICS Corporation (NASDAQ:IKNX), a Duluth based imaging technology company, reported sales of $4,547,000 in the second quarter of 2012, down slightly from the 2011 second quarter record sales of $4,587,000. For the quarter, earnings fell 21% to $243,000, or $0.12 per share, compared to $0.16 per share for the corresponding 2011 quarter.

IKONICS CEO, Bill Ulland stated, “Sales rebounded this quarter from the first quarter of 2012 to $4,547,000, our second-best quarter ever, and only 1% below our record second quarter in 2011.”

Ulland continued, “The earnings decline, compared to last year, primarily reflects a lucrative, but non-repeating Micro-Machining contract we had in 2011. As our Micro-Machining business grows, it will be less influenced by any single customer, and we believe that much of our new business has the potential to yield long-term, repeat sales.”

Ulland added, “Sales and earnings are up substantially over the first quarter led by our domestic Chromaline business; there is reason to believe this upward trend will continue. We have recently introduced a new generation of DTX transfer films, engineered for high resolution printers. Market acceptance has been strong, and we are receiving orders for these products as well as for our digital prototyping offering.” Ulland concluded, “We are also receiving increasing interest in our Micro-Machining technology. We have extended production hours to meet the demand for electronic and composite parts, as well as for samples and prototypes. Although not all this work is revenue generating, it does represent interest from major aerospace and electronics companies who recognize the value of our unique technology. We are increasing our manufacturing capacity to meet anticipated market demand.”

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