2005 Annual Report
DULUTH, MN – IKONICS Corporation, a Duluth based imaging technology company, announced today record sales and earnings for 2005. Sales were $13,971,000, a 2% increase over 2004. Earnings increased 20% to $908,000, or $0.46 per diluted share.
Said Bill Ulland, IKONICS CEO, “I am pleased to report that we recovered from a weak first quarter to post record sales and earnings for 2005. Earnings improved due to increased sales and reduced expenses. Sales failed to meet expectations, in part because of delays in bringing our IKONMetal™ product to market. This unique, etchable metal matrix composite has now been reengineered to increase performance and reduce cost.”
“The new metal was introduced successfully at a recent trade show for FastSign® franchisees and resulted in IKONSign Etch being given vendor status to the 466 worldwide FastSign franchises,” said Ulland.
“Also in 2005, we entered into a joint development project with inkjet technology company iTi to create a unique inkjet system. We have filed a patent application on the technology,” Ulland said. “We believe this project has very significant sales and profit potential; but success is far from assured and any revenue is unlikely before 2007. We continue to investigate new markets for our imaging technologies and anticipate sales from these efforts in 2006.”