Duluth-based imaging technology company IKONICS Corp. (Nasdaq:IKNX) announced first quarter net sales of $3,073,000 compared with $3,497,000 in 2020, a decline of 12.1 percent. IKONICS realized a net loss of $322,000, or 16 cents per diluted share, a 45.1 percent improvement over the $587,000 net loss, or 30 cents per diluted share, for the same quarter of 2020.

“The overall performance of IKONICS continues to trend upwards, comparing very favorably to the prior year," said CEO Glenn Sandgren. "Our served markets are rapidly reopening, and our major strategic initiatives are progressing well.”

Key points

  • IKONICS quarterly performance is cyclical, and the first quarter is traditionally the most challenging. It is encouraging that 2021 first quarter results have improved due to cost reduction efforts versus the prior year quarter, despite a 12.1 percent sales decrease for the period, the company said in a news release. 

  • Imaging sales are strengthening as awards customers reopen and IKONART® sales continue to outperform, driven by a compelling social media presence.

  • Chromaline sales were driven by strong international demand, and early reopening in North America. Division sales were down compared to the prior year, but division income almost doubled.

  • Multiple large mold makers are evaluating our IIS DualPrint™ mold texturing mask making system, with very positive feedback.

  • Pressure has continued to be put on the AMS Division from the aerospace industry slowdown. However, frequency of new business inquiries has returned to pre-Covid levels and the legacy customer order rate during the first quarter was improved over the second half of last year.

  • On April 1, 2021, IKONICS paid off its $2.7 million real estate loan, leaving the company with only working capital related liabilities. Company liquidity remains strong based on cash on hand in addition to the $2.1 million available line of credit.

“Supply chains are under pressure from weather events and logistical challenges. Currently, no long-term impact is expected“Opportunities abound as the world reopens, and IKONICS is well positioned to make the most of them as they arise. We are excited about IKONICS improving prospects for the remainder of the year,” Sandgren said.