Imaging-tech company Ikonics sees record sales, earnings dip

Nov. 15, 2011—Ikonics Corp. reported record third-quarter 2011 sales of $4.3 million, which represents a 5 percent increase over the same period in 2010. The Duluth, Minn., manufacturer of photo-imaging products, inkjet-printing systems and photoabrasive-machining systems* added that earnings for the quarter were down 25 percent, to $0.11 per share, compared to $0.15 per share in Q3 2010.

 “The recent trend of record sales with trailing earnings continued into the third quarter,” said Ikonics CEO Bill Ulland. “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.”

* Click here to read MICROmanufacturing’s report on Ikonics’ photoabrasive-machining system.