EX-99.1 3 isig031822_ex99-1.txt PRESS RELEASE EXHIBIT 99.1 [LOGO] INSIGNIA SYSTEMS, INC. Contact: Scott Drill, President and CEO (763)392-6200; (800)874-4648 FOR IMMEDIATE RELEASE --------------------- Insignia Systems, Inc. Reports First Quarter Loss of $(1,117,880) on First Quarter Net Sales of $6,461,503 - Continues to Anticipate Improved Second Quarter Results and Strong Second Half MINNEAPOLIS - APRIL 17, 2003 - Insignia Systems, Inc. (Nasdaq: ISIG) today reported net sales of $6,461,503 for the first quarter ended March 31, 2003, an increase of 7%, compared to net sales of $6,015,117 for the first quarter of 2002. The net loss for the first quarter of 2003 was $(1,117,880) or $(.09) per share, compared to net income of $319,905, or $.03 per share, for the first quarter of 2002. Insignia Point-of-Purchase Services (POPS) revenues for the first quarter were $5,391,037, an increase of 12%, compared to first quarter 2002 POPS revenues of $4,811,159. CEO Scott Drill commented, "Since our pre-announcement on April 1, we have continued to see a higher level of sales activity with our consumer packaged goods customers. We currently have approximately $6.0 million of POPSign business booked for the second quarter with six weeks of selling time remaining." Mr. Drill went on to state, "Second quarter results should be significantly better than in the first quarter given the combination of higher revenue with lower expenses. Further, we believe the second half of the year will be strong with VALUStix beginning to contribute revenue, which it did not in the first quarter. Fiscal year 2004 should be another year of significant growth as we build our retail distribution system and achieve deeper penetration of the brands' promotional budgets with our expanded product offering." - more - Insignia Systems, Inc. * 6470 Sycamore Court North * Maple Grove, MN 55369 * Phone 763-392-6200 * Fax 763-392-6222 http://www.insigniasystems.com * email: info@insigniasystems.com April 17, 2003 INSIGNIA SYSTEMS, INC. REPORTS FIRST QUARTER LOSS Page 2 Insignia Systems, Inc. is an innovative developer and marketer of in-store promotional products, programs and services to retailers and consumer goods manufacturers. Through its Point-Of-Purchase Services (POPS) business, Insignia is contracted with more than 12,000 chain retail supermarkets and drug stores, including A&P, Kroger, Pathmark, Safeway and Rite Aid. Through the nationwide POPS network, over 160 major consumer goods manufacturers, including General Mills, Hormel Foods, Kellogg Company, Nestle, Pfizer, Procter & Gamble, S.C. Johnson & Son and Tyson Foods, have taken their brand messages to the point-of-purchase. For additional information, contact 888-474-7677, or visit the Insignia POPS Web site at www.insigniapops.com. -------------------- This press release, as it relates to expectations regarding future sales and profitability, contains forward-looking statements regarding future performance of the Company. The Company's actual results could differ materially from these forward-looking statements as a result of a number of factors, including risks and uncertainties as described in the Company's SEC Form 10-K/A for the year ended December 31, 2002. The Company wishes to caution readers not to place undue reliance upon any such forward-looking statements, which speak only as of the date made. - more - Insignia Systems, Inc. * 6470 Sycamore Court North * Maple Grove, MN 55369 * Phone 763-392-6200 * Fax 763-392-6222 http://www.insigniasystems.com * email: info@insigniasystems.com April 17, 2003 INSIGNIA SYSTEMS, INC. REPORTS FIRST QUARTER LOSS Page 3 INSIGNIA SYSTEMS, INC. RESULTS OF OPERATIONS (UNAUDITED) Three Months Ended March 31, 2003 2002 ----------------------------- Net Sales $ 6,461,503 $ 6,015,117 Cost of Goods Sold 3,887,751 3,074,173 Gross Profit 2,573,752 2,940,944 Operating Expenses: Selling 2,312,193 1,688,564 Marketing 386,065 310,491 G&A 1,009,948 614,839 Operating Income (Loss) (1,134,454) 327,050 Other Income (Expense) 16,574 (7,145) Net Income (Loss) $ (1,117,880) $ 319,905 Net Income (Loss) Per Share Basic $ (.09) $ .03 Diluted $ (.09) $ .03 Shares used in calculation of net income (loss) per share: Basic 12,012,808 10,700,131 Diluted 12,012,808 11,773,798 SELECTED BALANCE SHEET DATA March 31, December 31, 2003 2002 ------------------------------ Cash and cash equivalents $ 5,141,343 $ 6,471,581 Working capital $ 6,140,383 $ 7,324,154 Total assets $ 14,971,893 $ 16,722,330 Total liabilities $ 4,269,644 $ 5,464,252 Shareholders' equity $ 10,702,249 $ 11,258,078 #### Insignia Systems, Inc. * 6470 Sycamore Court North * Maple Grove, MN 55369 * Phone 763-392-6200 * Fax 763-392-6222 http://www.insigniasystems.com * email: info@insigniasystems.com