MINNEAPOLIS, MN – April 30, 2019 – Insignia Systems, Inc. (Nasdaq: ISIG) (“Insignia”) today reported financial results for the first quarter ended March 31, 2019 (“Q1”).
Overview
- Q1 2019 net sales decreased 30.7% to $5.1 million from $7.4 million in Q1 2018, primarily driven by a decrease in POPS revenue partially offset by increased innovation revenue.
- Q1 2019 operating loss was $1.3 million compared to operating income of $0.2 million in Q1 2018.
- Q1 2019 net loss was $1.1 million, or $0.09 per basic and diluted share, compared to net income of $0.2 million, or $0.01 per basic and diluted share in Q1 2018.
Insignia’s President and CEO Kristine Glancy commented, “After completing a record year for our organization, we expected a slower start in 2019, and our first quarter results are aligned with our expectations. Our results however, do not adequately reflect the organization’s efforts to both stabilize our POPS business and accelerate our innovation pipeline. As indicated previously, the changes in our retail and CPG network during 2019, inclusive of the pending exit of a significant retailer in the first half due to competitive contracts, has adversely impacted our results. We expect ongoing competitive pressure to challenge our business results for the remainder of the year, however we are diligently pursuing a variety of efforts around innovation, client acquisition and retailer expansion. The decline in our POPS program was partially offset by strong innovation revenue, which accounted for nearly 30% of overall net sales for the first quarter. In addition, net sales from Custom Print Solutions experienced strong growth of 27% compared to the first quarter of 2018, driven by new client acquisition.”
Ms. Glancy continued, “We are closely managing our overall business cost structure by continuing to invest strategically in growth segments while also optimizing overall costs. Our number one focus is on our current and new clients. We have diversified our solutions based on both client feedback and where brands are looking to invest their dollars. The continued growth of these solutions serves as a platform for further portfolio diversification. We are also focused on new retailer acquisition opportunities that would allow us to grow both our In-Store Signage Solutions and new solutions. Our balance sheet, high-performing team and overall portfolio of solutions remain strong and intact to support the continued need for company-wide transformation in a rapidly changing industry.”
