MINNEAPOLIS, MN – August 6, 2019 – Insignia Systems, Inc. (Nasdaq: ISIG) (“Insignia”) today reported financial results for the second quarter ended June 30, 2019 (“Q2”).
• Q2 2019 net sales decreased 29.1% to $5.8 million from $8.2 million in Q2 2018, primarily driven by a decrease in POPS solution revenue partially offset by increased innovation initiatives revenue.
• Q2 2019 operating loss was $683,000 compared to operating income of $253,000 in Q2 2018.
• Q2 2019 net loss was $488,000, or $0.04 per basic and diluted share, compared to net income of $184,000, or $0.02 per basic and diluted share in Q2 2018.
Insignia’s President and CEO Kristine Glancy commented, “Despite the challenges we have faced in 2019, I’m proud of the teams’ relentless approach on diversifying our portfolio, building client relationships and improving our overall operational effectivness. As a result, our expanded product portfolio continues to drive growth, delivering nearly 40% of sales in the second quarter. We believe these products will continue to drive growth and success for the organization, as we continue our overall focus on improving efficiency and effectiveness while allocating resources to drive continued growth. In addition, our Q2 2019 operating loss improved from our Q1 2019 results driven by the revenue growth on our new products. In July 2019, we filed a complaint against News America Marketing In-Store Services L.L.C. and certain of its affiliates as a result of their exercise of monopoly power through various actions designed to harm our core business. We continue to expect ongoing competivive pressure to challenge our business results for the remainder of the year.”
Ms. Glancy continued, “While we continue to focus on our innovation, we are not taking our eye off our core in-store signage business. We are actively working on deepening our relationships with existing clients, identifying new clients, while also staying focused on new retailer acquisition opportunities. Given the continued transformation and changes in our industry, we believe we are building a portfolio of products, a talented team and a customer-first approach that will be successful long-term. Despite a challenging year and
situation we continue to maintain a strong balance sheet while strategically allocating resources to growth areas.”