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Despite record 2011 sales, Ikonics reports drop in net income

Duluth-based Ikonics Corp. is reporting record sales for 2011. Despite the record sales, however, net income dropped 37 percent. "This is a disappointing year," Bill Ulland, the company's CEO, said in a statement. Sales for the imaging technology...

Duluth-based Ikonics Corp. is reporting record sales for 2011.

Despite the record sales, however, net income dropped 37 percent.

"This is a disappointing year," Bill Ulland, the company's CEO, said in a

statement.

Sales for the imaging technology company hit nearly $17 million in 2011, a 2 percent increase over 2010. Net income dropped to nearly $700,000 or 35 cents per share.

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The disparity was because competitive pressure prevented the company from passing on to customers all the increased costs of raw materials, Ulland said.

The company also had higher costs related to the development and launching of its new businesses, Micro-Machining and Digital Texturing, also known as DTX. Micro-Machining sales were up substantially in 2011 and are starting to generate profits. DTX made its commercial debut in January.

Related Topics: TECHNOLOGY
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