A publicly traded Duluth imaging technology company reported a 44% year-over-year earnings loss Friday.
Ikonics recorded second quarter 2020 revenue of $2.57 million compared to $4.6 million in 2019, a decline blamed on COVID-19.
"The second quarter was unprecedented in many ways, and it created a multitude of challenges for Ikonics," CEO Glenn Sandgren said in a news release. "The majority of our customers' operations were also negatively impacted by the COVID-19 pandemic during the quarter, so the results were not a surprise."
The company, with office and manufacturing locations in West Duluth and Morgan Park, respectively, furloughed 40% of its workforce in June, reduced board and officer salaries and suspended the company's contribution to its 401(k) retirement plan.
"We expect to see the full impact of these cost reduction efforts in the third quarter," said Sandgren, who noted an improving business climate along with an extension of the partial workforce furlough until Aug. 31.
"We expect that the negative impacts of the continued cancellation of major events and the likely long-term downturn of the aerospace industry will affect our future revenue," Sandgren said. "However, the cost cutting actions implemented combined with strategic opportunities anticipated to emerge from disrupted supply chains provide a foundation to protect shareholder value."
The company's stock was trading at $3.75 at market close Friday, down from $5.80 at one point in January.