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Rising expenses push Ikonics earnings down

Ikonics Corp., an imaging technology company based in Duluth, announced Tuesday its earnings for the second quarter of 2007 were $331,402 -- 4.6 percent less than the $347,469 in profits it pocketed during the same period last year.

Ikonics Corp., an imaging technology company based in Duluth, announced Tuesday its earnings for the second quarter of 2007 were $331,402 -- 4.6 percent less than the $347,469 in profits it pocketed during the same period last year.

Earnings dipped despite record sales of $4.4 million during the second quarter --7 percent more than the company's sales during the same quarter last year.

Ikonics CEO Bill Ulland explained why the company's profits weren't in keeping with its sales.

"Earnings for the second quarter of 2007 lagged the record sales primarily due to rising raw material prices, costs associated with our new growth initiatives, a new rented warehouse necessitated by the image mate acquisition and expenses related to the bi-annual international screen print trade show," he said.

Nevertheless, Ikonics' earnings for the first six months of 2007 remain ahead of last year's level, with the company reporting profits of $470,499 -- 5.5 percent more than it earned during the first half of 2006.

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Ikonics announced Tuesday that it will resume the repurchase of its stock. The company's board of directors previously authorized the repurchase of up to 150,000 shares of stock, and has so far Ikonics has snapped up 99,993 shares.

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