Ikona Reports Record Second Quarter Financial Results
Second Quarter Revenue $1.277 Million
Ikona Gear International, Inc. (OTCBB: IKGI), a provider of compact, lightweight, gearing systems solutions, reported record revenue for its second fiscal quarter and six-month period ended February 29, 2008.
For the quarter ended February 29, 2008, the company reported revenue of $1,277,433, an increase of approximately 488 percent, when compared to revenue of $217,023 for the comparable period last year. The net loss was $942,427, or a net loss per share of three cents, which includes a non-cash stock-based compensation expense of $244,829. This loss compares to a net loss of $1,169,013, or a net loss of four cents per share, for last year's comparable quarter. The basic and diluted weighted average shares outstanding for the quarter were 34,057,791, compared to 28,349,292 for the same period a year ago.
For the six-month period ended February 29, 2008, the company reported revenue of $1,980,493, or an increase of $1,652,038, over revenue of $328,400 reported for last year's comparable period. The net loss for the first half of 2008 was $1,646,554, or a net loss of five cents per share. This loss included a non-cash stock-based compensation expense of $538,698 and developmental costs associated with the design and pilot manufacturing of Ikona's first batch of 1000Hp drawworks and hydraulic PTOs. This loss compares to a net loss of $1,875,124, or a net loss of seven cents per share, for the first half of 2008. The basic and diluted weighted average shares outstanding for the six-month period ended February 29, 2008 were 33,710,950, compared to 28,005,701 for the same period a year ago.
Ikona has encountered unforeseeable challenges in the first half of fiscal 2008, due to financial market conditions that have slowed down the building of new rigs. Rig builders are faced with delays in securing financing for their projects and therefore, our product sales cycle is being extended further than usual. With these difficult market conditions, Ikona's management is currently repositioning the company and its market strategy to address the current condition of the oil and gas machinery market.
"Ikona's oil and gas products have a unique value proposition due to their small footprint and power-to-weight ratio," said Laith Nosh, Ikona Gear President and Chief Executive Officer. "Our mud pump drives and drawworks have been thoroughly field tested with very excellent results and unmatched performance characteristics. As demonstrated by our continued revenue growth, Ikona's mud pump drives, hydraulic PTOs, and drawworks have the commercial viability to drive long-term positive results for our shareholders."
2nd Quarter Highlights:
-- The Company completed delivery of multiple 1100 HDC Hydraulic power
take-off (PTO) products to Cummins API SA in January.
-- Ikona secured a $300,000 order for mud pump drives from a Canadian oil
and gas equipment integrator.
-- The Company delivered its final 1000 HP drawworks to a U.S. customer
in February to complete a US $1.7 million order.
Subsequent to 2nd Quarter:
-- Ikona mud pump drive was recently chosen by Wagner Power Systems to be
packaged with the Caterpillar C class engines for the oil and gas industry.
-- Ikona to exhibit its products in May 2008 at the Offshore Oil and Gas
Conference in Houston (www.otcnet.org/), and in Calgary at the Global
Petroleum Show in June 2008 (www.petroleumshow.com/). This will be the
initial launch of Ikona's newest product, the 1000 HP Drawworks.
-- Secured funding of US $500,000 completed in April.
-- Appointed Les Jeziorowski as Manager of Engineering.
-- Appointed Wadah Al Taha to the Board of Directors.
-- Product recognition of Ikona mud pump drives in a published article in
New Technology Magazine's April issue www.ntm.nickles.com.
Ikona's Form 10-Q/SB, which has been filed with the SEC, can be located on the company's website at www.ikona.ca.
About Ikona Gear International, Inc.
Ikona Gear is a knowledge-based company focused on the design and manufacture of innovative and patented solutions for gearing and power transmission applications. The Ikona gear system has features that we believe are better, stronger, more precise and generally superior to standard gearing systems. The Company's unique, patented technology is ideally suited for deep ratio, weight and size constrained applications where often it is the only superior solution. The Ikona gear technology is the only technology that enables internal gear-sets with only one tooth difference, resulting in a much higher meshing of gears, and significantly higher gear ratios -- very important factors, especially in plastic gearing solutions. Ikona trades on the Over the Counter market under the symbol "IKGI" and on the Frankfurt Exchange under the symbol "IG2." For more information on Ikona, please visit www.ikona.ca/.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995:
This news release contains forward-looking information within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements that include the words "believes," "expects," "anticipate" or similar expressions. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the company to differ materially from those expressed or implied by such forward-looking statements. In addition, description of anyone's past success, either financial or strategic, is no guarantee of future success. This news release speaks as of the date first set forth above and the company assumes no responsibility to update the information included herein for events occurring after the date hereof.
CONTACTS:
Media and Investor Relations Contact
Marty Tullio
McCloud Communications, LLC
949.553.9748
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Company Contact
Scott Rose
Ikona Gear International
604.523.5507
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