Insignia Systems, Inc. (Nasdaq: ISIG) today reported net sales of $8,517,000 for the third quarter ended September 30, 2010, an increase of 7.2%, compared to net sales of $7,944,000 for the third quarter of 2009. The net income for the third quarter of 2010 was $932,000 or $0.06 per basic share ($0.05 per diluted share), compared to $986,000, or $0.07 per basic share ($0.06 per diluted share), for the third quarter of 2009. Insignia Point-of-Purchase Services ® (POPS) revenue for the third quarter of 2010 was $7,858,000, an increase of 5.0%, compared to third quarter 2009 POPS revenue of $7,485,000.
For the nine months ended September 30, 2010, net sales were $22,726,000, an increase of 14.2%, compared to net sales of $19,903,000 for the first nine months of 2009. The net income for the first nine months of 2010 was $1,151,000 or $0.07 per basic and diluted share, compared to $2,413,000, or $0.16 per basic share ($0.15 per diluted share) for the first nine months of 2009. In last year’s first quarter, we received a one-time insurance settlement of $1,387,000. Insignia POPS revenue for the first nine months of 2010 was $20,557,000, an increase of 11.7%, compared to POPS revenue of $18,401,000 for the first nine months of 2009.
CEO Scott Drill commented, “We are pleased with both the sequential and year-to-year improvement in POPS third quarter revenue. Subsequent to our second quarter earnings release on July 28, 2010, we were able to write approximately $1,050,000 in additional POPS business for execution in the third quarter. Unfortunately business in the current quarter is somewhat soft. We have approximately $5,700,000 of POPS customer orders for the 4 th quarter with four weeks of selling time left. Cash, cash equivalents and short-term investments at September 30, 2010, were $12,557,000, compared to $11,649,000 at June 30, 2010.”
Drill continued, “On the legal front, we are now scheduled to start our trial with News America Marketing In-Store, Inc. (NAM) on January 3, 2011. We received a revised scheduling order last Friday due to a conflict in the Judge’s schedule. The new date actually might be preferable in that there will now be continuity in the trial without the break that there would have been for the holidays. We continue to be optimistic about our prospects. As mentioned in previous releases, the Summary Judgment ruling on September 30, 2009, was significant in that the Court awarded judgment to Insignia and to me personally on all of NAM’s counterclaims. The Court also denied NAM’s Motion for Summary Judgment on