Insignia Systems, Inc. (Nasdaq: ISIG) today reported a net loss for the second quarter of 2011 of $(675,000) or $(0.04) per basic and diluted share, compared to net income of $654,000 or $0.04 per basic and diluted share, for the second quarter of 2010. Net sales were $5,026,000 for the second quarter ended June 30, 2011, a decrease of 39.6%, compared to net sales of $8,326,000 for the second quarter of 2010. Insignia Point-of-Purchase Services ® (POPS) revenue for the second quarter of 2011 was $4,446,000, a decrease of 41.2% compared to second quarter 2010 POPS revenue of $7,562,000.
For the six months ended June 30, 2011, net sales were $9,973,000, a decrease of 29.8%, compared to net sales of $14,209,000 for the six months ended June 30, 2010. Net income for the first half of 2011 was $53,198,000, or $3.37 per basic share ($3.26 per diluted share), compared to $219,000, or $0.01 per basic and diluted share for the same period of 2010. Net income in the first half of 2011 included a gain from the settlement of the litigation against News America Marketing In-Store, LLC (News America) of $89,762,000 before income taxes. Insignia POPS revenue for the first six months of 2011 was $8,820,000, a decrease of 30.5%, compared to the first six months of 2010 POPS revenue of $12,699,000.
CEO Scott Drill stated, “Through the first six months of this year, our POPS business has been negatively impacted by the loss of Kroger at the end of 2010. However, as a result of the February 9, 2011 litigation settlement with News America, we increased the number of stores our CPG’s have access to by approximately 12,000. Not surprisingly, given our history of litigation with News America, there have been some issues in working out a smooth relationship going forward. We have a meeting scheduled with the Federal Magistrate Judge on August 19, 2011, which may not be necessary if both parties make a good faith effort to resolve the outstanding issues. We continue to be very optimistic about our long-term prospects and our relationship with Valassis is excellent.