Insignia POPS Program Reports Significant Growth and Performance Milestones and Expects Revenue To Exceed $45,000,000 By Fiscal Year 2003.
MINNEAPOLIS--(BUSINESS WIRE)--Dec. 7, 2000
Insignia Systems, Inc. (Nasdaq:ISIG) announced today several new retailer additions and milestones achieved in Insignia's Point-Of-Purchase Services (POPS) business, contributing to the significant growth of the POPS program as it wraps up a successful third year of operation. The new retailer contracts increase the Insignia POPS network of supermarket retailers to more than 6,700 contracted stores and substantially strengthen the Insignia POPS presence across the nation.
Insignia has just finished rolling out the Insignia POPS program in more than 1,400 Safeway stores after announcing the contract in October of 2000. As one of the largest supermarket chain retailers in the United States, the Safeway contract is the largest retail POPS contract ever signed.
A new contract with Shaw's Supermarkets, with stores operating under the Shaw's, Super Shaw's and Star Market trading names, has given the Insignia POPS program its first solid presence in New England. The program will roll out in 172 stores located in Connecticut, Maine, New Hampshire, Rhode Island, Vermont and Massachusetts, with many stores located in Boston and the surrounding areas.
The expansion of the Insignia POPS program continues with the General Trading Company Incorporated contract, which will add 58 Fine Fare and Trade Fair stores in New York, New Jersey and Pennsylvania. In addition, the POPS program will roll out in 155 Central Grocers stores located in Illinois, Indiana, Michigan and Wisconsin, operating under the Fairway, Sentry, Sullivan's, Walt's Food Centers and Wilco Food Centers trading names.
"We are very pleased with the recent rollout of the Safeway stores, as well as the addition of Shaw's and the other retailers to the Insignia POPS retailer network," said Scott Drill, President and CEO, Insignia Systems, Inc. "These new stores add considerably to what has already been a successful year of significant growth in retailer store rollouts for the Insignia POPS program. In fact, we have surpassed our plan of adding 1,500 new stores during the year 2000 by 139%, having added 3,588. We have also exceeded our planned year-end total of 4,500 stores on-line by 43%, with 6,440 stores currently on-line and participating in live programs."
Drill went on to state that "We expect that POPS revenue in the fourth quarter will exceed $2,350,000, up from $1,480,000 in the third quarter and at least a 172% increase over the $864,000 in POPS revenue during the fourth quarter of 1999. Our internal sales goals are for POPS revenue to grow to $14,500,000 in FY 2001, $30,500,000 in FY 2002 and $45,700,000 in FY 2003. These projections are consistent with those laid out in a research report published in May of this year by Miller, Johnson and Kuehn."
In addition to the strong growth of the Insignia POPS retailer network and revenue, the program has just recently reached another important milestone. In November, the two millionth sign for the POPS program was printed. While it took 27 months to print the first million signs, the second million was printed in just eight months, indicating a steady increase in manufacturers' participation as well.
Insignia's Point-Of-Purchase-Services (POPS) program is a fully featured, shelf-edge sign, delivering a complete "call-to-action" at the point-of-purchase. Insignia POPS allows manufacturers to deliver product- and account-specific promotional messages quickly and accurately - in designs and formats that have been pre-approved and supported by participating retailers. Now in its third year of operation, the Insignia POPS program produces incremental product sales increases significantly higher than other shelf-edge promotion or advertising vehicles and is rapidly gaining both retailer acceptance and participation by brand marketers.
Statements in this press release concerning Insignia's projected store count, revenue growth, business outlook and future economic performance, together with other statements that are not historical facts, are "forward looking statements" as that term is defined in the federal securities laws. All forward looking statements are estimates, reflecting the judgement of Insignia based on currently available information, and involve a number of risks, uncertainties and other factors which could cause actual results to differ materially from the forward looking statements. Risks, uncertainties and factors which could affect the accuracy of such forward looking statements are identified in the public filings made by Insignia with the Securities and Exchange Commission.
Insignia Systems, Inc. is an innovative developer and marketer of in-store promotional products, programs and services to retailers and consumer goods manufacturers. Through its Point-Of-Purchase-Services (POPS) business, Insignia currently serves retail supermarket chains operating more than 6,400 stores in 49 states and more than 100 consumer goods manufacturers, including such nationally known and respected companies as ConAgra, Dole, Del Monte, General Mills, Heinz, Kellogg's, Keebler, Kraft, Pillsbury, Procter & Gamble and Sara Lee. For additional information contact 888-474-7677 or visit Insignia's Web site at www.insigniasystems.com or the Insignia POPS Web site at www.insigniapops.com.
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|Date:||Dec 7, 2000|
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