Aladdin Announces Fiscal 1998 Second Quarter and Six Month Financial Results.TEL AVIV Tel Aviv (tĕl əvēv`), city (1994 pop. 355,200), W central Israel, on the Mediterranean Sea. Oficially named Tel Aviv–Jaffa, it is Israel's commercial, financial, communications, and cultural center and the core of its largest , Israel Israel, in the Bible Israel (ĭz`rēəl, ĭz`rāəl) [as understood by Hebrews,=he strives with God], according to the book of Genesis, name given to Jacob as eponymous ancestor of the Hebrews, the chosen people of God. and NEW YORK--(BUSINESS WIRE)--August 3, 1998--Aladdin Knowledge Systems Ltd. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : ALDNF)(www.aks.com) today reported earnings for the second quarter and six months ended June June: see month. 30, 1998. Sales for the second quarter increased to $8.84 million, compared with $8.28 million in the second quarter of 1997. Net income for the quarter reached $2.69 million compared with $2.29million for the 1997 quarter. Basic earnings per share rose by 17% to $0.27, based on 10.048 million shares outstanding, compared with $0.23 per share in second quarter 1997, based on 10.083 million shares outstanding. Diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of rose 17% to $0.27, based on 10.169 million shares outstanding, compared with $0.23 per share in second quarter 1997, based on 10.083 million shares outstanding. Second quarter 1998 results included a net capital gain of $.46 million from the company's sale of WAVE Systems shares during the quarter. For the six month period, sales rose to $18.32 million compared with $16.37million in the previous year. For the first half, net income reached $5.32 million compared with a net profit of $4.48 million in the comparable 1997 period. Basic earnings per share for the six months rose 20% to $0.53, based on 10.043million shares outstanding, compared with $0.44 per share for the comparable 1997 period, based on 10.084 million shares outstanding. Diluted earnings per share for the six months rose 18% to $0.52, based on 10.165million shares outstanding, compared with $0.44 per share for the comparable 1997 period, based on 10.084 million shares outstanding. In a separate announcement, the Company also announced today that it has signed a letter of intent to partner with Rights Exchange Inc. (REI) to provide software publishers, distributors, resellers and electronic shops with a suite of tools and services, known as Privilege ESD (1) (Electronic Software Distribution) Distributing new software and upgrades via the network rather than individual installations on each machine. See ESL. , that will enable them to sell, distribute and license their products over the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the and other electronic media. Yanki Margalit, President and Chief Executive Officer, commented: "The underlying strength of our product range and corporate structure has enabled us to post figures confirming our continued steady growth. In the Far East, even with generally weak currencies, we are bucking bucking Respiratory therapy Violent resistance by a Pt to intubated ventilation that may cause asynchronous breathing, ergo V/Q mismatching and risk of barotrauma, cardiac arrhythmia, and ↑ intracranial pressure; the newer ventilatory support devices rarely the general trend with major sales in China and Korea Korea (kôrē`ə, kə–), Korean Hanguk or Choson, region and historic country (85,049 sq mi/220,277 sq km), E Asia. ." "Furthermore," Mr. Margalit concluded, "Our proposed technological partnering with Rights Exchange Inc., a SOFTBANK (Softbank Corporation, Tokyo, www.softbank.com) A computer conglomerate founded in 1981 by Masayoshi Son. The company has backed Yahoo! and more than 50 hardware, software, communications and Internet companies both in the U.S. and Japan. subsidiary, to co-develop a one-stop one-stop adj. Relating to or providing a comprehensive selection of goods or services at a single location: one-stop shopping; a one-stop health-care center. solution for Electronic Software Distribution confirms Aladdin's intention and ability to remain in the forefront as a provider of comprehensive solutions for secure software distribution and licensing." About Aladdin Aladdin Hero of a well-known story in The Thousand and One Nights. The son of a poor widow, Aladdin is a lazy, careless boy who meets an African magician claiming to be his uncle. : Aladdin Knowledge Systems Aladdin Knowledge Systems NASDAQ: ALDN is a company that provides solutions for software digital rights management and Internet security since 1985. Its corporate headquarters are located in Tel Aviv, Israel. is a global leader in the secure licensing and distribution of digital content. Aladdin's product range includes HAS(R) and Hardlock(R), key-based software security systems which monitor software licensing and prevent unauthorized use of computer programs, Privilege(TM), a suite of software licensing and metering tools for publishers and developers and ASE (Adaptive Server Enterprise) A relational DBMS from Sybase that runs on Windows NT/2000, Linux and a variety of Unix platforms. ASE is a comprehensive and robust data management product with a long history dating back to the late 1980s. (R) - providing smart card security solutions for integration with PCs and other electronic devices. Aladdin is an ISO (1) See ISO speed. (2) (International Organization for Standardization, Geneva, Switzerland, www.iso.ch) An organization that sets international standards, founded in 1946. The U.S. member body is ANSI. 9002 accredited accredited recognition by an appropriate authority that the performance of a particular institution has satisfied a prestated set of criteria. accredited herds cattle herds which have achieved a low level of reactors to, e.g. company with headquarters in Tel Aviv, Israel, 5 international offices and distributors in more than 40 countries, serving over 25,000 clients worldwide. For more information, visit the Aladdin home page at http://www.aks.com. Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. for Forward-Looking Statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. : Except for the statements of historical fact, the information presented herein constitutes forward-looking statements within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include general economic and business conditions, the loss of market share, changes in consumer buying habits and other factors over which Aladdin Knowledge Systems Ltd. have little or no control. -0-
Aladdin Knowledge Systems Ltd.
Summary of unaudited results
(U.S. dollars, in thousands -except for per share amount)
Three month period
ended June 30
1998 1997
Sales $8,837 $8,281
Cost of sales 2,302 2,098
Gross profit 6,535 6,183
Research and development, net 1,021 880
Selling and marketing 2,483 2,367
General and administrative 971 1,045
4,475 4,292
Operating income (loss) 2,060 1,891
Financial income, net 378 468
Other income (expenses) 682 84
Income (loss) before taxes 3,120 2,443
Taxes on income (benefit) 424 149
Net income (loss) $2,696 $2,294
Basic earnings (loss)
per share $0.27 $0.23
Diluted earnings (loss)
per share $0.27 $0.23
Weighted average number
of shares
outstanding for Basic EPS 10,048 10,083
Weighted average number
of shares
outstanding for Diluted EPS 10,169 10,083
Six month period
ended June 30
1998 1997
Sales $18,318 $16,374
Cost of sales 4,935 4,243
Gross profit 13,383 12,131
Research and development, net 1,915 1,679
Selling and marketing 4,892 4,683
General and administrative 1,947 1,904
8,754 8,266
Operating income (loss) 4,629 3,865
Financial income, net 715 806
Other income (expenses) 710 130
Income (loss) before taxes 6,054 4,801
Taxes on income (benefit) 727 325
Net income (loss) $5,327 $4,476
Basic earnings (loss)
per share $0.53 $0.44
Diluted earnings (loss)
per share $0.52 $0.44
Weighted average number
of shares
outstanding for Basic EPS 10,043 10,084
Weighted average number
of shares
outstanding for Diluted EPS 10,165 10,084
Aladdin Knowledge Systems Ltd. Balance Sheets
(U.S. dollars, in thousands)
June 30, December 31,
1998 1997
Assets
Current assets
Cash and cash equivalents $18,020 $13,893
Marketable securities 2,231 196
Trade receivables, net 4,753 5,363
Other accounts receivable 1,161 2,262
Inventories 4,590 3,904
30,755 25,618
Notes receivable - related parties 4,046 3,702
Fixed assets, net 3,652 3,220
Other assets, net 4,983 5,405
Deferred income taxes 4,672 4,848
$48,108 $42,793
Liabilities and shareholders' equity
Current liabilities
Trade payables 802 1,447
Other current liabilities 2,778 2,790
Accrued severance pay 1,049 886
Shareholders' Equity $43,479 $37,670
$48,108 $42,793
CONTACT: Company Contact: Ami Ami (ā`mī), in the Bible, servant of Solomon whose descendants came out of exile. An alternative spelling is Amon. (Alternate Mark I Dar, President (US) (212) 564-5678 Erez Erez (Hebrew: ארז, meaning cedar) is a common Israeli given name. The following people are named Erez:
(011) 972-3-636-2222 or Investor Relations Investor relations The process by which the corporation communicates with its investors. Contact: Donna N. Stein/Keil Decker Morgen-Walke Associates, Inc. (212) 850-5600 or Press Contact: Richard Dukas/Ann Travers Morgen-Walke Associates, Inc. (212) 850-5600 |
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