Aladdin Announces Second Quarter 2000 Financial Results.Business Editors NEW YORK New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of & 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--(BUSINESS WIRE)--Aug. 2, 2000 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. (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 :ALDN), a global leader in the field of Internet content and software security, today reported financial results for the second quarter ended June 30, 2000. Revenues for the second quarter reached $10.6 million, compared with revenues of $10.4 million for the second quarter of 1999. The second quarter resulted in a loss of $180,000, or $0.02 per basic and diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, based on 11,461,000 basic and 11,858,000 diluted shares outstanding. "In addition to our ongoing revenues from the HASP (Houston Automatic Spooling Program) A mainframe spooling program that provides task, job and data management functions. HASP - Houston Automatic Spooling Program and Hardlock software protection systems, in the second quarter we saw a growing demand for Aladdin's content security products, especially due to the rise in the demand for PKI (Public Key Infrastructure) A framework for creating a secure method for exchanging information based on public key cryptography. The foundation of a PKI is the certificate authority (CA), which issues digital certificates that authenticate the identity of based security and the outbreak of several vandal attacks on e-commerce sites worldwide," CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. and Chairman Yanki Margalit said. "Our new product offering, consisting of eSafe, eToken and Privilege, has positioned Aladdin for a successful second half of the year." eSafe With an estimated global loss of $1.5 trillion One thousand times one billion, which is 1, followed by 12 zeros, or 10 to the 12th power. See space/time. (mathematics) trillion - In Britain, France, and Germany, 10^18 or a million cubed. In the USA and Canada, 10^12. in one year, viruses and malicious Involving malice; characterized by wicked or mischievous motives or intentions. An act done maliciously is one that is wrongful and performed willfully or intentionally, and without legal justification. DESERTION, MALICIOUS. vandals have never before received such immense coverage. eSafe sales rose this quarter due to the ever-increasing awareness of Web-attacks. The US and European markets are showing a continually growing interest in comprehensive content security that offers solutions far beyond that of ordinary virus protection. The rise in sales in Europe was significant, but this increase is not reflected in the quarter's numbers due to the weakening weak·en tr. & intr.v. weak·ened, weak·en·ing, weak·ens To make or become weak or weaker. weak  en·er n. of the Euro.Privilege Alongside Aladdin's success with Internet security ''This article or section is being rewritten at Internet security is the process of protecting data and privacy of devices connected to internet from information robbery, hacking, malware infection and unwanted software. solutions, Privilege, the new software based licensing solution, received wider awareness in the second quarter with initial sales in the US, UK, Netherlands, France and Israel. Privilege provides software vendors with secure methods to distribute and sell or even rent their applications over the Internet. eToken This quarter also saw the release of eToken R2, Aladdin's new USB USB in full Universal Serial Bus Type of serial bus that allows peripheral devices (disks, modems, printers, digitizers, data gloves, etc.) to be easily connected to a computer. security token See authentication token and EAS. . The patent-pending eToken R2 is the first USB-based hardware device that can be used to encrypt See encryption. information, store user passwords, private keys and digital certificates for authentication (1) Verifying the integrity of a transmitted message. See message integrity, e-mail authentication and MAC. (2) Verifying the identity of a user logging into a network. solutions. eToken is an excellent tool for protecting revenue-generating Web sites and e-commerce entities and is also appropriate for local area networks (LANs), virtual private networks (VPNs) and mobile computing Using a computing device while in transit. Mobile computing implies wireless transmission, but wireless transmission does not necessarily imply mobile computing. Fixed wireless applications use satellites, radio systems and lasers to transmit between permanent objects such as buildings . "eToken, has grown into a developing network of strategic technology partnerships throughout the US, Europe, Asia and the Middle East," Mr. Margalit said. "Earlier this month we announced our partnership with NTRU NTRU Native Title Research Unit (AIATSIS) NTRU Number Theorists R Us NTRU N-Th Degree Truncated Polynomial Ring Cryptosystems, a union that allows eToken's portability and NTRU's advanced cryptographic cryp·tog·ra·phy n. 1. The process or skill of communicating in or deciphering secret writings or ciphers. 2. Secret writing. cryp algorithm algorithm (ăl`gərĭth'əm) or algorism (–rĭz'əm) [for Al-Khowarizmi], a clearly defined procedure for obtaining the solution to a general type of problem, often numerical. to offer superior security solutions. This increased emphasis on partner programs has laid a strong foundation for building and deploying a wide cross-section of USB-based security, authentication and PKI solutions supported by eToken. As one of the most secure storage options for digital certificates and credentials CREDENTIALS, international law. The instruments which authorize and establish a public minister in his character with the state or prince to whom they are addressed. If the state or prince receive the minister, he can be received only in the quality attributed to him in his credentials. , eToken is on its way to positioning Aladdin as the foremost supplier of state-of-the-art Internet security products." About Aladdin Aladdin (NASDAQ/NMS:ALDN) is a global leader in securing digital content, from applications software to Internet use and access. Aladdin's products include: HASP and Hardlock, software security systems that protect the revenues of developers and publishers; Privilege, a software licensing platform for the Internet; the eSafe line of anti-vandal, anti-virus and content filtering See Web filtering and parental control software. software for PCs and networks connected to the Internet; and eToken, for Internet security and authentication. Aladdin serves its customers through eight offices located in the world's major software markets, as well as through a network of 50 distributors serving more than 100 countries. Forward Looking Statement: Except for the statements of historical fact, the information presented herein constitutes 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. 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. has little or no control. This release and prior releases are available on the KCSA KCSA Krannert Center Student Association KCSA Kentucky Crushed Stone Association (Frankfort, KY) KCSA Kyiv City State Administration KCSA Kalamazoo Christian School Association KCSA Kentucky-Canadian Studies Association Public Relations public relations, activities and policies used to create public interest in a person, idea, product, institution, or business establishment. By its nature, public relations is devoted to serving particular interests by presenting them to the public in the most Worldwide website at www.kcsa.com.
Aladdin Knowledge Systems Ltd.
Summary of unaudited results
(U.S. dollars, in thousands - except for per-share amount)
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Three months period ended Six months ended
June 30 June 30
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2000 1999 2000 1999
---- ---- ---- ----
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Sales 10,654 10,419 22,427 21,281
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Cost of sales 2,402 2,364 5,140 4,610
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Gross profit 8,252 8,055 17,287 16,671
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Research & development 2,317 1,362 4,866 3,308
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Selling & marketing 5,034 4,246 9,972 8,191
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General & administrative 1,110 1,412 2,234 2,598
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Write off of Intangible
assets 628 569 1,214 1,116
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9,089 7,589 18,286 15,213
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Operating income (837) 466 (999) 1,458
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Financial income, net 241 241 465 529
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Other income (expenses) 764 97 4,569 121
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Income (loss) before
taxes 168 804 4,035 2,108
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Taxes on income 265 360 1,738 572
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(97) 444 2,297 1,536
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Equity in loss of affiliate,
net of taxes 83 127 158 127
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Net income (loss) (180) 317 2,139 1,409
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Basic earning per share (0.02) 0.03 0.19 0.12
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Diluted earnings per share (0.02) 0.03 0.18 0.12
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Weighted average number
of shares outstanding for
Basic EPS 11,461 11,370 11,427 11,362
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Weighted average number
of shares outstanding for
Diluted EPS 11,858 11,487 11,864 11,526
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Aladdin Knowledge Systems Ltd.
Balance Sheets
(U.S. dollars, in thousands)
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June 30, 2000 Dec. 31, 1999
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Assets
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Current assets:
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Cash & cash equivalents $18,102 $30,349
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Marketable securities 11,881 8,387
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Other accounts receivable 11,013 10,028
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Inventories 6,404 5,083
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47,400 53,848
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Fixed assets, net 5,283 4,990
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Other long term assets, net 22,713 22,879
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$75,396 $81,717
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Current liabilities:
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Other current liabilities 13,417 19,034
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Accrued severance pay 1,680 1,623
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Shareholders Equity 60,299 61,060
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$75,396 $81,717
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