Aladdin Reports Gains In 2Q96 and First Half Sales; Combination with FAST strengthens global lead.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. 12, 1996--Aladdin Knowledge Systems Ltd. (NASDAQ/NMS: ALDNF) today reported second quarter 1996 sales rose 12 percent to $6.76 million compared with $6.06 million during second quarter 1995. For the first half, sales rose 14 percent to $13.94 million compared with $12.26 million. Due to one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. combination and reorganization The process of carrying out, through agreements and legal proceedings, a business plan for winding up the affairs of, or foreclosing a mortgage upon, the property of a corporation that has become insolvent. expenses associated with Aladdin's strategic business combination with FAST Software Security AG during the second quarter, the Company's net loss was $4.6 million, compared with net income of $1.578 million in the same period last year. May 26 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. completed its previously reported business combination with FAST Software Security. Aladdin exchanged 3.15 million newly-issued Aladdin shares for all of the outstanding shares of FAST, in a pooling of interests Pooling of Interests An accounting method, used in mergers and acquisitions, where the balance sheet items of the two companies are simply added together. Notes: The opposite of pooling of interests is the purchase acquisition method. transaction. May 29 Aladdin completed the acquisition of the software security related business of Glenco Engineering, Inc., FAST's North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. independent licensee licensee n. a person given a license by government or under private agreement. (See: license, licensor) LICENSEE. One to whom a license has been given. 1 M. Q. & S. 699 n. , in consideration for approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $5.1 million in cash. The transaction was accounted for as an asset purchase. "The business combination with FAST and the acquisition of the software security related business of Glenco have placed Aladdin in a new league," Yanki Margalit, Aladdin's President and Chairman, said today. "As a result, we have made a key decision to emphasize our security product range, and in line with this strategy we are concentrating on the enhancement of 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 lines and the 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. smart card development system. "The markets for software security and smart card development systems are growing, and we are leveraging our global leadership position. This is how we will enhance shareholder value, our ultimate objective." Mr. Margalit added that, in furtherance fur·ther·ance n. The act of furthering, advancing, or helping forward: "Pakistan does not aspire to any . . . role in furtherance of the strategies of other powers" Ismail Patel. of this policy, Aladdin has decided to freeze See abend. freeze - To lock an evolving software distribution or document against changes so it can be released with some hope of stability. Carries the strong implication that the item in question will "unfreeze" at some future date. R&D investments in HOPE (Human Oriented o·ri·ent n. 1. Orient The countries of Asia, especially of eastern Asia. 2. a. The luster characteristic of a pearl of high quality. b. A pearl having exceptional luster. 3. Programming Environment), pending the establishment of a strategic alliance to further finance the development of HOPE. Additionally, Aladdin has decided to terminate Terminate (terminat.exe) was a shareware modem terminal and host program for MS-DOS and compatible operating systems developed from the early to the late 1990s by the Dane Bo Bendtsen. The last release (5. its activities in AladdinSoft, a subsidiary. Without taking into consideration one-time combination and reorganization expenses incurred in connection with the FAST transaction, and the write-off Write-Off A reduction in the value of an asset or earnings by the amount of an expense or loss. Companies are able to write off certain expenses that are required to run the business, or have been incurred in the operation of the business and detract from retained revenues. of a portion of a loan between FAST and an affiliate Affiliate Relationship between two companies when one company owns substantial interest, but less than a majority of the voting stock of another company, or when two companies are both subsidiaries of a third company. See: Subsidiaries, parent company. company, net income for the quarter would have been $1.546 million. Aladdin's second quarter loss per share was $0.46, based on 10.075 million shares outstanding, compared with earnings per share of $0.16 in the second quarter of 1995, based on 9.898 million shares outstanding. Without taking into consideration the above mentioned one-time combination and reorganization expenses, earnings per share for the quarter would have been $0.15. For the six months the Company's net loss was $6.387 million, compared with net income of $3.097 million in the same period last year. Without taking into consideration the one-time combination and reorganization expenses, net income for the six months would have been $3.038 million, a drop of 2 percent from last year. The first half 1996 loss per share was $0.64, based on 9.95 million shares outstanding, compared with earnings per share of $0.32, based on 9.813 million shares outstanding in the same period last year. Without taking into consideration the one-time combination and reorganization expenses, earnings per share for the six months would have been $0.31. During the first quarter of 1996, FAST Software Security provided for a note receivable note receivable A debt due from borrowers and evidenced by a written promise of payment. Note receivable, an entry on the asset side of many corporate balance sheets, indicates the dollar amount of loans due to be repaid by borrowers. in the amount of approximately $11.6 million due from FAST Multimedia, an affiliate of FAST Software Security. The note receivable was assessed as impaired See assistive technology. in the first quarter of 1996, and an allowance of approximately $7.45 million was provided and included in Other Expenses. Business combination and reorganization expenses and other related items amounted to $6.44 million in the second quarter, and included expenses related to the business combination with FAST and to a lesser extent a write-off of the remaining investment in the EliaShim business acquired by Aladdin in 1995, and a write-off of expenses relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the consolidation of the distribution of HASPr and Hardlockr products in territories in which Aladdin has subsidiaries. "The results for the first half of 1996 do not fully reflect the anticipated future benefits of the business combination with FAST and the purchase of Glenco's software security related business. As the completion of the Glenco deal occurred at the end of May, the second quarter results reflect only one month of Hardlock products sales in the US," Mr. Margalit added. Aladdin's management will conduct a teleconference call on Tuesday Tuesday: see week. , August 13, at 11 a.m. (Eastern time) to discuss the Company's second quarter and half year results. Those wishing to participate may call 719-448-2018, confirmation code 265087, shortly before 11. A replay of the call in its entirety The whole, in contradistinction to a moiety or part only. When land is conveyed to Husband and Wife, they do not take by moieties, but both are seised of the entirety. will be available at 4 p.m. (Eastern Time) by calling 719-444-0803, confirmation code 265091. 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. Ltd. is a leading supplier of advanced solutions for software developers. Aladdin develops, manufactures and markets proprietary software security and development systems, including HASPr and Hardlockr, which combine hardware and software to prevent unauthorized use of computer programs, and ASE (The Aladdin Smartcard See smart card. Environment), an integrated toolkit An integrated set of software routines or utilities (tools) that are used to develop and maintain applications and databases. There are toolkits for developing almost anything. See tool, developer's toolkit, library, class library and CASE. for developing PC-based smartcard applications. Aladdin has 5 international offices, distributors in more than 30 countries, and 20,000 clients in over 100 countries. -0-
Aladdin Knowledge Systems Ltd.
Summary of unaudited results
(U.S. dollars, in thousands - except for per share amount)
Three-month Six-month
period ended period ended
June 30, June 30,
1996 1995(1) 1996 1995(1)
Sales $6,756 $6,056 $13,946 $12,257 Cost of sales 1,859 1,751 4,011 3,459 Gross profit 4,897 4,305 9,933 8,798 Research and development, net 718 473 1,310 909 Selling and 1,815 977 3,490 2,009 marketing General and 720 661 1,383 1,256 administrative Combination and reorganization 5,444 --- 5,444 --- expenses
8,697 2,111 11,627 4,174
Operating (loss) (3,800) 2,194 (1,694) 4,624 income Financial income, 214 269 493 422 net Other income 48 21 (7,362) (12) (expenses) Income (loss) (3,538) 2,484 (8,563) 5,034 before taxes Taxes on income 1,059 906 (2,176) 1,937 (benefit) Net income (loss) $(4,597) $1,578 $(6,387) $3,097 Earnings (loss) per share $(0.46) $0.16 $ (0.64) $0.32 share Weighted average number of shares 10,075 9,898 9,950 9,813 outstanding (1) Restated to reflect the business combination with FAST in a pooling of interest transaction.
Aladdin Knowledge Systems Ltd.
Summary of results excluding the effects of the
combination and reorganization expenses and other related items(a)
(U.S. dollars, in thousands - except for per share amount)
Three-month Six-month
period ended period ended
June 30, June 30,
1996 1996
Pro forma operating $1,644 $3,750 income Pro forma income 1,906 4,336 before taxes Pro forma taxes on 360 1,298 income Pro forma net $1,546 $3,038 income Pro forma earnings $0.15 $0.31 per share Weighted average number of shares 10,075 9,950 outstanding (a) The information in the table shows, pro forma net income and earnings per share excluding the combination and reorganization expenses and other related items. The above supplemental financial information does not purport to be financial statements prepared in accordance with generally accepted accounting principles.
Aladdin Knowledge Systems Ltd. Balance Sheets
(U.S. dollars, in thousands)
June 30, December 31,
1996 1995
(Unaudited) (Audited)
(1)
Assets
Current assets
Cash and cash equivalents $2,442 $2,190 Short term bank 1,908 2,431 deposits Marketable securities 1,231 6,645 Trade receivables, net 4,359 3,999 Other receivables 1,623 1,344 Inventories 3,125 1,972
14,688 18,581
Investment and loans 100 185 Notes receivables - 6,184 13,244 related parties Fixed assets, net 2,449 1,813
Deferred taxes 10,747 ---
Other assets, net 4,500 1,592
$38,668 $35,415
Liabilities and
shareholders' equity
Current liabilities Short - term bank $-- $100 credit Trade accounts payable 1,425 1,162 Income taxes payable 1,879 5,513
Other liabilities 4,651 3,631
7,955 10,406
Accrued severance pay, net 198 187 Minority interest (21) 18 Shareholders' Equity Share capital 33 33 Additional paid - in 26,453 13,908 capital Unrealized holding (392) (370) losses from "Available- for-sale" securities Translation 97 500 adjustments Retained earnings 4,345 10,733
30,536 24,804
$38,668 $35,415
(1) Restated to reflect the business combination with FAST in a pooling of interest transaction. CONTACT: Nurit Benjamini Aladdin Knowledge Systems +972-3-636-2222 OR Katerina Katerina may refer to: People with the given name Katerina:
The Anne McBride Anne C. McBride (born Nova Scotia) was a frequent candidate in Canadian federal and provincial elections and by-elections in the 1970s, 1980s and 1990s. McBride was an ordained minister in the Assemblies of God, a Pentecostal Christian denomination. Company +212-752-0504 |
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