Aladdin Reports Strong Third Quarter; Third Quarter Sales Gain 56%; Net Income Up 41%; Nine Month Sales Rise 64%; Net Income Up 48%;.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)--Nov. 1, 1995--Aladdin Knowledge Systems Ltd. (NASDAQ/NMS: ALDNF), a world leader in the software protection field, today reported revenues and earnings for the third quarter and nine months ended September September: see month. 30, 1995. Sales for the third quarter rose by 56 percent to $2.56 million, compared with $1.64 million during the third quarter of 1994. Net income for the third quarter reached $762,000, a 41 percent increase over net income of $542,000 for the comparable 1994 quarter. Earnings per share for the third quarter were $0.11 based on 6.79 million shares outstanding, compared with $0.08 per share in the third quarter of 1994, based on 6.42 million shares outstanding, a gain of 38 percent. Sales for the nine months rose by 64 percent to $7.93 million, compared with $4.85 million for the comparable 1994 period. Net income for the nine months reached $2.46 million, a 48 percent increase over net income of $1.66 million in the same period last year. Earnings per share for the first nine months of 1995 were $0.37, based on 6.69 million shares outstanding, compared with $0.26 per share for the 1994 period, based on 6.42 million shares outstanding. Yanki Margalit, Aladdin's Chairman and President said that "the Company's continuing growth and financial performance shows that Aladdin's products are now widely recognized as the technological leaders in the field of software security." During the third quarter, Aladdin's HASP (Houston Automatic Spooling Program) A mainframe spooling program that provides task, job and data management functions. HASP - Houston Automatic Spooling Program , the Company's leading software protection system, convincingly outscored three competing products in a study completed by the National Software Testing Laboratories National Software Testing Laboratories, or NSTL, is an American company, established in 1983, which tests computer hardware and software. The company provides certification (such as WHQL and Microsoft Windows Mobile certification), quality assurance, and benchmarking (NSTL (National Software Testing Lab, Blue Bell, PA, www.nstl.com) An independent organization established in 1983 that evaluates computer hardware and software in the PC, mobile and gaming markets. It adheres to controlled testing methods to ensure objective results. ), a division of the McGraw-Hill The McGraw-Hill Companies, Inc., (NYSE: MHP) is a publicly traded corporation headquartered in Rockefeller Center in New York City. Its primary areas of business are education, publishing, broadcasting, and financial and business services. Companies. The NSTL report, commissioned by Aladdin, compared the flagship products A primary product of a company, which is typically why the company was founded and/or what made it well known. For example, MS-DOS, Windows and the Microsoft Office suite have been flagship products of Microsoft. CorelDRAW is a flagship product of Corel Corporation. of the industry's four leading software protection vendors: Aladdin's MemoHASP, Rainbow Technologies' (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 : RNBO) SuperPro, Glenco Engineering/FAST Electronic's Hardlock, and Software Security's Activator activator /ac·ti·va·tor/ (ak´ti-va?ter) 1. a substance that combines with an enzyme to increase its catalytic activity. 2. a substance that stimulates the development of a specific structure in the embryo. . "HASP has clearly established itself as the current front runner front runner n → favorito/a front runner n (fig) → favori(te) front runner n (fig) → in the software protection industry. The NSTL report backs up what we have been saying for some time now - our market leading growth rate is based on pure and simple product superiority, in addition to our high standards of service and support," commented David Glassman, Aladdin's VP for Marketing and Sales. "Aladdin also appointed two new HASP distributors in Asia during the quarter. Our new HASP distributors in China and Hong Kong Hong Kong (hŏng kŏng), Mandarin Xianggang, special administrative region of China, formerly a British crown colony (2005 est. pop. 6,899,000), land area 422 sq mi (1,092 sq km), adjacent to Guangdong prov. are part of our strategic goal of enhancing Aladdin's presence in the Asia/Pacific region, and comes shortly after the establishment of Aladdin Japan in June of this year," continued Mr. Glassman. Aladdin's management will hold a teleconference call on Thursday, November 2, at 10:30 am (Eastern time) to discuss the Company's recent results. Those wishing to participate may call 913-661-9048 shortly before the 10:30 am starting time Noun 1. starting time - the time at which something is supposed to begin; "they got an early start"; "she knew from the get-go that he was the man for her" commencement, get-go, offset, outset, showtime, start, kickoff, beginning, first . 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 also be available at 4:00 pm on Thursday at the above telephone number (confirmation code 176739). -0- 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 and security systems for software developers. Aladdin manufactures and markets proprietary software security systems, including the HASP(R) (Hardware Against Software Piracy The illegal copying of software for distribution within the organization, or to friends, clubs and other groups, or for duplication and resale. The software industry loses billions of dollars each year to piracy, and although it may seem innocent enough to install an application on a ) product line, that combines hardware and software to prevent unauthorized use of computer programs. -0-
Aladdin Knowledge Systems Ltd.
Summary of Results
(Unaudited)
(U.S. dollars, in thousands-except for per share amount)
Three-month period ended Nine-month period ended
September 30, September 30,
1995 1994 1995 1994
Sales $2,557 $1,643 $7,925 $4,847 Cost of sales(a) 603 492 2,035 1,544 Gross profit 1,954 1,151 5,890 3,303
Research and development
costs - net 340 132 774 239
Selling expenses(a) 649 361 1,926 867
General and
administrative 316 215 898 635
1,305 708 3,598 1,741
Operating income 649 443 2,292 1,562
Financing income, net 120 103 324 260 Other income (expense) 5 1 (13) -- Income before taxes 774 547 2,603 1,822 Taxes on income 12 5 143 160 Net income $762 $542 $2,460 $1,662 Earnings per share $0.11 $0.08 $0.37 $0.26 Weighted average number of shares outstanding 6,789 6,422 6,696 6,417 (a) reclassified -0-
Aladdin Knowledge Systems Ltd. Balance Sheets
(U.S. dollars, in thousands)
Sept. 30, 1995 Dec. 31, 1994
(Unaudited) (Audited)
Assets
Current assets
Cash and cash equivalents $1,628 $950
Short term deposits 1,715 962
Marketable securities 6,225 6,871
Trade receivable 1,733 1,167
Other receivables 806 636
Inventories 797 750
12,904 11,336
Investment and loans 138 46
Fixed assets, net 1,313 857
Other assets, net 1,613 103
$15,968 $12,342
Liabilities and shareholder's equity
Current liabilities
Trade accounts payable $789 $638
Other liabilities 665 406
1,454 1,044
Accrued severance pay, net 220 150
Minority interest 17 5
Shareholders' Equity
Share capital 16 16
Additional paid - in capital 8,856 8,600
Unrealized holding losses from (460) (878)
"Available-for-sale" securities
Retained earnings 5,865 3,405
14,277 11,143
$15,968 $12,342
-0-
CONTACT: Nurit Benjamini, CFO See Chief Financial Officer. Aladdin Knowledge Systems +972 3 537 5795 or Robert Rinderman 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. Co. 212-752-0504 |
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