American Bank Note Holographics Announces Financial Results For The First Nine Months of 1999 And Is Now Current With Its SEC Reporting Requirements.Business Editors ELMSFORD, N.Y.--(BUSINESS WIRE)--Feb. 8, 2000 American American, river, 30 mi (48 km) long, rising in N central Calif. in the Sierra Nevada and flowing SW into the Sacramento River at Sacramento. The discovery of gold at Sutter's Mill (see Sutter, John Augustus) along the river in 1848 led to the California gold rush of Bank Note Holographics, Inc. today announced that it has filed its Form 10-Q Form 10-Q See 10-Q. for each of the quarters ended March 31, 1999, June June: see month. 30, 1999 and September September: see month. 30, 1999 with the SEC. With these filings, the Company is now current with its SEC reporting requirements. Net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight for the nine months ended September 30, 1999 were $16.5 million. This compares to $19.9 million for the nine months ended September 30, 1998. The net loss for the nine months ended September 30, 1999 was $1.2 million, or $0.09 per share, compared to net income of $3.2 million, or $0.23 per share in the comparable period of 1998. Kenneth Traub, President of American Bank Note Holographics, commented, &uot;We are pleased that we have achieved another major milestone now that the Company is current with all of its SEC reporting requirements. While 1999 was a challenging year of transition for American Bank Note Holographics, we are gratified grat·i·fy tr.v. grat·i·fied, grat·i·fy·ing, grat·i·fies 1. To please or satisfy: His achievement gratified his father. See Synonyms at please. 2. by the progress we have made so far and we are excited about the opportunities we have in 2000.&uot; Alan Goldstein Gold·stein , Joseph Leonard Born 1940. American biochemist. He shared a 1985 Nobel Prize for discoveries related to cholesterol metabolism. , Chief Financial Officer of the Company, added &uot;The 1999 results were impacted by a variety of factors. Sales were 17% lower in the first nine months of 1999 compared to the comparable period of 1998 primarily due to certain sales in the first quarter of 1998 that did not reoccur in 1999 as well as the issues and distractions resulting from the need to restate re·state tr.v. re·stat·ed, re·stat·ing, re·states To state again or in a new form. See Synonyms at repeat. re·state the historical financial results issued by prior management. Cost of goods sold Cost of goods sold The total cost of buying raw materials, and paying for all the factors that go into producing finished goods. cost of goods sold in 1999 included a reserve of $0.8 million for the anticipated settlement of a warranty claim resulting from a 1998 sale. Selling and administrative expenses in the first nine months of 1999 included one-time charges related to the audit committee's investigation and related restatement Restatement A revision in a company's earlier financial statements. Notes: The need for restating financial figures can result from fraud, misrepresentation, or a simple clerical error. efforts of $3.1 million. Interest expense in the first nine months of 1999 reflected a 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 $0.5 million of unamortized deferred financing costs associated with the amendments to and refinancing Refinancing An extension and/or increase in amount of existing debt. of the Chase credit facility.&uot; American Bank Note Holographics is a leader in the origination Origination The process through which a mortgage lender creates a mortgage secured by some amount of the mortgagor's real property. Notes: Also known as loan origination, everyone must go through the origination process when securing a mortgage for a piece of real , production, and marketing of mass-produced secure holograms. The Company's products are used for security applications, such as counterfeiting counterfeiting, manufacturing spurious coins, paper money, or evidences of governmental obligation (e.g., bonds) in the semblance of the true. There must be sufficient resemblance to the genuine article to deceive a person using ordinary caution. protection for credit and other transaction cards, identification cards and documents of value, as well as for tamper resistance Tamper resistance is resistance to by either the normal users of a product, package, or system or others with physical access to it. There are many reasons for employing tamper-resistance. and 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. of high-value consumer and industrial products. This news release includes 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. that involve risks and uncertainties. Although the Company believes such statements are reasonable, it can make no assurances that such statements will prove to be correct. Such Statements are subject to certain factors which may cause actual results to differ materially from forward-looking statements, including but not limited to, risks associated with our ability to resolve problems resulting from the need to restate prior period financial statements; pending shareholder litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. ; competition in the market for holograms; retaining and attracting key employees; and changes in business conditions which might impact customers and suppliers. The Company undertakes no obligation to publicly release results of any of these forward-looking statements to reflect events or circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or after the date hereof here·of adv. Of this. hereof Adverb Formal or law of or concerning this Adv. 1. hereof - of or concerning this; "the twigs hereof are physic" or to reflect the occurrence of unexpected results.
AMERICAN BANK NOTE HOLOGRAPHICS, INC.
CONDENSED BALANCE SHEETS - UNAUDITED
(In thousands, except share data)
September 30, December 31,
1999 1998
ASSETS
Current Assets:
Cash and cash equivalents $1,030 $4,319
Accounts receivable, net of allowance for
doubtful accounts of $997 and $131 2,524 4,023
Inventories, net of allowances of
$2,984 and $2,756 3,950 5,827
Deferred income taxes 2,338 1,777
Prepaid expenses and other 371 427
Total current assets 10,213 16,373
Machinery, equipment and leasehold
improvements, net 5,162 5,325
Other assets 371 680
-------- --------
Excess of cost over net assets
acquired, net of
accumulated amortization of
$2,177 and $1,919 8,184 8,442
-------- --------
Total Assets $ 23,930 $ 30,820
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Revolving credit $1,316 $5,591
Current portion of notes payable 209 304
Current portion of long-term debt 150
Accounts payable 2,039 4,376
Accrued expenses 3,513 2,619
Customer advances 642 1,460
-------- --------
Total current liabilities 7,869 14,350
Long-term debt 850
Other long-term liabilities 466 477
Deferred income taxes 1,463 1,463
-------- --------
Total Liabilities 10,648 16,290
-------- --------
Commitments and Contingencies
Stockholders' Equity:
Preferred Stock, authorized
5,000,000 shares;
no shares issued or outstanding
Common Stock, par value $.01
per share, authorized
30,000,000 shares; issued and
outstanding 13,636,000 136 136
Additional paid-in-capital 11,627 11,627
Retained earnings 1,519 2,767
-------- --------
Total Stockholders' Equity 13,282 14,530
-------- --------
Total Liabilities and
Stockholders' Equity $ 23,930 $ 30,820
======== ========
AMERICAN BANK NOTE HOLOGRAPHICS, INC.
CONDENSED STATEMENTS OF OPERATIONS - UNAUDITED
(In thousands, except per share data)
Three Months Nine Months
Ended Ended
Sept. 30, Sept. 30,
1999 1998 1999 1998
(As (As
Restated) Restated)
Sales $ 5,487 $ 5,091 $16,462 $19,903
Costs and expenses:
Cost of goods sold 2,560 1,930 8,419 8,639
Selling and
administrative 3,214 2,423 8,678 5,237
Depreciation and
amortization 248 237 743 821
-------- -------- -------- --------
6,022 4,590 17,840 14,697
-------- -------- -------- --------
Operating (loss) income (535) 501 (1,378) 5,206
Other, net:
Other income 177 128 471 582
Interest expense (228) (151) (902) (396)
-------- -------- -------- --------
(51) (23) (431) 186
-------- -------- -------- --------
(Loss) income before
taxes on income (586) 478 (1,809) 5,392
Taxes on income (benefit) (181) 184 (561) 2,201
-------- -------- -------- --------
Net (loss) income $(405) $ 294 $(1,248) $3,191
======== ======== ======== ========
Net (loss) income per share
basic and diluted $(0.03) $0.02 $ (0.09) $ 0.23
======== ======== ======== ========
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