American Bank Note Holographics Announces Third Quarter and Nine Month Results.ELMSFORD, N.Y.--(BUSINESS WIRE)--Oct. 22, 1998-- Nine-Month Net Income Up 57% on Sales Increase of 38% 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. (NYSE NYSE See: New York Stock Exchange :ABH ABH Actual Bodily Harm ABH American Board of Hypnotherapy ABH Anywhere But Here (fan fiction mode) ABH Agentschap voor Buitenlandse Handel ABH Aviation Boatswain's Mate (aircraft handling) ) ("ABH") today announced results for the third quarter and nine months ended September September: see month. 30, 1998. Sales for the nine month period ended September 30, 1998 were up 38% to $27.1 million from $19.6 million in 1997, while net income increased 57% to $6.8 million, or $.50 per share, from $4.4 million, or $.32 per share, in the first nine months of 1997. Sales for the third quarter increased 30% to $10.5 million from $8.1 million for the third quarter of 1997, while net income increased 22% to $2.8 million, or $.20 per share, from $2.3 million, or $.17 per share in 1997. Josh JOSH Joshua JOSH Job Scheduling Hierarchically Cantor, President of ABH, commented, "We are pleased with the continued growth in the third quarter and nine month periods. The strategy of being market specific in our sales approach is yielding strong results. The improved performance is due to expansion of our product 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. and security applications, including holograms for currency use, as well as continued growth in the transaction card segment, where we extended our contract with MasterCard until February 2003." Mr. Cantor continued, "Gross margin percentage remains strong at 64% for the third quarter. Product authentication and other secure holographic See holographic storage. applications present significant opportunities, and as a result, these sales are growing and are becoming a larger percentage of overall sales. We continue to leverage our market leadership to expand, diversify diversify To acquire a variety of assets that do not tend to change in value at the same time. To diversify a securities portfolio is to purchase different types of securities in different companies in unrelated industries. and introduce new holographic applications and thus gain new customers, as we did in the current quarter." American Bank Note Holographics ("ABH") is the world 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 , controlled production, and marketing of mass-produced secure holograms. The Company's holograms are used for security applications and 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 licensed products, identification cards and documents of value, 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 of high-value consumer and industrial products, as well as for counterfeiting protection for credit and other transaction cards. Certain matters discussed in this press release contain forward looking statements that involve risk and uncertainties including, but not limited to future revenues, earnings prospects and the Company's ability to execute its business plan. Although the Company believes that its expectations are based on reasonable assumptions, it can give no assurance that anticipated results will occur. Parties receiving this release are encouraged to review all filings made by the Company with the Securities and Exchange Commission.
AMERICAN BANK NOTE HOLOGRAPHICS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
Three Months Ended Nine Months Ended
Sept. 30, Sept. 30,
1998 1997 1998 1997
Sales $10,524 $8,104 $27,140 $19,641
Cost of goods sold 3,781 2,617 10,226 7,837
Gross profit 6,743 5,487 16,914 11,804
Selling and administrative
expense 1,872 1,448 4,630 3,861
EBITDA 4,871 4,039 12,284 7,943
Depreciation and amortization
expense 237 288 821 869
Operating income 4,634 3,751 11,463 7,074
Interest income, net (expense) (137) 122 (158) 337
Income before taxes 4,497 3,873 11,305 7,411
Tax on income 1,726 1,598 4,462 3,057
Net income $ 2,771 $ 2,275 $ 6,843 $ 4,354
Earnings per common share -
basic and diluted $0.20 $0.17 $0.50 $0.32
Shares used in computing per
share amounts 13,636 13,636 13,636 13,636
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