PubliCARD, Inc. Announces a 52% Increase In Sales for the Second Quarter of 1999.FAIRFIELD Fairfield. 1 City (1990 pop. 12,200), Jefferson co., N central Ala., an industrial suburb of Birmingham; inc. 1919. Founded (1910) by the United States Steel Corp., its steel industry has greatly declined, negatively affecting the city's economy. , Conn.--(BUSINESS WIRE)--Aug. 13, 1999-- PubliCARD, Inc. (Nasdaq:CARD), today announced financial results for the second quarter and six months ended June June: see month. 30, 1999. For the second quarter of 1999, consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: sales were $6.3 million, an increase of 52% from $4.1 million in the prior year period. Sales of technology products and systems increased ten-fold Adj. 1. ten-fold - containing ten or ten parts denary, tenfold multiple - having or involving or consisting of more than one part or entity or individual; "multiple birth"; "multiple ownership"; "made multiple copies of the speech"; "his multiple to $2.6 million in the period, up from $234,000 a year ago and double the first quarter 1999 sales of $1.3 million. Sales for the six months ended June 30, 1999, increased by 38% to $11.5 million compared to prior year sales of $8.3 million. Sales of technology products and systems increased eleven-fold to $3.9 million in the first six months of 1999, up from $312,000 a year ago. The growth in technology product sales was attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to four business acquisitions completed in 1998 and early 1999. On a pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma basis, the acquired technology businesses experienced sales growth of 47% and 33% for the second quarter and first six months on a period-over-period basis. The Company reported a loss from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the of $3.2 million, or $0.17 per share, in the second quarter of 1999 compared to a loss of $941,000, or $0.07 per share, in 1998. The 1999 loss from continuing operations reflects the Company's continuing investment in building the sales and marketing infrastructure and ongoing development projects in the technology products segment. The Company reported a loss from discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. of $2.2 million, or $0.12 per share, in the second quarter of 1999 compared to income from discontinued operations of $104,000, or $0.01 per share, in 1998. The results from discontinued operations for 1999 include a $2.1 million charge associated with the planned disposition of a non-strategic business. The net loss for the second quarter of 1999 was $5.3 million, or $0.29 per share, compared to a net loss of $837,000, or $0.06 per share, in the second quarter of 1998. The Company reported a loss from continuing operations of $8.9 million, or $0.50 per share, in the six months ended June 30, 1999 compared to a loss of $1.1 million, or $0.08 per share, in 1998. The results from continuing operations for 1999 include a $2.9 million charge to expense in-process research and development associated with the Company's February February: see month. 1999 acquisitions of two technology businesses. The Company reported a loss from discontinued operations of $2.5 million, or $0.14 per share, in the six months ended June 30, 1999 compared to income from discontinued operations of $181,000, or $0.01 per share, in 1998. The net loss for the first six months of 1999 was $11.5 million, or $0.64 per share, compared to a net loss of $915,000, or $0.07 per share, in 1998. James James, person in the Bible James, in the Gospel of St. Luke, kinsman of St. Jude. The original does not specify the relationship. James, rivers, United States James. J. Weis, President & 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. said, "We continued to make strong progress during the quarter toward our goal of becoming a leading provider of Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the and electronic commerce solutions through the use of chip technology. During the quarter, we announced the introduction and rollout of a number of new chip-based products including: -- PCDefender (TM), a smart card-based information security solution designed to protect desktop and laptop computers A portable computer that has a flat LCD screen and usually weighs less than eight pounds. Often called just a "laptop," it uses batteries for mobile use and AC power for charging the batteries and desktop use. Today's high-end laptops provide all the capabilities of most desktop computers. against unauthorized access to systems and data -- SmartGuardian (TM), a first of its kind smart card-based web-filtering system designed to control children's access to the Internet in the public library and school environments -- SmartPassky (TM), a smart card-based product designed to help Internet users Internet user n → internauta m/f Internet user Internet n → internaute m/f enhance their personal security by managing the large number of user names and passwords required in connection with using the Internet -- SmartReward (TM), a smart card-based loyalty program designed for retailers who seek to improve customer retention and reward customer loyalty -- DataFast D-101 (TM), one of the most advanced hand-held hand-held also hand·held adj. Compact enough to be used or operated while being held in the hand or hands: a hand-held video camera. Adj. 1. remote data transfer and data duplication duplication /du·pli·ca·tion/ (doo-pli-ka´shun) 1. the act or process of doubling, or the state of being doubled. 2. tool available today. In addition, we have rolled out and commenced shipments of the Company's chip-based products for providing smart card capabilities to the next generation of digital cable set top terminals." Mr. Weis added, "Our planned acquisition of Absec Limited of Northern Ireland Northern Ireland: see Ireland, Northern. Northern Ireland Part of the United Kingdom of Great Britain and Northern Ireland occupying the northeastern portion of the island of Ireland. Area: 5,461 sq mi (14,144 sq km). Population (2001): 1,685,267. is expected to advance the execution of our strategy of focusing on key growth areas of the Internet and electronic commerce where chip technology will play a major role. The acquisition of Absec, a leading designer, manufacturer and distributor of chip-based cost recovery and cashless payment and control systems, is expected to position PubliCARD as a competitive provider of multi-application chip-based solutions to the university and corporate campus markets. "The announcement of our partnering with General Instrument Corporation and WorldGate (WorldGate Communications, Inc., Trevose, PA, www.wgate.com) A company founded in 1995 to provide Internet access over your existing TV cable. The technology, which used an advanced cable set-top box and wireless keyboard, transmitted Web data via the vertical blanking interval between TV Communications to deliver chip-based electronic commerce applications to consumers through cable television was further evidence of PubliCARD's capabilities in the rapidly growing digital and analog cable set top terminal market." Mr. Weis said, "During the quarter, PubliCARD has expanded its technological capabilities and product offerings in the areas of chip-based Internet services, electronic commerce, campus, cable and satellite services and digital photography. We intend to continue to identify other potential acquisitions that are designed to enhance our capabilities in these areas and in other growth markets that would benefit from chip technology." About PubliCARD, Inc. Headquartered at Fairfield, CT, PubliCARD develops and deploys chip-based technology systems and solutions used in the Internet and electronic commerce market segments. With a presence in the U.S. and international markets, PubliCARD specializes in many areas of smart card technology, including chip card manufacturing, smart card readers, electronic commerce security software, chip-based components for applications in cable and broadcast access, unattended point-of-sale point of sale n. pl. points of sale A business or place where a product or service can be purchased. Also called point of purchase. point equipment, Web filtering Blocking access to unwanted Internet content. Businesses can block content based on traffic type. For example, Web access might be allowed, but file transfers may not. Content can also be blocked by site, using lists of URLs cataloged by content that are updated frequently. systems, a range of digital photography interface devices and more. You can find more information at www.publicard.com. Special Note Regarding 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. : Certain statements contained in this press release may constitute forward-looking statements 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 that involve risks and uncertainties that could cause actual results to differ materially from those expressed or implied Inferred from circumstances; known indirectly. In its legal application, the term implied is used in contrast with express, where the intention regarding the subject matter is explicitly and directly indicated. in the applicable statements. For more information on the potential factors, which could affect the company's financial results, refer to the Company's most recent SEC reports, including the Form 10-Q Form 10-Q See 10-Q. for the quarter ended March 31, 1999, and the Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ended December December: see month. 31, 1998, as amended a·mend v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. . -0-
PUBLICARD, INC.
AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENTS OF INCOME (LOSS)
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 1999 AND 1998
(in thousands except share data)
(unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
1999 1998 1999 1998
Net sales $6,276 $4,120 $11,472 $8,285
Cost of sales 3,819 2,797 7,229 5,482
Gross margin 2,457 1,323 4,243 2,803
Operating expenses:
General and administrative 1,993 1,171 3,978 2,344
Sales and marketing 1,517 222 2,697 421
Product development 772 139 1,433 315
In-process research and
development - - 2,919 -
Goodwill amortization 1,058 16 1,731 29
5,340 1,548 12,758 3,109
Income (loss) from
operations (2,883) (225) (8,515) (306)
Other income (expenses):
Interest income 109 133 263 279
Interest expense (70) (74) (165) (160)
Cost of pensions
- nonoperating (185) (212) (420) (439)
Other (expense) income (121) (563) (74) (470)
(267) (716) (396) (790)
Income (loss) from continuing
operations (3,150) (941) (8,911) (1,096)
Discontinued operations:
Income (loss) from
discontinued
operations (92) 104 (444) 181
Loss on disposition of
discontinued operations (2,100) - (2,100) -
Net income (loss) $(5,342) $(837) $(11,455) $(915)
Basic earnings (loss)
per common share:
Continuing operations $(.17) $(.07) $(.50) $(08)
Discontinued operations (.12) .01 (.14) .01
$(.29) $(.06) $(.64) $(07)
Weighted average shares
outstanding 18,250,274 13,056,105 17,825,907 13,053,030
PUBLICARD, INC.
AND SUBSIDIARY COMPANIES
CONSOLIDATED BALANCE SHEETS AS OF
JUNE 30, 1999 AND DECEMBER 31, 1998
(in thousands except share data)
June 30, December 31,
1999 1998
(unaudited)
ASSETS
Current assets:
Cash, including short-term
investments of $7,796 in 1999, $9,217 $18,482
and $17,547 in 1998
Trade receivables, less
allowance for doubtful accounts 2,725 1,988
Inventories 4,550 2,810
Net assets of discontinued operations - 1,518
Other 507 481
Total current assets 16,999 25,279
Property, plant and equipment:
Land 234 234
Buildings 2,402 2,377
Machinery and equipment 3,840 2,656
Less - accumulated depreciation (1,955) (1,661)
4,521 3,606
Goodwill 21,905 9,781
Other assets 1,252 1,262
$44,677 $39,928
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Current maturities of long-term debt $147 $147
Trade accounts payable 2,309 1,331
Accrued liabilities 5,698 4,384
Total current liabilities 8,154 5,862
Long-term debt 919 991
Other non-current liabilities 6,736 7,780
Total liabilities 15,809 14,633
Redeemable shares 2,029 3,378
Shareholders' equity:
Common shares, $0.10 par value 2,178 2,030
Additional paid-in capital 84,098 67,091
Accumulated deficit (50,346) (38,891)
Common shares held in treasury, at cost (8,252) (8,207)
Unearned compensation (839) (106)
Total shareholders' equity 26,839 21,917
$44,677 $39,928
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