COMPANY CONTACTS:


Kenneth Traub
President and Chief Executive Officer
Tel. (914) 593-0809
KTRAUB@ABNH.COM


Alan Goldstein
Vice President and Chief Financial Officer
Tel. (914) 593-0844
AGOLDSTEIN@ABNH.COM

 

AMERICAN BANK NOTE HOLOGRAPHICS REPORTS
FIRST QUARTER FINANCIAL RESULTS

Elmsford, NY - May 7, 2004 – American Bank Note Holographics, Inc. (“ABNH”) (OTC Bulletin Board: ABHH) a world leader in the origination, production and marketing of holograms for security applications, today announced financial results for the first quarter ended March 31, 2004.

Net income for the first quarter of 2004 was $0.4 million, or $0.02 per share, compared with net income of $0.2 million, or $0.01 per share, for the first quarter of 2003. Sales for the first quarter of 2004 were $5.0 million, compared with $4.5 million for the first quarter of 2003.

Kenneth H. Traub, president and CEO of ABNH, commented, “We are pleased to report a continued improvement in operating performance in the first quarter. We have also continued to build upon the strong position we have established in document security markets and invested in new product development and marketing initiatives to support future growth. Our transaction card business has returned strongly and we anticipate continued strength in this market going forward. We also commenced new identification document programs as well as new pharmaceutical projects which we anticipate will contribute to our growth.”


more


 

ABNH REPORTS FIRST QUARTER FINANCIAL RESULTS/2

About American Bank Note Holographics, Inc.

American Bank Note Holographics is a world leader in the origination, production, and marketing of holograms. The Company’s products are used primarily for security applications such as counterfeiting protection and authentication of transaction cards, identification cards, documents of value, consumer and industrial products as well as for packaging and design applications. ABNH is headquartered in Elmsford, NY. For more information, visit www.abnh.com

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ABNH Forward-Looking Statement

This news release includes forward-looking statements that involve risks and uncertainties. Although the Company believes such statements are reasonable, it can make no assurance that such statements will prove to be correct. Such statements are subject to certain factors that may cause results to differ materially from the forward-looking statements. Such factors include the risk factors discussed in the Company’s filings with the Securities and Exchange Commission, including its most recent Annual Report on Form 10-K, a copy of which may be obtained from the Company without charge. The Company undertakes no obligation to publicly release results of any of these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unexpected results.

 

This release and prior releases are available on the ABNH Web site at www.abnh.com


-Financial Tables to Follow-


 

ABNH REPORTS FIRST QUARTER FINANCIAL RESULTS/3

AMERICAN BANK NOTE HOLOGRAPHICS, INC.
BALANCE SHEETS
(In thousands, except share data)

 

     
March 31,
December 31,
2004
2003
 
(Unaudited)
 
ASSETS      
Current Assets:
Cash and cash equivalents
$ 11,843
$11,341
Accounts receivable, net of allowance for
doubtful accounts of $180
3,292
3,174
Inventories
2,342
2,386
Deferred income taxes
961
981
Prepaid expenses
285
385
Other
75
150
 
---------
---------
Total current assets
18,798
18,417
Machinery, equipment and leasehold improvements,
net of accumulated depreciation and amortization
of $9,397 and $9,238
2,499
2,490
Other assets
100
113
 
---------
---------
 
Total Assets
$ 21,397
$ 21,020
 
=========
=========
 
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable
$ 581
$ 687
Accrued expenses
1,488
1,627
Customer advances
52
49
Income taxes payable
185
-
 
---------
---------
Total current liabilities
2,306
2,363
Deferred income taxes
1,240
1,208
 
---------
---------
Total liabilities
3,546
3,571
 
---------
---------
 
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
40,000,000 shares; issued and outstanding
18,483,720 shares
185
185
Additional paid-in capital
23,994
23,994
Accumulated deficit
(6,328)
(6,730)
 
---------
---------
Total Stockholders' Equity
17,851
17,449
 
---------
---------
 
Total Liabilities and Stockholders' Equity
$ 21,397
$ 21,020
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ABNH REPORTS FIRST QUARTER FINANCIAL RESULTS/4

AMERICAN BANK NOTE HOLOGRAPHICS, INC.
STATEMENTS OF OPERATIONS - UNAUDITED
(In thousands, except per share data)

     
Three Months Ended
March 31,
 
2004
2003
Revenue:      
Sales
$ 5,034
$ 4,538
Royalty income
10
44
 
-------
-------
 
5,044
4,582
Costs and expenses:
Cost of goods sold
2,270
2,016
Selling and administrative
1,683
1,763
Research and development
283
268
Depreciation and amortization
160
179
 
-------
-------
 
4,396
4,226
 
-------
-------
 
Operating income
648
356
 
Interest income
23
25
 
-------
-------
 
Income before provision for income taxes
671
381
Provision for income taxes
269
162
 
-------
-------
 
Net income
$ 402
$ 219
 
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=======
 
Net income per share:
Basic and diluted
$ 0.02
$ 0.01
 
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