COMPANY CONTACTS:


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

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

AMERICAN BANK NOTE HOLOGRAPHICS REPORTS
THIRD QUARTER FINANCIAL RESULTS

 

Elmsford, NY - November 11, 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 third quarter and nine months ended September 30, 2004.

Net income for the third quarter of 2004 was $0.6 million, or $0.03 per share, compared with net income of $0.3 million, or $0.02 per share, for the third quarter of 2003. Net income for the first nine months of 2004 was $1.3 million, or $0.07 per share, compared with net income of $0.6 million, or $0.03 per share for the first nine months of 2003.

Sales for the third quarter of 2004 were $5.8 million, compared with $4.6 million for the third quarter of 2003. Sales for the first nine months of 2004 were $15.7 million, compared with $13.4 million for the first nine months of 2003

 

Kenneth H. Traub, President and CEO of ABNH, commented, “We are pleased to report record results in the third quarter. Our continued success is largely due to the implementation of new programs in the transaction card, identity document and product authentication markets. We anticipate continued demand for effective security solutions in these markets, and we are continuing to move forward with investments that we expect to expand our capabilities to address our customers’ product security objectives while enhancing efficiency.”

more

 

 

ABNH REPORTS THIRD 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

# # #

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 THIRD QUARTER FINANCIAL RESULTS/3
AMERICAN BANK NOTE HOLOGRAPHICS, INC.
CONDENSED BALANCE SHEETS
(In thousands, except share data)

     
 
September 30,
December 31,
 
2004
2003
 
-------------
-------------
 
(Unaudited)
ASSETS
Current Assets:

Cash and cash equivalents
$ 12,803
$11,341

Accounts receivable, net of allowance for

doubtful accounts of $180
4,214
3,174

Inventories
2,765
2,386

Deferred income taxes
1,038
981

Prepaid expenses
423
385

Other
-
150
 
---------
---------
Total current assets
21,243
18,417
Machinery, equipment and leasehold improvements,
net of accumulated depreciation and amortization
of $9,729 and $9,238
2,683
2,490
Other assets
76
113
 
---------
---------
 
Total Assets
$ 24,002
$ 21,020
 
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LIABILITIES AND STOCKHOLDERS' EQUITY

Current Liabilities:

Accounts payable
$ 1,373
$ 687

Accrued expenses
1,807
1,627

Customer advances
71
49

Income taxes payable
745
-
 
---------
---------
Total current liabilities
3,996
2,363
Deferred income taxes
1,213
1,208
 
---------
---------
Total liabilities
5,209
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
(5,386)
(6,730)
 
---------
---------
Total Stockholders' Equity
18,793
17,449
 
---------
---------
 
Total Liabilities and Stockholders' Equity
$ 24,002
$ 21,020
 
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ABNH REPORTS THIRD QUARTER FINANCIAL RESULTS/4
AMERICAN BANK NOTE HOLOGRAPHICS, INC.
CONDENSED STATEMENTS OF OPERATIONS - UNAUDITED
(In thousands, except per share data)

             
 
Three Months Ended
 
Nine Months Ended
 
September 30,
 
September 30,
 
--------------------
  
----------------------
 
2004
2003
 
2004
2003
 
-------
-------
  
--------
--------
Revenue:
 
Sales
$ 5,808
$ 4,629
  
$ 15,749
$ 13,442
Royalty income
­
­
  
13
47
 
-------
-------
  
--------
--------
 
5,808
4,629
  
15,762
13,489
Costs and expenses:
 
Cost of goods sold
2,413
2,090
  
6,943
6,094
Selling and administrative
1,939
1,520
  
5,373
4,911
Research and development
319
339
  
967
903
Depreciation and amortization
171
184
  
495
547
 
-------
-------
  
--------
--------
 
4,842
4,133
  
13,778
12,455
 
-------
-------
  
--------
--------
 
 
Operating income
966
496
  
1,984
1,034
 
 
Other income:
 
Interest income
29
22
  
77
73
Patent agreement
­
­
  
178
­
 
-------
-------
  
--------
--------
 
29
22
  
255
73
 
-------
-------
  
--------
--------
 
 
Income before provision for income taxes
995
518
  
2,239
1,107
Provision for income taxes
397
220
  
895
470
 
-------
-------
  
--------
--------
 
 
Net income
$ 598
$ 298
  
$ 1,344
$ 637
 
=======
=======
  
========
========
 
 
Net income per share:
 
Basic and diluted
$ 0.03
$ 0.02
  
$ 0.07
$ 0.03
 
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