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
Elmsford, NY - November 13, 2003 - 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, 2003.
Net income for the third quarter of 2003 was $0.3 million, or $0.02 per share, compared to net income of $0.7 million, or $0.04 per share, for the third quarter of 2002. Net income for the first nine months of 2003 was $0.6 million, or $0.03 per share, compared with net income of $0.9 million, or $0.05 per share, for the first nine months of 2002. The results for the three and nine months ended September 30, 2002 included other income related to a patent settlement of $0.6 million.
Sales for the third quarter of 2003 were $4.6 million, compared with $4.7 million for the third quarter of 2002. Sales for the first nine months of 2003 were $13.4 million, compared with $14.2 million for the first nine months of 2002.
Kenneth H. Traub, president and CEO of ABNH, commented, "In the third quarter, we expanded our relationship with MasterCard with the design and acceptance of the new secure MasterCard Debit hologram. We entered into an amended agreement with MasterCard which extended our contract to at least 2011. We will begin shipping the new MasterCard Debit hologram in the fourth quarter of 2003. This program is important since it will be the primary
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ABNH REPORTS THIRD QUARTER FINANCIAL RESULTS/2
means for merchants and consumers to identify U.S. MasterCard debit and credit cards."Mr. Traub continued, "We have also continued our commitment to investment in research as we continue to develop improved products to address the security and design objectives of the transaction card, identification, pharmaceutical, consumer product and secure document markets. Notwithstanding the increase in R&D spending, we have reduced overhead resulting in improved operating margins this year."
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, 2003 |
December 31, 2002 |
|
| (Unaudited) |
||
| ASSETS |
||
| Current Assets: |
||
| Cash and cash equivalents......................................................................... |
$ 10,531 |
$ 8,659 |
| Accounts
receivable, net of allowance for |
3,214 |
3,661 |
| Inventories................................................................................................ |
2,210 |
2,541 |
| Deferred income taxes............................................................................... |
1,237 |
1,347 |
| Prepaid expenses...................................................................................... |
462 |
396 |
| Other........................................................................................................ |
274 |
345 |
| Total current assets................................................................................... |
17,928 |
16,949 |
| Machinery,
equipment and leasehold improvements, |
2,440 |
2,782 |
| Other assets.............................................................................................. |
128 |
399 |
| Total Assets.............................................................................................. |
$ 20,496 |
$ 20,130 |
LIABILITIES AND STOCKHOLDERS' EQUITY |
||
| Current Liabilities: |
||
| Accounts payable...................................................................................... |
$ 569 |
$ 966 |
| Accrued expenses..................................................................................... |
1,545 |
1,803 |
| Customer advances................................................................................... |
113 |
89 |
| Total current liabilities................................................................................ |
2,227 |
2,858 |
| Deferred income taxes............................................................................... |
1,190 |
830 |
| Total liabilities........................................................................................... |
3,417 |
3,688 |
| 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 .................................................................................. |
(7,100) |
(7,737) |
| Total Stockholders' Equity......................................................................... |
17,079 |
16,442 |
| Total Liabilities and Stockholders' Equity................................................... |
$ 20,496 |
$ 20,130 |
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 |
|||
| 2003 |
2002 |
2003 |
2002 |
|
| Revenue: |
||||
| Sales....................................................................................................... |
$ 4,629 |
$4,712 |
$13,442 |
$14,168 |
| Royalty income........................................................................................ |
- |
133 |
47 |
463 |
| 4,629 |
4,845 |
13,489 |
14,631 |
|
| Costs and expenses: |
||||
| Cost of goods sold.................................................................................. |
2,090 |
2,032 |
6,094 |
6,852 |
| Selling and administrative......................................................................... |
1,520 |
1,759 |
4,911 |
5,417 |
| Research and development...................................................................... |
339 |
243 |
903 |
856 |
| Depreciation and amortization.................................................................. |
184 |
203 |
547 |
595 |
| 4,133 |
4,237 |
12,455 |
13,720 |
|
| Operating income.................................................................................... |
496 |
608 |
1,034 |
911 |
| Other income: |
||||
| Interest income........................................................................................ |
22 |
29 |
73 |
76 |
| Patent settlement..................................................................................... |
- |
570 |
- |
570 |
| 22 |
599 |
73 |
646 |
|
| Income before provision for income taxes................................................. |
518 |
1,207 |
1,107 |
1,557 |
| Provision for income taxes....................................................................... |
220 |
513 |
470 |
662 |
| Net income.............................................................................................. |
$ 298 |
$ 694 |
$ 637 |
$ 895 |
| Net income per share: |
||||
| Basic and diluted..................................................................................... |
$ 0.02 |
$ 0.04 |
$ 0.03 |
$ 0.05 |