ABHH News American Bank Note Holographics Reports Third Quarter Financial Results
ROBBINSVILLE, N.J.--(BUSINESS WIRE)--American Bank Note Holographics, Inc. (“ABNH”
or the “Company”)
(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, 2006.
Sales in the third quarter of 2006 were $6.6 million compared with $9.0
million in the third quarter of 2005, a decrease of $2.4 million or 27%.
Sales for the first nine months of 2006 totaled $24.9 million compared
with $22.2 million for the first nine months of 2005, an increase of
$2.7 million or 12%.
Net income for the third quarter of 2006 was $0.7 million, or $0.04 per
fully diluted share versus $1.1 million, or $0.06 per fully diluted
share, for the third quarter of 2005. Net income for the first nine
months of 2006 was $2.7 million, or $0.14 per fully diluted share versus
$2.2 million, or $0.11 per fully diluted share, for the first nine
months of 2005.
Kenneth H. Traub, President and CEO of ABNH, commented, “As
we previously reported, sales declined this quarter from the year
earlier as a result of the cessation of the Visa HoloMag™
program. Despite this we were able to generate net income of $0.7
million in the quarter and we ended the quarter with over $13 million in
cash and no debt.”
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 of
transaction cards, identity documents, documents of value,
pharmaceuticals and other consumer and industrial products. The
Company's headquarters is in Robbinsville, NJ. For more information,
visit www.abnh.com.
ABNH Forward-Looking Statement
Certain statements contained in this release, including without
limitation, statements containing the words “believes,”“intends,”“expects,”“anticipates,” and
words of similar import, constitute “forward-looking
statements” within the meaning of the private
securities litigation reform act of 1995. Such forward-looking
statements are based on current management expectations. Numerous
factors, including those disclosed herein, those related to transaction
card industry trends and those detailed in our filings with the
Securities and Exchange Commission (as set forth under the heading "Risk
Factors" in our Annual Report on Form 10-K for the year ended December
31, 2005), may cause results to differ materially from those anticipated
in the forward-looking statements. Many of the factors that will
determine our future results are beyond our capability to control or
predict. These statements are subject to risks and uncertainties and
therefore actual results may differ materially. Readers should not place
undue reliance on such forward-looking statements which reflect
management's view only as of the date hereof. We undertake no obligation
to revise or update any forward-looking statements, or to make any other
forward-looking statements, whether as a result of new information,
future events or otherwise.
This release and prior releases are available on the ABNH website at www.abnh.com.
AMERICAN BANK NOTE HOLOGRAPHICS, INC.
BALANCE SHEETS - UNAUDITED
(In thousands, except share data)
September 30,
2006
December 31,
2005
ASSETS
CURRENT ASSETS:
Cash and cash equivalents
$
13,524
$
9,114
Accounts receivable, net of allowance for doubtful accounts of
$400 and $500
4,109
6,019
Inventories, net
2,160
2,940
Deferred income taxes, net
1,428
2,968
Prepaid expenses and other
436
331
Income tax receivable
1,090
401
Total current assets
22,747
21,773
MACHINERY, EQUIPMENT AND LEASEHOLD IMPROVEMENTS--Net of
accumulated depreciation and amortization of $9,470 and $8,852
6,306
7,224
DEFERRED INCOME TAXES, NET
275
411
OTHER ASSETS
108
76
TOTAL ASSETS
$
29,436
$
29,484
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILTIES:
Accounts payable
$
1,808
$
3,820
Accrued expenses
3,055
3,834
Customer advances
111
204
Income taxes payable
—
359
Total current liabilities
4,974
8,217
LONG-TERM LIABILTIES
1,383
1,957
Total liabilities
6,357
10,174
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 18,936,703 shares and 18,715,469
shares
190
187
Additional paid-in capital
25,657
24,729
Unearned compensation on restricted stock
—
(96)
Accumulated deficit
(2,768)
(5,510)
Total Stockholders’ Equity
23,079
19,310
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
$
29,436
$
29,484
AMERICAN BANK NOTE HOLOGRAPHICS, INC.
STATEMENTS OF OPERATIONS - UNAUDITED
(In thousands, except per share data)
Three Months Ended
September 30,
Nine Months Ended
September 30,
2006
2005
2006
2005
REVENUE:
Sales
$
6,556
$
8,959
$
24,914
$
22,216
Royalty income
—
—
—
10
Total revenue
6,556
8,959
24,914
22,226
COSTS AND EXPENSES:
Cost of goods sold, excluding depreciation and amortization
