Before Russia, at the end of 1997 HGRM had 5 consecutive profitable quarters and a number of customers. Their press release is copied below. Assume they still have these customers........................................ Thursday February 12,1998 10:24 am Eastern Time
Holographic Dimensions, Inc. Reports Fifth Consecutive
Profitable Quarter And Comments On Future Prospects
MIAMI, Feb. 12 /PRNewswire/ -- Holographic Dimensions, Inc. (OTC Bulletin Board: HGRM -
news) reported net income for the quarter ending December 31, 1997 of $70,207, versus net
income of $5,348 for the same period last year. Fourth quarter revenues increased over 90% from
$149,916 in 1996 to $289,132 in 1997.
Revenues and earnings for the fiscal year of 1997 also showed improvement. Revenues more than
doubled, raising from $639,212 in the fiscal year 1996 to $1,322,236 for the fiscal year 1997. Net
earnings for 1997 were $200,165 or $.033 per share, compared to a net loss of $102,035
(-$.017 per share) for 1996. The increase in revenues is the result of further continued growth in
hologram production to an expanding customer base.
Kevin G. Brown, President of Holographic Dimensions, Inc., stated, ``The growth of our
Company is very exciting. Considering that we have been a publicly traded Company for just over
two years, I believe we are doing quite well to be showing a profit for five consecutive quarters.
Business from our repeat customers is providing us with a solid base, while our further penetration
into the pharmaceutical security market is currently leading our continuing growth.'
Mr. Brown continued, ``We anticipate continued growth in both short term and long term. Not
only do I foresee increased demand for our security products, but also new developments in our
holographic technology are very exciting. The following activities are particularly significant for our
Company's future.'
Sales Representatives -- The Company has increased its network of International Sales
Representatives from 6 to 11, resulting in several new recurring revenue projects for 1998,
including full face, transparent security holograms used to authenticate the Peruvian National Police
Force identity cards. The Company continues to seek quality representation in all global markets.
Increases in Pharmaceutical Security Sales -- The pharmaceutical security market continues to
generate significant revenues for the Company. In addition to Merck and Hoescht Marion Roussel,
the Company has recently secured a new contract from Lilly Pharmaceutical to produce
security/authenticity packaging labels for their Prozac product.
Increases in Revenues from Subsidiaries and Affiliates -- The Panama affiliate, Holographic
Dimensions, Panama has received new recurring revenue contracts for bank check security.
Citibank, Tower Bank, Banco Del Istmo are among the many financial institutions using HGRM
security devices on bank checks.
The subsidiary, Holographic Dimensions, Poland (HDP) has increased its monthly sales of
hologram security devices destined for transportation pass security from approximately 20 million
units monthly in 1997 to 30 million units monthly commencing in March of 1998. In addition to its
recurring revenue contracts with security printers in Eastern Europe, HDP was recently awarded
the contract to supply holograms for the Warsaw Transit Pass project in 1998. This represents a
significant victory for the Company in that the project had been previously manufactured on an
exclusive basis by one of the Company's competitors.
The Company's joint venture partner, MTM Security in Istanbul, has completed the installation of
its security hologram manufacturing facility and will soon begin to generate revenues. Under the
terms of the joint venture agreement, Holographic Dimensions, Inc. receives a 5% royalty on the
gross sales of MTM. The Company anticipates that revenues from the joint venture will commence
in the 2nd quarter of 1998. The Company will continue to seek similar joint venture relationships in
other markets utilizing its success in Turkey as a model for expansion.
Increases Research & Development Contracts & New Holographic Technologies -- The
Company is currently engaged in several research and development contracts that could result in
new holographic contracts for products and related technologies during 1998 and beyond.
During 1997 the Company actively began to develop new techniques to integrate motion picture
and holographic technologies. The Company has completed the R&D phase and will start offering
Holographic Motion Picture technology to its customer base in the 2nd quarter of 1998.
Ensuring the authenticity of a Company's products, or a government service is a growing concern
worldwide. Holographic Dimensions, Inc. technologies are ideally suited to this concern.
Companies and governmental agencies utilizing HGRM security holograms include: Citibank,
Merck Pharmaceutical, Hoechst Marion Roussel, General Electric, Banco Del Istmo, the
Panamanian Minister of Health and the Venezuelan Bureau of Driver's Licenses.
Holographic Dimensions, Inc. is a vertically integrated manufacturer of holographic imagery. The
Company's products are incorporated into a variety of security products including, but not limited
to, credit cards, negotiable documents, event tickets, transit passes, and consumer products for
marketing. This release may include forward-looking statements from the Company that may or
may not materialize. For more information visit them on the World Wide Web page at
hgrm.com .
TABLE - Holographic Dimensions Q4 results
1997 1996
Shr basic profit 0.013 profit $0.009
Net profit 70 profit 5
Revs 289 150
12 MONTHS
Shr basic profit $0.033 loss $(0.17)
Net profit 200 loss (102)
Revs 1,322 639
6 million shares outstanding |
