CONTACT:
Arnold D. Levitt
Senior Vice President
Chief Financial Officer
1 609-386-2500
|
FRANKLIN REPORTS SECOND QUARTER RESULTS AND ANNOUNCES SALE AND LEASEBACK OF BUILDING
Burlington, New Jersey - August 10, 2005 - Franklin Electronic Publishers, Inc. (AMEX:FEP) reported net income
of $1,642,000, or $.19 per common share after preferred stock dividends for the quarter ended June 30, 2005
compared with net income of $779,000, or $.07 per common share after preferred stock dividends, for the same
period in the prior year. Revenue in the current quarter increased 15% to $18,419,000 from $15,990,000 in the
prior year. The increase in revenue and net income during the quarter was attributable to the delivery of
technology pursuant to two development and licensing agreements.
Barry Lipsky, Franklin's President and Chief Executive Officer, said, "I am gratified by the continuing progress
of our Proximity Technology Division in developing and licensing its linguistic solution technologies. Our
licensing activities are an important go forward initiative as we look to grow our revenues over the coming
years." Mr. Lipsky also said that "During the quarter, we shipped our new Scholastic Aptitude Test (SAT) Prep
device to several major retailers and the initial reports on sell through are encouraging."
About Franklin
Franklin Electronic Publishers (AMEX:FEP) is a world leader in electronic handheld information, having sold more
than 34,000,000 electronic books since 1986. Current titles available directly or through partners number more
than 22,000 in sixteen languages under license from world class publishers, such as Merriam-Webster and
HarperCollins, focused in five genres: Learning, Language Learning, Travel, Spiritual, and Leisure. The
Company also licenses its underlying technology to an array of partners including Adobe, Ademco (a division of
Honeywell) and Macromedia. Franklin distributes ROLODEX® Electronics branded organizers worldwide and SEIKO
branded reference products in North and South America and Australia and will begin distribution of those
products in the European Community later in 2005. Franklin's products are available at 45,000 retail outlets
worldwide, through catalogs, and online at http://www.franklin.com.
ROLODEX® is a registered trademark of Berol Corporation, a subsidiary of Newell Rubbermaid Inc. SEIKO is a
registered trademark of SEIKO Corporation.
Except for the historical information contained herein, the matters discussed
throughout this release, including, but not limited to, those that are stated as Franklin's belief or expectation
or preceded by the word "should" are forward looking statements that involve risks to and uncertainties in
Franklin's business, including, among other things, the timely availability and acceptance of new electronic
books, organizers and other electronic products, changes in technology, the impact of competitive electronic
products, the management of inventories, dependence on key licenses, titles and products, Franklin's dependence
on third party component suppliers and manufacturers, including those that provide Franklin-specific parts
and other risks and uncertainties that may be detailed from time to time in Franklin's reports filed with the
Securities and Exchange Commission.
FRANKLIN ELECTRONIC PUBLISHERS, INC.
(In thousands, except per share data) |
| Three Months Ended June 30, |
 |
2005 |
2004 |
| Sales |
$18,419 |
$15,990 |
| Gross Margin |
9,342 |
7,927 |
| Pre Tax Income |
1,677 |
806 |
| Net Income |
1,642 |
779 |
| Preferred Stock Dividend |
122 |
229 |
| Income Applicable to Common Stock |
1,520 |
550 |
| Income Per Common Share |
| Basic |
$0.19 |
$0.07 |
| Diluted |
$0.18 |
$0.06 |
| Weighted Average Common Shares |
| Basic |
8,126 |
8,002 |
| Diluted |
8,495 |
8,480 |
|
