<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 1998
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
Commission File Number 1-14371
INFORMATION HOLDINGS INC
(Exact name of registrant as specified in its charter)
Delaware 06-1518007
- ---------------------------------------- ------------------------------------
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
23 Old Kings Highway South, Darien, CT 06820
- ---------------------------------------- ------------------------------------
(Address of principal executive offices) (Zip Code)
(203) 662-4203
--------------------------------------------------
(Registrant's telephone number,
including area code)
Not Applicable
--------------------------------------------------
(Former name, former address and former
fiscal year, if changed since last report)
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter periods that the registrant was
required to file such reports) and, (2) has been subject to such filing
requirements for the past 90 days. YES [ X] NO [ ]
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practical date.
Outstanding as
Class of November 13, 1998
Common Stock, par value $.01 ------------------
16,943,189
<PAGE>
INFORMATION HOLDINGS INC.
INDEX TO FORM 10-Q
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements (Unaudited)
<TABLE>
<CAPTION>
Page
----
<S> <C>
Consolidated Statements of Operations for the
three months and nine months ended September 30, 1997 and September 30, 1998....3
Consolidated Balance Sheets as of December 31, 1997 and September 30, 1998...........4
Consolidated Statements of Cash Flows for the
nine months ended September 30, 1997 and September 30, 1998.....................5
Notes to Consolidated Financial Statements...........................................6
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations.......................................................8
PART II. OTHER INFORMATION
Item 2. Changes in Securities and Use of Proceeds......................................12
Item 6. Exhibits and Reports on Form 8-K...............................................13
Signatures ...............................................................................14
</TABLE>
2
<PAGE>
Information Holdings Inc.
Consolidated Statements of Operations
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended September 30, Nine Months Ended September 30,
-------------------------------- -------------------------------
(in thousands, except per share data) 1997 1998 1997 1998
------- -------- -------- --------
<S> <C> <C> <C> <C>
Revenues ............................................. $ 9,623 $ 11,511 $ 25,466 $ 32,584
Costs and expenses:
Cost of sales ...................................... 3,343 2,752 8,206 8,128
Selling, general and administrative expenses ....... 6,945 6,931 17,798 19,250
Depreciation and amortization ...................... 1,668 1,356 2,249 3,927
--------------- ---------------- ---------------- ----------------
Total operating expenses ............................. 11,956 11,039 28,253 31,305
--------------- ---------------- ---------------- ----------------
Operating income (loss) .............................. (2,333) 472 (2,787) 1,279
Interest income (expense), net ....................... (20) 395 (113) 463
Other income (expense), net .......................... 29 0 (113) 0
--------------- ---------------- ---------------- ----------------
Income (loss) before income taxes .................... (2,324) 867 (3,013) 1,742
Provision for income taxes ........................... 0 43 0 135
--------------- ---------------- ---------------- ----------------
Net income (loss) .................................... $ (2,324) $ 824 $ (3,013) $ 1,607
--------------- ---------------- ---------------- ----------------
--------------- ---------------- ---------------- ----------------
Pro forma income data:
Income (loss) before income taxes, as reported ..... $ (2,324) $ 867 $ (3,013) $ 1,742
Pro forma income taxes ............................. 0 43 0 135
--------------- ---------------- ---------------- ----------------
Pro forma net income (loss) ........................ $ (2,324) $ 824 $ (3,013) $ 1,607
--------------- ---------------- ---------------- ----------------
--------------- ---------------- ---------------- ----------------
Pro forma earnings (loss) per share ................ $ (0.14) $ 0.05 $ (0.18) $ 0.09
--------------- ---------------- ---------------- ----------------
--------------- ---------------- ---------------- ----------------
</TABLE>
See notes to consolidated financial statements.
3
<PAGE>
Information Holdings Inc.
Consolidated Balance Sheets
(in thousands)
<TABLE>
<CAPTION>
December 31, September 30,
1997 1998
------------ -------------
(unaudited)
<S> <C> <C>
Assets
Current assets:
Cash and cash equivalents .............................. $ 10,280 $ 25,915
Short-term investments ................................. 0 30,148
Accounts receivable, net ............................... 4,968 5,296
Inventories ............................................ 3,803 4,267
Prepaid expenses and other current assets .............. 1,466 2,756
-------------- --------------
Total current assets ..................................... 20,517 68,382
Property and equipment, net .............................. 4,041 3,932
Pre-publication costs .................................... 3,289 2,822
Other assets ............................................. 826 1,418
Publishing rights and other intangible assets, net ....... 21,519 22,776
Deferred tax asset ....................................... 27 27
-------------- --------------
Total assets ............................................. $ 50,219 $ 99,357
-------------- --------------
-------------- --------------
Liabilities and stockholders' equity
Current liabilities:
Current portion of capitalized lease obligations ....... $ 233 $ 258
Accounts payable ....................................... 2,950 3,079
Accrued expenses ....................................... 3,511 3,746
Royalties payable ...................................... 1,749 1,273
Deferred subscription revenue .......................... 7,582 5,944
-------------- --------------
Total current liabilities ................................ 16,025 14,300
Capital leases ........................................... 2,955 2,759
Long-term debt ........................................... 2,000 0
Other long-term liabilities .............................. 683 683
-------------- --------------
Total liabilities ........................................ 21,663 17,742
-------------- --------------
-------------- --------------
Stockholders' equity:
Class A preferred ...................................... 31,804 0
Class B preferred ...................................... 1,663 0
Common stock ........................................... 0 169
Paid in capital ........................................ 0 84,750
Retained deficit ....................................... (4,911) (3,304)
-------------- --------------
Total stockholders' equity ............................... 28,556 81,615
-------------- --------------
Total liabilities and stockholders' equity ............... $ 50,219 $ 99,357
-------------- --------------
-------------- --------------
</TABLE>
See notes to consolidated financial statements.
4
<PAGE>
Information Holdings Inc.
Consolidated Statements of Cash Flows
(Unaudited)
<TABLE>
<CAPTION>
(In thousands)
Nine Months Ended September 30,
-------------------------------
1997 1998
--------- -------
<S> <C> <C>
Cash flows from operating activities
Net income (loss) ...................................................... $ (3,013) $ 1,607
Adjustments to reconcile net income (loss) to net cash
provided by operating activities:
Depreciation and amortization ........................................ 2,249 3,927
Amortization of pre-publication costs ................................ 1,739 1,634
Other ................................................................ 400 0
Changes in assets and liabilities:
Accounts receivable .................................................. 539 (328)
Inventories .......................................................... 819 (464)
Prepaid expenses and other current assets ............................ (1,168) (1,290)
Accounts payable and accrued expenses ................................ 2,394 364
Royalties payable .................................................... (65) (476)
Deferred subscription revenue ........................................ 884 (1,639)
Other ................................................................ (186) (641)
-------------- ------------
Net cash provided by operating activities .............................. 4,592 2,694
-------------- ------------
Cash flows from investing activities
Purchase of property and equipment ..................................... (900) (757)
Pre-publication costs .................................................. (1,060) (1,167)
Acquisitions of businesses and titles .................................. (30,778) (4,268)
Increase in short-term investments ..................................... 0 (30,148)
Proceeds from sale of equipment ........................................ 11 0
-------------- ------------
Net cash used in investing activity .................................... (32,727) (36,340)
-------------- ------------
Cash flows from financing activities
Borrowings (repayments) under line of credit ........................... 3,000 (2,000)
Capital contributions .................................................. 33,467 11
Issuance of common stock ............................................... 0 51,441
Payments on capitalized lease obligations .............................. (129) (171)
-------------- ------------
Net cash provided by financing activities .............................. 36,338 49,281
-------------- ------------
Net increase in cash and cash equivalents .............................. 8,203 15,635
Cash and cash equivalents at beginning of period ....................... 0 10,280
-------------- ------------
Cash and cash equivalents at end of period ............................. $ 8,203 $ 25,915
-------------- ------------
-------------- ------------
Supplemental cash flow information:
Interest paid .......................................................... $ 230 $ 267
Income taxes paid ...................................................... $ 34 $ 13
</TABLE>
See notes to consolidated financial statements.
5
<PAGE>
Information Holdings Inc.
Notes to Unaudited Consolidated Financial Statements
September 30, 1998
1. Business Operations
Information Ventures LLC ("IV"), a wholly owned subsidiary of Information
Holdings Inc. ("IHI"), was formed on December 2, 1996 to create and build an
information and publishing business. IV functions as a holding company and,
through its subsidiaries, publishes information in print and electronic media in
the fields of science, technology, business, environmental science, intellectual
property, and certain related disciplines. Products are distributed on a
worldwide basis, and the business has operating offices in the United States and
Europe. Prior to IV's initial acquisition, which occurred effective as of
January 1, 1997, IV had no operations or assets.
2. Initial Public Offering
On August 12, 1998, the members of IV contributed all of their direct and
indirect equity interests to IHI, a newly formed Delaware corporation, in
exchange for 12,200,000 shares of common stock of IHI representing 100% of the
initial outstanding equity interests (the "Exchange").
Effective August 12, 1998, IHI sold 4,250,000 additional shares of common
stock in an initial public offering at $12.00 per share. Subsequently, the
underwriters exercised an option and purchased an additional 472,356 shares at
$12.00 per share. Net proceeds, after deducting underwriting discounts and
expenses, of approximately $51.3 million are available for general corporate
purposes, including acquisitions. IHI, together with IV and its subsidiaries are
referred to as the "Company".
3. Basis of Presentation
The consolidated financial statements presented herein include the
accounts of IHI and subsidiaries, all of which are wholly owned. Because IHI had
no business operations prior to the Exchange, the balance sheet and statement of
operations for IHI for periods prior to August 12, 1998 are not included herein.
The balance sheet and statements of operations for periods prior to August 12,
1998 include the accounts of IV and its subsidiaries. All material inter-company
accounts and transactions have been eliminated in consolidation. All
acquisitions have been accounted for using the purchase method of accounting,
and operating results have been included from the respective dates of
acquisition.
The financial statements are unaudited but include all adjustments
(consisting only of normal recurring adjustments) that the Company considers
necessary for a fair presentation of the financial position, operating results
and cash flows for such periods. The results of such periods are not necessarily
indicative of operating results to be expected for a full year.
6
<PAGE>
4. Pro Forma Adjustments
No historical earnings per share data are presented, as the Company does
not consider such data meaningful. The pro forma earnings (loss) per share data
presented were computed using 16,943,185 shares outstanding, which reflects all
shares outstanding following the initial public offering, as if such shares were
outstanding since January 1, 1997.
5. 1998 Stock Option Plan
In conjunction with the initial public offering, the Board of Directors
of the Company adopted the Company's 1998 Stock Option Plan (the "Plan"). All
directors and full-time employees of the Company are eligible to participate in
the Plan. The aggregate number of shares of common stock as to which stock
options may be granted under the Plan may not exceed 866,886, subject to
adjustment as provided in the Plan.
Options to purchase an aggregate of 528,213 shares under the Plan were
granted on August 12, 1998. Options to purchase an aggregate of 5,833 shares
were granted on October 13, 1998. All options are exercisable at a price of
$12.00 per share and vest in four annual equal installments beginning on the
first anniversary of the date of grant, except that the options granted to the
Company's independent directors and certain executive officers have accelerated
vesting schedules.
6. Pro Forma Income Taxes
As discussed in Note 2, in connection with the initial public offering,
IV became a wholly owned subsidiary of IHI, which will be subject to federal
income taxes.
The pro forma provisions for income taxes do not differ significantly from
historical amounts reported, because the Company has established valuation
allowances to fully reserve for the net deferred tax asset. The net deferred tax
asset has been fully reserved as the Company believes it is more likely than not
that the asset will not be realized.
7. Acquisitions
On August 19, 1998 the Company acquired two product lines for cash
consideration of approximately $3.7 million: the Chapman & Hall list of
mathematics and statistics books and Chapman & Hall's electronic databases and
books in the chemistry field. The purchase price was allocated to publishing
rights and other intangible assets.
7
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITIONS AND RESULTS OF OPERATIONS
Overview
The Company is an information publisher that provides print and electronic
information to end-users in the STM and professional markets and electronic
access to intellectual property databases for end-users in the patent and
trademark markets. The Company currently sells over 3,000 individual book titles
and publishes approximately 300 new books each year. The Company also offers
multiple subscription products and services, including journals, newsletters,
annual handbooks and comprehensive information guides that are available in
print and electronic formats. The Company offers its intellectual property
databases on CD-ROM and through the Internet.
The Company's principal sources of revenues are book publishing sales,
subscription service sales and sales of patent and trademark information.
Through CRC Press, the Company generates revenues from the sale of books and
subscription products (71% and 29%, respectively, of total CRC Press revenues in
the first nine months of 1998). The Company believes that its book and
subscription titles generate significant recurring demand. For example, while
the Company published approximately 285 frontlist titles in 1997, it had a
backlist of nearly 3,000 titles which accounted for approximately 68% of the
Company's total book publishing revenues in 1997. Through MicroPatent, the
Company generates revenues from Internet-based services, CD-ROM subscriptions
and other products including database sales of historical and customized patent
information (42%, 37% and 21%, respectively, of total MicroPatent revenues in
the first nine months of 1998). The Company expects that new publishing media,
such as the Internet, will grow in significance in the future. Of the Company's
total revenues of $32.6 million for the first nine months of 1998, 83% and 17%
were derived from CRC Press and MicroPatent, respectively.
Impact of Acquisitions and Outlook
The Company was organized in December 1996 by Mason Slaine and Warburg,
Pincus Ventures, L.P. (the "Initial Stockholders") and, since its inception, has
grown principally through acquisitions. As the Company acquires additional
companies, its sales mix, market focus, cost structure and operating leverage
may change significantly. Consequently, the Company's historical and future
results of operations reflect and will reflect the impact of acquisitions, and
period-to-period comparisons may not be meaningful in certain respects.
Historical information for companies subsequent to their acquisition may include
integration and other costs that are not expected to continue in the future.
In 1997 and 1998, the Company recorded certain adjustments (the
"Adjustments") in conjunction with the acquisition and reorganization of CRC
Press and other businesses, as well as certain compensation matters. The
Adjustments reduced revenues and operating loss of $9.6 million and ($2.3)
million for the three months ended September 30, 1997 by approximately $1.3
million and $2.3 million, respectively. The Adjustments reduced revenues and
operating loss of $25.5 million and ($2.8) million for the nine months ended
September 30, 1997 by approximately $2.7 million and $6.1 million, respectively.
The Adjustments reduced operating income of $.5 million and $1.3 million for the
three and nine months ended September 30, 1998 by approximately $.8 million and
$1.1 million, respectively. Management does not expect these items to continue
in the future, although other issues may arise from future acquisitions.
8
<PAGE>
Results of Operations
Three Months Ended September 30, 1998 Compared to Three Months Ended September
30, 1997
Revenues. Revenues increased by $1.9 million, or 19.6%, from $9.6 million
to $11.5 million due to: an increase of $1.5 million in subscription services,
including the impact of the Adjustments, which reduced revenues in the prior
year period; an increase of $.5 million in Internet sales of intellectual
property information; and an increase of $.4 million in domestic book sales and
other revenues at CRC Press. These increases were partially offset by a decrease
in international book sales of $.3 million.
Cost of Sales. Cost of sales decreased by $.6 million, or 17.7%, from $3.3
million to $2.7 million due primarily to a decrease of $.5 million at CRC Press,
based on improved book publishing efficiencies and the integration of the
Auerbach business. As a percentage of revenue, cost of sales declined from 34.7%
to 23.9%.
Depreciation and Amortization. Depreciation and amortization decreased by
$.3 million, or 18.7%, from $1.7 million to $1.4 million due primarily to a
decrease in amortization of intangible assets related to the MicroPatent
acquisition.
Interest Income (Expense). Interest income (expense) increased by $.4
million to $.4 million due to interest earned on proceeds from the initial
public offering completed in August 1998.
Net Income. Net income increased by $3.2 million to $.9 million from a loss
of $2.3 million due to the factors described above.
Nine Months Ended September 30, 1998 Compared to Nine Months September 30, 1997
Revenues. Revenues increased by $7.1 million, or 28.0%, from $25.5 million
to $32.6 million due to: an increase of $5.9 million related to Auerbach and
MicroPatent, businesses acquired in June 1997 and July 1997, respectively; an
increase of $2.5 million in domestic book sales; and an increase of $2.6 million
related to the Adjustments. These increases were offset by a decline of $4.5
million in international book sales due primarily to a one-time stocking order
received from a new international distributor in early 1997.
Cost of Sales. Cost of sales decreased by $.1 million, or .1%, from $8.2
million to $8.1 million due to decreases associated with the decline in
international book sales, partly offset by an increase related to Auerbach and
MicroPatent. As a percentage of revenue, cost of sales declined from 32.2% to
24.9% based on improved gross margins at CRC Press and higher gross margins of
acquired businesses.
Selling, General and Administrative Expenses (SG&A). SG&A increased by $1.5
million, or 8.2%, from $17.8 million to $19.3 million due to: an increase of
$2.3 million related to Auerbach and MicroPatent; an increase of $1.3 million in
other expenses, including higher direct mail marketing costs; and a decrease of
$2.1 million related to the Adjustments.
9
<PAGE>
Depreciation and Amortization. Depreciation and amortization increased by
$1.7 million, or 74.6%, from $2.2 million to $3.9 million due to: an increase in
amortization of intangible assets related to the MicroPatent and Auerbach of
$1.3 million; an increase in MicroPatent depreciation of $.2 million; and other
increases at CRC Press of $.2 million.
Interest Income (Expense). Interest income (expense) increased by $.6
million to $.5 million from ($.1) million due primarily to interest earned on
proceeds of the initial public offering completed in August 1998.
Net Income. Net income increased by $4.6 million to $1.6 million compared
to a loss of $3.0 million due to the factors described above.
Liquidity and Capital Resources
Historically, the financing requirements of the Company have been funded
through cash generated by operating activities and capital contributions from
the Initial Stockholders. The Company completed an initial public offering of
its common stock in August 1998.
Cash and cash equivalents totaled $25.9 million at September 30, 1998 and
$10.3 million at December 31, 1997. Short-term investments totaled $30.1 million
at September 30, 1998. Excluding cash and investments, the Company had a working
capital deficit of $2.0 million at September 30, 1998 due primarily to the
inclusion of $5.9 million of deferred subscription revenues, a non-cash
obligation. Since the Company receives subscription payments in advance, the
Company's existing operations are expected to maintain very low or negative
working capital balances, excluding cash.
Cash generated by operating activities was $2.7 million for the nine months
ended September 30, 1998, derived from net income of $1.6 million plus non-cash
charges of $5.6 million less an increase in operating assets, net of liabilities
of $4.5 million. This increase in operating assets and liabilities includes
payments of $2.4 million associated with the Adjustments.
Cash used by investing activities was $36.3 million for the nine months
ended September 30, 1998 due primarily to purchases of short-term investments of
$30.1 million. The Company also had capital expenditures, including
pre-publication costs, of $1.9 million and acquisition costs of $4.3 million.
Excluding acquisitions of businesses and titles, the Company's existing
operations are not capital intensive.
Cash provided by financing activities was $49.3 million for the nine months
ended September 30, 1998 including net proceeds from the initial public offering
of $51.4 million and repayments of debt obligations of $2.2 million. The Company
has no debt obligations as of September 30, 1998, other than approximately $3.0
million in capitalized lease obligations. The Company currently does not
maintain a working capital facility but believes that, if needed, one would be
available at market rates.
The Company believes that net cash provided by operations, together with
cash on hand and other available sources of funds, will be sufficient to fund
the cash requirements of its existing operations. Excluding acquisition
activity, the Company does not expect to use the proceeds of the initial public
offering to fund operations. The Company currently has no commitments for
material capital expenditures. However, future operating requirements and
capital needs will be subject to economic conditions and other factors, many of
which are beyond the Company's control.
10
<PAGE>
The Company will use net proceeds from the initial public offering for
general corporate purposes including acquisitions. Pending such uses, the net
proceeds will be invested in short-term, investment grade securities. The
Company currently has two non-binding letters of intent to acquire businesses
and product lines for aggregate consideration of approximately $4 million. The
Company does not have any other agreements, arrangements or understandings with
respect to any prospective material acquisitions.
Seasonality
The Company's business is mildly seasonal, with revenues typically reaching
slightly higher levels during the third and fourth quarters of each calendar
year, based on historical publication schedules. In 1997, on a pro forma basis,
24% of the Company's revenues were generated during the fourth quarter with the
first, second and third quarters accounting for 29%, 23% and 24% of revenues,
respectively. The first quarter of 1997 was uncharacteristically high due to an
initial stocking order from a new international distributor. Excluding this
order, first through fourth quarter revenues were 22%, 25%, 27% and 26%,
respectively. In addition, the Company may experience fluctuations in revenues
from period to period based on the timing of acquisitions and new product
launches.
Year 2000 Issue
The Company is currently addressing "Year 2000" issues, which relate to
certain computer programs and systems being unable to distinguish between the
year 1900 and the year 2000. The Company has project teams at its principal
operating units to assess internal issues and correspond with customers and
suppliers.
The project teams have developed plans which are being implemented in the
following phases: (1) identifying and taking inventory of hardware and software
systems; (2) assigning priorities to identified items; (3) determining year 2000
compliance for all significant items; (4) repairing or replacing significant
items which are not compliant; and (5) testing all significant items.
Concurrently, the project teams are corresponding with customers and suppliers
to assess the status of their year 2000 issues.
The Company has completed the first three phases for all significant
internal systems and is in the process of repairing or replacing non-compliant
systems. The majority of the Company's significant systems are currently year
2000 compliant. Certain accounting and communications systems of the Company's
CRC Press unit are not compliant, but are on schedule to be replaced by the end
of the first quarter of 1999.
The Company is in the process of communicating with its customers and
suppliers in an effort to assess the status of their year 2000 issues. The
Company has not yet completed its evaluation as to whether its customers or
suppliers will be able to resolve their year 2000 issues in a satisfactory and
timely manner, or the magnitude of the adverse impact it would have on the
Company's operations, if they fail to do so.
The Company has incurred costs of less than $.1 million related to the
project through September 30, 1998. The project is expected to be completed by
mid-1999 at a cost of approximately $.2 million. The estimate includes internal
costs, but excludes the costs to upgrade and replace systems in the normal
course of business. The Company does not expect these projects to have a
significant effect on operations.
11
<PAGE>
INFORMATION HOLDINGS INC.
PART II. OTHER INFORMATION
Item 2. Changes in Securities and Use of Proceeds
The following report relates to the Company's initial public offering.
<TABLE>
<CAPTION>
<S> <C>
Commission file number of registration statement: ......... 333-56665
Effective date: ........................................... August 6, 1998
Expenses incurred through October 31, 1998:
Underwriting discounts ............................... $3,887,747
Other expenses (estimated) ........................... $1,508,000
Total expenses (estimated) ........................... $5,395,747
Amount of expenses paid to directors, officers,
associates thereof, 10% holders or affiliates: ............ None
Application of proceeds through October 31, 1998:
Acquisition of product lines ......................... $3,644,325
Temporary investments (U.S. treasury bills) .......... $47,557,168
Amount of proceeds paid to directors, officers,
associates thereof, 10% holders or affiliates ............. None
</TABLE>
12
<PAGE>
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
3.1 Certificate of Incorporation *
3.2 Bylaws *
4.1 Specimen Stock Certificate *
27.1 Financial Data Schedule
* Incorporated by reference to the identically numbered
exhibit to the Company's Registration Statement on
Form S-1, file no. 333-56665.
(b) Reports on Form 8-K
None
13
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
Date: November 13, 1998
INFORMATION HOLDINGS INC.
(Registrant)
By: /s/ Mason Slaine
----------------------------
Mason Slaine, President and
Chief Executive Officer
By: /s/ Vincent Chippari
----------------------------
Vincent Chippari, Executive
Vice President and Chief
Financial Officer
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> JAN-01-1998
<PERIOD-END> SEP-30-1998
<CASH> 25,915
<SECURITIES> 30,148
<RECEIVABLES> 5,786
<ALLOWANCES> 210
<INVENTORY> 4,267
<CURRENT-ASSETS> 68,382
<PP&E> 5,652
<DEPRECIATION> 1,720
<TOTAL-ASSETS> 99,357
<CURRENT-LIABILITIES> 14,300
<BONDS> 0
0
0
<COMMON> 169
<OTHER-SE> 81,446
<TOTAL-LIABILITY-AND-EQUITY> 99,357
<SALES> 32,584
<TOTAL-REVENUES> 32,584
<CGS> 8,128
<TOTAL-COSTS> 8,128
<OTHER-EXPENSES> 23,177
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 154
<INCOME-PRETAX> 1,742
<INCOME-TAX> 135
<INCOME-CONTINUING> 1,607
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,607
<EPS-PRIMARY> .09
<EPS-DILUTED> .09
</TABLE>
