EXECUTIVE SNAPSHOT

Kenneth Traub

American Bank Note Holographics, Inc.
TITLE: president and CEO
RESIDENCE: West Windsor
FAMILY: wife Rina, daughters Melissa, 11, Alicia, 8.
EDUCATION: bachelor’s degree from Emory College, master’s in business administration from Harvard.
THUMBNAIL SKETCH: Co-founder of Voxware, an Internet telephony company, he was brought in to revamp ABNH in 1999 following a security fraud scandal. He has since repositioned the company as a leading provider of holograms for security applications, including the protection of credit cards, identity documents, currency and pharmaceuticals. ABNH is now moving to Robbinsville.
How were you able to turn ABNH around?
When I came in 1999 the company was embroiled in a massive security fraud scandal, had defaulted on its bank debt, had no cash, was a defendant in litigation and the target of a Securities and Exchange Commission and U.S. Attorney investigation. Our customers, suppliers and investors were all worried about the company’s viability.
   I replaced every member of the board of directors and management team and put in place a new and stronger management control system. Now we are financially strong, with no debt and $13 million cash. I was able to reposition the company as a leader in our industry. Our move is in a sense the next major phase of our turnaround.
Why did you choose to move to Robbinsville?
Robbinsville is located in the middle of our two current facilities — one in Elmsford, N.Y., and the other in Huntington Valley, Pa. The location allows us to maximize retention. New Jersey also extended a grant through its Business Employment Incentive Program and the building itself was ideal for our requirements. We’ll be leasing a 134,000-square-foot building — that’s 50 percent bigger than the total of the two facilities we’re moving out of. We plan to close our two current facilities and consolidate in Robbinsville.
When will you move?
We are immediately starting work in the new facility on construction and customization to make the facility highly secure. We plan to invest about $7 million to enhance the facility and expect that to be complete by May. We’ll move in at that time.
Where do you see ABNH growing in the future?
We have begun to increase our target in the pharmaceutical market. Historically we’ve primarily been focused on document security — credit cards and currency. Today virtually all adults have our product in their wallets, since we provide holograms for Visa, MasterCard, Discover, American Express and Diner’s Club.
   Pharmaceutical companies don’t often think first about counterfeit problems. They are focused on their primary objective — to develop the best drugs and package them in a consumer-friendly way — but there was $7 billion in counterfeit pharmaceuticals last year. It’s not just a financial problem, but an issue of public health.
How can ABNH help?
We focus not on the counterfeiting of the drugs themselves, but on the packaging. In all our products we incorporate three levels of protection: overt, covert and forensic security.
   Overt items are designed to be recognized by the general public. The holograms on credit cards, or seals on pharmaceutical packages are examples. Covert items require tools and training to identify and forensic items are incorporated to assist law enforcement identify authentic versus counterfeit, classify counterfeit materials and facilitate the prosecution of criminals.