Earnings ............
ATLANTA, July 22 /PRNewswire/ -- Harbinger Corporation (Nasdaq: HRBC - news), a worldwide supplier of Electronic Commerce software, services and solutions, is pleased to announce record revenues for the quarter ended June 30, 1999. Revenues for 2Q99 increased 17% to $38.7 million compared to revenues of $33.2 million for the same period last year. In addition, core revenues from software and services (which exclude revenues from discontinued products and alliance partners) grew 44% from 2Q98 to 2Q99. Core revenues from software products alone grew over 66% compared to 2Q98 and more than 51% over 1Q99. Core revenues comprised nearly 83% of 2Q99 total revenues compared to 67% a year ago.
Operating income increased to $4.8 million for 2Q99 compared to $1.3 million in 2Q98. Net income applicable to common shareholders for 2Q99 was $5.3 million or $0.13 per fully diluted share compared to $2.0 million or $0.04 per fully diluted share for 2Q98.
Core earnings, defined as pre-tax income excluding restructuring and other charges, and tax-effected at 39%, were $0.08 per share in the second quarter of 1999.
''It is becoming clear to all involved with our company that the strategic course we have set is the right one,'' said C. Tycho Howle, Harbinger Chairman and Chief Executive Officer. ''As companies become serious about IP-based business-to-business E-Commerce, they are increasingly coming to us as a solutions provider. Especially significant for us has been our growing position as a preferred provider of back-office services for Internet storefronts and vertical trading communities.''
Howle continued, ''Given our focus on day-to-day operations, we have not been able to spend as much time with the investment community as we have historically. In light of this, we are requesting feedback from our investors on several key issues. Today we are posting an online survey in the Investor Relations section of www.harbinger.com . We would appreciate your sharing your views with us. We will comment on our findings in our next scheduled update on September 10.''
Active revenue generating customers, adjusted for customers taking products that have been discontinued, continued to increase over the last 12 months to approximately 38,800 at the end of the second quarter of 1999, while IP-based traffic over the Company's network increased to 20% in 2Q99 from 15% in 1Q99.
Further information and management discussion regarding second quarter results and the outlook for the remainder of 1999 can be found in the Investor Relations section of the company's Web site at www.harbinger.com .
About Harbinger
Harbinger Corporation is a leading worldwide provider of business-to- business Electronic Commerce software, services and solutions. The company maximizes its customers' business potential with comprehensive, scalable E-Commerce solutions that help streamline operations, increase profitability and build electronic trading communities. Harbinger's objective is to serve more customers using Internet Protocols (IP) than any other provider and to establish harbinger.net(SM) as the preferred transaction portal for E-Commerce information and mission-critical, business-to-business E-Commerce transactions. Headquartered in Atlanta, Georgia, Harbinger provides worldwide support to its customer community from multiple International operations facilities. For more corporate information, go to www.harbinger.com. Access Harbinger's online EC Resource Center and other network services at www.harbinger.net .
This press release contains statements which may constitute ''forward- looking statements'' within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act of 1995. Those statements include statements regarding the intent, belief or current expectations of Harbinger Corporation and members of its management as well as the assumptions on which such statements are based. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those contemplated by such forward-looking statements. Important factors currently known to management that could cause actual results to differ materially from those in forward-looking statements include fluctuation of our operating results, the ability to compete successfully and the ability to integrate acquired companies. Additional factors are set forth in the Safe Harbor Compliance Statement for Forward-Looking Statements included as Exhibit 99.1 to the Company's Annual Report on Form 10-K for the year ended December 31, 1998. The Company undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results.
Harbinger and the Harbinger logo are registered trademarks, and harbinger.net is a service mark of Harbinger Corporation. All other company and product names referenced herein are registered trademarks or trademarks of their respective owners.
HARBINGER CORPORATION
CONSOLIDATED STATEMENT OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
(3) (3)
Quarter Ended June 30, Six Months Ended June 30,
1999 1998 1999 1998
Revenues:
Services $26,435 $21,892 $51,806 $41,741
Software 12,291 11,286 20,423 21,489
Total revenues 38,726 33,178 72,229 63,230
Direct costs:
Services 11,621 8,081 22,247 15,113
Software 1,356 897 2,487 1,669
Total direct costs 12,977 8,978 24,734 16,782
Gross margin 25,749 24,200 47,495 46,448
Operating costs:
Selling and marketing 9,311 7,552 17,494 14,164
General and
administrative 6,707 6,054 13,267 11,553
Product development 2,778 2,325 5,993 4,843
Depreciation and
amortization 2,182 1,920 4,415 3,795
Charge for purchased
in-process product
development, write-off
of software development
costs, restructuring,
acquisition related
and other charges --- 5,010 --- 13,049
Total operating costs20,978 22,861 41,169 47,404
Operating income (loss) 4,771 1,339 6,326 (956)
Interest income, net 760 1,266 1,658 2,577
Income from continuing
operations before
income taxes 5,531 2,605 7,984 1,621
Income tax expense 254 9 367 145
Income from continuing
operations 5,277 2,596 7,617 1,476
Loss from discontinued
operations --- 637 --- 854
Net income applicable
to common shareholders $5,277 $1,959 $7,617 $622
HARBINGER CORPORATION
CONSOLIDATED STATEMENT OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
(3) (3)
Quarter Ended Six Months Ended
June 30, June 30,
1999 1998 1999 1998
Basic earnings per share:
Earnings from continuing
operations $ 0.14 $ 0.06 $ 0.19 $ 0.03
Loss from discontinued
operations --- (0.01) --- (0.02)
Net earnings per
common share $ 0.14 $ 0.05 $ 0.19 $ 0.01
Weighted average
number of common
shares outstanding 38,491 41,853 39,181 41,451
Earnings per common share
assuming dilution:
Earnings from
continuing operations $ 0.13 $ 0.05 $ 0.19 $ 0.03
Loss from discontinued
operations --- (0.01) --- (0.02)
Net earnings per
common share $ 0.13 $ 0.04 $ 0.19 $ 0.01
Weighted average
number of common
shares outstanding
assuming dilution 39,878 44,480 41,145 44,103
Supplemental Data:
Adjusted operating
income (1) $4,771 $6,349 $6,326 $12,092
Adjusted net income
applicable to common
shareholders (2) $3,374 $4,696 $4,871 $9,114
Adjusted net income
per diluted
common share (2) $ 0.08 $ 0.11 $ 0.12 $ 0.21
Weighted average number
of common shares
outstanding - diluted 39,878 44,480 41,145 44,103
Supplemental Data (3):
Adjusted operating
income (1)(3) $4,268 $6,349 $5,074 $12,092
Adjusted net income
applicable to common
shareholders (2)(3) $3,068 $4,696 $4,107 $9,114
Adjusted net income
per diluted
common share (2)(3) $ 0.08 $ 0.11 $ 0.10 $ 0.21
Weighted average number
of common shares
outstanding - diluted 39,878 44,480 41,145 44,103
(1) Excludes charges for purchased in-process product development,
write-off of software development costs, restructuring, acquisition
related and other charges incurred in 1998.
(2) Excludes charges for purchased in-process product development,
write-off of software development costs, restructuring, acquisition
related and other charges incurred in 1998 plus discontinued
operations in 1998, net of related income taxes at an effective rate
of 39%.
(3) Excludes a general and administrative credit of $502,000 in the
second quarter of 1999 and $1,252,000 for year-to-date 1999 for
the collection of specific accounts receivable written off in 1998.
HARBINGER CORPORATION
CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
June 30, Dec. 31,
1999 1998
CURRENT ASSETS
Cash and short-term investments $68,288 $92,307
Accounts and royalties receivable, net 42,534 37,621
Other current assets 6,827 7,725
TOTAL CURRENT ASSETS 117,649 137,653
PROPERTY AND EQUIPMENT, net 26,485 23,150
INTANGIBLE ASSETS, net 14,521 16,803
DEFERRED INCOME TAXES
AND OTHER ASSETS 2,157 763
TOTAL ASSETS $160,812 $178,369
CURRENT LIABILITIES
Accounts payable $4,833 $5,566
Accrued expenses 23,304 31,571
Deferred revenues 21,641 21,213
TOTAL CURRENT LIABILITIES 49,778 58,350
SHAREHOLDERS' EQUITY 111,034 120,019
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $160,812 $178,369
SOURCE: Harbinger Corporation
EOM------------------------------------------------------------------
Jim in CT
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