here's article that may contribute to stock being down.
Tuesday October 26, 6:18 pm Eastern Time
Note: there is a subsequent correction for this
article.
Company Press Release
SOURCE: Harbinger Corporation
Harbinger Announces Substantial Revision in Investments
And Upward Revision of Revenue Targets for 2000 and
Beyond
ATLANTA, Oct. 26 /PRNewswire/ -- Harbinger Corporation (Nasdaq: HRBC - news), a
worldwide supplier of Electronic Commerce software, services and solutions, announced today a
substantial increase in strategic investment for marketing, sales and technology development. The
increase in investment is projected to be approximately $3 million in 4Q99 and approximately $25
million in 2000. Harbinger also announced that it is increasing the Company's growth objective for
core revenue in 2000 to 40 percent, and setting a goal for total revenue growth of 40 percent for
2001 and thereafter. Harbinger's revenue goals for 4Q99 remained unchanged but the Company's
earnings target now become $0.07 per share. Harbinger's revenue goal for 2000 has been
increased to $195 million and the Company's internal target for profitability is $0.11 cents in total
for the year spread evenly throughout the four quarters.
``Most companies in the U.S., and likely throughout the world, will undertake an E-Commerce
initiative of one form or another during the next 12 to 15 months,' said C. Tycho Howle, Harbinger
Chairman and Chief Executive Officer. ``Our aim is to insure that Harbinger has mind share and
visibility during this fundamental shift in the way companies conduct business. We're willing to make
a one-time extraordinary reduction in our level of profitability to address what we see as an
extraordinary one-time investment opportunity. However, we continue to believe our profitability is
important and therefore, while we are investing heavily, we will continue to target profitability for
our company. This is a pivotal time for the B2B industry as we come off of the Y2K 'freeze.' Most
companies (as high a percentage as 97 percent by one study) will be making strategic
E-Commerce investments in the year 2000 that will govern the direction of their E-Commerce
initiatives for years to come. Every one of these companies needs to be aware of Harbinger's
proven B2B E-Commerce solutions, and that's what this investment is all about.'
Further information regarding this announcement can be found in the Investor Relations section of
the company's corporate Web site at harbinger.com . |
