Harbinger Corporation Announces Record Revenues and Strong Core Revenue Growth
ATLANTA, Oct. 25 /PRNewswire/ -- Harbinger Corporation (Nasdaq: HRBC), a
worldwide supplier of Electronic Commerce software, services and solutions, is
pleased to announce record revenues for the quarter ended September 30, 1999.
Revenues for 3Q99 increased 16% to $40.9 million compared to revenues of
$35.4 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 29% from 3Q98 to 3Q99. Core revenues comprised nearly
85% of 3Q99 total revenues compared to 76% a year ago.
Operating income increased to $ 6.2 million for 3Q99 compared to
($ 16.8) million loss in 3Q98. Net income applicable to common shareholders
for 3Q99 was $ 6.4 million or $ 0.16 per fully diluted share compared to
($23.4) million loss or ($ 0.56) per fully diluted share for 3Q98, including a
($7.3) million loss from discontinued operations in 3Q98.
Core earnings, defined as pre-tax income excluding restructuring and other
charges, and tax-effected at 39%, were $ 0.10 per share in the third quarter
of 1999, compared to $0.07 for the same period last year.
"There was great progress at Harbinger during the third quarter along
many, many fronts," said C. Tycho Howle, Harbinger Chairman and Chief
Executive Officer. "In my view, the most important news from 3Q99 is not our
record operating results which once again exceeded expectations. Nor was it
the launch of our new ASP line of business which we believe will evolve into a
timely and very significant growth engine for the first decade of the 21st
century. Nor was it the many new customer relationships for our
market-leading, IP-based B2B E-Commerce solutions. Nor was it the progress
toward the migration of our tens of thousands of customers to use these new
IP-based technologies. Nor was it the planning and launch of our new online
vertical trading communities, such as grocerylink.net, and our partnership
with Sun Netscape to develop a very much needed petroleum industry portal.
No, the biggest news of the quarter is not what happened in the quarter but
rather our readiness for what is about to happen in our marketplace. Over the
next 12 to 15 months, the majority of businesses in the U.S. --
-
-
- and the World
for that matter - - - -- will
begin their Electronic Commerce initiatives to
establish electronic linkages with their suppliers and customers. I believe
Harbinger is once again finely tuned and ready for the race. The combination
of products, services, infrastructure, confidence, attitude and shared vision
among the Harbinger team is coming together at a pivotal time, just as many,
many companies set their EC direction for the next three to five years. In
my view, that's the big news for the quarter."
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 inability to predict the
outcome of certain litigation matters. 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)
Quarter
Ended Nine Months
Sep 30, Ended Sep 30,
1999 1998 1999 1998
Revenues:
Services $29,599 $22,137 $81,406 $63,878
Software 11,313 13,283 31,736 34,772
Total revenues 40,912 35,420 113,142 98,650
Direct costs:
Services 12,038 9,123 34,285 24,236
Software 1,139 1,169 3,626 2,839
Total direct costs 13,177 10,292 37,911 27,075
Gross margin 27,735 25,128 75,231 71,575
Operating costs:
Selling
and marketing 9,900 9,157 27,393 23,321
General
and administrative 6,190 13,914 19,458 25,467
Product development 2,974 2,798 8,967 7,641
Depreciation
and amortization 2,445 2,036 6,860 5,831
Charge for
purchased in-process
product development,
write-off of software
development costs,
restructuring,
acquisition related
and other charges -- 13,978 -- 27,027
Total operating costs 21,509 41,883 62,678 89,287
Operating income (loss) 6,226 (16,755) 12,553 (17,712)
Interest income, net 717 1,202 2,376 3,780
Income (loss) from
continuing operations
before income taxes 6,943 (15,553) 14,929 (13,932)
Income tax expense 571 560 939 705
Income (loss) from
continuing operations 6,372 (16,113) 13,990 (14,637)
Loss from discontinued
operations -- (7,331) -- (8,185)
Net income (loss)
applicable to
common shareholders $6,372 $(23,444) $13,990 $(22,822)
Basic earnings
per share:
Earnings (loss) from
continuing operations $0.17 $(0.39)
$0.36 $(0.36)
Loss from
discontinued
operations -- (0.17) -- (0.19)
Net earnings (loss)
per common share $0.17 $(0.56) $0.36 $(0.55)
Weighted average
number of common
shares outstanding 38,607 42,163 38,986 41,691
Earnings per common
share assuming
dilution:
Earnings (loss) from
continuing operations $0.16 $(0.39)
$0.35 $(0.36)
Loss from discontinued
operations -- (0.17) -- (0.19)
Net earnings (loss)
per common share $0.16 $(0.56) $0.35 $(0.55)
Weighted average number
of common shares
outstanding assuming
dilution 40,812 42,163 40,421 41,691
Supplemental Data:
Adjusted operating
income (loss) (1) $ 6,226 $ (2,777) $ 12,553 $ 9,315
Adjusted net
income (loss)
applicable to
common
shareholders(2) $ 4,236 $ (961) $ 9,106 $ 8,154
Adjusted net income
(loss) per diluted
common share (2) $0.10 $(0.02) $0.23 $0.19
Weighted average
number of common
shares outstanding
-- diluted 40,812 42,163 40,421 43,838
Supplemental Data (3):
Adjusted operating
income (1) (3) $ 5,724 $ 3,683 $ 10,798 $ 15,775
Adjusted net income
applicable to common
shareholders (2) (3) $ 3,929 $ 2,980
$ 8,036 $ 12,094
Adjusted net income
per diluted common
share (2) (3) $ 0.10 $ 0.07 $ 0.20 $ 0.28
Weighted average
number of common
shares outstanding
-- diluted 40,812 43,101 40,421 43,838
(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 in 1999
and 1998 at an effective rate of 39%.
(3) Excludes a general and administrative credit of $502,000 in the third
quarter of 1999 and $1,755,000 for year-to-date 1999 for the
collection of specific accounts receivable written off in 1998. In
1998, excludes a general and administrative charge of
6,460,000 in the third quarter and year-to-date 1998 for specific
accounts receivable written off.
HARBINGER CORPORATION
CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
Sep 30, Dec 31,
1999 1998
CURRENT ASSETS
Cash and short-term investments $67,197 $92,307
Accounts and royalties
receivable, net 47,409 37,621
Other current assets 6,476 7,725
TOTAL CURRENT ASSETS 121,082 137,653
PROPERTY AND EQUIPMENT, net 28,286 23,150
INTANGIBLE ASSETS, net 14,739 16,803
DEFERRED INCOME TAXES
AND OTHER ASSETS 2,954 763
TOTAL ASSETS $ 167,061 $178,369
CURRENT LIABILITIES
Accounts payable $5,971 $5,566
Accrued expenses 22,879 31,571
Deferred revenues 19,795 21,213
TOTAL CURRENT LIABILITIES 48,645 58,350
SHAREHOLDERS' EQUITY 118,416 120,019
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $ 167,061 $178,369
Contact: Jim McCormick, CFO of Harbinger Corporation, 404-467-3495,
jim.mccormick@harbinger.com
SOURCE Harbinger Corporation |
