Perhaps someone can explain this first paragraph to me. . . I haven't a clue what they are trying to say. LOL! It's a good one to read allowed. . . . I can't stop laughing. . .I think it means they are going to "rob from Peter to pay Paul." . . .
Harbinger Announces New Application Service Provider Line of Business for B2B E-Commerce Implementations
ATLANTA--(BUSINESS WIRE)--Oct. 25, 1999--Harbinger Corporation (NASDAQ:HRBC), a worldwide supplier of Electronic Commerce software, services and solutions, announced today the launch of its new E-Commerce Application Service Provider (ASP) line of business. While providing application services is an area in which the company already has considerable experience, current ASP customer relationships are not coordinated across existing lines of service. By designating our ASP service as a major line of business, we will enable the appropriate level of organizational focus and facilitate the allocation of the appropriate level of corporate resources to this major new B2B marketplace opportunity.
Harbinger will offer the ASP service to companies of all sizes by providing and hosting E-Commerce applications on a subscription basis. This model allows customers to access software, connectivity and support services without having to bear significant up front expenditures. The ASP business represents further expansion of Harbinger's capabilities to create and manage vertical trading communities and supply chains, and leverages the company's substantial investment in its harbinger.net(SM) E-Commerce portal.
Confirming strong growth potential for ASPs in a Sept 30 report, GartnerGroup/Data-quest concludes that the ASP market will hit $2.7 billion during 1999 and $22.7 billion by 2003, a five-year compounded annual growth rate of 91 percent. Gartner/Dataquest also highlighted the growing ASP sector at its recent Symposium/ITxpo Conference last week (see write-up, InteractiveWeek, Oct. 13, "Gartner: Everyone will use ASPs").
"By providing customers a means to tap into scalable E-Commerce solutions without traditional startup costs, a huge barrier to entry is lifted for many companies," said James M. Travers, President and Chief Operating Officer for Harbinger. "E-Commerce is moving in this direction and we believe that one day most companies, from the largest to the very smallest, will choose to go with ASPs. In a world where technology is universal and ever changing, 'pay as you go' and 'continuous updates' are very attractive options."
"From the financial perspective, a shift toward the delivery of Harbinger B2B E-Commerce solutions under an ASP model rather than our historic approach is expected to have two primary effects," said Jim McCormick, Harbinger Chief Financial Officer. "It will lower the percentage of total revenues derived from software licensees and increase the percentage of total revenues derived from recurring services. Whereas Harbinger's target revenue model has traditionally been 50 percent recurring revenues from maintenance and connectivity services, 30 percent from software licensees, and 20 percent from professional services, our new model will target 65, 15 and 20 percent respectively. A side benefit is likely to be a lessening of revenue volatility due to fluctuations in software licensees from quarter to quarter."
Harbinger already has considerable expertise in providing hosted applications and community management services. The company recently announced relationships with Packard Bell/NEC, GroceryLink.com and Telstra, among other hosted E-Commerce operations already underway. Access to Harbinger applications is provided on a subscription basis, with an option to buy. Customers pay a monthly hosting fee that includes full application usage, data storage, connectivity, bandwidth and customer support services. Subscription fees can be applied to a full license for the application, should the customer choose to move the application to their own facilities.
Harbinger will offer a variety of ASP options including a Shared Service Environment, Dedicated Service Environment and Joint Service Environment, where Harbinger provides infrastructure and management services on behalf of the customer. The shared service is geared to customers using Harbinger-provided applications in a co-branded or private-labeled trading community. The dedicated service is for high-volume or special trading community applications. The Joint Service is tailored to the customer who prefer managing certain application components, while relying on Harbinger to provide the infrastructure and support for hosted applications and related services.
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 or its subsidiaries. All other company and product names referenced herein are registered trademarks or trademarks of their respective owners.
CONTACT:
Harbinger Corporation
Wendy Gold, 404/467-3343
wendy.gold@harbinger.com |
