Harbinger Corporation Announces Record Third Quarter Revenues and Operating Income
ATLANTA, Oct. 23 /PRNewswire/ -- Harbinger Corporation (Nasdaq:HRBC) is pleased to announce record revenues and operating income for the quarter ended September 30, 1997. Unless otherwise noted, all comparisons with prior periods reflect the effect of the retroactive restatement resulting from a pooling-of-interests transaction with SupplyTech Inc., and affiliates (''STI'') which was completed on January 3, 1997. Revenues for the third quarter increased 37% to $21.5 million compared to pooled revenues of $15.7 million for the same period last year. The net loss applicable to common shareholders for the third quarter was $9.7 million or ($0.47) per share compared to the pooled net loss applicable to common shareholders of $1.2 million or ($0.07) per share in the same period in 1996. Operating income for the third quarter (excluding charges for in-process product development and acquisitions) increased to $4.9 million compared to pooled operating income of $849,000 a year ago. Net income from the Company's core business (excluding the aforementioned charges, and the equity in loss of Harbinger NET Services, LLC (''HNS'') in 1996, net of related income taxes) was $3.3 million or $0.15 per share as compared to pooled income of $498,000 or $0.03 per share in the prior year.
Compared to Harbinger Corporation's third quarter 1996 performance as originally reported, revenue increased 93% from $11.2 million to $21.5 million and operating income (excluding charges for in-process product development and acquisitions) increased 171% from $1.8 million to $4.9 million. Net income for the period from core operations (excluding the aforementioned charges, and the equity in loss of HNS in 1996, net of related income taxes) as compared to amounts originally reported increased 197% to $3.3 million or $0.15 per share from $1.1 million or $0.06 per share one year earlier.
Operating margins, excluding charges for in-process product development and acquisitions, increased from 5.4% on a pooled basis and 16.1% as originally reported in the third quarter of 1996 to 22.6% in the third quarter of 1997 primarily reflecting both increased operating leverage on higher revenues and operating synergies realized from the STI merger. Active revenue generating customers, representing customers to whom Harbinger provides products and services on an ongoing basis, also reached a new record, increasing 74% over the last 12 months to more than 46,000 at the end of the third quarter. This increase includes approximately 9,000 additional customers as the result of the STI merger.
''We are pleased to announce another record quarter. Not only did most of our business units have a strong quarter, but Harbinger successfully raised $60 million in a secondary offering and acquired ACQUION, Inc., a leading supplier of Electronic Procurement Catalogs to major corporations,'' said C. Tycho Howle, Chairman. Added Harbinger CEO David Leach, ''While our revenue was impacted somewhat by currency fluctuations and softness in some European markets, we are pleased we were able to meet our earnings targets. Our SupplyTech and Enterprise Solutions Divisions, in particular had strong growth rates over the prior years.''
About Harbinger
Harbinger Corporation is a world-leading, single-source provider of Electronic Commerce and EDI solutions servicing over 46,000 software and network customers. The company is dedicated to providing comprehensive and scalable EC/EDI software and Value-Added Network services from desktops to mainframes, and additionally meeting emerging market needs for Internet- and Web-based commerce solutions. In addition to millions of EDI transactions, over $1.5 billion in Automated Clearing House (ACH) transfers flow through the Harbinger Network each month. Harbinger is headquartered in Atlanta, Georgia and provides worldwide support to customers with over 750 experienced employees in multiple U.S. and overseas operations facilities. For information on Harbinger's full line of products and services, please visit the World Wide Web at www.Harbinger.com.
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. 15 U.S.C.A. Sections 77Z-2 and 18U-5 (Supp. 1996). 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 are set forth in the Safe Harbor Compliance Statement for Forward- Looking Statements included as Exhibit 99.1 to the Company's Current Report on Form 8-K dated and filed July 16, 1997. 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 over time.
Harbinger and the Harbinger logo are registered trademarks of Harbinger Corporation. A11 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 Sept 30,
As Originally
Pooled Reported
1997 1996 1996
Revenues:
Services $ 13,637 $ 9,849 $ 7,263
Software 7,874 5,881 3,891
Total revenues 21,511 15,730 11,154
Direct costs:
Services 4,830 3,600 2,454
Software 880 559 472
Total direct costs 5,710 4,159 2,926
Gross margin 15,801 11,571 8,228
Operating costs:
Selling and marketing 4,123 3,745 2,068
General and administrative 3,929 3,635 2,202
Product development 1,830 2,558 1,617
Depreciation and amortization 1,067 784 548
Charge for purchased in-process
product development &
acquisition related charges 14,949 --- ---
Total operating costs 25,898 10,722 6,435
Operating income (loss) (10,097) 849 1,793
Interest expense (income), net (399) 32 (11)
Equity in losses of joint ventures --- 2,144 2,144
Loss before income tax expense
and extraordinary item (9,698) (1,327) (340)
Income tax expense (benefit) --- (94) (94)
Loss before extraordinary item (9,698) (1,233) (246)
Extraordinary loss on debt
extinguishment --- --- ---
Net loss (9,698) (1,233) (246)
Preferred stock dividends --- --- ---
Net loss applicable to common
shareholders $ (9,698) $ (1,233) $(246)
Net loss per share:
Loss before extraordinary item
applicable to common
shareholders $ (0.47) $ (0.07) $ (0.02)
Extraordinary loss on debt
extinguishment --- --- ---
Net loss per common share $ (0.47) $ (0.07) $ (0.02)
Weighted average number of
common and common equivalent
shares outstanding 20,646 18,597 16,197
Supplemental Data:
Equity in loss of investment
in HNS $ --- $ 2,144 $ 2,144
Adjusted operating income (a) $ 4,852 $ 849 $ 1,793
Adjusted net income applicable
to common shareholders (b) $ 3,269 $ 498 $ 1,100
Adjusted net income per common
share (b) $ 0.15 $ 0.03 $ 0.06
Nine Months Ended Sept. 30
As Originally
Pooled Reported
1997 1996 1996
Revenues:
Services $ 37,892 $ 26,718 $ 19,463
Software 20,307 15,269 8,934
Total revenues 58,199 41,987 28,397
Direct costs:
Services 12,921 9,522 5,844
Software 2,520 1,925 1,478
Total direct costs 15,441 11,447 7,322
Gross margin 42,758 30,540 21,075
Operating costs:
Selling and marketing 11,614 10,947 5,751
General and administrative 10,999 9,691 5,603
Product development 5,700 6,305 3,868
Depreciation and amortization 3,033 2,022 1,313
Charge for purchased in-process
product development &
acquisition related charges 31,185 8,350 8,350
Total operating costs 62,531 37,315 24,885
Operating income (loss) (19,773) (6,775) (3,810)
Interest expense (income), net (426) (95) (195)
Equity in losses of joint ventures 38 5,005 4,973
Loss before income tax expense
and extraordinary item (19,385) (11,685) (8,588)
Income tax expense (benefit) 1,419 38 38
Loss before extraordinary item 20,804 (11,723) (8,626)
Extraordinary loss on debt
extinguishment 2,419 --- ---
Net loss (23,223) (11,723) (8,626)
Preferred stock dividends --- (28) (28)
Net loss applicable to common
shareholders $(23,223) $(11,751) $(8,654)
Net loss per share:
Loss before extraordinary item
applicable to common
shareholders $ (1.07) $ (0.64) $ (0.54)
Extraordinary loss on debt
extinguishment (0.12) --- ---
Net loss per common share $ (1.19) $ (0.64) $ (0.54)
Weighted average number of
common and common equivalent
shares outstanding 19,587 18,396 15,996
Supplemental Data:
Equity in loss of investment
in HNS $ --- $ 4,904 $ 4,904
Adjusted operating income (a) $ 11,411 $ 1,575 $ 4,540
Adjusted net income applicable
to common shareholders (b) $ 7,264 $ 929 $ 2,818
Adjusted net income per common
share (b) $ 0.34 $ 0.05 $ 0.16
(a) Excludes purchased in-process product development and acquisition
related charges
(b) Excludes charge for in-process product development, extraordinary loss
on debt extinguishment in 1997, equity in loss of HNS in 1996, and
acquisition related charges, net of related income taxes.
All share and per share amounts have been adjusted to reflect the 3-for-2
stock split effected in the form of a stock dividend paid on January 31,
1997.
HARBINGER CORPORATION
CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
As Originally
Pooled Reported
Sept. 30, Dec. 31, Dec. 31,
1997 1996 1996
CURRENT ASSETS
Cash and cash equivalents $48,066 $ 9,059 $ 8,395
Accounts receivable, net 21,163 11,890 9,795
Other assets 3,535 4,743 4,326
TOTAL CURRENT ASSETS 72,764 25,692 22,516
PROPERTY AND EQUIPMENT, net 11,949 8,226 6,845
INVESTMENT IN JOINT VENTURE --- 407 407
INTANGIBLE ASSETS, net 16,011 13,147 11,405
DEFERRED INCOME TAXES
AND OTHER ASSETS --- 1,321 1,284
TOTAL ASSETS $100,724 $ 48,793 $42,457
CURRENT LIABILITIES
Accounts payable $ 3,236 $ 3,053 $ 1,570
Accrued expenses 13,632 9,880 5,843
Deferred revenues 9,288 7,193 3,751
Note payable to bank --- 1,550 ---
Current portion of
long-term debt 371 907 ---
TOTAL CURRENT LIABILITIES 26,527 22,583 11,164
LONG TERM DEBT --- 1,368 ---
SHAREHOLDERS' EQUITY 74,197 24,842 31,293
TOTAL LIABILITIES AND
AND SHAREHOLDERS' EQUITY $100,724 $ 48,793 $42,457
SOURCE Harbinger Corporation
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