It's a pretty picture, this might stop the price slide. What do you think?
ATLANTA, Feb. 4 /PRNewswire/ -- Harbinger Corporation (Nasdaq: HRBC) is
pleased to announce record revenues and operating income for the quarter ended
December 31, 1997. Revenues for the fourth quarter increased 37% to $38.7
million compared to pooled revenues of $28.2 million for the same period last
year. Compared to Harbinger Corporation's fourth quarter 1996 performance as
originally reported, revenue increased 190% from $13.3 million to $38.7
million and operating income from the core business (excluding charges for in-
process product development, acquisition related and other one-time charges)
increased 174% from $3.0 million to $8.4 million. Net income for the period
from the core business (excluding the aforementioned charges, the equity in
loss of Harbinger Net Services, LLC ("HNS") in 1996, and the loss on disposal
of discontinued operations in 1997, net of related income taxes) increased
224% to $6.0 million or $0.21 per share from $1.8 million or $0.11 per share
originally reported one year earlier.
Taking into account acquisition related and other one-time charges and
equity in losses from joint ventures, the net loss applicable to common
shareholders for the fourth quarter was $16.4 million or ($0.61) per share
compared to the pooled net loss applicable to common shareholders of $808,000
or ($0.03) per share in the same period in 1996. Operating income for the
fourth quarter (excluding charges for in-process product development,
acquisition related and other one-time charges) increased to $8.4 million
compared to pooled operating income of $1.4 million a year ago. Net income
from the Company's core business (excluding the aforementioned charges, the
equity in loss of HNS in 1996, and the loss on disposal of discontinued
operations in 1997, net of related income taxes) was $6.0 million or $0.21 per
share as compared to pooled income of $1.2 million or $0.05 per share in the
prior year.
Operating margins, excluding charges for in-process product development,
acquisition related and other one-time charges, increased from 5.0% on a
pooled basis in the fourth quarter of 1996 to 21.6% in the fourth quarter of
1997 on a pooled basis 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 36% over the last 12 months to more than 41,000 at the end of the
fourth quarter.
"This was the most important quarter in perhaps the most eventful year in
our history thus far. The expanded Harbinger team was able to meet its
overall goals for the fourth quarter, despite the myriad of integration
activities. We are particularly proud of the accomplishments of the Premenos
team during the fourth quarter," said C. Tycho Howle, Chairman. Added
Harbinger CEO David Leach, "Through both internal growth and acquisitions, we
have assembled what we believe is the finest group of EC professionals
anywhere in the world, over 1,000 strong in 8 countries. This group is
dedicated to enabling electronic trading communities worldwide. We now have
complete solutions to make this happen and are looking forward to doing so in
1998."
About Harbinger
Harbinger Corporation is a world-leading, single-source provider of
Electronic Commerce and EDI solutions servicing over 41,000 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. Harbinger is headquartered in Atlanta, Georgia
and provides worldwide support to customers with over 1,000 experienced
employees in multiple U.S. and overseas operations facilities. For
information onHarbinger'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. 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 integration of
recently acquired businesses and adverse developments with respect to the
Company's domestic or foreign operations. Additional factors are set forth in
the Safe Harbor Compliance Statement for Forward-Looking Statements included
as Exhibit 99.5 to the Company's Current Report on Form 8-K dated and filed
October 29, 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.
Harbinger and the Harbinger logo are registered trademarks of Harbinger
Corporation. All other company and product names referenced herein are
registered trademark or trademarks of their respective owners.
HARBINGER CORPORATION
CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
AsOriginally
Pooled Reported
Dec. 31, Dec. 31, Dec. 31,
1997 1996 1996
CURRENT ASSETS
Cash and cash equivalents $102,145 $ 65,541 $ 8,395
Accounts receivable, net 40,381 21,330 9,795
Deferred tax asset 1,891 4,736 1,517
Other assets 3,431 4,033 2,809
TOTAL CURRENT ASSETS 147,848 95,640 22,516
PROPERTY AND EQUIPMENT, net 18,166 14,926 6,845
INTANGIBLE ASSETS, net 16,464 19,184 11,405
DEFERRED INCOME TAXES
AND OTHER ASSETS 1,080 2,733 1,691
TOTAL ASSETS $183,558 $132,483 $42,457
CURRENT LIABILITIES
Accounts payable $ 8,734 $ 4,474 $ 1,570
Accrued expenses 25,670 13,206 5,843
Deferred revenues 18,349 14,210 3,751
Note payable to bank 161 1,550 ---
Current portion of
long-term debt 623 1,504 ---
TOTAL CURRENT LIABILITIES 53,537 34,944 11,164
LONG TERM DEBT AND OTHER
LIABILITIES --- 2,015 ---
DEFERRED INCOME TAXES --- 1,406 ---
SHAREHOLDERS' EQUITY 130,021 94,118 31,293
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $183,558 $132,483 $42,457
HARBINGER CORPORATION
CONSOLIDATED STATEMENT OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
(3)
Quarter Ended Dec. 31,
As Originally
Pooled Reported
1997 1996 1996
Revenues:
Services $ 19,308 $ 14,408 $ 8,343
Software 19,362 13,757 4,985
Total revenues 38,670 28,165 13,328
Direct costs:
Services 7,818 5,292 2,775
Software 2,058 2,352 687
Total direct costs 9,876 7,644 3,462
Gross margin 28,794 20,521 9,866
Operating costs:
Selling and marketing 8,214 7,377 2,178
General and administrative 6,015 5,170 2,196
Product development 3,927 5,091 1,764
Depreciation and amortization 2,276 1,488 679
Charges for purchased in-process
product development,
acquisition related and
other one-time charges 20,784 425 425
Total operating costs 41,216 19,551 7,242
Operating income (loss) (12,422) 970 2,624
Interest expense (income), net (1,269) (602) 39
Equity in losses of joint ventures --- 2,199 2,100
Minority interest --- 3 ---
Income (loss) from continuing
operations before income taxes (11,153) (630) 485
Income tax expense 1,294 178 108
Income (loss) from continuing
operations (12,447) (808) 377
Loss on disposal of
discontinued operations 4,000 --- ---
Income (loss) before
extraordinary item (16,447) (808) 377
Extraordinary loss on debt
extinguishment --- --- ---
Net income (loss) (16,447) (808) 377
Preferred stock dividends --- --- ---
Net income (loss) applicable
to common shareholders $(16,447) $ (808) $ 377
(3)
Year Ended Dec. 31,
As Originally
Pooled Reported
1996 1996
Revenues:
Services $ 68,741 $ 49,619 $ 27,806
Software 55,934 43,115 13,919
Total revenues 124,675 92,734 41,725
Direct costs:
Services 25,060 17,865 8,619
Software 7,925 6,828 2,165
Total direct costs 32,985 24,693 10,784
Gross margin 91,690 68,041 30,941
Operating costs:
Selling and marketing 27,508 25,032 7,929
General and administrative 22,505 19,218 7,799
Product development 15,564 16,305 5,632
Depreciation and amortization 7,281 4,708 1,992
Charges for purchased in-process
product development,
acquisition related and
other one-time charges 51,96913,475 8,775
Total operating costs 124,827 78,738 32,127
Operating income (loss) (33,137) (10,697) (1,186)
Interest expense (income), net (3,901) (2,838) (156)
Equity in losses of joint ventures 301 7,204 7,073
Minority interest (2) 4 ---
Income (loss) from continuing
operations before income taxes (29,535) (15,067) (8,103)
Income tax expense 3,093 996 146
Income (loss) from continuing
operations (32,628) (16,063) (8,249)
Loss on disposal of
discontinued operations 4,000 --- ---
Income (loss) before
extraordinary item (36,628) (16,063) (8,249)
Extraordinary loss on debt
extinguishment 2,419 --- ---
Net income (loss) (39,047) (16,063) (8,249)
Preferred stock dividends --- (28) (28)
Net income (loss) applicable
to common shareholders $(39,047) $(16,091) $ (8,277)
HARBINGER CORPORATION
CONSOLIDATED STATEMENT OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
(3)
Quarter Ended Dec. 31,
As Originally
Pooled Reported
1997 1996 1996
Basic net income (loss) per share:
Income (loss) from continuing
operations applicable to
common shareholders $ (0.46) $ (0.03) $ 0.02
Loss on disposal of discontinued
operations (0.15) --- ---
Extraordinary loss on debt
extinguishment --- --- ---
Basic net income (loss) per
common share $ (0.61) $ (0.03) $ 0.02
Weighted average number of
common shares outstanding 27,166 23,748 16,269
Diluted net income (loss) per share:
Income (loss) from continuing
operations applicable to
common shareholders $ (0.46) $ (0.03) $ 0.02
Loss on disposal of discontinued
operations (0.15) --- ---
Extraordinary loss on debt
extinguishment --- --- ---
Diluted net income (loss) per
common share $ (0.61) $ (0.03) $ 0.02
Weighted average number of
common and common equivalent
shares outstanding 27,166 23,748 17,429
Supplemental Data:
Equity in loss of investment
in HNS $ --- $ 2,100 $ 2,100
Adjusted operating income (a) $ 8,362 $ 1,395 $ 3,049
Adjusted net income applicable
to common shareholders (b) $ 5,952 $ 1,157 $ 1,836
Adjusted diluted net income per
common share (b) $ 0.21 $ 0.05 $ 0.11
Weighted average number of
common and common equivalent
shares outstanding 28,930 25,152 17,429
(3)
Year Ended Dec. 31,
As Originally
Pooled Reported
19971996 1996
Basic net income (loss) per share:
Income (loss) from continuing
operations applicable to
common shareholders $ (1.28) $ (0.69) $ (0.52)
Loss on disposal of discontinued
operations (0.16) --- ---
Extraordinary loss on debt
extinguishment (0.09) --- ---
Basic net income (loss) per
common share $ (1.53) $ (0.69) $ (0.52)
Weighted average number of
common shares outstanding 25,441 23,387 16,065
Diluted net income (loss) per share:
Income (loss) from continuing
operations applicable to
common shareholders $ (1.28) $ (0.69) $ (0.52)
Loss on disposal of discontinued
operations (0.16) --- ---
Extraordinary loss on debt
extinguishment (0.09) --- ---
Diluted net income (loss) per
common share $ (1.53) $ (0.69) $ (0.52)
Weighted average number of
common and common equivalent
shares outstanding 25,441 23,387 16,065
Supplemental Data:
Equity in loss of investment
in HNS $ --- $ 7,004 $ 7,004
Adjusted operating income (a) $ 18,832 $ 2,778 $ 7,589
Adjusted net income applicable
to common shareholders (b) $ 13,826 $ 3,348 $ 4,654
Adjusted diluted net income per
common share (b) $ 0.51 $ 0.13 $ 0.27
Weighted average number of
common and common equivalent
shares outstanding 27,128 24,891 17,200
(a) Excludes charges for purchased in-process product development,
acquisition related and other one-time charges.
(b) Excludescharges for in-process product development, extraordinary
loss on debt extinguishment in 1997, equity in loss of HNS in 1996, loss on
disposal of discontinued operations in 1997, and acquisition related and other
one-time charges, net of related income taxes.
(c) Includes revenues and operating results from Financial Services
operations, which was discontinued on 12/31/97. Revenue and operating income
(loss) was $969,000 and ($294,000) for quarter-ended December 31, 1997 and
$934,000 and ($1,000) for quarter-ended December 31, 1996. Revenue and
operating income (loss) was $3,999,000 and ($121,000) for year-ended December
31, 1997 and $3,489,000 and ($30,000) for the year-ended December 31, 1996.
SOURCE Harbinger Corporation
-0- 02/04/98
/CONTACT: Joel Katz, CFO, Harbinger Corporation, 404-467-3011 or email:
jkatz@harbinger.com/
/Web site: harbinger.com
(HRBC) |
