Tuesday April 21, 4:31 pm Eastern Time
Company Press Release
SOURCE: Harbinger Corporation
Harbinger Corporation Announces Record First Quarter Revenues and Operating Income
ATLANTA, April 21 /PRNewswire/ -- Harbinger Corporation (Nasdaq: HRBC - news) is pleased to announce record revenues and operating income for the quarter ended March 31, 1998. Unless otherwise noted, all comparisons with prior periods reflect the effect of the retroactive restatement resulting from a pooling-of- interests transaction with Premenos Technology Corporation which was completed on December 19, 1997. Revenues for the first quarter increased 28% to $31.1 million compared to pooled revenues of $24.3 million for the same period last year. Compared to Harbinger's first quarter 1997 performance as originally reported, revenue increased 94% from $16.0 million to $31.1 million and operating income (excluding charges for in-process product development, acquisitions and other one-time charges) increased 93% from $2.9 million to $5.5 million. Net income for the period from core operations (excluding the aforementioned charges, net of related income taxes) as compared to amounts originally reported increased 140% to $4.3 million or $0.15 per share from $1.8 million or $0.09 per share one year earlier.
Including acquisition related charges, the net loss applicable to common shareholders for the first quarter was $9.2 million or ($0.34) per share compared to the pooled net loss applicable to common shareholders of $16.4 million or ($0.68) per share in the same period in 1997. Operating income for the first quarter (excluding charges for in-process product development, acquisitions and other one-time charges) increased to $5.5 million compared to pooled operating income of $1.3 million a year ago. Net income from the Company's core business (excluding the aforementioned charges, net of related income taxes) was $4.3 million or $0.15 per share as compared to pooled income of $1.3 million or $0.05 per share in the prior year.
Operating margins, excluding charges for in-process product development, acquisitions and other one-time charges, increased from 5.4% on a pooled basis in the first quarter of 1997 to 17.8% in the first quarter of 1998 primarily reflecting both increased operating leverage on higher revenues and operating synergies realized from the Supply Tech, Inc. and Premenos mergers. Active revenue generating customers, representing customers to whom Harbinger provides services on an ongoing basis, also reached a new record, increasing 34% over the last 12 months to approximately 44,000 at the end of the first quarter. This increase includes approximately 3,800 additional customers as the result of the Premenos merger.
''We are pleased to announce another strong quarter. We had good growth throughout our business, but of special note were the performance of our European operation and the growth in revenue from our Internet-related products. Europe exceeded its plan, and revenue from our Internet-related products, which represented about 8% of pooled revenue in 1997, represented 14% of revenue during the first quarter. Revenue from these products is likely to exceed our plan of 15% of total revenue in 1998,'' said C. Tycho Howle, Chairman. Added Harbinger CEO David Leach, ''Our financial results reflect the ongoing success of our combination with Premenos, and Europe in particular benefited this quarter from the combination. The sales force is now thoroughly integrated and knowledgeable on all our combined products and work is continuing to integrate products along platform lines. In addition, we continue to build upon our solutions focus within our targeted vertical markets.''
About Harbinger
Harbinger Corporation is a world-leading, single-source provider of Electronic Commerce and EDI solutions servicing approximately 44,000 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 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. 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 includes 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 99.1 to the Company's Annual Report on Form 1O-K dated December 31, 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, the Harbinger logo, Premenos and Supply Tech are registered trademarks 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 March 31,
As Originally
Pooled Reported(c)
1998 1997 1997
Revenues:
Services $ 20,674 $ 14,750 $ 11,191
Software 10,426 9,570 4,834
Total revenues 31,100 24,320 16,025
Direct costs:
Services 7,659 4,836 3,471
Software 980 1,846 657
Total direct costs 8,639 6,682 4,128
Gross margin 22,461 17,638 11,897
Operating costs:
Selling and marketing 6,724 5,818 3,353
General and administrative 5,487 4,810 2,969
Product development 2,705 4,094 1,743
Depreciation and amortization 2,019 1,591 969
Charge for purchased in-process
product development,
acquisition related and
other one-time charges 15,943 16,236 16,236
Total operating costs 32,878 32,549 25,270
Operating income (loss) (10,417) (14,911) (13,373)
Interest expense (income), net (1,311) (731) (62)
Equity in losses of joint ventures --- 141 16
Loss before income tax expense,
discontinued operations and
extraordinary item (9,106) (14,321) (13,327)
Income tax expense (benefit) 136 (335) 23
Minority interest --- (5) ---
Loss before discontinued operations
and extraordinary item (9,242) (13,981) (13,350)
Income from discontinued
operations(c) --- (47) (47)
Extraordinary loss on debt
extinguishment --- 2,419 2,419
Net loss applicable to
common shareholders $(9,242) $(16,353) $(15,722)
HARBINGER CORPORATION
CONSOLIDATED STATEMENT OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
(c)
Quarter Ended March 31,
As Originally
Pooled Reported
1998 1997 1997
Basic and diluted net loss per share:
Loss before discontinued operations
and extraordinary item applicable
to common shareholders $ (0.34) $ (0.58) $ (0.70)
Loss from discontinued operations --- --- ---
Extraordinary loss
on debt extinguishment --- (0.10) (0.13)
Basic net loss per common share $ (0.34) $ (0.68) $ (0.83)
Weighted average number of common
shares outstanding 27,364 24,167 18,930
Supplemental Data:
Adjusted operating income(a) $ 5,526 $ 1,325 $ 2,863
Adjusted net income applicable
to common shareholders(b) $ 4,286 $ 1,254 $ 1,784
Adjusted net income
per common share(b) $ 0.15 $ 0.05 $ 0.09
Weighted average number of common
and common equivalent shares
outstanding - Diluted 29,129 25,771 20,441
(a) Excludes charges for purchased in-process product development and
acquisition related charges
(b) Excludes charges for in-process product development, extraordinary
loss on debt extinguishment in 1997 and acquisition related charges,
net of related income taxes
(c) Excludes revenue and operating results from Financial Services
operations, which was discontinued on 12/31/97.
HARBINGER CORPORATION
CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
March 31, Dec. 31,
1998 1997
CURRENT ASSETS
Cash and cash equivalents $106,304 $102,144
Accounts receivable, net 37,229 40,381
Other assets 6,329 5,323
TOTAL CURRENT ASSETS 149,862 147,848
PROPERTY AND EQUIPMENT, net 18,780 18,167
INTANGIBLE ASSETS, net 16,543 16,464
DEFERRED INCOME TAXES
AND OTHER ASSETS 1,236 1,080
TOTAL ASSETS $186,421 $183,559
CURRENT LIABILITIES
Accounts payable $ 11,804 $ 8,734
Accrued expenses 26,479 25,835
Deferred revenues 20,237 18,349
Current portion of
long-term debt 454 623
TOTAL CURRENT LIABILITIES 58,974 53,541
LONG TERM DEBT --- ---
OTHER LONG TERM LIABILITIES --- ---
SHAREHOLDERS' EQUITY 127,447 130,018
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $186,421 $183,559
SOURCE: Harbinger Corporation
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