Tuesday July 21, 4:22 pm Eastern Time
Company Press Release
SOURCE: Harbinger Corporation
Harbinger Corporation Announces Record Second Quarter Revenues and
Operating Income
ATLANTA, July 21 /PRNewswire/ -- Harbinger Corporation (Nasdaq: HRBC
- news), a worldwide supplier of electronic commerce software,
services and solutions, is pleased to announce record revenues and
operating income for the quarter ended June 30, 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 Corp. which was completed on
December 19, 1997. Revenues for the second quarter increased 21% to
$34.3 million compared to pooled revenues of $28.4million for the same
period last year. Compared to Harbinger's second quarter 1997
performance as originally reported, revenue increased 83% from $18.7
million to $34.3 million and operating income (excluding acquisition
and integration related charges) increased 56% from $3.7 million to
$5.7 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 95% to $4.3 million or $0.10
per share from $2.2 million or $0.07 per share one year earlier.
Including acquisition related charges, the net income applicable to
common shareholders for the second quarter was $2.0 million or $0.04
per diluted share compared to the pooled net income applicable to
common shareholders of $2.7 million or $0.07 diluted per share in the
same period in 1997. Operating income for the second quarter(excluding
acquisition andintegration related charges) increased to $5.7 million
compared to pooled operating income of $3.8 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 $0.10 per
share as compared to pooled income of S2.7 million or $0.07 per share
in the prior year.
Operating margin, excluding the aforementioned charges, increased from
13.3% on a pooled basis in the second quarter of 1997 to 16.7% in the
second 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 30% over
the last 12 months to approximately 45,000 at the end of the second
quarter. This increase includes approximately 4,400 additional
customers as the result of the Premenos merger.
''During the second quarter, Harbinger felt the effects of integrating
our recent acquisitions as well as a pause in the EDI translator
software market as companies evaluated EDI in conjunction with other
forms of Electronic Commerce, including Internet commerce. While this
transition resulted in a temporary slowdown in the company's software
sales, we feel now more than ever, that with our full suite of EC
products and services, and our solutions oriented approach, we are
uniquely positioned to capitalize on the explosion in the Electronic
Commerce market,'' said David Leach, Chief Executive Officer.
About Harbinger
Harbinger Corporation is a worldwide, single-source provider of
Electronic Commerce software, services and solutions serving the
industry's largest software and network customer community. The
company is dedicated to providing comprehensive and scalable
E-Commerce software and Value Added Network services for computing
platforms ranging from desktops to mainframes and meeting the emerging
market needs for Internet and Web commerce solutions, including
electronic catalogs and secure EDI over the Internet. Harbinger is
headquartered in Atlanta, Georgia and provides worldwide support to
its customer community from multiple U.S. and overseas operations
facilities. For additional information on this announcement and
Harbinger's full line of products and services, 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 recent acquisitions,
intense competition and international growth and 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 for the year ended 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 and the Harbinger logo are registered trademarks and
TrustedLink is a trademark of Harbinger Corporation. All other company
and product names referenced herein are registered trademarks or
trademarks of their respective owners.
HARBINGER CORPORATION
CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
June 30, Dec. 31,
1998 1997
CURRENT ASSETS
Cash and cash equivalents $105,124 $102,144
Accounts receivable, net 36,204 40,381
Other current assets 7,092 5,323
TOTAL CURRENT ASSETS 148,420 147,848
PROPERTY AND EQUIPMENT, net 21,080 18,167
INTANGIBLE ASSETS, net 17,008 16,464
DEFERRED INCOME TAXES
AND OTHER ASSETS 1,141 1,080
TOTAL ASSETS $187,649 $183,559
CURRENT LIABILITIES
Accounts payable $ 4,662 $ 8,734
Accrued expenses 24,001 25,835
Deferred revenues 19,130 18,349
Current portion of long-term debt 205 623
TOTAL CURRENT LIABILITIES 47,998 53,541
SHAREHOLDERS' EQUITY 139,651 130,018
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $187,649 $183,559
HARBINGER CORPORATION
CONSOLIDATED STATEMENT OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
(c)
Quarter Ended June 30,
As Originally
Pooled Reported
1998 1997 1997
Revenues:
Services $ 22,619 $ 15,095 $ 11,277
Software 11,650 13,322 7,433
Total revenues 34,269 28,417 18,710
Direct costs:
Services 9,028 5,206 3,828
Software 1,000 2,159 911
Total direct costs 10,028 7,365 4,739
Gross margin 24,241 21,052 13,971
Operating costs:
Selling and marketing 7,769 6,657 3,881
General and administrative 6,033 5,267 3,337
Product development 2,628 3,739 2,127
Depreciation and amortization 2,098 1,622 964
Charge for purchased in-process
product development,
acquisition related and
other one-time charges 5,010 --- ---
Total operating costs 23,538 17,285 10,309
Operating income (loss) 703 3,767 3,662
Interest expense (income), net (1,265) (695) 35
Equity in losses of joint ventures --- 35 22
Income (loss) before income tax
expense, discontinued operations
and extraordinary item 1,968 4,427 3,605
Income tax expense 9 1,688 1,396
Minority interest (income) loss --- 3 ---
Income (loss) before discontinued
operations and extraordinary item 1,959 2,736 2,209
Loss (income) from discontinued
operations (c) --- 12 12
Extraordinary loss on debt
extinguishment --- --- ---
Net income (loss) applicable to
common shareholders $1,959 $2,724 $2,197
(c)
Six Months Ended June 30,
As Originally
Pooled Reported
1998 1997 1997
Revenues:
Services $ 43,293 $ 29,845 $ 22,468
Software 22,076 22,892 12,267
Total revenues 65,369 52,737 34,735
Direct costs:
Services 16,688 10,042 7,299
Software 1,979 4,005 1,568
Total direct costs 18,667 14,047 8,867
Gross margin 46,702 38,690 25,868
Operating costs:
Selling and marketing 14,495 12,475 7,234
General and administrative 11,519 10,077 6,306
Product development 5,333 7,833 3,870
Depreciation and amortization 4,117 3,213 1,933
Charge for purchased in-process
product development,
acquisition related and
other one-time charges 13,049 16,236 16,236
Total operating costs 48,513 49,834 35,579
Operating income (loss) (1,811) (11,144) (9,711)
Interest expense (income), net (2,578) (1,425) (27)
Equity in losses of joint ventures --- 176 38
Income (loss) before income tax
expense, discontinued operations
and extraordinary item 767 (9,895) (9,722)
Income tax expense 145 1,353 1,419
Minority interest (income) loss --- (2) ---
Income (loss) before discontinued
operations and extraordinary item 622 (11,246) (11,141)
Loss (income) from discontinued
operations (c) --- (35) (35)
Extraordinary loss on debt
extinguishment --- 2,419 2,419
Net income (loss) applicable to
common shareholders $ 622 $(13,630) $(13,525)
HARBINGER CORPORATION
CONSOLIDATED STATEMENT OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
(c)
Quarter Ended June 30,
As Originally
Pooled Reported
1998 1997 1997
Basic net income (loss) per share:
Income (loss) before discontinued
operations and extraordinary item
applicable to common
shareholders $ 0.05 $ 0.07 $ 0.08
Loss from discontinued
operations --- --- ---
Extraordinary loss on debt
extinguishment --- --- ---
Basic net income (loss) per
common share $ 0.05 $ 0.07 $ 0.08
Weighted average number of
common shares outstanding 41,853 36,847 28,921
Diluted net income (loss) per share:
Income (loss) before discontinued
operations and extroardinary
item applicable to
common shareholders $ 0.04 $ 0.07 $ 0.07
Loss from discontinued
operations --- --- ---
Extraordinary loss on debt
extinguishment --- --- ---
Diluted net income (loss) per
common share $ 0.04 $ 0.07 $ 0.07
Weighted average number of
common and common equivalent
shares outstanding 44,480 38,987 30,974
Supplemental Data:
Adjusted operating income (a) $ 5,713 $ 3,767 $ 3,662
Adjusted net income applicable
to common shareholders (b) $ 4,307 $ 2,745 $ 2,213
Adjusted net income per diluted
common share (b) $ 0.10 $ 0.07 $ 0.07
Weighted average number of
common and common equivalent
shares outstanding - diluted 44,480 38,987 30,974
(c)
Six Months Ended June 30,
As Originally
Pooled Reported
1998 1997 1997
Basic net income (loss) per share:
Income (loss) before discontinued
operations and extraordinary
item applicable to
common shareholders $ 0.01 $ (0.31) $ (0.39)
Loss from discontinued
operations --- --- ---
Extraordinary loss on debt
extinguishment --- (0.06) (0.08)
Basic net income (loss) per
common share $ 0.01 $ (0.37) $ (0.47)
Weighted average number of
common shares outstanding 41,451 36,639 28,749
Diluted net income (loss) per share:
Income (loss) before discontinued
operations and extraordinary
item applicable to
common shareholders $ 0.01 $ (0.31) $ (0.39)
Loss from discontinued
operations --- --- ---
Extraordinary loss on debt
extinguishment --- (0.06) (0.08)
Diluted net income (loss) per
common share $ 0.01 $ (0.37) $ (0.47)
Weighted average number of
common and common equivalent
shares outstanding 44,103 36,639 28,749
Supplemental Data:
Adjusted operating income (a) $ 11,238 $ 5,092 $ 6,525
Adjusted net income applicable
to common shareholders (b) $ 8,593 $ 3,999 $ 3,997
Adjusted net income per diluted
common share (b) $ 0.19 $ 0.10 $ 0.13
Weighted average number of
common and common equivalent
shares outstanding - diluted 44,103 39,017 31,013
(a) Excludes charges for purchased in-process product development,
acquisition related and other one-time charges.
(b) Excludes charges for in-process product development, equity in joint
venture, 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.
SOURCE: Harbinger Corporation |
