Great play, Bob. . .earnings week can be a great week for buying on the discount. . .added HRBC. . .here is earnings:
Harbinger Corporation Announces
Record Revenues And Strong Core
Revenue Growth
ATLANTA, Oct. 25 /PRNewswire/ -- Harbinger Corporation (Nasdaq: HRBC - news), a
worldwide supplier of Electronic Commerce software, services and solutions, is pleased to announce
record revenues for the quarter ended September 30, 1999. Revenues for 3Q99 increased 16% to
$40.9 million compared to revenues of $35.4 million for the same period last year. In addition, core
revenues from software and services (which exclude revenues from discontinued products and
alliance partners) grew 29% from 3Q98 to 3Q99. Core revenues comprised nearly 85% of 3Q99
total revenues compared to 76% a year ago.
Operating income increased to $ 6.2 million for 3Q99 compared to ($ 16.8) million loss in 3Q98.
Net income applicable to common shareholders for 3Q99 was $ 6.4 million or $ 0.16 per fully
diluted share compared to ($23.4) million loss or ($ 0.56) per fully diluted share for 3Q98, including
a ($7.3) million loss from discontinued operations in 3Q98.
Core earnings, defined as pre-tax income excluding restructuring and other charges, and tax-effected
at 39%, were $ 0.10 per share in the third quarter of 1999, compared to $0.07 for the same period
last year.
''There was great progress at Harbinger during the third quarter along many, many fronts,'' said C.
Tycho Howle, Harbinger Chairman and Chief Executive Officer. ''In my view, the most important
news from 3Q99 is not our record operating results which once again exceeded expectations. Nor
was it the launch of our new ASP line of business which we believe will evolve into a timely and very
significant growth engine for the first decade of the 21st century. Nor was it the many new customer
relationships for our market-leading, IP-based B2B E-Commerce solutions. Nor was it the progress
toward the migration of our tens of thousands of customers to use these new IP-based technologies.
Nor was it the planning and launch of our new online vertical trading communities, such as
grocerylink.net, and our partnership with Sun Netscape to develop a very much needed petroleum
industry portal. No, the biggest news of the quarter is not what happened in the quarter but rather our
readiness for what is about to happen in our marketplace. Over the next 12 to 15 months, the
majority of businesses in the U.S. -- and the World for that matter -- will begin their Electronic
Commerce initiatives to establish electronic linkages with their suppliers and customers. I believe
Harbinger is once again finely tuned and ready for the race. The combination of products, services,
infrastructure, confidence, attitude and shared vision among the Harbinger team is coming together at
a pivotal time, just as many, many companies set their EC direction for the next three to five years. In
my view, that's the big news for the quarter.''
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 inability to predict the outcome of certain
litigation matters. 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. 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 Sep 30, Nine Months Ended Sep 30,
1999 1998 1999 1998
Revenues:
Services $29,599 $22,137 $81,406 $63,878
Software 11,313 13,283 31,736 34,772
Total revenues 40,912 35,420 113,142 98,650
Direct costs:
Services 12,038 9,123 34,285 24,236
Software 1,139 1,169 3,626 2,839
Total direct costs 13,177 10,292 37,911 27,075
Gross margin 27,735 25,128 75,231 71,575
Operating costs:
Selling
and marketing 9,900 9,157 27,393 23,321
General
and administrative 6,190 13,914 19,458 25,467
Product development 2,974 2,798 8,967 7,641
Depreciation
and amortization 2,445 2,036 6,860 5,831
Charge for
purchased in-process
product development,
write-off of software
development costs,
restructuring,
acquisition related
and other charges -- 13,978 -- 27,027
Total operating costs 21,509 41,883 62,678 89,287
Operating income (loss) 6,226 (16,755) 12,553 (17,712)
Interest income, net 717 1,202 2,376 3,780
Income (loss) from
continuing operations
before income taxes 6,943 (15,553) 14,929 (13,932)
Income tax expense 571 560 939 705
Income (loss) from
continuing operations 6,372 (16,113) 13,990 (14,637)
Loss from discontinued
operations -- (7,331) -- (8,185)
Net income (loss)
applicable to
common shareholders $6,372 $(23,444) $13,990 $(22,822)
Basic earnings
per share:
Earnings (loss) from
continuing operations $0.17 $(0.39) $0.36 $(0.36)
Loss from
discontinued
operations -- (0.17) -- (0.19)
Net earnings (loss)
per common share $0.17 $(0.56) $0.36 $(0.55)
Weighted average
number of common
shares outstanding 38,607 42,163 38,986 41,691
Earnings per common
share assuming
dilution:
Earnings (loss) from
continuing operations $0.16 $(0.39) $0.35 $(0.36)
Loss from discontinued
operations -- (0.17) -- (0.19)
Net earnings (loss)
per common share $0.16 $(0.56) $0.35 $(0.55)
Weighted average number
of common shares
outstanding assuming
dilution 40,812 42,163 40,421 41,691
Supplemental Data:
Adjusted operating
income (loss) (1) $ 6,226 $ (2,777) $ 12,553 $ 9,315
Adjusted net
income (loss)
applicable to
common
shareholders(2) $ 4,236 $ (961) $ 9,106 $ 8,154
Adjusted net income
(loss) per diluted
common share (2) $0.10 $(0.02) $0.23 $0.19
Weighted average
number of common
shares outstanding
-- diluted 40,812 42,163 40,421 43,838
Supplemental Data (3):
Adjusted operating
income (1) (3) $ 5,724 $ 3,683 $ 10,798 $ 15,775
Adjusted net income
applicable to common
shareholders (2) (3) $ 3,929 $ 2,980 $ 8,036 $ 12,094
Adjusted net income
per diluted common
share (2) (3) $ 0.10 $ 0.07 $ 0.20 $ 0.28
Weighted average
number of common
shares outstanding
-- diluted 40,812 43,101 40,421 43,838
(1)Excludes charges for purchased in-process product development,
write-off of software development costs, restructuring, acquisition
related and other charges incurred in 1998.
(2)Excludes charges for purchased in-process product development,
write-off of software development costs, restructuring,
acquisition related and other charges incurred in 1998 plus
discontinued operations in 1998, net of related income taxes in 1999
and 1998 at an effective rate of 39%.
(3)Excludes a general and administrative credit of $502,000 in the third
quarter of 1999 and $1,755,000 for year-to-date 1999 for the
collection of specific accounts receivable written off in 1998. In
1998, excludes a general and administrative charge of
$6,460,000 in the third quarter and year-to-date 1998 for specific
accounts receivable written off.
HARBINGER CORPORATION
CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
Sep 30, Dec 31,
1999 1998
CURRENT ASSETS
Cash and short-term investments $67,197 $92,307
Accounts and royalties
receivable, net 47,409 37,621
Other current assets 6,476 7,725
TOTAL CURRENT ASSETS 121,082 137,653
PROPERTY AND EQUIPMENT, net 28,286 23,150
INTANGIBLE ASSETS, net 14,739 16,803
DEFERRED INCOME TAXES
AND OTHER ASSETS 2,954 763
TOTAL ASSETS $ 167,061 $178,369
CURRENT LIABILITIES
Accounts payable $5,971 $5,566
Accrued expenses 22,879 31,571
Deferred revenues 19,795 21,213
TOTAL CURRENT LIABILITIES 48,645 58,350
SHAREHOLDERS' EQUITY 118,416 120,019
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $ 167,061 $178,369
Contact: Jim McCormick, CFO of Harbinger Corporation, 404-467-3495,
jim.mccormick@harbinger.com
SOURCE: Harbinger Corporation |
