Banyan Systems Announces 1998 Second-Quarter Results.WESTBORO, Mass.--(BUSINESS WIRE)--July 16, 1998-- Company Reports Continued Strong Growth in Switchboard and Network Services Banyan banyan (băn`yən), species of fig (Ficus bengalensis) of the family Moraceae (mulberry family), native to India, where it is venerated. Its seeds usually germinate in the branches of some tree where they have been dropped by birds. Systems Incorporated (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :BNYN BNYN ePresence (stock symbol; formerly known as Banyan) ) today announced its financial results for the quarter ended June 30, 1998. For the second quarter of 1998, Banyan(R) reported a net loss of $773,000, or $0.04 per share, which includes a one-time charge of $1.4 million, or $0.08 per share, for purchased research and development related to the acquisition of Lucent Technologies' Maps on Us(SM) Web site and technology. Excluding the one-time charge for purchased research and development, Banyan's net income for the second quarter of 1998 would have been $627,000, or $0.03 per share. Banyan's 1998 second quarter results compare with a 1997 second quarter net loss of $13,665,000, or $0.79 per share, which included one-time restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). and other charges of $9.7 million, or $0.56 per share, for severance The act of dividing, or the state of being divided. The term severance has unique meanings in different branches of the law. Courts use the term in both civil and criminal litigation in two ways: first, when dividing a lawsuit into two or more parts, and second, when costs associated with a reduction in the Company's work force, as well as costs related to idle assets, and facility and product line consolidations. Revenues for the second quarter of 1998 were $18.1 million, compared with $17.1 million for the second quarter of 1997. For the first six months of 1998, Banyan reported a net loss of $396,000, or $0.02 per share, which includes the $1.4 million one-time purchased research and development charge. Excluding this one-time charge, Banyan's net income for the first half of 1998 would have been $1,004,000, or $0.05 per share. Banyan's 1998 first half results compare with a net loss of $20.1 million, or $1.16 per share, which included the $9.7 million restructuring and other charges for the comparable period one year ago. Revenues for the first six months of 1998 were $35.9 million, compared with $37.1 million for the same period of 1997. William P. Ferry, Banyan's chairman and chief executive officer, stated, "Our second quarter performance, excluding the one-time charge for purchased development, marks the Company's fourth consecutive quarter of profitability, an important achievement in light of our reorganization last year and continued investment in our growth initiatives. The strong growth in our Switchboard(TM) subsidiary and our network services operation during the second quarter demonstrates our substantial progress toward rejuvenating Banyan's business. We are pleased with Switchboard's performance as revenues of $1.7 million represent a 58 percent gain over the first quarter of 1998 and a notable increase over revenues of $56,000 in the second quarter of 1997. In addition, the 78 percent growth in network services revenue over the comparable period last year, as well as being awarded Microsoft Solution Provider Status, demonstrates the success we are having in expanding this business." Switchboard Switchboard's accelerated revenue growth reflects its continued success in attracting top Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the advertisers to its www.switchboard.com Web site. A major highlight in the second quarter was the addition of Microsoft to Switchboard's advertising roster, as Microsoft signed a one-year, comprehensive sponsorship deal for sitewide advertising on our subsidiary's Web site. In May, to strengthen Switchboard's functionality, the subsidiary purchased Lucent Technologies' Maps on Us Web site and technology, which provides users with advanced mapping and driving directions throughout the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . Additionally, Switchboard was awarded two patents in June for its Knock-Knock(TM) technology that enhances Internet privacy Internet privacy consists of privacy over the media of the Internet: the ability to control what information one reveals about oneself over the Internet, and to control who can access that information. for e-mail users. Network Services In the second quarter, Banyan's network services operation posted its fourth consecutive quarter of strong growth with revenues of $5.6 million. Driving this growth was increasing customer demand for Banyan's Year 2000 compliance services, as well as its network support and integration services. During the quarter, Banyan expanded its network services business by entering into consulting engagements with World Bank, The United Nations, State of New Jersey's Administrative Office of the Courts, Dutch Rail, Citibank Canada Citibank Canada is a unit of Citigroup of New York City. The Canadian unit has been operating since 1954, with Canadian headquarters in Toronto. There are also offices in Montreal, Calgary, London, Ontario and Vancouver. and Arbella Mutual Insurance. As part of Banyan's strategy to further increase its services business and offer its customers a broader range of network solutions, the Company signed new, third-party reseller An organization that sells hardware and software to the general public. Resellers purchase products from software publishers and hardware manufacturers. agreements with CommVault Systems CommVault Systems Inc. (NASDAQ: CVLT) is a United States based company specializing in data and storage management software. Created in 1988 as a development group in AT&T's Bell Labs, the group produced AT&T's in-house backup software, Automatic Backup, Archive and Recovery , FastLane Technologies FastLane Technologies, Inc was a small Canadian software company originally based in Ottawa, Ontario. On June 29, 2000, it was purchased by US-based Quest Software for $100 million USD. , Incognito in·cog·ni·to adv. & adj. With one's identity disguised or concealed. n. pl. in·cog·ni·tos 1. One whose identity is disguised or concealed. 2. Software and Tally Systems and was awarded Microsoft Solution Provider Status. Networking Software  This article is written like a personal reflection or and may require .Please [ improve this article] by rewriting this article in an . Networking software sales of $10.8 million versus $13.9 million in the second quarter last year reflected lower demand for the Company's traditional VINES (VIrtual NEtworking System) An earlier Unix System V-based network operating system from Banyan Systems that ran on DOS and OS/2-based servers. It provided internetworking of PCs, minis, mainframes and other computer resources providing information sharing across (R) and messaging products. To address its customers' Year 2000 compliance needs, Banyan shipped VINES version 8.5, its first Year 2000-compliant version of VINES, and StreetTalk(R) for Windows NT (Windows New Technology) A 32-bit operating system from Microsoft for Intel x86 CPUs. NT is the core technology in Windows 2000 and Windows XP (see Windows). Available in separate client and server versions, it includes built-in networking and preemptive multitasking. (R) 8.5, its Year 2000-compliant enterprise directory for the Windows NT platform, during the quarter. Consistent with Banyan's goal to offer open-standards based directory and messaging solutions, the Company announced LDAP (Lightweight Directory Access Protocol) A protocol used to access a directory listing. LDAP support is implemented in Web browsers and e-mail programs, which can query an LDAP-compliant directory. Version 3.0 support for StreetTalk and rolled out its Intranet Messaging Suite, which enables users to launch a wide range of standards-based mail clients, including Microsoft Outlook For the e-mail and news client bundled with certain versions of Microsoft Windows, see . Microsoft Outlook or Outlook (full name Microsoft Office Outlook 98(R), Outlook Express(R), Netscape(R) Communicator(R) and Lotus Notes Messaging and groupware software from IBM Lotus that was introduced in 1989 for OS/2 and later expanded to Windows, Mac, Unix, NetWare, AS/400 and S/390. Notes provides e-mail, document sharing, workflow, group discussions and calendaring and scheduling. (R), in the StreetTalk for Windows NT platform. Outlook Ferry concluded, "Moving forward, Banyan is focused on pursuing opportunities that will accelerate our revenue growth. To achieve this goal, we will continue to invest in our current growth engines, Switchboard and our network services business, as well as advance our networking software initiatives. We are excited about the new relationships we have forged with leading technology providers and will explore other strategic opportunities to provide our customers with additional standards-based networking solutions and services. We believe that the successful implementation of Banyan's strategy to rejuvenate re·ju·ve·nate tr.v. re·ju·ve·nat·ed, re·ju·ve·nat·ing, re·ju·ve·nates 1. To restore to youthful vigor or appearance; make young again. 2. its business will result in continued improvement in both top- and bottom-line performance." The Company noted that each of the above forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. , including without limitation the statements under the heading "Outlook", is subject to change based on various important factors, including competitive actions in the marketplace, buying trends by businesses, the success of the Company's new Year 2000 Readiness program and consulting services Noun 1. consulting service - service provided by a professional advisor (e.g., a lawyer or doctor or CPA etc.) service - work done by one person or group that benefits another; "budget separately for goods and services" , and the ability of Switchboard to expand its revenues. Actual events or results could differ materially from those indicated by such forward-looking statements. Further information on potential factors which could affect the accuracy of the forward-looking statements contained herein and the Company's financial results are included in the Company's Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the 1997 fiscal year, and the Company's Form 10-Q Form 10-Q See 10-Q. for the period ended March 31, 1998. About Banyan Systems Incorporated: Banyan Systems Incorporated (NASDAQ:BNYN), founded in 1983, is a leading provider of advanced enterprise solutions that integrate multi-vendor networking environments. Headquartered in Westboro, Massachusetts Massachusetts (măsəch  `sĭts), most populous of the New England states of the NE United States. , USA, Banyan (http://www.banyan.com) supports hundreds of
Fortune 1000 companies and government agencies worldwide with products
and services that integrate core business applications and intranets
creating highly reliable, easily managed, and secure global networks.
The company also provides co-existence and migration services, secure
and remote access for business applications and tools to deploy and
manage intranets, directories and messaging. Its majority-owned Internet
subsidiary, Switchboard Incorporated (http://www.switchboard.com) is the
#1 on-line white and yellow pages directory. Banyan, VINES, StreetTalk
and BeyondMail are registered trademarks of Banyan Systems Incorporated.
StreetTalk is a product of Banyan Systems Incorporated and not a product
of McCarthy, Crisanti & Maffei, Inc.-0-
Banyan Systems Incorporated
Consolidated Statements of Operations
(in thousands, except per share amounts)
Three months ended Six months ended
June 30, June 30,
1998 1997 1998 1997
Revenues:
Software 10,792 $13,857 $22,510 $30,235
Network services 5,638 3,160 10,593 6,803
Switchboard (a) 1,706 56 2,786 66
Total revenues 18,136 17,073 35,889 37,104
Cost of related revenues 5,490 4,176 10,382 9,537
Gross margin 12,646 12,897 25,507 27,567
% 70% 76% 71% 74%
Operating expenses:
Sales and marketing 7,664 10,196 15,860 23,178
Product development 2,915 4,351 5,762 9,079
General and administrative 1,597 2,343 3,078 5,691
Purchased research and
development 1,400 - - 1,400 - -
Restructuring and other
charges - - 9,700 - - 9,700
Total operating expenses 13,576 26,590 26,100 47,648
Loss from operations (930) (13,693) (593) (20,081)
Other income, net 313 99 420 185
Loss before income taxes (617) (13,594) (173) (19,896)
Provision for income taxes 156 71 223 161
Net loss ($773)($13,665) ($396)($20,057)
Net loss per common share:
Basic ($0.04) ($0.79) ($0.02) ($1.16)
Diluted ($0.04) ($0.79) ($0.02) ($1.16)
Weighted average number of common shares:
Basic 18,055 17,306 17,863 17,279
Diluted 18,055 17,306 17,863 17,279
Condensed Consolidated Balance Sheets
(in thousands) June 30, December 31,
1998 1997
ASSETS
Cash and marketable securities $22,368 $10,876
Accounts receivable, net 13,428 16,960
Other current assets 4,494 4,136
Property, equipment and other assets 8,518 10,956
Total assets $48,808 $42,928
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities $13,732 $15,774
Deferred revenue 16,041 18,930
Other liabilities 789 590
Minority interests in consolidated
subsidiaries 2,166 2,557
Stockholders' equity 16,080 5,077
Total liabilities and stockholders'
equity $48,808 $42,928
-0- (a) Internet advertising Delivering ads to Internet users via Web sites, e-mail, ad-supported software and Internet-enabled cellphones. Also called an "ad network," Internet advertising organizations act as a middleman between the advertiser and the Web sites and software publishers that display the ads. based revenues from the Company's majority owned subsidiary, Switchboard Incorporated. CONTACT: Banyan Systems Incorporated Richard M. Spaulding, 508/871-2271 or John P. Mitchell, 508/871-2271 |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion