Banyan Systems announces first-quarter 1997 results.WESTBORO, Mass.--(BUSINESS WIRE)--April 21, 1997-- Company expects to record pre-tax 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 between $10 million to $13 million for the second quarter of 1997 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 reported a net loss for its first quarter ended March 31, 1997, of $6,392,000, or $0.37 per share, compared with net income of $369,000 or $0.02 per share for the same period in 1996. Revenues for the first quarter of 1997 were $20.0 million, compared with $29.9 million in the first quarter of 1996. Banyan's software revenues in the first quarter of 1997 were $16.3 million, compared with $24.9 million for the same period in 1996. Banyan's international business reported sales of $6.2 million, compared with last year's first-quarter level of $7.0 million. William P. Ferry, who joined Banyan on February 24, 1997 as president and chief executive officer, commented, "As previously indicated, our first-quarter performance was affected by purchasing delays in several key accounts, the late delivery of certain new products and general uncertainty resulting from the transition in senior management. We are continuing our efforts to build stronger customer relationships, accelerate the evaluation of our solutions and integrate these offerings with our customers' networks. This week's user conference, an important event for Banyan and our customers, is an integral part of these initiatives." Banyan also announced today that it expects to record a pre-tax restructuring and other charges in the second quarter ending June 30, 1997, between $10 million and $13 million, of which $3 to $4 million will be cash-related, 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 twenty to twenty-five percent reduction in the Company's work force, as well as costs related to facility and product line consolidations. Mr. Ferry added, "I have spent much of my time reviewing our operations and evaluating business alternatives that add value to our customers' networks. While we have already reduced costs compared with last year, today's restructuring will allow us to further lower our cost structure by approximately twenty-five percent on an ongoing basis. This action will also sharpen sharp·en tr. & intr.v. sharp·ened, sharp·en·ing, sharp·ens To make or become sharp or sharper. sharp Banyan's focus on developing and delivering its core set of networking software  This article is written like a personal reflection or and may require .Please [ improve this article] by rewriting this article in an . solutions and related services." Mr. Ferry continued, "Banyan's priorities are clear: we must continue to address the needs of our installed customer base through timely product updates and quality support; deliver new solutions which are compliant with industry standards, such as StreetTalk 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. and BeyondMail Internet Edition; and leverage our core directory and messaging technologies by developing new solutions, such as Switchboard, which allow us to pursue the promising Internet and corporate intranet marketplaces." "Another critical element is to add talented, experienced executives to Banyan's management team that will help us build stronger, long-term relationships with our customers," Mr. Ferry added. "We have made good progress in this area with the Company's appointment of Bob Burke as senior vice president of sales and service. Bob is a highly respected, former Digital Equipment Corporation executive, with twenty years TWENTY YEARS. The lapse of twenty years raises a presumption of certain facts, and after such a time, the party against whom the presumption has been raised, will be required to prove a negative to establish his rights. 2. of software sales and service experience. In addition, our search for a CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of our Switchboard subsidiary has been productive and we hope to conclude this process by the end of the second quarter." Mr. Ferry concluded, "Banyan is moving aggressively to refocus Verb 1. refocus - focus once again; The physicist refocused the light beam" focus - cause to converge on or toward a central point; "Focus the light on this image" 2. and rebuild its business. However, we believe that it may take several quarters before we can fully realize the benefits of these initiatives which will allow us to stabilize stabilize See peg. our business, return Banyan to profitability and improve shareholder value." 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. were subject to change based on various important factors, including, without limitation, competitive actions in the marketplace and buying trends by businesses. Further information on potential factors which could affect the Company's financial results are included in the Company's , Massachusetts, USA, the Company markets prod Banyan Systems Incorporated Consolidated Statements of Operations (in thousands, excepmonths ended March 31, 1997 1996 (Unaudited) Revenues: Software $16,265 $24,931 Support and training 3,653 4,469 Hardware 113 14,670 23,961 % Product development 4,728 5,333 General and administrative come from operations -6,388 349 Other income, net 576 Provision for Net (loss)/income per common share ($0.37) $0.02 1997 1996 (Unaud $58,249 $69,53 2 LIABILITIES AND STOCKHOLDERS' EQUIed revenue 20,736 equity ess Wire's full file on the Internet |
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