Banyan Systems announces fourth quarter and 1995 results.WESTBORO, Mass.--(BUSINESS WIRE)--Jan. 26, 1996--Banyan Systems Inc. (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 its financial results for the fourth quarter and full year ended December 31, 1995. In conjunction with this announcement, the company also reported that it will incur To become subject to and liable for; to have liabilities imposed by act or operation of law. Expenses are incurred, for example, when the legal obligation to pay them arises. An individual incurs a liability when a money judgment is rendered against him or her by a court. additional costs related to a previously announced reorganization of its operations, which resulted in the creation of two divisions: Enterprise Networking The networking infrastructure in a large enterprise with multiple computer systems and networks of different types is extraordinarily complex. Due to the myriad of interfaces that are required, much of what goes on has little to do with the real data processing of the payroll and orders. and Internet Products. On November 8, 1995, the company announced a one-time pre-tax restructuring charge restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. to provide for facility consolidations, 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 related to a ten percent reduction of the company's workforce and other associated costs related to the reorganization. As a result of a consolidation of distribution activities and a simplification in product configurations, packaging and related asset write-offs, the company will record an additional pretax pre·tax adj. Existing before tax deductions: pretax income. pretax adj [profit] → vor (Abzug der) Steuern non-recurring charge of approximately $8.0 million in the fourth quarter ended December 31, 1995. This brings the company's total charges for the fourth quarter of 1995 to $15.8 million. Banyan's revenues for the fourth quarter ended December 31, 1995 were $28.0 million, compared with $41.1 million in the same period of 1994. Banyan's net loss for the quarter was $17,308,000, or $1.03 per share, compared with net income of $4,658,000, or $0.26 per share, for the fourth quarter of 1994. The company's net loss for the fourth quarter of 1995 reflects total after-tax charges of $11,061,000, or $0.66 per share. For the year ended December 31, 1995, 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. reported revenue of $129.7 million, compared with $150.1 million in 1994. The net loss for the year was $21,360,000, or $1.27 per share, compared with net income of $4,987,000, or $0.27 per share in 1994. Results for 1995 reflect total after-tax charges of $11,061,000, or $0.66 per share. Excluding these charges, Banyan's net loss would have been $10,299,000, or $0.61 per share. Results for 1994 include the impact of a one-time charge of $10,916,000 after taxes due to the acquisition of Beyond Incorporated in the first quarter of 1994. Banyan's software revenues in 1995 were $105.2 million, compared with $118.9 million in 1994. These results reflect lower software sales, primarily of the company's current 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 + and ENS+ offerings, as well as delays in the release and localization Customizing software and documentation for a particular country. It includes the translation of menus and messages into the native spoken language as well as changes in the user interface to accommodate different alphabets and culture. See internationalization and l10n. of some products. As a result of the decline in revenue, gross margins in 1995 were 77 percent, compared with 80 percent in 1994. Banyan's international sales were $29.7 million, compared with $29.0 million one year ago. Revenue in the Asia/Pacific region expanded to $8.9 million in 1995 from $5.2 million in 1994, aided by several key partnerships, including joint ventures with NTT NTT Nippon Telegraph and Telephone Corporation NTT New Technology Telescope NTT National Technology Transfer, Inc NTT Name That Tune (TV game show) NTT National Tree Trust NTT Number Theoretic Transform and Marubeni, both of which purchased minority interests in Banyan's Japanese subsidiary. Commenting on Banyan's financial results, David C. Mahoney, chairman and chief executive officer, said, "We are clearly disappointed with our performance in 1995. During the past several months, we have taken actions, including a significant corporate 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). , to address the issues which began affecting our results in 1995. The realignment re·a·lign tr.v. re·a·ligned, re·a·lign·ing, re·a·ligns 1. To put back into proper order or alignment. 2. To make new groupings of or working arrangements between. and consolidation of our distribution activities will enable us to increase the efficiency of our distribution and allow for the updating of our product configurations. Banyan is in the process of simplifying and consolidating software packaging to accelerate our customers' transition to CD-ROM CD-ROM: see compact disc. CD-ROM in full compact disc read-only memory Type of computer storage medium that is read optically (e.g., by a laser). configurations and electronic-based product delivery. We believe that these actions should contribute to the improvement of our overall effectiveness and to the reduction of costs while also allowing us to take advantage of the latest production and delivery technologies." "During the quarter, we made progress toward strengthening our sales and marketing efforts as well as broadening our product offerings," Mahoney continued. "With our transition to a district-centric sales structure, we are fortifying our relationships with our premier resellers and network integrators. In fact, Banyan's channel partners reported increased customer `sell through' in the fourth quarter and reduced levels of channel inventory compared with the third quarter. In addition, during the quarter we expanded our partnership with Attachmate+ Corporation to enhance our host and Internet connectivity solutions to include EXTRA!+ Personal Client for Windows, Windows 95 and 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 RLN RLN Relaxin RLN Recurrent Laryngeal Nerve RLN Retropharyngeal Lymph Node RLN Remote LAN Node RLN Resource Loaded Network + remote access products. Capitalizing on the global demand for electronic mail applications, we completed the roll out of our BeyondMail+ offerings to our entire sales force, which should help expand our business with both new and existing customers. Responding to our international customers' needs, we delivered Enterprise Network Services offerings for leading regional computing platforms See platform. as well as shipped localized Translated into the spoken language of the country. See localization. versions of BeyondMail in French, Spanish, German, Japanese and Korean." Mahoney concluded, "We believe that Banyan's new divisional structure will better position the company to bring our REDWOOD redwood: see sequoia; brazilwood. redwood or sequoia Coniferous evergreen timber tree (Sequoia sempervirens) of the family Taxodiaceae, found in the fog belt of west-coastal North America. vision to the commercial marketplace. During the quarter, we took strides toward this goal with the delivery of BeyondMail SMTP (Simple Mail Transfer Protocol) The standard e-mail protocol on the Internet and part of the TCP/IP protocol suite, as defined by IETF RFC 2821. SMTP defines the message format and the message transfer agent (MTA), which stores and forwards the mail. which provides for access to the World Wide Web and Collabra Share+ version 2.0.In addition to developing new Internet-related products, our 1996 product development initiatives also include enhancing VINES, continued partnership programs with Universal StreetTalk, as well as extending our directory and messaging offerings into the NT environment. We will continue to invest in delivering our products to allow customers to expand their enterprise networks to include remote employees, business partners and suppliers." 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 buying trends by business. Further information on potential factors which could affect the company's financial results are included in the company's Form 10-Q Form 10-Q See 10-Q. for its third fiscal quarter ended September, 1995, filed with the SEC, and 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 1995 fiscal year, which is anticipated to be filed with the SEC at the end of March, 1996. The consolidated statements of operations and condensed con·dense v. con·densed, con·dens·ing, con·dens·es v.tr. 1. To reduce the volume or compass of. 2. To make more concise; abridge or shorten. 3. Physics a. balance sheets follow. About Banyan Systems Incorporated: Banyan Systems (NASDAQ:BNYN) is a pioneer and leader in enterprise network services. These products make it easy to find, share and manage information and resources within enterprise networks. Founded in 1983 and headquartered in Westboro, Mass., USA, the company markets products worldwide through authorized au·thor·ize tr.v. au·thor·ized, au·thor·iz·ing, au·thor·iz·es 1. To grant authority or power to. 2. To give permission for; sanction: network integrators, resellers and international distributors. Banyan can be reached on the World Wide Web at http.banyan.com. -0- StreetTalk+ is a product of Banyan Systems Incorporated and not a product of McCarthy, Crisanti & Maffei, Inc.
Banyan Systems Incorporated
Consolidated Statements of Operations
(in thousands, except per share amounts)
Three months ended Years ended
December 31, December 31,
1995 1994 1995 1994
Revenues: Software $22,149 $32,374 $105,160 $118,899 Hardware 540 3,298 3,464 10,770 Support and training 5,288 5,410 21,059 20,444 Total revenues 27,977 41,082 129,683 150,113 Cost of related revenues 7,622 7,572 29,562 29,659 Gross margin 20,355 33,510 100,121 120,454 % 73% 82% 77% 80% Operating expenses:
Sales and marketing 20,488 17,891 80,810 64,395
Product development 6,730 5,393 24,502 20,507
General and
administrative 3,560 3,567 13,208 12,405
Restructuring and
other charges 15,802(a) - 15,802* -
Purchased research
and development - - - 17,606(b)
Total operating
expenses 46,580 26,851 134,322 114,913
(Loss)/income from
operations (26,225) 6,659 (34,201) 5,541
Other income, net 2,377 302 3,686 1,521
(Loss)/income before
income taxes (23,848) 6,961 (30,515) 7,062
(Benefit)/provision
for income taxes (6,540)(a) 2,303 (9,155)(a) 2,075(b)
Net (loss)/income ($17,308) $4,658 ($21,360) $4,987
Net (loss)/income
per common share ($1.03) $0.26 ($1.27) $0.27
Weighted average number
of common and dilutive
common equivalent
shares outstanding 16,758 18,091 16,797 18,195
-0-
Condensed Consolidated Balance Sheets
( in thousands)
December 31, December 31,
1995 1994
ASSETS Cash and marketable securities $31,263 $50,695 Accounts receivable, net 24,288 33,482 Income tax receivable 6,042 - Other current assets 10,454 8,694 Property, equipment and other assets 21,896 22,801 Deferred tax asset 12,366 9,288(b) Total assets $106,309 $124,960 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities $36,378 $28,419 Deferred revenue 22,323 21,463 Other liabilities 3,266 1,199 Stockholders' equity 44,342 73,879 Total liabilities and stockholders' equity $106,309 $124,960 (a) In the fourth quarter of 1995, the company took a one time charge of $15,802, resulting in an after tax charge of $11,061 related to the restructuring of the company. (b) In the first quarter of 1994, the company took a one time charge of $17,606 with an associated deferred tax benefit of $6,690 resulting in an after tax charge of $10,916 related to the acquisition of Beyond. CONTACT: Banyan Systems Inc. Jeffrey D. Glidden or Richard M. Spaulding 508/871-2271 |
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