Banyan Worldwide Announces 1999 Second-Quarter Results; Operating Results Driven by Strong Growth in Worldwide Services Division.WESTBORO Westboro can refer to: Places
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. (R) Worldwide (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) ), a leader in implementing solutions based on directory technology, today announced its financial results for the quarter ended June June: see month. 30, 1999. For the second quarter of 1999, Banyan Worldwide reported net income of $4,462,000, or $0.17 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share. Excluding the one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. benefit of $4.0 million, or $0.16 per share, related to the sale of securities as part of Software.com's initial public offering discussed below, Banyan Worldwide reported net income of $419,000, or $0.02 per diluted share. Banyan Worldwide's 1999 second-quarter results compare with a 1998 second-quarter net loss of $773,000, or $0.04 per share, which included a one-time charge of $1.4 million, or $0.08 per share, for the purchase of Lucent Technologies' Maps on Us(R) Web site and technology. Revenues for the second quarter of 1999 were $19.3 million, a 6.2 percent increase over $18.1 million for the second quarter of 1998. For the first six months of 1999, Banyan Worldwide reported net income of $4,919,000, or $0.19 per share. Excluding the one-time benefit from the sale of securities of Software.com, Banyan Worldwide reported net income of $876,000, or $0.03 per diluted share. The Company's results compared with a net loss of $396,000, or $0.02 per share, which included the one-time charge from the purchase of Lucent Technologies' Maps on Us Web site and technology. Revenues for the first six months of 1999 were $38.3 million, a 6.7% increase over $35.9 million for the same period of 1998. In the second quarter of 1999, as part of Software.com's initial public offering, Banyan Worldwide sold 339,985 shares resulting in net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). of $ 4.5 million and a realized net gain of approximately $4.0 million. Additionally, Banyan Worldwide held 1,021,202 shares at June 30, 1999 which were marked to market at $23.188 per share with a total value of $23.7 million. The net unrealized gain Unrealized Gain A profit that results from holding on to an asset rather than cashing it in and using the funds. Notes: Let's say you own a stock that has doubled, but you haven't sold it yet. This is said to be an unrealized gain. of $22.2 million is included in stockholders' equity Stockholders' Equity The portion of the balance sheet that includes capital received from investors in exchange for stock (paid-in capital), donated capital, and retained earnings. This is equal to total assets minus liabilities, preferred stock and intangible assets. . The remaining shares of Software.com held by Banyan Worldwide are subject to a six-month lock-up lock-up n (= prison) → cárcel f (= cell); jaula; (also: lock-up garage) → jaula, cochera lock-up period. During the quarter, Banyan Worldwide significantly strengthened its balance sheet as a result of its ownership in Software.com and a $5.0 million cash investment in Switchboard Incorporated by CBS Corporation
See: New York Stock Exchange : CBS (Cell Broadcast Service) See cell broadcast. ). Banyan Worldwide ended the second quarter with $62.6 million in cash and marketable securities Marketable Securities Very liquid securities that can be converted into cash quickly at a reasonable price. Notes: Marketable securities are very liquid as they tend to have maturities less than one year, and the rate at which these securities can be bought or sold has , compared with $22.3 million as of December December: see month. 31, 1998. William William, crown prince of Germany William or Frederick William, 1882–1951, crown prince of Germany, son of William II. In World War I he commanded (1914) an army on the Western Front and was nominal commander in the German attack P. Ferry, Banyan Worldwide's chairman and chief executive officer, stated, "Our second-quarter and first-half performance was highlighted by considerable growth in our Services business supported by our global alliance with Microsoft(R) Corporation, the formation of the Banyan Worldwide Services Division and continued achievements by our Switchboard subsidiary in building its local merchant business. We are particularly enthusiastic about our recently announced partnership with CBS which should significantly advance Switchboard's local merchant initiatives and business momentum." CBS Partnership On June 30, 1999, Banyan Worldwide and CBS completed their agreement for CBS to acquire a 35% equity stake in Switchboard. In exchange, Switchboard will receive $130 million of promotion and branding over terms of seven and ten years, respectively, across the full range of CBS media properties, as well as those of its radio and outdoor subsidiary, Infinity infinity, in mathematics, that which is not finite. A sequence of numbers, a1, a2, a3, … , is said to "approach infinity" if the numbers eventually become arbitrarily large, i.e. Broadcasting Corporation (NYSE: INF INF interferon. ). CBS also received warrants to purchase an additional 5% of the company, which could increase its ownership position to 40% of Switchboard. Representatives of CBS Corporation will join Switchboard's board of directors. Additionally, CBS received warrants to purchase 250,000 shares of Banyan common stock at $11.27 per share. Switchboard Switchboard reported sales of $2.0 million for the second quarter of 1999, versus $1.7 million in the second quarter of 1998 and $1.6 million in the first quarter of 1999. Switchboard's growth was driven by the addition of both local and national advertisers including Amazon.com and Classmates.com. In addition to the CBS partnership in the second quarter, Switchboard announced relationships with Cox Interactive Media and Advance 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 Inc. to expand Switchboard's access to local merchants, add new users and drive incremental Additional or increased growth, bulk, quantity, number, or value; enlarged. Incremental cost is additional or increased cost of an item or service apart from its actual cost. traffic. Switchboard also announced a strategic relationship with the At Hand Network(SM) that incorporates Switchboard's directory technology in their Web site. "In the fourth quarter of 1998 Switchboard launched a portfolio of Internet services for local merchants which began to produce tangible results during the second quarter. Additionally, the partnership with CBS is a substantial milestone in Banyan's strategy to build greater value in the Switchboard business," said Ferry. "Switchboard is now focused on further accelerating its momentum by leveraging CBS's vast promotional capabilities and national cross-media sales force. As a result of the CBS partnership, we anticipate that our non-cash promotional spending will increase by approximately $2.0 to $3.0 million per quarter during the second half of 1999." Banyan Worldwide Services Revenues for the Banyan Worldwide Services division grew to $10.0 million during the quarter, a 77 percent increase over sales of $5.6 million during the second quarter of 1998. During the second quarter, this division completed an agreement with ISOCOR (Nasdaq: ICOR ICOR International Consortium for Organizational Resilience (Lombard, IL) ICOR Incremental Capital-Output Ratio ICOR First Corinthians ICOR Infantry Combat Regiment (US Army; Korean war era) ), a leader in Internet meta-directory software, that further strengthens its Directory-Powered e-Business(SM) solutions. Banyan Worldwide Services also entered into a number of new consulting engagements including Ericsson and Singapore Telecom, and expanded its network support and operations services with the addition of DaimlerChrysler to its blue-chip client roster. Banyan Worldwide Services also made progress in implementing its alliance with Microsoft as approximately 100 consultants received Microsoft certification A series of programs that provide certification of competency in Microsoft products. Administered throughout the world at Microsoft centers as well as colleges and universities, the certification exams consist of both core topics and elective material. during the first half of 1999. Earlier this month, the division launched its new Active Directory Planning Service to assist organizations that are preparing to deploy Microsoft's Windows(R) 2000 Server. Ferry stated, "The continued growth of our Worldwide Services Division reflects its ability to provide customers with a focused portfolio of Internet, Enterprise Network and Microsoft-based solutions. We have continued to form new partnerships and launch new services that deliver greater value to our customers and further differentiate Banyan Worldwide Services in the marketplace. We believe that our alliance with Microsoft as well as selected investments in additional sales and marketing initiatives will augment aug·ment v. aug·ment·ed, aug·ment·ing, aug·ments v.tr. 1. To make (something already developed or well under way) greater, as in size, extent, or quantity: the expansion of the division during the second half of 1999." Network Software Banyan Worldwide's second-quarter software sales of $7.3 million compares to $10.8 million in the second quarter of 1998. These results reflect continued 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), StreetTalk(R) and messaging offerings, as well as decreased sales volume for related third-party networking software  This article is written like a personal reflection or and may require .Please [ improve this article] by rewriting this article in an . products. During the quarter, the Company announced the availability of a new Internet See Web 2.0 and Internet2. software product, WorkTop worktop Noun a surface in a kitchen, usually the top of a fitted kitchen unit, which is used for food preparation Also: (work surface) worktop n → encimera (TM). WorkTop, which targets the high-growth Enterprise Information Portal See corporate portal. market, is a browser-based productivity tool that helps improve the utility of corporate intranets by providing a highly personalized per·son·al·ize tr.v. per·son·al·ized, per·son·al·iz·ing, per·son·al·iz·es 1. To take (a general remark or characterization) in a personal manner. 2. To attribute human or personal qualities to; personify. start page that organizes and monitors Web-based information. "WorkTop is an exciting new offering designed to help businesses and their employees better customize and organize information that is accessible across corporate intranets, file and email systems and directories," stated Ferry. "We anticipate that WorkTop, which is now available through an early access program for free trials, will be launched for general availability in the second half of 1999. Outlook "Banyan Worldwide moves into the second half of 1999 having achieved a number of major milestones that are fundamental to the Company's success," Ferry concluded. "In order to continue generating growth in Banyan Worldwide Services and in Switchboard, we are increasing our investments in both of these businesses. As a result of the substantial increase in non-cash promotion in Switchboard combined with additional sales and marketing investments in both businesses, the Company expects to record net losses in the range of $1.0 to $2.0 million in each of the third and fourth quarters of 1999. At the same time, our strong balance sheet has created an excellent opportunity for us to complement our internal growth by initiating an aggressive business development program. This program will be aimed at identifying and evaluating businesses that can augment the growth of Banyan Worldwide Services by enhancing its network and Internet-based solutions. We will also evaluate alternatives on how to capitalize on Cap´i`tal`ize on` v. t. 1. To turn (an opportunity) to one's advantage; to take advantage of (a situation); to profit from; as, to capitalize on an opponent's mistakes s>. WorkTop's potential in the new and emerging Enterprise Information Portal market during the second half of the year." The Company noted that each of the above statements under the heading "Outlook" and other statements using the terms "believe," "expects," "expected," "plans," and "anticipate," are 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. and are subject to differ materially from actual results based on various important factors, including, without limitation, the impact of the Company's strategic initiatives to increase its focus on its Worldwide Services business and Switchboard, its ability to enter strategic alliances, the Company's plans and strategy for its business, increased competition, acceptance of the Company's products in the marketplace, sales and marketing and product development efforts, available resources, the ability of Switchboard to expand its traffic and revenues, the Company's ability to attract and retain qualified personnel, fluctuations in the value of the Software.com securities held by Banyan, and the success of the Company's Year 2000 Readiness program, Worldwide Services business, alliance with Microsoft and partnership with CBS. Actual events or results could differ materially from those indicated by such forward-looking statements. Further information on potential factors that could affect 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 1998 year, which was filed with the SEC at the end of March 1999 and the 10-Q for the first quarter of 1999, which was filed with the SEC in May 1999. 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 are attached. About Banyan Worldwide Founded in 1983 as Banyan Systems Incorporated, Banyan Worldwide (NASDAQ: BNYN), is a market leader in delivering solutions based on directory services technology. Headquartered in Westboro, Mass., more than 50% of Fortune 1000 companies and government agencies utilize Banyan Worldwide solutions to enhance the performance of their enterprise. The Company's Worldwide Services Division provides solutions that integrate core business applications and Web technology creating highly reliable easily managed and secure global networks. Banyan Worldwide Services also provides co-existence and migration services, secure and remote access for business applications and tools to deploy and manage intranets, directories and messaging environments. The Company's majority-owned Internet subsidiary, Switchboard Incorporated, is a leading on-line directory focused on connecting people, businesses and information. For more information, please call 1-800-2BANYAN or visit http://www.banyan.com. -0-
Banyan Worldwide
Consolidated Statements of Operations
(in thousands, except per share amounts)
Three months ended Six months ended
June 30, June 30,
1999 1998 1999 1998
Revenues:
Software $7,258 $10,792 $15,529 $22,510
Services 9,991 5,638 19,144 10,593
Switchboard 2,010 1,706 3,612 2,786
Total revenues 19,259 18,136 38,285 35,889
Gross profit
Software 6,201 9,461 12,968 19,892
Services 3,080 2,035 6,226 3,867
Switchboard 1,689 1,150 2,941 1,758
Total gross profit 10,970 12,646 22,135 25,507
% 57% 70% 58% 71%
Operating expenses:
Sales and marketing 6,484 7,664 12,801 15,860
Product development 2,319 2,915 4,839 5,762
General and
administrative 1,757 1,597 3,567 3,078
Other charges 0 1,400(a) 0 1,400(a)
Total operating
expenses 10,560 13,576 21,207 26,100
Income/(loss)from
operations 410 (930) 928 (593)
Other Income, net 4,142(b) 313 4,217(b) 420
Income/(loss) before
income taxes 4,552 (617) 5,145 (173)
Provision for income
taxes 90 156 226 223
Net Income/(loss) $4,462 ($773) $4,919 ($396)
Net Income/(loss)
per common share:
Basic $0.22 ($0.04) $0.25 ($0.02)
Diluted $0.17 ($0.04) $0.19 ($0.02)
Weighted averaged number
of common shares:
Basic 20,236 18,055 19,714 17,863
Diluted 25,668 18,055 25,554 17,863
Condensed Consolidated Balance Sheets
(in thousands)
June 30, December 31,
1999 1998
ASSETS
Cash and marketable securities $62,586(c) $22,288
Accounts receivable, net 14,911 21,392
Other current assets 5,665 4,698
Property, equipment and other assets 6,643 7,832
Total assets $89,805 $56,210
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities $17,620 $16,623
Deferred revenue 13,722 18,430
Other liabilities 0 750
Minority interests in consolidated
subsidiaries 3,571(d) 2,008
Stockholders' equity 54,892 18,399
Total liabilities and stockholders'
equity $89,805 $56,210
(a) Acquisition of MapsOnUs Web site and technology.
(b) Includes a net realized gain of approximately $4,043 for the sale
of shares in a nonaffiliated company's public offering.
(c) Includes an investment of approximated $23,680 in a nonaffiliated
public company's stock marked to market at June 30, 1999.
(d) Includes CBS Corporation minority stake in Switchboard
Incorporated
*T
|
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion