Harbinger to cut jobs by 10%
The software maker says it will restructure and lay off about 110 people, sending its stock into a tailspin.
The company's stock plunged more than 37 percent on the news, losing 2.75 to reach 4.5--a new 52-week low.
Harbinger said it plans to restructure in order to concentrate on its current product lines and to expand certain investment areas, furthering its transition to Internet electronic commerce from electronic data interchange.
Harbinger said its key services will be trading community management, mass deployment, the professional services necessary to implement e-commerce, and enterprise and small business software necessary to enable e-commerce transaction exchange. The company said its goal is to achieve a more predictable revenue stream over time, with 50 percent from recurring services, 30 percent from software, and 20 percent from professional services solutions.
Harbinger also announced it has realigned its executive management team. C. Tycho Howle, the current Harbinger chairman, will become the CEO, a position that he has held previously at the company. David Leach, the former CEO, will become vice chairman and will help manage the reorganization effort and then focus his efforts on improving the performance of Harbinger's international business.
The company also announced it expects to report revenues of $34 million to $36.5 million in the third quarter and earnings per share from continuing operations of between 4 cents and 8 cents per share, before nonrecurring charges and a specific provision to the allowance for doubtful accounts.
Harbinger anticipates nonrecurring charges to include restructuring and integration charges totaling $15 to $20 million, which include approximately $3 million in remaining integration charges associated with its merger with Premenos.