BroadVision, Inc. Announces First Quarter 2005 Results.REDWOOD CITY Redwood City, city (1990 pop. 66,072), seat of San Mateo co., W Calif., on San Francisco Bay; inc. 1868. Manufactures include commmunications, electrical, electronic, and medical equipment. , Calif. -- BroadVision A family of e-business applications from BroadVision, Inc., Redwood City, CA (www.broadvision.com) that provide the tools to develop a complete, commercial Web site. The suite of integrated and self-service applications includes BroadVision Process; Commerce; Content; and Portal, all of , 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 :BVSN BVSN Broadvision, Inc. (stock abbreviation, AMEX) ), a global provider of web self-service solutions, today reported financial results for its first quarter ended March 31, 2005. Revenue for the first quarter was $16.4 million, compared with revenue of $19.8 million for the fourth quarter ended December December: see month. 31, 2004 and $20.9 million for the first quarter of 2004. License revenue for the quarter totaled $4.4 million versus $7.3 million in the fourth quarter of 2004 and $7.8 million in the comparable quarter of 2004. In the first quarter, BroadVision posted net income on a generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting (GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). ) basis of $2.9 million, or $0.09 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, as compared with a GAAP net loss of $386,000, or $0.01 per share, for the fourth quarter of 2004, and a GAAP net loss of $867,000, or $0.03 per share, in the first quarter of 2004. The GAAP profit in the most recent quarter included non-operating and 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). credits of over $5.5 million, consisting of a $1.1 million gain on the disposition of equity investments, a $2.5 million gain on the revaluing of common stock warrants and a $2.0 million tax benefit related to the reversal of certain income tax accruals Accruals Accounts on a balance sheet that represent liabilities and non-cash-based assets used in accrual-based accounting. These accounts include, among many others, accounts payable, accounts receivable, goodwill, future tax liability and future interest expense. determined during the first fiscal quarter to be no longer required. Pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma net loss for the first quarter of 2005 was $1,547,000, or $0.05 per share, compared with pro forma net income of $930,000, or $0.03 per diluted share, in the fourth quarter of 2004 and a pro forma net loss of $297,000, or $0.01 per share, in the first quarter of 2004. These pro forma results exclude restructuring charges 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. and credits, gains and losses from the revaluation Revaluation A calculated adjustment to a country's official exchange rate relative to a chosen baseline. The baseline can be anything from wage rates to the price of gold to a foreign currency. In a fixed exchange rate regime, only a decision by a country's government (i.e. of common stock warrants, and credits from the reversal of income tax accruals. A reconciliation of pro forma results to GAAP results is provided in the financial information attached to this press release. The Company believes its pro forma results provide useful information because they reflect the Company's financial performance excluding certain charges, credits, gains and losses that the Company believes are not indicative of its ongoing operations. "The first fiscal quarter revenue is usually relatively weak due to seasonality and we continued to see a challenging selling environment across all geographies," said Dr. Pehong Chen, BroadVision president and 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. . "We experienced some purchasing delays at quarter-end for deals that closed in the first week of April. We will continue to focus on improved execution and expense controls that maximize efficiencies and shareholder value." During the first quarter of 2005, BroadVision closed new and repeat business in all key vertical markets with customers such as Children's Hospital of Philadelphia The Children's Hospital of Philadelphia is one of the largest and oldest children's hospitals in the world. "CHOP" has been ranked as the best children's hospital in the United States by U.S. News & World Report and Child Magazine in recent years. (CHOP), EBS See Swiss Electronic Bourse. EBS See electronic blue sheet (EBS). Dealing Resources, Indian Railways Indian Railways (Hindi भारतीय रेल), abbreviated as IR, is a Department of the Government of India, under the Ministry of Railways, and is tasked with operating the rail network in India. , Himawari "Himawari" (ひまわり or 向日葵 Networks, Pillsbury Pills·bur·y , Charles Alfred 1842-1899. American manufacturer who founded (1869) C.A. Pillsbury and Company, one of the largest flour-milling enterprises of the 19th century. Winthrop Winthrop, residential town (1990 pop. 18,127), Suffolk co., E Mass., on a peninsula extending into Boston Bay; settled 1635, set off from North Chelsea and inc. 1852. Several houses of historical interest (17th–18th cent. LLP LLP - Lower Layer Protocol , Baker Hughes Baker Hughes NYSE: BHI is the world's third-largest oilfield services company behind Schlumberger & Halliburton, its main competitors. Baker Hughes provides the world's oil & gas industry with products and services for drilling, formation evaluation, completion and production. and Stream/NTT. Pending Stockholder Approval As previously disclosed, the terms of the Company's outstanding $16 million of convertible notes issued in November November: see month. 2004 require principal repayments beginning in June June: see month. 2005. The monthly repayments of $1.1 million (which will likely increase to $2.1 million effective September September: see month. 2005) may be made in either cash or, upon the satisfaction of various conditions, shares of the Company's common stock. These conditions include the Company's compliance with all requirements of the note agreements and applicable Nasdaq listing standards, which require among other things that the Company obtain stockholder approval to make payments on the notes in stock. A vote on this matter will be taken at the Company's upcoming annual meeting of stockholders on May 24, 2005. The Company believes that the passage of this proposal and the satisfaction of the aforementioned a·fore·men·tioned adj. Mentioned previously. n. The one or ones mentioned previously. aforementioned Adjective mentioned before Adj. 1. conditions are important to ensure that the Company retains sufficient working capital to operate its business. Further, the proxy statement Proxy Statement A document containing the information that a company is required by the SEC to provide to shareholders so they can make informed decisions about matters that will be brought up at an annual stockholder meeting. includes the recommendation of the Company's Board of Directors for a "yes" vote. Conference Call BroadVision will hold a conference call to discuss this press release and related matters at 5:00 pm Eastern Time, April 20, 2005. The call, hosted by Dr. Pehong Chen, can be accessed live by dialing 800-901-5217; pass code 18760210 or live and thereafter by visiting the investor relations Investor relations The process by which the corporation communicates with its investors. section of the Company's website at www.broadvision.com/ir. Information Concerning 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. Information in this release that involves expectations, beliefs, hopes, plans, intentions or strategies regarding the future are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, which forward-looking statements involve risk and uncertainties. All forward-looking statements included in this release, including, but not limited to, our ability to finalize fi·nal·ize tr.v. fi·nal·ized, fi·nal·iz·ing, fi·nal·iz·es To put into final form; complete or conclude: "They have jointly agreed ... revenue transactions in future quarters and our ability to generate revenue growth, earnings and adequate cash flows in 2005, are based upon information available to BroadVision as of the date of this release, and BroadVision assumes no obligation to update or correct any such forward-looking statements. These statements are not guarantees of future performance and actual results could differ materially from BroadVision's current expectations. Factors which could cause or contribute to such differences include, but are not limited to: lack of market acceptance of BroadVision's existing and new products or services; BroadVision's inability to continue to develop competitive new products and services on a timely basis; introduction of new products or services by competitors; general economic conditions and BroadVision's inability to attract and retain qualified employees. These and other factors and risks associated with BroadVision's business are discussed in its most recent annual report on 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. and in BroadVision's quarterly reports on Form 10-Q Form 10-Q See 10-Q. as filed with the Securities and Exchange Commission. About BroadVision BroadVision is a global provider of web self-service solutions. Our agile commerce and portal applications enable customers to quickly create and adapt online processes to keep pace with changing business requirements. Over 1,000 organizations - including Circuit City, Yankee Candle, Vodafone, Cardinal Health <includeonly></includeonly> Cardinal Health (NYSE: CAH) is a premier, global healthcare company dedicated to making healthcare safer and more productive. Overview Headquartered in Dublin, Ohio, Cardinal Health, Inc. , Hewlett-Packard, Toyota, Japan Airlines and the U.S. Air Force - serving nearly 60 million registered users, rely on BroadVision's open solutions to power and personalize 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. their mission-critical web initiatives For more information about BroadVision, Inc., call 650-542-5100, email info@broadvision.com or visit www.broadvision.com. Additional Information and Where to Find It In connection with the Company's solicitation solicitation In criminal law, the act of asking, inducing, or directing someone to commit a crime. The person soliciting another becomes an accomplice to the crime. The term also refers to the act of obtaining bribes, as well as to the crime of a prostitute who offers sexual of stockholder approval for the ability to make payments on its outstanding convertible notes with shares of its common stock, the Company has filed a preliminary proxy statement and intends to file a definitive proxy statement with the Securities and Exchange Commission (SEC). INVESTORS AND SECURITY HOLDERS OF THE COMPANY ARE URGED TO READ THE DEFINITIVE PROXY STATEMENT WHEN IT BECOMES AVAILABLE BECAUSE IT WILL CONTAIN IMPORTANT INFORMATION ABOUT THE COMPANY AND THE REPAYMENT OF THE NOTES. The preliminary proxy statement and, when available, definitive proxy statement may be obtained free of charge at the SEC's website at www.sec.gov. In addition, investors and security holders may obtain free copies of the definitive proxy statement by directing a written request to Corporate Secretary, BroadVision, Inc., 585 Broadway, Redwood City, California Redwood City is a suburb located on the San Francisco Peninsula in the San Francisco Bay Area of California. Redwood City is the county seat of San Mateo County. As of the 2005 census, the city had a total population of 76,000. 94063 or by contacting Investor Relations at (650) 261-5100. The Company and its directors may be deemed to be participants in the solicitation of proxies in respect of the proposal to permit payments on the notes to be made with shares of common stock. Information about the directors of the Company and their ownership of Company common stock is set forth in the Company's preliminary proxy statement for its 2005 annual meeting of stockholders filed with the SEC on April 7, 2005.
BROADVISION, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except per share amounts)
Mar. 31, Dec. 31,
2005 2004
----------- ---------
ASSETS (Unaudited)
Current assets:
Cash and cash equivalents $37,218 $41,851
Accounts receivable, less allowance
for doubtful accounts and reserves of $1,250
and $1,409 as of March 31, 2005 and
December 31, 2004, respectively 12,740 14,370
Restricted cash and investments,
current portion 3,156 21,933
Prepaids and other 2,509 2,232
----------- ---------
Total current assets 55,623 80,386
Property and equipment, net 3,168 3,566
Restricted cash and investments, net of current
portion 1,997 2,323
Goodwill 53,421 53,421
Other intangibles, net 3,013 3,013
Other assets 1,620 1,944
----------- ---------
Total assets $118,842 $144,653
=========== =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current portion of bank borrowings $20,500 $20,637
Current portion of long-term debt 8,129 4,929
Accounts payable 6,334 7,470
Accrued expenses 17,861 40,745
Warrant liability 2,382 4,899
Unearned revenue and deferred maintenance 18,093 19,842
----------- ---------
Total current liabilities 73,299 98,522
Long-term debt, net of current portion 4,487 7,054
Bank borrowings, net of current portion 276 389
Other noncurrent liabilities 7,036 8,278
----------- ---------
Total liabilities 85,098 114,243
----------- ---------
Commitments and contingencies
Stockholders' equity 33,744 30,410
----------- ---------
Total liabilities and stockholders' equity $118,842 $144,653
=========== =========
BROADVISION, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(Unaudited)
Three Months Ended
Mar. 31, Dec. 31, Mar. 31,
2005 2004 2004
--------- -------- --------
Revenues:
Software licenses $4,416 $7,292 $7,840
Services 11,951 12,471 13,049
--------- -------- --------
Total revenues 16,367 19,763 20,889
Cost of revenues:
Cost of software licenses (57) 156 578
Cost of services 5,980 6,008 6,277
--------- -------- --------
Total cost of revenues 5,923 6,164 6,855
--------- -------- --------
Gross profit 10,444 13,599 14,034
Operating expenses:
Research and development 4,287 4,027 4,888
Sales and marketing 5,811 6,974 6,866
General and administrative 2,535 2,386 2,417
Restructuring (credit) charge (704) 660 570
--------- -------- --------
Total operating expenses 11,929 14,047 14,741
--------- -------- --------
Operating income (loss) (1,485) (448) (707)
Interest and other income (expense), net 2,371 (388) (24)
--------- -------- --------
Income (loss) before (provision)/
benefit for income taxes 886 (836) (731)
(Provision)/benefit for income taxes 2,032 450 (136)
--------- -------- --------
Net income (loss) $2,918 $(386) $(867)
========= ======== ========
Basic income (loss) per share $0.09 $(0.01) $(0.03)
========= ======== ========
Diluted income (loss) per share $0.09 $(0.01) $(0.03)
========= ======== ========
Shares used in computing basic income
(loss) per share 33,971 33,768 33,300
========= ======== ========
Shares used in computing diluted income
(loss) per share 34,171 33,768 33,300
========= ======== ========
PRO FORMA FINANCIAL INFORMATION(1):
Net income (loss) $(1,547) $930 $(297)
========= ======== ========
Basic income (loss) per share $(0.05) $0.03 $(0.01)
========= ======== ========
Diluted income (loss) per share $(0.05) $0.03 $(0.01)
========= ======== ========
(1 )Pro forma net income (loss) and the related per share amounts
exclude: 1) restructuring charges and credits, 2) gains and losses
from the revaluation of common stock warrants and 3) credits from the
reversal of income tax accruals. Pro forma net income (loss) and pro
forma cost of revenues and operating expenses reconcile to the
comparable amounts under generally accepted accounting principles as
follows (unaudited, in thousands):
Three Months Ended
Mar. 31, Dec. 31, Mar. 31,
2005 2004 2004
-------- -------- --------
Net income (loss), generally
accepted accounting principles $2,918 $(386) $(867)
Pro forma adjustments:
Restructuring charges (credits) (704) 660 570
Revaluation of warrant (1,764) 656 --
Reversal of income tax accruals (1,997) -- --
-------- -------- --------
Pro forma net income (loss) $(1,547) $930 $(297)
======== ======== ========
Cost of revenues and operating expenses,
generally accepted accounting principles $17,852 $20,211 $21,596
Pro forma adjustments:
Restructuring (charges) credits 704 (660) (570)
-------- -------- --------
Pro forma cost of revenues
and operating expenses $18,556 $19,551 $21,026
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