BroadVision, Inc. Announces Preliminary First Quarter 2001 Results; Company Plans Substantial Expense Reductions and Related One-Time Charge in Q2.Business Editors/High-Tech Writers 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.-(BUSINESS WIRE)--April 2, 2001--BroadVision, Inc. (Nasdaq: BVSN BVSN Broadvision, Inc. (stock abbreviation, AMEX) ), a leading provider of 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. e-business (Electronic-BUSINESS) Doing business online. The term is often used synonymously with e-commerce, but e-business is more of an umbrella term for having a presence on the Web. applications, today announced that, based on preliminary estimates, it expects revenue for the quarter ended March 31, 2001 will be between $85 million and $90 million, and basic pro-forma loss per share, pending review of non-recurring items, will be in the range of $0.14 to $0.16. The Company believes these results were adversely affected by uncertainties surrounding sur·round tr.v. sur·round·ed, sur·round·ing, sur·rounds 1. To extend on all sides of simultaneously; encircle. 2. To enclose or confine on all sides so as to bar escape or outside communication. n. the current economic and IT spending environments, which caused customers to delay purchases of the Companys products. As a result of these uncertainties, the Company announced it will implement a number of initiatives to substantially reduce its operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. , including a corporate-wide reorganization and related workforce reduction of approximately 325 people, or 15% of the Companys workforce. Based on these actions, the Company anticipates that it will record a one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. charge in the second quarter. An estimate of this charge will be disclosed when the Company reports its first quarter earnings on April 24th, 2001. The Company also announced it has revised its previously released, unaudited financial results for the fourth quarter ended December December: see month. 31, 2000 to include approximately $4 million of additional expenses. These additional expenses were identified by the Company subsequent to the press release issued on January 25, 2001 and were promptly brought to the attention of the Company's independent auditors Independent Auditor An external auditor with a certified public accounting designation that qualifies him or her to provide an auditor's report. Notes: These auditors aren't affiliated with the company being audited. . These expenses reduced reported fourth quarter 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. pro-forma earnings Pro-Forma Earnings Projected earnings based on a set of assumptions and often used to present a business plan (in Latin pro forma means "for the sake of form"). It also refers to earnings which exclude non-recurring items. Pro-forma earnings are not derived by standard GAAP methods. per share to $0.01 from $0.02 and full fiscal year 2000 pro-forma earnings per share to $0.12 from $0.13 on a fully diluted basis. "Our first quarter results reflect economic uncertainties, which caused some customers to postpone post·pone tr.v. post·poned, post·pon·ing, post·pones 1. To delay until a future time; put off. See Synonyms at defer1. 2. To place after in importance; subordinate. major IT expenditures," commented Dr. Pehong Chen, BroadVisions 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. . "Although revenues grew approximately 40% year-over-year, due to external factors, we closed fewer transactions than anticipated, the impact of which was especially pronounced among transactions greater than $1 million that tend to close at or near the end of the quarter. Given continuing concerns surrounding the economic and IT spending environments, we are taking decisive short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. actions intended to return the Company to profitable operation as quickly as possible, including streamlining our organization and aggressively containing discretionary spending. Longer term, we remain confident that we are well-positioned competitively, based on the depth and breadth of our product offering, as we move to extend our technology leadership and product footprint The amount of geographic space covered by an object. A computer footprint is the desk or floor surface it occupies. A satellite's footprint is the earth area covered by its downlink. See form factor. 1. in the e-business application space." BroadVision will hold a conference call to discuss this press release at 2:30 p.m. Pacific Time, April 2, 2001. The call, open to the public and hosted by Dr. Pehong Chen, President and CEO of BroadVision, can be accessed by dialing 719/457-2638, passcode 482620 or by going to the investor relations Investor relations The process by which the corporation communicates with its investors. section of the Companys website at www.broadvision.com. A replay of the call will also be available for 14 days on the Companys website. BroadVision will hold a conference call to detail its first quarter financial results and the outlook for the remainder of fiscal 2001 on April 24, 2001 at 1:30 p.m. Pacific Time. 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 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 statement. These statements are not guarantees of future performance and actual results could differ materially from BroadVisions current expectations. Factors which could cause or contribute to such differences include, but are not limited to: lack of market acceptance of BroadVisions products or services; BroadVisions inability to continue to develop competitive new products and services on a timely basis; introduction of new products or services by competitors; and BroadVisions inability to attract and retain qualified employees. These and other factors and risks associated with BroadVisions 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. as filed with the Securities and Exchange Commission and in BroadVisions quarterly reports on Form 10-Q Form 10-Q See 10-Q. filed subsequent to the filing of the Form 10-K. About BroadVision BroadVision (Nasdaq: BVSN, Neuer Markt: BDN BDN Borland Developer Network BDN Bangor Daily News (Maine, USA) BDN Business Development Network BDN Bell Data Network BDN Bulk Data Network BDN Busy Doing Nothing (band) BDN Buffered Delta Network ) develops and delivers an integrated suite of packaged applications for conducting e-commerce e-commerce, commerce conducted over the Internet, most often via the World Wide Web. E-commerce can apply to purchases made through the Web or to business-to-business activities such as inventory transfers. interactions and transactions. Global enterprises and government entities use these applications to sell, buy and exchange information over the web and on wireless devices. The BroadVision e-commerce application suite enables a corporation to become more competitive and profitable by establishing and sustaining high-yield relationships with customers, suppliers and employees. BroadVision services professionals, supported by over 100 partner organizations worldwide, transform these applications into business value for our customers through consulting, education, and support services support services Psychology Non-health care-related ancillary services–eg, transportation, financial aid, support groups, homemaker services, respite services, and other services in more than 34 countries. BroadVision -- founded in 1993, public since 1996 -- has more than 1,100 customers. IDC ranks BroadVision as the world's leading provider of e-commerce software applications (International Data Corp., E-Commerce Software Applications Market Forecast and Analysis, 2000-2004). BroadVision is headquartered in 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. and can be reached at 650/261-5100 or info@broadvision.com. Note to Editors: BroadVision, BroadVision One-To-One, BroadVision One-To-One Enterprise, and BroadVision MarketMaker are trademarks or registered trademarks of BroadVision, Inc. in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. and other countries. Other names herein may be the property of their respective owners.
BROADVISION, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
Three Months Ended Twelve Months Ended
December 31, 2000 December 31, 2000
REVISED AS REPORTED REVISED AS REPORTED
--------- ----------- --------- -----------
Revenues:
Software licenses $ 80,926 $ 80,926 $ 250,838 $ 250,838
Services 55,951 55,951 163,078 163,078
--------- ----------- --------- -----------
Total revenues 136,877 136,877 413,916 413,916
Cost of revenues:
Cost of software
licenses 2,805 2,049 7,827 7,071
Cost of services 37,838 37,788 117,808 117,758
--------- ----------- --------- -----------
Total cost
of revenues 40,643 39,837 125,635 124,829
--------- ----------- --------- -----------
Gross profit 96,234 97,040 288,281 289,087
Operating expenses:
Research and
development 21,168 21,126 51,621 51,579
Sales and
marketing 64,846 62,397 167,415 164,966
General and
administrative 9,600 8,927 28,195 27,469
Goodwill and intangible
amortization 66,089 66,036 187,748 187,748
Charge for acquired
in-process Technology - - 10,100 10,100
--------- ----------- --------- -----------
Total operating
expenses 161,703 158,486 445,079 441,862
--------- ----------- --------- -----------
Operating loss (65,469) (61,446) (156,798) (152,775)
Other income, net 2,710 2,710 18,217 18,217
--------- ----------- --------- -----------
Loss before
provision for
income taxes (62,759) (58,736) (138,581) (134,558)
Provision for
income taxes 1,279 2,846 23,048 24,615
--------- ----------- --------- -----------
Net loss $ (64,038) $ (61,582) $(161,629) $(159,173)
========= =========== ========= ===========
Basic loss per share $ (0.24) $ (0.23) $ (0.62) $ (0.61)
========= =========== ========= ===========
Diluted loss
per share $ (0.24) $ (0.23) $ (0.62) $ (0.61)
========= =========== ========= ===========
Shares used
in computing:
Basic loss per
share 268,315 268,315 259,780 259,780
========= =========== ========= ===========
Diluted loss
per share 268,315 268,315 259,780 259,780
========= =========== ========= ===========
Pro forma
net income(1) $ 2,051 $ 4,454 $ 36,219 $ 38,675
========= =========== ========= ===========
Pro forma basic
earnings per
share $ 0.01 $ 0.02 $ 0.14 $ 0.15
========= =========== ========= ===========
Pro forma diluted
earnings per
share $ 0.01 $ 0.02 $ 0.12 $ 0.13
========= =========== ========= ===========
(1) Pro Forma net income/EPS excludes amortization of goodwill and
acquired technology and the charge for acquired in-process
technology. Goodwill amortization was $63,680 and $180,922 and
acquired technology amortization was $2,409 and $6,826 for the
three and twelve months ended December 31, 2000, respectively. The
charge for acquired in-process technology was $0 and $10,100 for
the three and twelve months ended December 31, 2000, respectively.
Shares used for the pro forma diluted earnings per share
calculations are 296,834 and 295,581 for the three and twelve
months ended December 31, 2000, respectively.
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