BroadVision, Inc. Announces Third Quarter 2002 Results; Bottom Line Performance Better Than Expected Due to Aggressive Cost Reductions.Business/Technology Editors 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)--Oct. 23, 2002 BroadVision, Inc. (Nasdaq:BVSN BVSN Broadvision, Inc. (stock abbreviation, AMEX) ), a leading provider of enterprise business portal applications, today reported financial results for the third quarter ended September 30, 2002. Revenues for the third quarter of 2002 were $27.2 million, compared with revenues of $29.4 million for the second quarter ended June 30, 2002. License revenue for the third quarter of 2002 increased 4% to $10.8 million from $10.3 million in the second quarter of 2002. 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 third quarter of 2002 declined to $2.3 million, or $0.07 per share, from a pro forma net loss of $13.7 million, or $0.43 per share, in the second quarter of 2002. Pro forma results exclude certain charges totaling $65.4 million for the third quarter versus $43.0 million in the second quarter of 2002. These charges are comprised of 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. , amortization of acquired technology, impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. of equity investments and impairment of assets. In addition, second quarter of 2002 pro forma results also exclude a valuation allowance on the company's deferred tax asset. Net loss for the third quarter of 2002 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 basis was $67.7 million or $2.11 per share, compared with a net loss of $56.7 million, or $1.77 per share, for the second quarter of 2002 and a net loss of $432.9 million, or $13.99 per share, for the quarter ended September 30, 2001. Per share figures reflect the 1 for 9 reverse stock split effected by the company on July 29, 2002. "During the third quarter, BroadVision made substantial progress toward returning to profitable operations and cash flow neutrality. License revenue grew sequentially, despite the continuing economic malaise malaise /mal·aise/ (mal-az´) a vague feeling of discomfort. mal·aise n. A vague feeling of bodily discomfort, as at the beginning of an illness. and traditional September quarter seasonality," said Pehong Chen, 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. of BroadVision. "Our efforts to curtail cur·tail tr.v. cur·tailed, cur·tail·ing, cur·tails To cut short or reduce. See Synonyms at shorten. [Middle English curtailen, to restrict spending delivered results, as we consolidated headcount more rapidly than we had initially forecasted. The third quarter restructuring charge reflects these accelerated reductions, which will significantly lower operating costs operating costs npl → gastos mpl operacionales and cash use going forward, and thereby hasten has·ten v. has·tened, has·ten·ing, has·tens v.intr. To move or act swiftly. v.tr. 1. To cause to hurry. 2. our return to profitability, without sacrificing customer-focused investments." "Looking ahead, we are extremely well-positioned as the only portal applications vendor that offers a truly integrated solution for portal commerce, content and personalization Custom tailoring information to the individual. On the Web, personalization means returning a page that has been customized for the user, taking into consideration that person's habits and preferences. , that is both easy to implement and cost-effective to maintain. Our installed base of more than 1000 customers has responded enthusiastically to our roll-out of these new solutions, and we are focused on leveraging our relationships with key decision-makers, and strong customer satisfaction -- valuable assets in an environment of constrained con·strain tr.v. con·strained, con·strain·ing, con·strains 1. To compel by physical, moral, or circumstantial force; oblige: felt constrained to object. See Synonyms at force. 2. IT spending," stated Chen. "Adding to my confidence in our ability to execute is the highly energized executive management team we've assembled as·sem·ble v. as·sem·bled, as·sem·bling, as·sem·bles v.tr. 1. To bring or call together into a group or whole: assembled the jury. 2. , with extraordinary expertise in enterprise applications sales, marketing, implementation and support. I feel very bullish Bullish Word used to describe an investor's attitude. Bullish refers to an optimistic outlook, while bearish means a pessimistic outlook. bullish now that these critical elements are in place at BroadVision, along with the financial resources to support future growth." During the third quarter of 2002, BroadVision expanded its market penetration Noun 1. market penetration - the extent to which a product is recognized and bought by customers in a particular market penetration - the act of entering into or through something; "the penetration of upper management by women" by closing business with new and existing customers. New customers included Agriculture Canada, Defense Finance and Accounting Services The Defense Finance and Accounting Service (DFAS), an agency of the United States Department of Defense, provides finance and accounting services for the military and other members of defense. In FY 2004, DFAS:
n. Plural of exemplum. Healthcare, 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. , J-Phone, Komatsu, Turkcell and Verifone. Repeat customers for the quarter included Becton Dickinson BD (NYSE: BDX), is a medical technology company that manufactures and sells medical devices, instrument systems and reagents. Founded in 1897 and headquartered in Franklin Lakes, New Jersey, BD employs 27,000 people in nearly 50 countries. , France Telecom, Motorola, Owens Corning Owens Corning Corporation is the world's largest manufacturer of fiberglass and related products. It was formed in 1935 as a partnership between two major American glassworks, Corning Glass Works and Owens-Illinois. The company was spun off as a separate entity November 1, 1938. , Pitney Bowes  This article or section is written like an .Please help [ rewrite this article] from a neutral point of view. Mark blatant advertising for , using . , State of Minnesota and 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. Postal Service postal service, arrangements made by a government for the transmission of letters, packages, and periodicals, and for related services. Early courier systems for government use were organized in the Persian Empire under Cyrus, in the Roman Empire, and in medieval . Additionally, BroadVision has recently announced key management positions to further strengthen its sales and operations. New appointments included: -- Alex Kormushoff, senior vice president, Global Services -- Sanjay Gupta, senior vice president, Marketing and Alliances -- Warren Utt, senior vice president, North and South American (NASA NASA: see National Aeronautics and Space Administration. NASA in full National Aeronautics and Space Administration Independent U.S. ) sales -- Arthur Vonchek, senior vice president and general manager, Europe, Middle East and Africa (EMEA (Europe, Middle East, Africa) Refers to that region of the world. For example, one might see products packaged differently for the UK, EMEA and Asia Pacific markets. ) -- Ken Johnson Ken Johnson can refer to:
-- Karl Klarmann, vice president, Central and Eastern Europe The term "Central and Eastern Europe" came into wide spread use, replacing "Eastern bloc", to describe former Communist countries in Europe, after the collapse of the Iron Curtain in 1989/90. BroadVision also enhanced its new 7.0 suite of enterprise business portal applications with the release of its integrated portal content management solution, BroadVision One-To-One Content(TM) -- a complete content solution for managing the entire lifecycle and delivery of content through multi-channels such as BroadVision sales and corporate portal An internal Web site (intranet) that provides proprietary, enterprise-wide information to company employees as well as access to selected public Web sites and vertical-market Web sites (suppliers, vendors, etc.). applications. The company also introduced BroadVision Deployment Center, a graphical user interface-based tool for managing initial and ongoing deployment of BroadVision enterprise business portal assets, further reducing costs and boosting IT productivity for BroadVision customers. Conference Call BroadVision will hold a conference call to discuss this press release and related matters at 2:00 p.m. Pacific Time, October 23, 2002. The call, hosted by Dr. Pehong Chen, president and CEO of BroadVision, can be accessed live and for seven days after the teleconference, by going to 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. 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 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 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. as filed with the Securities and Exchange Commission and in BroadVision's 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's (Nasdaq:BVSN) enterprise business portal applications create immediate bottom line value by transforming the way organizations do business -- moving relationships with employees, partners and customers to a 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. , self-service model that increases revenues, reduces costs and improves productivity. BroadVision is a leading provider of portal software Portal Software was founded in 1985 as Portal Information Network, one of the first ISPs in the San Francisco Bay Area. It was founded by John Little. The company offered its own interface through modem access that featured Internet email. to Fortune 500 companies that use BroadVision to power their enterprise business portal initiatives -- leveraging the web and wireless devices to unify 1. (database, product) Unify - A relational database produced by Unify Corporation. 2. (algorithm) unify - To perform unification. and extend their enterprise applications, information and business processes, to collaborate with over 50 million users. For more information about BroadVision, Inc., call 650.542.5100, email info@broadvision.com or visit www.broadvision.com. Note to Editors: BroadVision, BroadVision One-To-One, BroadVision One-to-One Portal, BroadVision One-to-One Content, and BroadVision One-to-One Commerce are trademarks or registered trademarks of BroadVision, Inc. in the United States and other countries. Other names herein may be the property of their respective owners.
BROADVISION, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
September 30, December 31,
2002 2001
(unaudited)
------------- ------------
ASSETS
Cash and cash equivalents $83,114 $75,758
Short-term investments 26,135 65,705
Accounts receivable, less reserves of
$6,288 and $8,194 for 2002 and 2001,
respectively 18,903 39,768
Prepaids and other 9,665 12,816
------------- ------------
Total current assets 137,817 194,047
Property and equipment, net 30,502 67,219
Deferred tax asset - 2,857
Long-term investments 2,273 22,135
Restricted cash and investments 16,645 29,949
Equity investments 3,000 5,583
Goodwill and other intangibles, net 58,207 60,867
Other assets 4,772 9,760
------------- ------------
Total assets $253,216 $392,417
============= ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable $9,704 $11,276
Accrued expenses 55,622 61,712
Unearned revenue 15,410 22,580
Deferred maintenance 23,839 30,337
Bank borrowings and current portion of
long-term debt 25,977 977
------------- ------------
Total current liabilities 130,552 126,882
Long-term debt, net of current portion 2,190 2,922
Other noncurrent liabilities 70,984 59,466
------------- ------------
Total liabilities 203,726 189,270
Common stock 3 3
Additional paid-in capital 1,210,002 1,207,071
Accumulated other comprehensive loss,
net of tax (1,288) (5,245)
Accumulated deficit (1,159,227) (998,682)
------------- ------------
Total stockholders' equity 49,490 203,147
------------- ------------
Total liabilities and
stockholders' equity $253,216 $392,417
============= ============
BROADVISION, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts; Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
2002 2001 2002 2001
---------- ----------- ----------- -----------
Revenues:
Software licenses $10,756 $16,292 $29,244 $80,461
Services 16,483 32,437 57,869 119,032
---------- ----------- ----------- -----------
Total revenues 27,239 48,729 87,113 199,493
Cost of revenues:
Cost of software
licenses 1,414 1,713 3,417 6,608
Cost of services 8,751 15,661 31,507 85,234
---------- ----------- ----------- -----------
Total cost of revenues 10,165 17,374 34,924 91,842
---------- ----------- ----------- -----------
Gross profit 17,074 31,355 52,189 107,651
Operating expenses:
Research and
development 7,774 16,230 34,755 63,817
Sales and marketing 9,384 25,895 41,365 120,142
General and
administrative 2,573 10,849 13,775 35,707
Goodwill and
intangible amortization 887 66,493 2,661 199,070
Restructuring charge 63,205 9,847 103,150 133,320
Impairment of goodwill
and other intangibles - 336,379 - 336,379
Impairment of assets 853 - 3,129 -
---------- ----------- ----------- -----------
Total operating
expenses 84,676 465,693 198,835 888,435
---------- ----------- ----------- -----------
Operating loss (67,602) (434,338) (146,646) (780,784)
Other (expense) income,
net 7 1,797 (6,680) 1,418
---------- ----------- ----------- -----------
Loss before provision
for income taxes (67,595) (432,541) (153,326) (779,366)
Provision for income
taxes 138 406 7,219 1,568
---------- ----------- ----------- -----------
Net loss $(67,733) $(432,947) $(160,545) $(780,934)
========== =========== =========== ===========
Basic loss per share $(2.11) $(13.99) $(5.02) $(25.62)
========== =========== =========== ===========
Diluted loss per share $(2.11) $(13.99) $(5.02) $(25.62)
========== =========== =========== ===========
Pro forma net loss(1): $(2,285) $(19,391) $(35,014) $(105,849)
Basic loss per share $(0.07) $(0.63) $(1.10) $(3.47)
Diluted loss per share $(0.07) $(0.63) $(1.10) $(3.47)
---------- ----------- ----------- -----------
Shares used in
computing:
Basic loss per share 32,171 30,941 31,961 30,483
========== =========== =========== ===========
Diluted loss per
share 32,171 30,941 31,961 30,483
========== =========== =========== ===========
(1) Pro forma net loss/loss per share, excludes restructuring
charges, amortization of goodwill and acquired technology, impairment
of equity investments, impairment of goodwill and intangibles,
impairment of assets, and provision for deferred tax asset valuation
allowance. Pro forma net loss is calculated in the following table:
Three Months Ended Nine Months Ended
September 30, September 30,
-------------------- ---------------------
2002 2001 2002 2001
--------- ---------- ---------- ----------
Net loss, generally accepted
accounting principles $(67,733) $(432,947) $(160,545) $(780,934)
Pro forma adjustments:
Restructuring charge 63,205 9,847 103,150 133,320
Amortization of goodwill - 64,080 - 191,839
Amortization of acquired
technology 887 2,413 2,661 7,231
Impairment of equity
investments 503 837 10,312 6,316
Impairment of goodwill and
intangibles - 336,379 - 336,379
Impairment of assets 853 - 3,129 -
Provision for deferred tax
asset valuation allowance - - 6,279 -
--------- ---------- ---------- ----------
Total pro forma adjustments 65,448 413,556 125,531 675,085
--------- --------------------- ----------
Pro forma net loss $(2,285) $(19,391) $(35,014) $(105,849)
========= ========== ========== ==========
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion