BroadVision, Inc. Reports First Quarter 2002 Results; Sharpens Focus on Enterprise Business Portal Market; Restructures Accordingly.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)--April 24, 2002 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: BVSN BVSN Broadvision, Inc. (stock abbreviation, AMEX) ), a leading provider of enterprise portal See corporate portal. applications, today reported financial results for the first quarter ended March 31, 2002. Revenues for the first quarter ended March 31, 2002 were $30.5 million, compared with revenues of $48.2 million for the fourth fiscal quarter ended December 31, 2001. License revenue for the first quarter of 2002 totaled $8.2 million. 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 quarter ended March 31, 2002 was $19.0 million or $0.07 per share versus pro forma net loss of $8.0 million, or $0.03 per share, in the fourth quarter of 2001. Pro forma results exclude the 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, the amortization of goodwill and intangibles, and 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. of $5.4 million in the first quarter of 2002 and $20.0 million in the fourth quarter of 2001. In the first quarter of 2002, the pro forma results also exclude an asset impairment charge of $2.3 million. "The first quarter was challenging, as customers continued to delay IT spending on broad new initiatives," said Pehong Chen, BroadVision's 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. . "In response, until conditions improve, we are sharpening For image sharpening, see . Sharpening is the process of creating or refining a sharp edge on a tool or implement. The term has a wide application but can be expressed as the creation of two intersecting planes which produce an edge that is sharp enough to cut through the target the focus of our investments to concentrate on opportunities in the enterprise business portal space. We believe targeting this type of application will enable us to demonstrate the unique advantages of our portal solution in a sector that industry analyst firm IDC says will grow 50% annually to be a $2.6 billion market in 2006, up from $461 million in 2001." "We firmly believe in the enterprise business portal opportunity and in our unique value proposition in this space. With hundreds of portal customers and what we believe is the only portal solution that integrates content management, commerce 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. technology, BroadVision is well-positioned to extend our market leadership." "In addition, we are implementing an organizational structure  This article has no lead section.To comply with Wikipedia's lead section guidelines, one should be written. that reflects this new focus and materially reduces our cost of operation. The result of these initiatives will be a workforce reduction of approximately 300 people from a base of approximately 970 employees at March 31, 2002. These programs, combined with our strong balance sheet, will enable us to manage the business more effectively as we drive toward profitability," continued Dr. Chen. Net loss for the first quarter 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 $36.1 million or $0.13 per share, compared with a net loss of $55.3 million, or $0.19 per share, for the quarter ended December 31, 2001 and a net loss of $105.1 million, or $0.39 per share, for the quarter ended March 31, 2001. In addition, the company has adopted Statement of Financial Accounting Standards No. 142 (SFAS SFAS Statement of Financial Accounting Standards SFAS Special Forces Assessment and Selection SFAS Student Financial Aid Services SFAS Sport Fishing Association of Singapore SFAS Safety Features Actuation System SFAS Statewide Fixed Assets System 142) concerning the treatment of goodwill and intangibles. Without the adoption of SFAS 142, net loss in the first quarter based on generally accepted accounting principles would have been $47.3 million or $0.17 per share. Pursuant to a Financial Accounting Standards Board Financial Accounting Standards Board (FASB) Board composed of independent members who create and interpret Generally Accepted Accounting Principles (GAAP). staff announcement (Topic No. D-103), reimbursable re·im·burse tr.v. re·im·bursed, re·im·burs·ing, re·im·burs·es 1. To repay (money spent); refund. 2. To pay back or compensate (another party) for money spent or losses incurred. expenses have been reclassified into revenues, with a corresponding increase in cost of revenues. The impact of the reclassification Reclassification The process of changing the class of mutual funds once certain requirements have been met. These requirements are generally placed on load mutual funds. Reclassification is not considered to be a taxable event. was to increase revenues by $496,000 and $1.6 million in the first quarter of fiscal 2002 and 2001, respectively. Customers and Products New customers for the quarter included BCBC BCBC Bridgend County Borough Council (Wales, UK) BCBC British Columbia Buildings Corporation (Crown Corporation) BCBC Bituminous Concrete Base Course (Pennsylvania) (Builders Corporation of British Columbia British Columbia, province (2001 pop. 3,907,738), 366,255 sq mi (948,600 sq km), including 6,976 sq mi (18,068 sq km) of water surface, W Canada. Geography ), Faktab, ICBC ICBC Industrial and Commercial Bank of China ICBC Insurance Corporation of British Columbia ICBC International Commercial Bank of China ICBC Imax Cargo Bay Camera (Space Shuttle) ICBC Interagency Committee on Back Contamination (Insurance Corporation of British Columbia The Insurance Corporation of British Columbia (ICBC) is a provincial crown corporation in British Columbia created in 1973 by the NDP government of British Columbia. The original purpose of ICBC was to provide universal automobile insurance in British Columbia. ), Sunrider International, The State Bar of California California (kăl'ĭfôr`nyə), most populous state in the United States, located in the Far West; bordered by Oregon (N), Nevada and, across the Colorado River, Arizona (E), Mexico (S), and the Pacific Ocean (W). , and Omnitel. Significant repeat customers included Baxter Healthcare, Connect Austria, Cooper Cameron, MultiCare Health System, TD Waterhouse TD Waterhouse is the brand used for both British and Canadian brokerages within the TD Bank Financial Group. The brand originated as a United States brand for discount brokerage when TD purchased Waterhouse Securities. , Tosco Marketing Co. and US Coast Guard. More than 250 customers have already adopted BroadVision's 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.). application, BroadVision InfoExchange Portal, and the level of interest in portal initiatives remains high. Recently announced BroadVision portal deployments include: -- Highmark, Inc., which launched two enhanced healthcare portals to support Highmark Blue Cross Blue Shield Blue Shield A US not-for-profit health care insurer that is a reimbursement intermediary for physicians. Cf Blue Cross. and Pennsylvania Pennsylvania (pĕnsəlvā`nyə), one of the Middle Atlantic states of the United States. It is bordered by New Jersey, across the Delaware River (E), Delaware (SE), Maryland (S), West Virginia (SW), Ohio (W), and Lake Erie and New York Blue Shield members. The new portals give members access to 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. health-related content as well as self-service to critical information including claim status and coverage verification. Using BroadVision's corporate portal application, Highmark has consolidated both sites under a unified architecture while reducing the effort and expense required to maintain both portals. -- MultiCare Health System, the largest provider of key medical services in Washington's south Puget Sound Puget Sound (py  `jĕt), arm of the Pacific Ocean, NW Wash., connected with the Pacific by Juan de Fuca Strait, entered through the Admiralty Inlet and extending in two arms c. , replaced their previous
static site with an information portal that gives patients easy access
to personalized information about MultiCare services, health care
providers, clinic locations and health and wellness information.
MultiCare also enhanced its employee-facing portal, which serves
employees and health care providers, with access to departmental
information, news, events, company policies and other employee services.
MultiCare uses BroadVision's content management features to allow
content owners from different departments maintain accurate, up-to-date
content for both portals.-- Consumer products manufacturer Sunrider International recently announced their plan to use BroadVision InfoExchange Portal to provide their nearly one million individual distributors with the ability to build their own customer facing portals and online stores as part of Sunrider's "WebSite Replicator See port replicator. replicator - Any construct that acts to produce copies of itself; this could be a living organism, an idea (see meme), a program (see quine, worm, wabbit, fork bomb, and virus), a pattern in a cellular automaton (see life), or (speculatively) a robot or Program." Distributors will be able to easily build their portals using a "wizard Instructional help in an application or system development environment that guides the user through a series of multiple choice questions to accomplish a task. For the most part, wizards are more effective than the help menus found in most applications, which often border on the atrocious. " interface that will guide them through the process. During Q1, BroadVision introduced two new products that significantly enhance the functionality of BroadVision-powered portals: -- BroadVision Integration Services, BroadVision's low-cost enterprise application integration framework, makes it easy to connect BroadVision's enterprise business portals to a wide variety of backend systems including Oracle, PeopleSoft, SAP and Siebel. -- With the addition of BroadVision Multi-Touchpoint Services, BroadVision enterprise business portal applications can be enhanced to interact with and present content to a wide variety of mobile devices as well as other non-PC touchpoints including kiosks and ATMs. Conference Call BroadVision will hold a conference call to discuss this press release and related matters at 2:00 p.m. Pacific Time, April 24, 2002. The call, open to the public and hosted by Dr. Pehong Chen, President and CEO of BroadVision, can be accessed 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. A replay of the call will also be available for 7 days on the company's website. 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 business value by transforming the way organizations do business -- moving relationships to a personalized, self-service model that enhances growth, reduces costs and improves productivity. Leading global companies use BroadVision as the basis for their enterprise business portal initiatives -- using 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 an enterprise's applications, information and business processes to serve its employees, partners and customers in a personalized and collaborative way. 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 Enterprise, BroadVision Retail Commerce, BroadVision Business Commerce, BroadVision MarketMaker, and BroadVision InfoExchange Portal 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 BALANCE SHEETS
(In thousands)
March 31, December 31,
2002 2001
(unaudited)
------------ -----------
ASSETS
Current assets:
Cash and cash equivalents $ 63,868 $ 75,758
Short-term investments 95,668 95,654
Accounts receivable, less reserves
of $8,645 and $8,194
for 2002 and 2001, respectively 28,242 39,768
Prepaids and other 13,936 12,816
------------ -----------
Total current assets 201,714 223,996
Property and equipment, net 57,969 67,219
Deferred tax asset 2,857 2,857
Long-term investments 14,900 22,135
Equity investments 5,012 5,583
Goodwill and other intangibles, net 59,980 60,867
Other assets 8,392 9,760
------------ -----------
Total assets $ 350,824 $ 392,417
============ ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 12,034 $ 11,276
Accrued expenses 55,524 61,712
Unearned revenue 22,792 22,580
Deferred maintenance 27,678 30,337
Current portion of long-term debt 977 977
-------------- ----------
Total current liabilities 119,005 126,882
Long-term debt, net of current portion 2,678 2,922
Other noncurrent liabilities 55,485 59,466
-------------- ----------
Total liabilities 177,168 189,270
Stockholders' equity:
Common stock 29 28
Additional paid-in capital 1,209,283 1,207,046
Accumulated other comprehensive loss (852) (5,245)
Accumulated deficit (1,034,804) (998,682)
-------------- ----------
Total stockholders' equity 173,656 203,147
-------------- ----------
Total liabilities and
stockholders' equity $ 350,824 $ 392,417
============= ===========
BROADVISION, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts; unaudited)
Three Months Ended
March 31,
2002 2001
Revenues:
Software licenses $ 8,179 $ 43,140
Services 22,276 49,589
------------- -----------
Total revenues 30,455 92,729
Cost of revenues:
Cost of software licenses 1,100 2,240
Cost of services 12,334 38,978
------------- -----------
Total cost of revenues 13,434 41,218
------------- -----------
Gross profit 17,021 51,511
Operating expenses:
Research and development 13,975 26,971
Sales and marketing 16,178 52,481
General and administrative 6,193 10,590
Goodwill and intangible amortization 887 66,280
Restructuring charge 5,380 -
Impairment of assets 2,276 -
------------- -----------
Total operating expenses 44,889 156,322
Operating loss (27,868) (104,811)
Other income (expense), net (8,077) 497
-------------- -----------
Loss before provision for
income taxes (35,945) (104,314)
Provision for income taxes 177 831
-------------- -----------
Net loss $ (36,122) $ (105,145)
Basic loss per share $ (0.13) $ (0.39)
Diluted loss per share $ (0.13) $ (0.39)
Shares used in computing:
Basic loss per share 285,061 271,011
Diluted loss per share 285,061 271,011
Pro forma net loss* $ (19,045) $ (36,577)
Basic loss per share $ (0.07) $ (0.13)
Diluted loss per share $ (0.07) $ (0.13)
* Pro forma net loss / loss per share, excludes impairment of
equity investments, amortization of goodwill and acquired technology,
the impairment of assets, and restructuring charges. Equity investment
impairments were $8,534 and $2,288 for the three months ended March
31, 2002 and 2001, respectively. Goodwill amortization was $0 and
$63,871 for the three months ended March 31, 2002 and 2001,
respectively. Acquired technology amortization was $887 and $2,409 for
the three months ended March 31, 2002 and 2001, respectively. The
impairment of assets was $2,276 and $0 for the three months ended
March 31, 2002 and 2001, respectively. Restructuring charges were
$5,380 and $0 for the three months ended March 31, 2002 and 2001,
respectively.
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