BroadVision, Inc. Reports Fourth Quarter and Year End 2001 Results; Three Cent Pro Forma Loss per Share Beats Consensus, Excluding Asset Impairment Charge.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)--Jan. 24, 2002 BroadVision, Inc. (Nasdaq:BVSN BVSN Broadvision, Inc. (stock abbreviation, AMEX) ), a leading provider of enterprise self-service applications A software application that allows a user to obtain information or complete a business transaction on the computer that has traditionally required the help of a human representative. Voice response systems and Web sites are widely used for self-service applications. See kiosk. , today reported financial results for the fourth quarter and year ended December 31, 2001. Revenues for the fourth quarter ended December 31, 2001 were $48.0 million, compared with revenues of $51.2 million for the third fiscal quarter ended September 30, 2001. License revenue for the fourth quarter of 2001 totaled $20.8 million, a 6% sequential increase compared with the previous quarter. 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 December 31, 2001 was $8.2 million, or $0.03 per share, versus pro forma net loss of $15.9 million, or $0.06 per share, in the third quarter. Pro forma results for both periods exclude the amortization of goodwill and intangibles, in-process technology charges, as well as 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. , which in the fourth quarter totaled $20.0 million. In addition, pro forma results for the fourth quarter exclude an $8.8 million non-operating asset Non-Operating Asset Assets that are unnecessary to the ongoing operations of a business. Notes: Sometimes referred to as "redundant assets." See also: Non-operating Cash Flows, Operating Expenses, Operating Income 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. charge to reflect the reduced market value of equity investments made by the company, predominantly pre·dom·i·nant adj. 1. Having greatest ascendancy, importance, influence, authority, or force. See Synonyms at dominant. 2. in early stage companies. "Given the sluggish economy Sluggish Economy A state in the economy in which the growth is slow, flat or declining. The term can refer to the economy as a whole or a component of the economy, such as weak housing starts. , we were pleased to deliver a narrower loss than expected in the fourth quarter. Our fourth quarter results improved on a number of fronts, including modest sequential growth in license revenue and a dramatic reduction in our breakeven breakeven 1. The level of output or sales necessary to cover fixed expenses. Companies in industries that have high fixed costs and, consequently, high breakevens, such as automobile and steel manufacturing, are likely to exhibit large fluctuations point driven by an aggressive expense management campaign," 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. . "This performance in a challenging environment demonstrates our commitment to prudent fiscal policy, while maintaining focused investment to preserve our technology and thought leadership position, solution strength, customer satisfaction, and execution capability. While the near-term outlook remains difficult to predict, we believe our strong new product cycle, large installed base, and improved efficiency all combine to position us for growth as industry conditions improve." During the quarter, the company also furthered its reputation for providing its customers with the latest technology to meet their e-business needs with the release of BroadVision One-To-One(R) Content(TM) 6.0, BroadVision's next-generation content management solution. BroadVision One-To-One Content 6.0 is revolutionary in that it is a content management solution that supports every part of the content management lifecycle - including design, creation, management, deployment, distribution, analysis and expiration EXPIRATION. Cessation; end. As, the expiration of, a lease, of a contract, or statute. 2. In general, the expiration of a contract puts an end to all the engagements of the parties, except to those which arise from the non- fulfillment of obligations created of content. The product's advanced XML-based architecture allows customers to use the product with BroadVision's suite of enterprise self-service applications or to easily integrate with other applications powered by leading J2EE-based application servers. Net loss for the fourth 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 $55.6 million, or $0.20 per share, compared with a net loss of $64.0 million, or $0.24 per share, for the quarter ended December 31, 2000. For the twelve-month period ended December 31, 2001, the company recorded a net loss of $833.0 million, or $3.01 per share, versus a net loss of $161.6 million, or $0.62 per share, for the twelve-month period ended December 31, 2000. New Customers and Live Sites New BroadVision customers during the fourth quarter included Helzberg Diamonds Helzberg Diamonds is a diamond retail company founded by Morris Helzberg in 1915 in Kansas City, Missouri. It was quickly taken over, when he became ill, by his son Barnett Helzberg, Sr. at the age of 16. In 1963, Barnett Sr. , Indian Rail, Methodist Healthcare System, Ministry of National Defense (Taiwan), OMV OMV Open Market Value (automobiles) OMV Orbital Maneuvering Vehicle OMV Oblates of the Virgin Mary (religious order) OMV Österr Mineralöl Verwaltung (Austrian Mineral Oil Administration) and State of Minnesota. Major repeat customers for the quarter included BASF BASF Bar Association of San Francisco (since 1872; San Francisco, California) BASF Badische Anilin und Soda Fabrik (German chemical products company) BASF Builders Association of South Florida , 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. and Company, Boeing, British Telecom The telephone and communications carrier that provides services in Great Britain and Northern Ireland. It used to be a division of the British Post Office, but was privatized in 1984 under Margaret Thatcher's administration. plc, Canadian Imperial Bank of Commerce The Canadian Imperial Bank of Commerce TSX: CM NYSE: CM, better known to most customers as CIBC, is one of Canada's major banks. CIBC is classified as a Domestic Chartered Bank (Schedule I). (CIBC CIBC Canadian Imperial Bank of Commerce CIBC Centres Interinstitutionnels de Bilan de Compétences CIBC Commonwealth Institute of Biological Control (Trinidad) CIBC Commercial International Brokerage Company ), Compaq, FleetBoston Financial FleetBoston Financial was a Boston, Massachusetts-based bank created in 1999 by the merger of Fleet Financial Group and BankBoston. In 2004 it merged with Bank of America; all of its banks and branches were given the Bank of America logo. , Highmark, KPN KPN Koninklijke PTT Nederland (Royal Dutch Telecom) KPN Konfederacja Polski Niepodleglej (Polish conservative party) , Lafarge, Sears Roebuck and Co., State 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). , Tellabs, US Air Force, Vodafone, Xilinx, and Xerox. In addition, a number of BroadVision-powered sites went live during the quarter including CIBC, Credit Suisse The Credit Suisse Group (SWX:CSGN, NYSE: CS) is a financial services company, headquartered in Zürich, Switzerland. It is the second-largest Swiss bank, behind UBS AG. Private Banking, Finnair, France Telecom, Lafarge, MultiCare Health System, NCR (NCR Corporation, Dayton, OH, www.ncr.com) A technology company specializing in financial terminal transactions, retail systems and data warehousing. Until the late 1990s, NCR was heavily invested in the hardware side of the industry, known worldwide as a major manufacturer of computers , Opodo and RS Components. Conference Call Broadvision will hold a conference call to discuss this press release and related matters at 1:30 pm Pacific Time, January 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) (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 ) enterprise self-service applications create immediate business value by transforming the way organizations do business -- moving relationships 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 enhances growth, reduces costs and improves productivity. Leading global companies use BroadVision to power their enterprise self-service 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 650/261-5100, email info@broadvision.com or visit www.broadvision.com. 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)
December 31, December 31,
2001 2000
---------- ----------
ASSETS
Current assets:
Cash and cash equivalents $ 75,758 $ 153,137
Short-term investments 95,654 69,397
Accounts receivable, less reserves
of $8,194 and $4,015 for 2001
and 2000, respectively
39,768 104,811
Prepaids and other 10,094 17,417
---------- ----------
Total current assets 221,274 344,762
Property and equipment, net 67,619 76,685
Deferred tax asset 5,579 5,579
Long-term investments 22,135 78,769
Equity investments 5,583 23,786
Goodwill and other intangibles 60,867 607,501
Other assets 9,760 5,942
---------- ----------
Total assets $ 392,817 $1,143,024
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 11,276 $ 15,711
Accrued expenses 66,398 53,676
Unearned revenue 19,705 16,330
Deferred maintenance 30,337 42,237
Current portion of long-term debt 977 977
---------- ----------
Total current liabilities 128,693 128,931
Long-term debt, net of current portion 2,922 3,897
Other noncurrent liabilities 54,780 898
---------- ----------
Total liabilities 186,395 133,726
Stockholders' equity:
Common stock 28 27
Additional paid-in capital 1,207,046 1,176,042
Accumulated other comprehensive
loss, net of tax (5,245) (4,348)
Accumulated deficit (995,407) (162,423)
---------- ----------
Total stockholders' equity 206,422 1,009,298
---------- ----------
Total liabilities and
stockholders' equity $ 392,817 $1,143,024
========== ==========
BROADVISION, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per-share amounts)
Three Months Ended Years Ended
December 31, December 31,
2001 2000 2001 2000
(Unaudited)(Unaudited)
Revenues:
Software licenses $ 20,813 $ 80,926 $ 104,655 $ 250,838
Services 27,166 55,951 143,118 163,078
--------- --------- --------- ---------
Total revenues 47,979 136,877 247,773 413,916
Cost of revenues:
Cost of software licenses 3,287 2,805 9,895 7,827
Cost of services 11,705 37,838 93,714 117,808
--------- --------- --------- ---------
Total cost of revenues 14,992 40,643 103,609 125,635
--------- --------- --------- ---------
Gross profit 32,987 96,234 144,164 288,281
Operating expenses:
Research and development 14,860 21,168 78,677 51,621
Sales and marketing 19,657 64,846 139,799 167,415
General and administrative 6,604 9,600 42,311 28,195
Goodwill and intangible
amortization 12,146 66,089 211,216 187,748
Charge for acquired
in-process Technology 6,418 - 6,418 10,100
Restructuring charge 19,964 - 153,284 -
Impairment of intangibles - - 336,379 -
--------- --------- --------- ---------
Total operating
expenses 79,649 161,703 968,084 445,079
Operating loss (46,662) (65,469) (823,920) (156,798)
Other income (expense), net (8,346) 2,710 (6,928) 18,217
--------- --------- --------- ---------
Loss before provision for
income taxes (55,008) (62,759) (830,848) (138,581)
Provision for income taxes 568 1,279 2,136 23,048
--------- --------- --------- ---------
Net loss $ (55,576) $ (64,038) $(832,984) $(161,629)
Basic loss per share $ (0.20) $ (0.24) $ (3.01) $ (0.62)
Diluted loss per share $ (0.20) $ (0.24) $ (3.01) $ (0.62)
Shares used in computing:
Basic (loss) earnings
per share 284,016 268,315 276,733 259,780
Diluted (loss) earnings
per share 284,016 268,315 276,733 259,780
Pro forma net (loss) income,
excluding impairments of
equity investments(a) $ (8,214) $ 3,623 $(110,537) $ 37,791
Basic (loss) earnings
per share $ (0.03) $ 0.01 $ (0.40) $ 0.15
Diluted (loss) earnings
per share $ (0.03) $ 0.01 $ (0.40) $ 0.13
(a) Pro forma net (loss) income/EPS, excludes impairment of equity
investments, impairment and amortization of goodwill and acquired
technology, the charge for acquired in-process technology, and
restructuring charges. Equity investment impairments were $8,834 and
$1,572 for the three months ended December 31, 2001 and 2000,
respectively. Equity investment impairments were $15,150 and $1,572
for the years ended December 31, 2001 and 2000, respectively. Goodwill
amortization was $10,700 and $63,680 for the three months ended
December 31, 2001 and 2000, respectively. Acquired technology
amortization was $1,446 and $2,409 for the three months ended December
31, 2001 and 2000, respectively. Goodwill amortization was $202,542
and $180,922 for the year ended December 31, 2001 and 2000,
respectively. Acquired technology amortization was $8,674 and $6,826
for the year ended December 31, 2001 and 2000, respectively. The
charge for acquired in-process technology was $6,418 for the three
months and year ended December 31, 2001 and $0 and $10,100 for the
three months and year ended December 31, 2000, respectively.
Restructuring charges were $19,964 and $153,284 for the three months
and year ended December 31, 2001 and $0 for the three months and year
ended December 31, 2000. Impairment charges for goodwill and other
intangibles were $336,379 for the year ended December 31, 2001. Shares
used for the pro forma diluted earnings per share calculations are
296,834 and 295,581 for the three months and year ended December 31,
2000, respectively.
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion