BroadVision, Inc. Reports Results for Fourth Quarter 2000.Business 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)--Jan. 25, 2001 BroadVision, Inc. (Nasdaq: BVSN BVSN Broadvision, Inc. (stock abbreviation, AMEX) ), a leading provider of personalized e-business applications, today reported financial results for the quarter ended December 31, 2000. Key financial results for the quarter and comparisons versus prior quarters are as follows:
Quarter ended Quarter ended Quarter ended
Q4'00 Q4'99 Q3'00
------------- ------------- -------------
Revenues $136.9 million $43.7 million $120.2 million
Operating Income $4.6 million $5.9 million $17.8 million
(Pro Forma-Fiscal
2000 only)
Net Income $4.5 million $8.1 million $13.6 million
(Pro Forma- Fiscal 2000
only)
Diluted EPS $0.02 $0.03 $0.05
(Pro Forma- Fiscal 2000
only)
Key financial results for the year 2000 as compared to 1999 are as
follows:
FY'00 FY'99
----- -----
Revenues $413.9 million $115.5 million
Operating Income $45.1 million $15.3 million
(Pro Forma Fiscal 2000 only)
Net Income $38.7 million $18.8 million
(Pro Forma-Fiscal 2000 only)
Diluted EPS $0.13 $0.07
(Pro Forma-Fiscal 2000 only)
"It was a great year in terms of both revenues and non-financial measures. Q4 2000 was BroadVision's eleventh consecutive quarter of profitability, on a pro-forma basis. Our aggressive growth and enhanced presence in global markets did result in higher than anticipated expense levels in Q4, but we feel good about the market and believe that we are well positioned for continued success," said Dr. 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. , BroadVision. "In 2001 we intend to build on our strong foundation to deliver the most innovative suite of e-business applications that help companies provide their customers, employees, suppliers and partners with personalized, self-service access to a variety of key business processes. We believe that BroadVision's enterprise-class solutions deliver the cost savings and revenue generating opportunities that CIOs are looking for Looking for In the context of general equities, this describing a buy interest in which a dealer is asked to offer stock, often involving a capital commitment. Antithesis of in touch with. in today's economic climate." New Customers During the quarter, BroadVision acquired 107 new customers (93 end-user customers and 14 partner organizations) - bringing the total number of BroadVision's installed base to 1,169 accounts across top vertical markets worldwide. During this same period, 95 sites went live using BroadVision applications. A sampling of new BroadVision customers includes: -- Digital Markets: Clicon, Colinx LLC, ICFox, iStark, New Health Exchange, PurchasePro, Universal Exchange, U-Steel -- Energy/Utility: Saudi Aramco Services, ENEL, WIND -- Financial Services: ABN-AMRO Bank, Banca Commercio, Bear Stearns, BGZ Bank Poland, China Trust Bank, CIBC, CommerzBank UK, Dogas E-Bank, Korfez Bank, -- Healthcare/Pharmaceuticals: Advance PCS, Hawaii Medical Service Association, Pharmacia -- High-Tech/Manufacturing: Circadence, Coors, Heineken, Mettler Toledo, NCR, Sony UK, Toppan Printing, Toshiba Australia, webMethods -- Media/Publishing: BigApple, Editorial Atlantida SA, Reuters -- Public Sector: British Department of Trade and Industry, California Department of Transportation (Caltrans), State of California -- Retail/Distribution: Cendant, LeShop Germany, Tweeter Home Entertainment, Viajes Marsana -- Telecom: BT Ignite, Cellkom Malaysia, France Telecom, Japan Telecom, Telmex, Westell -- Travel/Leisure: Easy Voyage, Online Travel Portal Additionally, BroadVision received significant repeat business in new revenue during the quarter from a variety of existing customers including Air France Air France in full Compagnie Internationale Air France French passenger and cargo airline with more than 200 destinations in some 80 countries. It introduced supersonic Concorde service in 1976, but financial loss led the company to cease its Concorde , American Airlines American Airlines Major U.S. airline. American was created through a merger of several smaller U.S. airlines and incorporated in 1934. It continued to buy the routes of other airlines, becoming an international carrier in the 1970s; its routes include South America, the , Bank of America
Bank of America (NYSE: BAC TYO: 8648 ) is the largest commercial bank in the United States in terms of deposits, and the largest company of its kind in the world. , 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. , Citibank USA, CompuCom, 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. , GE Capital, Home Depot The Home Depot (NYSE: HD) is an American retailer of home improvement and construction products and services. Headquartered in Vinings, just outside Atlanta in unincorporated Cobb County, Georgia, Home Depot employs more than 355,000 people and operates 2,164 big-box , Intel, MCI (1) (Media Control Interface) A high-level programming interface from Microsoft and IBM for controlling multimedia devices. It provides commands and functions to open, play and close the device. (2) (Microwave Communications Inc. Worldcom, Nortel Networks (Nortel Networks Limited, Brampton, Ontario, www.nortelnetworks.com) A world leader in telecommunications products, which includes switching, wireless and broadband systems for service providers and carriers, telephones and systems for residential and business users, computer telephony , OfficeMax, Philips, Sears, TSMC TSMC Taiwan Semiconductor Manufacturing Company, Ltd TSMC Taiwan Semiconductor Manufacturing Corporation TSMC Traffic Systems Management Center TSMC Toll Station Management Controller TSMC Transportation Supply Maintenance Command TSMC Technical Services Manager Code , Xerox and more. Partnerships and Strategic Alliances This past quarter, 14 leading firms joined BroadVision's expanding network of systems integration, consulting and reseller partners to expand its distribution channels, broaden product integration, and develop and launch new technology and services to further penetrate markets in leading industries worldwide. Highlights this quarter include: -- A strategic alliance with BEA Systems BEA Systems, Inc. (NASDAQ: BEAS) is one of the major companies developing enterprise infrastructure software. BEA makes middleware, products that help software run on top of databases. to embed BEA WebLogic A software suite from BEA Systems, Inc., San Jose, CA (www.beasys.com) that is used to deploy Web and SOA applications. The core product is BEA WebLogic Server, a J2EE application server. Server(TM) within BroadVision One-To-One(R) Enterprise, BroadVision's e-business application platform. The two companies have agreed to engage in collaborative engineering and marketing initiatives. Together, the companies will supply next-generation e-business solutions that combine leading Java-based application server technology with the leading e-business software applications. The announcement of this strategic alliance was included in BroadVision's introduction of the next generation of BroadVision's e-business application platform, BroadVision One-To-One Enterprise. The partnership with BEA Systems will add Java(TM) 2 Platform, Enterprise Edition (J2EE (Java 2 Platform, Enterprise Edition) A platform from Sun for building distributed enterprise applications. J2EE services are performed in the middle tier between the user's machine and the enterprise's databases and legacy information systems. (TM)) support to BroadVision One-To-One Enterprise Version 6. These new Java technology-based features will enhance BroadVision's already robust support for open standards Specifications for hardware and software that are developed by a standards organization or a consortium involved in supporting a standard. Available to the public for developing compliant products, open standards imply "open systems;" that an existing component in a system can be replaced including JavaScript(TM) technology, C++, COM (1) (Computer Output Microfilm) Creating microfilm or microfiche from the computer. A COM machine receives print-image output from the computer either online or via tape or disk and creates a film image of each page. , CORBA (Common Object Request Broker Architecture) A software-based interface from the Object Management Group (OMG) that allows software modules (objects) to communicate with each other no matter where they are located on a private network or the global , XML XML in full Extensible Markup Language. Markup language developed to be a simplified and more structural version of SGML. It incorporates features of HTML (e.g., hypertext linking), but is designed to overcome some of HTML's limitations. , XSL (eXtensible Stylesheet Language) A standard from the W3C for describing a style sheet for XML documents. It is the XML counterpart to the Cascading Style Sheets (CSS) in HTML and is compatible with CSS2. , LDAP (Lightweight Directory Access Protocol) A protocol used to access a directory listing. LDAP support is implemented in Web browsers and e-mail programs, which can query an LDAP-compliant directory. , WML (Wireless Markup Language) A tag-based language used in the Wireless Application Protocol (WAP). WML is an XML document type allowing standard XML and HTML tools to be used to develop WML applications. It evolved from Openwave's HDML, but WML is not a superset of HDML. and WAP (1) (Wireless Access Point) See access point. (2) (Wireless Application Protocol) A standard for providing cellular phones, pagers and other handheld devices with secure access to e-mail and text-based Web pages. . BroadVision One-To-One Enterprise Version 6 will be one of the only J2EE technology-compatible e-business solution suites to also deliver comprehensive e-business applications, content management, personalization, analytics and wireless support from a single vendor. -- A partnership with i2 Technologies to deliver a comprehensive e- commerce solution. The combined offering is intended to integrate the i2 TradeMatrix Sell and i2 TradeMatrix Content Solutions with BroadVision's suite of e-business applications to create a best-of-breed solution for managing the entire e-commerce value chain. -- An e-business alliance with Intel to jointly develop and market solutions built on BroadVision's suite of e-business applications and Intel's servers. BroadVision and Intel plan to develop and market solutions built on BroadVision's suite of e-business applications and Intel-based servers. -- A continuing partnership with Hewlett-Packard Company that has resulted in delivering advanced, e-business solutions to more than 100 customers worldwide. HP Consulting has more than 400 trained consultants engaged in the implementation of more than 40 BroadVision customer sites worldwide. -- A $17 million worldwide agreement with NCR Corporation (company) NCR Corporation - Electronics company mainly active in the midrange server market. NCR was founded 1884 as National Cash Register Company. It joint the computer industry in th 1950s. to enable the two companies to drive business growth with personalized communications to consumers and businesses. The $17 million commitment represents the two companies' joint investment in research and development, marketing and the development and operation of Centers of Expertise. In addition, BroadVision worked closely with systems integration partners such as Accenture, Cambridge Technology Partners (CTP CTP (cytidine triphosphate): see cytosine. (1) (Computer-To-Plate) The production of printing plates directly from the computer without requiring film as an intermediate step. ), Computer Science Corporation (CSC), Computer Technology Associates (CTA An abbreviation for cum testamento annexo, Latin for "with the will annexed." ), Context Integration, Corio, Deloitte Consulting, Ernst & Young, Groundswell ground·swell n. 1. A sudden gathering of force, as of public opinion: a groundswell of antiwar sentiment. 2. , HP, iXL, KPMG KPMG Klynveld Peat Marwick Goerdeler (accounting firm) KPMG Kaiser Permanente Medical Group KPMG Keiner Prüft Mehr Genau (German) KPMG Kommen Prüfen Meckern Gehen , LEAPNet, MediData, NexGenix, PricewaterhouseCoopers, Roundarch, Softek, USinternetworking, Xpedior, and others which together delivered or influenced more than 85% of new license revenues during the quarter. Additional Milestones BroadVision reached the following notable milestones during Q4 2000: -- On November 13, 2000, BroadVision was added to the Standard & Poor's 500 Index--one of the most widely used benchmarks of U.S. equity performance. The S&P 500 Index consists of 500 stocks chosen for market size, liquidity and industry group representation. -- BroadVision reached a software engineering milestone, delivering its one-hundredth sequential, on-time software release with BroadVision(R) MarketMaker(TM) version 5.5.1 for the Sun Solaris(TM) Operating Environment In computing, an operating environment is the environment in which users run programs, whether in a command line interface, such as in MS-DOS or the Unix shell, or in a graphical user interface, such as in the Macintosh operating system. and Hewlett-Packard HP-UX HP's version of Unix that runs on its 9000 family. It is based on SVID and incorporates features from BSD Unix along with several HP innovations. (operating system) HP-UX - The version of Unix running on Hewlett-Packard workstations. (TM) operating systems Operating systems can be categorized by technology, ownership, licensing, working state, usage, and by many other characteristics. In practice, many of these groupings may overlap. . This is noteworthy because it marks the 100th release of a BroadVision e-business product, with each release delivered on or before the planned release date. -- BroadVision was ranked Number 15 on the Deloitte & Touche Technology Fast 500, a ranking of the 500 fastest-growing technology companies in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. . Rankings were based on five-year percentage revenue growth from 1995 to 1999. -- BroadVision was listed for inclusion in The Standard 100, powered by Epoch Partners, the premier stock index tracking the Internet economy The Internet Economy refers to conducting business through markets whose infrastructure is based on the Internet and World-Wide Web. An Internet economy differs from a traditional economy in a number of ways, including: communication, market segmentation, distribution costs, and price. . Conference Call BroadVision will hold a conference call to discuss the fourth quarter and its outlook for 2001 at 1:30 pm Pacific Time on Thursday, January 25th, 2000. 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 30 days on the website. "Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. " Statement Under the Private Securities Litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. Reform Act of 1995: 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 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; 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 ("SEC") 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 (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 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 and is a component stock of the Standard & Poor's 500 index. 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. 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 BALANCE SHEETS
(In thousands)
December 31, December 31,
2000 1999
------------ ------------
ASSETS
Current assets:
Cash and cash equivalents $ 148,070 $ 279,823
Short-term investments 74,465 68,758
Accounts receivable, less
doubtful accounts allowances
of $4,015 and $1,446 for 2000
and 1999, respectively 104,811 26,540
Prepaids and other 17,416 5,085
----------- -----------
Total current assets 344,762 380,206
Property and equipment, net 76,685 16,751
Long-term investments 102,555 4,414
Goodwill and other intangibles, net 607,501 --
Other assets 5,942 4,757
----------- -----------
Total assets $ 1,137,445 $ 406,128
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 15,711 $ 5,754
Accrued expenses 47,597 13,156
Unearned revenue 16,330 3,896
Deferred maintenance 42,237 15,228
Income taxes -- 16,769
Current portion of long-term
debt and capital lease
obligations 977 1,247
----------- -----------
Total current liabilities 122,852 56,050
Other noncurrent liabilities 898 --
Long-term debt 3,897 4,890
----------- -----------
Total liabilities 127,647 60,940
Stockholders' equity:
Common stock 27 24
Additional paid-in capital 1,174,088 320,259
Deferred compensation -- (226)
Accumulated other comprehensive
income, net of tax (4,348) 25,925
Accumulated deficit (159,969) (794)
----------- -----------
Total stockholders' equity 1,009,798 345,188
----------- -----------
Total liabilities and
stockholders' equity $ 1,137,445 $ 406,128
=========== ===========
BROADVISION, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
Three Months Ended Twelve Months Ended
December 31, December 31,
2000 1999 2000 1999
Revenues:
Software licenses $ 80,925 $ 28,162 $ 250,838 $ 75,383
Services 55,952 15,581 163,078 40,131
--------- --------- --------- ---------
Total revenues 136,877 43,743 413,916 115,514
Cost of revenues:
Cost of license revenues 2,050 1,243 7,071 3,703
Cost of service revenues 37,787 9,994 117,758 25,108
--------- --------- --------- ---------
Total cost of revenues 39,837 11,237 124,829 28,811
--------- --------- --------- ---------
Gross profit 97,040 32,506 289,087 86,703
Operating expenses:
Research and development 21,126 4,582 51,579 14,568
Sales and marketing 62,397 19,012 164,966 48,903
General and administrative 8,927 2,969 27,469 7,970
Goodwill and intangible
amortization, net 66,036 -- 187,748 --
--------- --------- --------- ---------
Charge for acquired
in-process Technology -- -- 10,100 --
--------- --------- --------- ---------
Total operating
expenses 158,486 26,563 441,862 71,441
--------- --------- --------- ---------
Operating income (loss) (61,446) 5,943 (152,775) 15,262
Other income, net 2,712 2,542 18,217 4,543
--------- --------- --------- ---------
Income (loss) before
provision for income
taxes (58,734) 8,485 (134,558) 19,805
Provision for income taxes 2,848 423 24,617 996
--------- --------- --------- ---------
Net income (loss) $ (61,582) $ 8,062 $(159,175) $ 18,809
Basic earnings (loss)
per share $ (0.23) $ 0.03 $ (0.61) $ 0.08
========= ========= ========= =========
Diluted earnings (loss)
per share $ (0.23) $ 0.03 $ (0.61) $ 0.07
========= ========= ======== =========
Shares used in computing:
Basic earnings (loss)
per share 268,315 237,885 259,780 229,128
========= ========= ========= =========
Diluted earnings (loss)
per share 268,315 275,442 259,780 260,712
========= ========= ========= =========
Pro forma net income(a) $ 4,454 N/A $ 38,673 N/A
========= ========= ========= =========
Pro forma basic earnings
per share $ 0.02 N/A $ 0.15 N/A
========= ========= ========= =========
Pro forma diluted earnings
per share $ 0.02 N/A $ 0.13 N/A
========= ========= ========= =========
Note (a): Pro Forma net income/EPS excludes amortization of
goodwill and acquired technology and the charge for acquired
in-process technology. Goodwill amortization was $63,627 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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