BroadVision, Inc. Reports Results for Second Quarter 2001; Company Announces Additional Workforce Reduction and Facility Consolidation.
Business Editors
REDWOOD CITY, Calif.--(BUSINESS WIRE)--July 25, 2001--BroadVision,
Inc. (Nasdaq:BVSN), a leading provider of personalized e-business
applications, today reported financial results for the quarter ended
June 30, 2001.
Revenues for the second quarter ended June 30, 2001 were $57.4
million compared to revenues of $95.3 million for the quarter ended
June 30, 2000. Pro forma net loss for the quarter ended June 30, 2001,
which excludes amortization of goodwill and acquired technology, the
charge for acquired in-process technology and restructuring costs, was
$53.1 million, or $0.19 per share on a basic and diluted basis versus
pro forma net income of $10.6 million, or $0.04 per share, on a
diluted basis compared to the same period a year ago.
For the six-month period ended June 30, 2001, revenues were $148.6
million compared to revenues of $156.8 million for the six-month
period ended June 30, 2000. Pro forma net loss for the six-month
period ended June 30, 2001 was $91.9 million, or $0.34 per share on a
basic and diluted basis, versus pro forma net income of $20.7 million,
or $0.07 on a diluted basis compared to the same period a year ago.
"The continued economic uncertainty surrounding the economic and
IT spending environment significantly affected our license revenue
during the quarter. As a result of these conditions, we are taking
further steps to control costs, including an additional workforce
reduction of approximately 15-20% of the company's workforce of
approximately 1,500 at June 30, 2001. We anticipate that these
reductions, combined with the consolidation of various offices and
other cost control programs, will be completed during the third
quarter. We remain cautious about the near term and therefore will
continue to focus our attention on reducing expenses as we look to
regain profitability as quickly as possible," commented Dr. Pehong
Chen, BroadVision's president and CEO. "Although the overall business
climate remains cloudy, customers still continue to express great
interest in our products. We are pleased with the customer response to
our version 6.0 product release, as we have now shipped BroadVision
One-To-One Enterprise 6.0 to more than 270 customers and partners.
Customers live on 6.0 include The Home Depot, Sam's Club, Shop at
Home, TSMC and Xilinx, with additional customers migrating to 6.0 such
as GE Supply, ABN AMRO, UMC and Pitney Bowes. With a strong customer
base, highly competitive technology and a solid balance sheet, we are
confident that we will emerge from the current environment with a
solid foundation for future growth."
Additionally, for the quarter ended June 30, 2001, the company
recorded a previously announced restructuring charge for severance
costs due to recent reductions in force, the consolidation and
re-alignment of real estate and other restructuring-related costs of
approximately $123 million. The real estate assumptions underlying
this charge will be reviewed on a quarterly basis in accordance with
generally accepted accounting principles and adjustments, if needed,
will be made accordingly. Also, the company expects to incur a
restructuring charge in the third quarter, substantially below the
amount recorded in the second quarter, related to severance costs
associated with the workforce reduction and consolidation of certain
minor international facilities.
New Products and Services
This past quarter, BroadVision introduced new versions of a number
of its personalized, self-service e-business applications. The new
versions of these products -- including BroadVision Business
Commerce(TM) 6.0, BroadVision InfoExchange Portal(TM) 6.0, BroadVision
MarketMaker(TM) 6.0 and BroadVision Retail Commerce(TM) 6.0 -- take
advantage of the J2EE(TM) technology features and performance
enhancements of BroadVision's latest e-business application platform,
BroadVision One-To-One (R) Enterprise 6.0. The company also announced
the availability of One-To-One Enterprise 6.0 for Microsoft Windows
2000 platforms.
During the quarter, BroadVision also introduced its new Solution
Value Proposition service, designed to help organizations quantify the
potential return on their strategic e-business initiatives.
Partnerships and Strategic Alliances
This past quarter, BroadVision announced a number of strategic
agreements with technology, services and solutions providers. Of
particular note, BroadVision announced support for a number of
leading, J2EE-based application servers, adding to the existing
interoperability between BroadVision One-To-One Enterprise 6.0 and BEA
WebLogic Server:
-- Sun Microsystems: BroadVision became a licensee of Sun's
Java(TM) 2 Platform, Enterprise Edition (J2EE(TM)), joined the
Sun Vendor Integrations Program and achieved SunTone(TM)
certification for BroadVision One-To-One Enterprise. The
company also announced plans to ensure interoperability
between BroadVision One-To-One Enterprise 6.0 and the
iPlanet(TM) Application Server.
-- IBM: BroadVision announced an expanded alliance with IBM,
which includes integration of IBM's WebSphere Application
Server and J2EE-based WebSphere MQ with BroadVision One-To-One
Enterprise 6.0.
-- HP: BroadVision announced that BroadVision One-To-One
Enterprise 6.0 is fully interoperable with HP's J2EE-certified
HP Bluestone Total e-server version 7.3.
New Customers
BroadVision signed 36 new customers during the quarter bringing
the total number of customers to more than 1250 accounts. New
customers include Bristol-Myers Squibb, City of Chicago, Schneider
Electronics and Owens Corning. Significant repeat business was
generated by a variety of BroadVision customers including BT (British
Telecom), Lloyds TSB, Pitney Bowes, R.R. Donnelley, Toshiba America,
and Xerox. In addition, 53 new BroadVision-powered sites went live
during the quarter.
Conference Call
Broadvision will hold a conference call to discuss this press
release and related matters at 2:00 pm Pacific Time, July 25, 2001.
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 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
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; 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
as filed with the Securities and Exchange Commission and in
BroadVision's quarterly reports on Form 10-Q filed subsequent to the
filing of the Form 10-K.
About BroadVision
BroadVision (Nasdaq: BVSN, Neuer Markt: BDN) 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 in more than 34
countries.
BroadVision - founded in 1993, public since 1996 - has more than
1,250 customers. IDC ranks BroadVision as the world's leading provider
of e-commerce sales and marketing applications (International Data
Corp., E-Commerce Software Applications Market Forecast and Analysis,
2000-2005). BroadVision is headquartered in Redwood City, California
and can be reached at 650.261.5100 or info@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 and other countries. Other names herein may be the
property of their respective owners
-0-
*T
BROADVISION, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
June 30, December 31,
2001 2000
---------------------------
(unaudited)
ASSETS
Current assets:
Cash and cash equivalents $ 137,641 $ 153,137
Short-term investments 48,465 69,397
Accounts receivable, less
reserves of $6,312 and $4,015
for 2001 and 2000, respectively 55,810 104,811
Prepaids and other 22,714 17,417
----------- -----------
Total current assets 264,630 344,762
Property and equipment, net 85,713 76,685
Deferred tax asset 5,579 5,579
Long-term investments 53,138 78,769
Equity investments 11,221 23,786
Goodwill and other intangibles 476,951 607,501
Other assets 6,151 5,942
----------- -----------
Total assets $ 903,383 $ 1,143,024
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 20,454 $ 15,711
Accrued expenses 77,313 53,676
Unearned revenue 29,564 16,330
Deferred maintenance 35,001 42,237
Current portion of
long-term debt 977 977
----------- -----------
Total current liabilities 163,309 128,931
Long-term debt, net of
current portion 3,410 3,897
Other noncurrent liabilities 52,351 898
----------- -----------
Total liabilities 219,070 133,726
Stockholders' equity:
Common stock 28 27
Additional paid-in capital 1,202,828 1,176,042
Accumulated other comprehensive
loss, net of tax (8,133) (4,348)
Accumulated deficit (510,410) (162,423)
----------- -----------
Total stockholders' equity 684,313 1,009,298
----------- -----------
Total liabilities and
stockholders' equity $ 903,383 $ 1,143,024
=========== ===========
BROADVISION, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts; unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
--------------------- ---------------------
2001 2000 2001 2000
-------- --------- --------- ---------
Revenues:
Software licenses $ 21,029 $ 56,848 $ 64,169 $ 97,562
Services 36,416 38,496 84,395 59,283
--------- --------- --------- ---------
Total revenues 57,445 95,344 148,564 156,845
Cost of revenues:
Cost of software
licenses 2,655 1,563 4,895 3,626
Cost of services 30,005 30,282 67,373 45,956
-------- --------- --------- ---------
Total cost of
revenues 32,660 31,845 72,268 49,582
--------- --------- --------- ---------
Gross profit 24,785 63,499 76,296 107,263
Operating expenses:
Research and
development 20,616 9,706 47,587 15,465
Sales and marketing 41,766 33,570 94,247 58,770
General and
administrative 14,268 6,786 24,858 10,344
Goodwill and
intangible amortization 66,297 55,351 132,577 55,404
Charge for acquired
in-process technology -- 10,100 -- 10,100
--------- --------- --------- ---------
Total operating
expenses 142,947 115,513 299,269 150,083
--------- --------- --------- ---------
Operating loss (118,162) (52,014) (222,973) (42,820)
Other income
(expense), net (876) 3,940 (379) 11,187
Restructuring charge (123,473) -- (123,473) --
--------- --------- --------- ---------
Loss before provision
for income taxes (242,511) (48,074) (346,825) (31,633)
Provision for
income taxes 331 6,797 1,162 13,204
--------- --------- --------- ---------
Net loss $(242,842) $(54,871) $(347,987) $(44,837)
========= ========= ========= =========
Basic loss per share $ (0.89) $ (0.21) $ (1.28) $ (0.18)
========= ========= ========= =========
Diluted loss per share $ (0.89) $ (0.21) $ (1.28) $ (0.18)
========= ========= ========= =========
Shares used in computing:
Basic (loss) earnings
per share 273,426 258,935 272,205 252,288
========= ========= ========= =========
Diluted (loss)
earnings per share 273,426 258,935 272,205 252,288
========= ========= ========= =========
Pro forma
net (loss) income (a) $(53,072) $ 10,580 $(91,937) $ 20,667
========= ========= ========= =========
Basic (loss) earnings
per share $ (0.19) $ 0.04 $ (0.34) $ 0.08
========= ========= ========= =========
Diluted (loss) earnings
per share $ (0.19) $ 0.04 $ (0.34) $ 0.07
========= ========= ========= =========
(a) Pro forma net (loss) income/EPS excludes amortization of
goodwill and acquired technology, the charge for acquired in-process
technology and restructuring charges. Goodwill amortization was
$63,888 and $53,343 for the three months ended June 30, 2001 and 2000,
respectively. Acquired technology amortization was $2,409 and $2,008
for the three months ended June 30, 2001 and 2000, respectively.
Goodwill amortization was $127,759 and $53,396 for the six months
ended June 30, 2001 and 2000, respectively. Acquired technology
amortization was $4,818 and $2,008 for the six months ended June 30,
2001 and 2000, respectively. The charge for acquired in-process
technology was $0 for the three and six months ended June 30, 2001 and
$10,100 for the three and six months ended June 30, 2000.
Restructuring charges were $123,473 for the three and six months ended
June 30, 2001 and $0 for the three and six months ended June 30, 2000.
Shares used for the pro forma diluted earnings per share calculations
are 295,371 and 290,906 for the three and six months ended June 30,
2000, respectively.
--30--cs/sf*
CONTACT: BroadVision
Amber Rowland, 650/542-5881 (Media Relations)
amber.rowland@broadvision.com
or
Bob Okunski, 650/542-4659 (Investor Relations)
bob.okunski@broadvision.com
KEYWORD: CALIFORNIA
INDUSTRY KEYWORD: SOFTWARE COMPUTERS/ELECTRONICS E-COMMERCE
EARNINGS CONFERENCE CALL
COPYRIGHT 2001 Business Wire
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2001, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.
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