BroadVision, Inc. Reports Results for Third Quarter 2001; Loss Smaller Than Predicted Due to Careful Expense Management.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. 24, 2001 BroadVision, Inc. (Nasdaq: BVSN BVSN Broadvision, Inc. (stock abbreviation, AMEX) ), the 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 quarter ended September 30, 2001. Revenues for the third quarter ended September 30, 2001 were $51.2 million compared with revenues of $57.4 million for the quarter ended June 30, 2001. 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 September 30, 2001 was $16.7 million, or $0.06 per share on a basic and diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. basis, versus pro forma net loss of $53.1 million, or $0.19 per share, on the same basis in the second quarter. These pro forma computations exclude the amortization and 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 goodwill and acquired technology 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. . "Though macroeconomic mac·ro·ec·o·nom·ics n. (used with a sing. verb) The study of the overall aspects and workings of a national economy, such as income, output, and the interrelationship among diverse economic sectors. conditions remained difficult in the September quarter, I am very encouraged by our performance as customers continued to choose BroadVision as a key partner in their ongoing e-business initiatives. In this environment, our ability to demonstrate to customers measurable ROI (Return On Investment) The monetary benefits derived from having spent money on developing or revising a system. In the IT world, there are more ways to compute ROI than Carter has liver pills (and for those of you who never heard of that expression, it means a lot). has been a big advantage and gives us confidence that our enterprise self-service message is right on target," commented Dr. 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. . "Internally, I could not be more pleased with the results of our expense control programs. These initiatives, which we have implemented over the past 9 months, have enabled us to reduce overall quarterly operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. by more than $65 million, or 49%, since the beginning of the year. Going forward, we will continue to monitor our expenses carefully, given the current environment, and look to further improve the efficiency of our operational processes." On the product front, BroadVision One-To-One(R) Enterprise 6.0 platform and applications continue to meet widespread analyst and customer acceptance, as more than 440 customers and partners have received these products. In addition, the company's core business applications are now available on IBM's AIX (Advanced Interactive eXecutive) IBM's Unix-based operating system which runs on its Intellistation workstations and pSeries, p5, iSeries and i5 server families. platform, completing the portfolio that includes Sun Solaris, HP/UX HP/UX Hewlett-Packard UNIX operating system HP/UX Unexploded Human Particulate Operating System , and Windows 2000. Earlier this week, BroadVision announced the appointment of Fran Barton as chief financial officer. "We are pleased to have Fran on board. His strong operational experience will be invaluable as we continue our drive to restore profitability and growth," continued Dr. Chen. "With $222 million in cash and liquid investments at the end of the quarter, broad customer acceptance of our 6.0 product line, and sharp focus on expense control, we firmly believe we have laid the groundwork to achieve sustainable growth and profitability as economic conditions improve." Also in the quarter, in light of the adjustment of technology valuations and current business outlook, the company took a non-cash charge Non-Cash Charge A charge off, made by a company against earnings, that does not require an initial outlay of cash. Notes: Non-cash charges are typically against the depreciation, amortization, and depletion accounts on a company's balance sheet. of $336 million for the write down of intangible assets Intangible Asset An asset that is not physical in nature. Notes: Examples are things like copyrights, patents, intellectual property, and goodwill. These are the opposite of tangible assets. , primarily goodwill related to its acquisition of Interleaf Desktop publishing software that was widely used for DOS, Windows 95/98, NT, and a variety of Unix-based computers from Interleaf, Inc., Waltham, MA. Interleaf's full-featured program supported a large number of document and image types, including its ability to handle extremely long , Inc., which was completed in the second quarter of 2000. Additionally, the company recorded a restructuring charge of approximately $10 million for consolidation of facilities and severance related to the reduction in force announced during the third quarter. Net loss for the third 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, including amortization and impairment of goodwill and acquired technology and restructuring costs was $429.4 million or $1.54 per share, compared to a net loss of $52.8 million or $0.20 per share for the quarter ended September 30, 2000. For the nine-month period ended September 30, 2001, the company recorded a net loss of $777.4 million or $2.83 per share versus a net loss of $ 97.6 million or $0.38 per share, for the nine-month period ended September 30, 2000. New Customers, Live Sites and New Services BroadVision signed 33 new customers during the quarter bringing the total number of customers to more than 1,280 accounts. New customers include AM/PM AM/PM Amplitude Modulation/Phase Modulation AM/PM Ante Meridian/Post Meridian Markets, BancIntesa BCI BCI Bat Conservation International BCI Brain-Computer Interface BCI Business Continuity Institute BCI Business Cycle Indicators BCI Banco de Credito e Inversiones (Chilean bank) BCI Bell Canada International , Energie Allianz Austria, Lockheed Martin For the former company, see . Lockheed Martin (NYSE: LMT) is a leading multinational aerospace manufacturer and advanced technology company formed in 1995 by the merger of Lockheed Corporation with Martin Marietta. , Seiko Epson Seiko Epson Corporation (セイコーエプソン株式会社 , US Air Force, etc. Major repeat customers for the quarter included Achmea Insurance, 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 , Electronic Arts, France Telecom, GSA (1) (Global mobile Suppliers Association, Sawbridgeworth, U.K., www.gsacom.com) A membership organization of suppliers of GSM products and services. Its goal is to promote GSM as the worldwide mobile communications standard. See GSM Association and GSM. , 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 . and Zion's Bank. In addition, 40 new BroadVision-powered sites went live during the quarter including General Services Administration's GSA.gov, Citibank's portal, State Bank of India State Bank of India (SBI) (LSE: SBID) is the largest bank in India. If one measures by the number of branch offices and employees, SBI is the largest bank in the world. Established in 1806 as Bank of Bengal, it is the oldest commercial bank in the Indian Subcontinent. , Lafarge and just recently the My 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. consumer portal. During the quarter, BroadVision formally launched its Solution Value Proposition (SVP SVP S'il Vous Plaît (French: Please) SVP Senior Vice President SVP Schweizerische Volkspartei (Swiss People~s Party) SVP Society of Vertebrate Paleontology SVP Social Venture Partners SVP St Vincent de Paul ) program, designed to help organizations quantify the potential return on their strategic e-business initiatives and to determine the most efficient, effective ways to rapidly realize business value. In the 90 days of its availability, more than 30 organizations have taken advantage of this new program. Conference Call Broadvision will hold a conference call to discuss this press release and related matters at 2:00 p.m. Pacific Time, October 24, 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 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. 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)
September 30, December 31,
2001 2000
----------- -----------
(unaudited)
ASSETS
Current assets:
Cash and cash equivalents $ 123,703 $ 153,137
Short-term investments 65,879 69,397
Accounts receivable,
less reserves of $8,593
and $4,015 for 2001 and
2000, respectively 34,988 104,811
Prepaids and other 15,397 17,417
----------- -----------
Total current assets 239,967 344,762
Property and equipment, net 80,464 76,685
Deferred tax asset 5,579 5,579
Long-term investments 32,581 78,769
Equity investments 9,329 23,786
Goodwill and other intangibles 74,305 607,501
Other assets 7,394 5,942
----------- -----------
Total assets $ 449,619 $ 1,143,024
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 11,696 $ 15,711
Accrued expenses 69,640 53,676
Unearned revenue 22,470 16,330
Deferred maintenance 29,015 42,237
Current portion of long-term debt 977 977
----------- -----------
Total current liabilities 133,798 128,931
Long-term debt, net
of current portion 3,166 3,897
Other noncurrent liabilities 55,107 898
----------- -----------
Total liabilities 192,071 133,726
Stockholders' equity:
Common stock 28 27
Additional paid-in capital 1,205,842 1,176,042
Accumulated other
comprehensive loss,
net of tax (8,491) (4,348)
Accumulated deficit (939,831) (162,423)
----------- -----------
Total stockholders' equity 257,548 1,009,298
----------- -----------
Total liabilities and
stockholders' equity $ 449,619 $ 1,143,024
=========== ===========
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,
2001 2000 2001 2000
--------- --------- --------- ---------
Revenues:
Software licenses $ 19,673 $ 72,351 $ 83,842 $ 169,913
Services 31,557 47,843 115,952 107,126
--------- --------- --------- ---------
Total revenues 51,230 120,194 199,794 277,039
Cost of revenues:
Cost of software
licenses 1,713 1,395 6,608 5,021
Cost of services 14,636 34,015 82,009 79,971
--------- --------- --------- ---------
Total cost of
revenues 16,349 35,410 88,617 84,992
--------- --------- --------- ---------
Gross profit 34,881 84,784 111,177 192,047
Operating expenses:
Research and
development 16,230 14,988 63,817 30,453
Sales and marketing 25,895 43,799 120,142 102,569
General and
administrative 10,849 8,198 35,707 18,595
Goodwill and intangible
amortization 66,493 66,308 199,070 121,659
Charge for acquired
in-process technology -- -- -- 10,100
Restructuring charge 9,847 -- 133,320 --
Impairment of
intangibles 336,379 -- 336,379 --
--------- --------- --------- ---------
Total operating
expenses 465,693 133,293 888,435 283,376
Operating loss (430,812) (48,509) (777,258) (91,329)
Other income, net 1,797 4,318 1,418 15,505
--------- --------- --------- ---------
Loss before provision
for income taxes (429,015) (44,191) (775,840) (75,824)
Provision for
income taxes 406 8,565 1,568 21,769
--------- --------- --------- ---------
Net loss $(429,421) $ (52,756) $(777,408) $ (97,593)
========= ========= ========= =========
Basic loss
per share $ (1.54) $ (0.20) $ (2.83) $ (0.38)
========= ========= ========= =========
Diluted loss
per share $ (1.54) $ (0.20) $ (2.83) $ (0.38)
========= ========= ========= =========
Shares used in computing:
Basic (loss) earnings
per share 278,464 266,368 274,343 257,254
========= ========= ========= =========
Diluted (loss) earnings
per share 278,464 266,368 274,343 257,254
========= ========= ========= =========
Pro forma net
(loss) income(1) $ (16,702) $ 13,552 $(108,639) $ 34,166
========= ========= ========= =========
Basic (loss) earnings
per share $ (0.06) $ 0.05 $ (0.40) $ 0.13
========= ========= ========= =========
Diluted (loss) earnings
per share $ (0.06) $ 0.05 $ (0.40) $ 0.12
========= ========= ========= =========
(1) Pro forma net (loss) income/EPS excludes amortization and
impairment of goodwill and acquired technology, the charge for
acquired in-process technology and restructuring charges. Goodwill
amortization was $64,080 and $63,899 for the three months ended
September 30, 2001 and 2000, respectively. Acquired technology
amortization was $2,413 and $2,409 for the three months ended
September 30, 2001 and 2000, respectively. Goodwill amortization was
$191,839 and $117,242 for the nine months ended September 30, 2001 and
2000, respectively. Acquired technology amortization was $7,231 and
$4,417 for the nine months ended September 30, 2001 and 2000,
respectively. The impairment of intangibles for the three and nine
months ended September 30, 2001 was $336,379. There was no charge for
impairment of intangibles for the three and nine months ended
September 30, 2000. The charge for acquired in-process technology was
$0 for the three and nine months ended September 30, 2001 and $0 and
$10,100 for the three and nine months ended September 30, 2000,
respectively. Restructuring charges were $10,193 and $133,666 for the
three and nine months ended September 30, 2001 and $0 for the three
and nine months ended September 30, 2000. Shares used for the pro
forma diluted earnings per share calculations are 299,055 and 293,881
for the three and nine months ended September 30, 2000, respectively.
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