BroadVision, Inc. Returns to Pro Forma Profitability in Fourth Quarter 2002, as Planned; Company Reports Pro Forma Net Income of $3.7 Million.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. 22, 2003 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 business portal applications, today reported financial results for the fourth quarter ended December 31, 2002. Revenues for the fourth quarter of 2002 were $28.8 million, compared with revenues of $27.2 million for the third quarter ended September 30, 2002. License revenue for the fourth quarter of 2002 increased 4 percent to $11.2 million from $10.8 million in the third quarter of 2002. 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 income for the fourth quarter of 2002 was $3.7 million, or $0.11 per share, compared with a pro forma net loss of $2.3 million, or $0.07 per share, in the third quarter of 2002. Pro forma results exclude certain charges totaling $13.7 million for the fourth quarter versus $65.4 million in the third quarter of 2002. These charges are comprised of 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. , amortization of acquired technology, 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 and impairment of assets. The fourth quarter charge includes a $3.2 million write-off Write-Off A reduction in the value of an asset or earnings by the amount of an expense or loss. Companies are able to write off certain expenses that are required to run the business, or have been incurred in the operation of the business and detract from retained revenues. of pre-paid royalties for software the company no longer intends to utilize, which is reflected in cost of software license. Net loss for the fourth quarter of 2002, 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 $10.0 million or $0.31 per share, compared with a net loss of $67.7 million, or $2.11 per share, for the third quarter of 2002 and a net loss of $55.3 million, or $1.75 per share, for the quarter ended December 31, 2001. "We've long been committed to achieving pro forma profitability in the fourth quarter, and we accomplished that objective. Our main goals going into the quarter were to increase license revenue and to further reduce expenses to restore operational profitability. We more than met each of these goals, as the programs and people we put into place throughout 2002 yielded success," said 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. of BroadVision. "On the product front, our enterprise portal See corporate portal. message is resonating res·o·nate v. res·o·nat·ed, res·o·nat·ing, res·o·nates v.intr. 1. To exhibit or produce resonance or resonant effects. 2. with our customers and our 7.0 product suite continues to gain traction Traction Definition Traction is the use of a pulling force to treat muscle and skeleton disorders. Purpose Traction is usually applied to the arms and legs, the neck, the backbone, or the pelvis. in the marketplace. We remain very confident in our long term success -- our loyal installed base, integrated product suite, prudent fiscal management and solid balance sheet have put us in a strong competitive position to capitalize on Cap´i`tal`ize on` v. t. 1. To turn (an opportunity) to one's advantage; to take advantage of (a situation); to profit from; as, to capitalize on an opponent's mistakes s>. any improvement in the economic environment." During the fourth quarter of 2002, BroadVision(R) expanded its market penetration Noun 1. market penetration - the extent to which a product is recognized and bought by customers in a particular market penetration - the act of entering into or through something; "the penetration of upper management by women" by closing business with new and existing customers. New customers included Apotex, Booz Allen Hamilton Booz Allen Hamilton, Inc., referred to as Booz Allen is one of the oldest strategy consulting firms in the world.[1] The firm formerly had two consulting divisions: WCB (Worldwide Commercial Business, also known as “The Commercial Side”) and WTB , Espin Spa, ENI-Sofid, Ferretti Spa and Yokogawa. Repeat customers for the quarter included Becton Dickenson, BUPA BUPA n abbr (= British United Provident Association) → seguro médico privado , Lloyds TSB Lloyds TSB Group plc (LSE: LLOY) is a banking and insurance group in the United Kingdom. It was formed in 1995 by the merger of Lloyds Bank and the Trustee Savings Bank (TSB). The Group's head office is at 25 Gresham Street, London. , Mercury Interactive For another company with a similar name, see Mercury Computer Systems. HP Mercury (formerly Mercury Interactive) is a subsidiary of Hewlett-Packard that is a market leader in automated software quality assurance and offers products in other areas such as diagnostics, , Nexans, O2 Limited, Sears Roebuck and Company, Siemens and The United States Air Force United States Air Force (USAF) Major component of the U.S. military organization, with primary responsibility for air warfare, air defense, and military space research. It also provides air services in coordination with the other military branches. U.S. . BroadVision's 7.0 product suite market adoption continued to grow, with customers including 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 , Fleet Boston, 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. , Sears and Toshiba going live on 7.0 during the quarter. BroadVision remains strongly committed to R&D programs that extend the depth and breadth of the BroadVision 7.0 product suite. During the fourth quarter, the company released BroadVision Deployment Center(TM), a portal staging tool that reduces the cost and complexity of site maintenance, and BroadVision QuickSilver quicksilver: see mercury. (1) (QuickSilver Technology, Inc., San Jose, CA, www.qstech.com) A mobile communications company that specializes in a reconfigurable logic chip for cellphones and PDAs. See adaptive computing. (TM) 1.6, a software package for publishing complex documents in multiple output formats. In addition, BroadVision completed the build-out of its European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. sales leadership team with the appointment of Peter Bjorling, managing director of Nordic operations, and Peter Stanley Stanley, town (1991 pop. 1,557), capital of the Falkland Islands, S Atlantic Ocean, on East Falkland island. It is the main port and trading center of the islands. The name is sometimes written as Port Stanley. , vice president of UK and Benelux operations. BroadVision also welcomed James Dixon James Dixon (August 5, 1814 – March 27, 1873) was a United States Representative and Senator from Connecticut. Born in Enfield, Connecticut, he pursued preparatory studies, and graduated from Williams College in Williamstown, Massachusetts in 1834. , noted financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. industry executive, recently retired from 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. , as a new board member and head of its audit committee. Conference Call BroadVision will hold a conference call to discuss this press release and related matters at 2:00 p.m. Pacific Time, January 22, 2003. The call, hosted by Dr. Pehong Chen, president and CEO of BroadVision, can be accessed live and for seven days after the teleconference, 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. 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. . About BroadVision BroadVision's (Nasdaq: BVSN) enterprise business portal applications create bottom line value by transforming the way organizations do business--moving relationships with employees, partners and customers 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 increases revenues, reduces costs and improves productivity. BroadVision is a leading provider of portal software Portal Software was founded in 1985 as Portal Information Network, one of the first ISPs in the San Francisco Bay Area. It was founded by John Little. The company offered its own interface through modem access that featured Internet email. to Fortune 500 companies that use BroadVision to power their enterprise business portal initiatives -- leveraging 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 their enterprise applications, information and business processes, to collaborate with over 50 million users. For more information about BroadVision, Inc., call 650.542.5100, email info@broadvision.com or visit www.broadvision.com. Note to Editors: BroadVision, BroadVision Deployment Center and BroadVision QuickSilver 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, except per share data)
Dec. 31, Dec. 31,
2002 2001
----------- ----------
ASSETS
Cash and cash equivalents $77,386 $75,758
Short-term investments 24,484 65,705
Accounts receivable, less reserves of $5,502
and $8,194 for 2002 and 2001, respectively 22,917 39,768
Prepaids and other 9,181 12,816
----------- ----------
Total current assets 133,968 194,047
Property and equipment, net 26,600 67,219
Deferred tax asset - 2,857
Long-term investments 587 22,135
Restricted cash and investments 16,704 29,949
Equity investments 2,083 5,583
Goodwill and other intangibles 57,320 60,867
Other assets 2,874 9,760
----------- ----------
Total assets $240,136 $392,417
=========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable $8,105 $11,276
Accrued expenses 55,787 61,712
Unearned revenue 14,158 22,580
Deferred maintenance 24,325 30,337
Bank borrowings and current portion of long-
term debt 25,977 977
----------- ----------
Total current liabilities 128,352 126,882
Long-term debt, net of current portion 1,945 2,922
Other noncurrent liabilities 68,206 59,466
----------- ----------
Total liabilities 198,503 189,270
Common stock 3 3
Additional paid-in capital 1,210,797 1,207,071
Accumulated other comprehensive gain (loss),
net of tax 37 (5,245)
Accumulated deficit (1,169,204) (998,682)
----------- ----------
Total stockholders' equity 41,633 203,147
----------- ----------
Total liabilities and stockholders'
equity $240,136 $392,417
=========== ==========
BROADVISION, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
AND COMPREHENSIVE LOSS
(In thousands, except per share amounts)
Three Months Twelve Months
Ended Ended
December 31, December 31,
(Unaudited)
----------------- -----------------
2002 2001 2002 2001
--------- ---------- ----------- -----------
Revenues:
Software licenses $11,239 $21,019 $40,483 $101,480
Services 17,546 27,912 75,415 146,943
--------- ---------- ----------- -----------
Total revenues 28,785 48,931 115,898 248,423
Cost of revenues:
Cost of software
licenses 4,727 3,287 8,144 9,895
Cost of services 7,391 12,406 38,898 97,639
--------- ---------- ----------- -----------
Total cost of revenues 12,118 15,693 47,042 107,534
--------- ---------- ----------- -----------
Gross profit 16,667 33,238 68,856 140,889
Operating expenses:
Research and development 6,677 14,860 41,432 78,677
Sales and marketing 7,553 19,657 48,918 139,799
General and
administrative 2,513 6,604 16,288 42,311
Goodwill and intangible
amortization 887 12,146 3,548 211,216
Charge for acquired in-
process technology - 6,418 - 6,418
Restructuring charge 7,299 19,964 110,449 153,284
Impairment of assets - - 3,129 -
Impairment of goodwill
and other intangibles - - - 336,379
--------- ---------- ----------- -----------
Total operating expenses 24,929 79,649 223,764 968,084
--------- ---------- ----------- -----------
Operating loss (8,262) (46,411) (154,908) (827,195)
Other (expense), net (1,331) (8,346) (8,011) (6,928)
--------- ---------- ----------- -----------
Loss before provision for
income taxes (9,593) (54,757) (162,919) (834,123)
Provision for income
taxes 384 568 7,603 2,136
--------- ---------- ----------- -----------
Net loss $(9,977) $(55,325) $(170,522) $(836,259)
========= ========== =========== ===========
Basic loss per share $(0.31) $(1.75) $(5.32) $(27.20)
========= ========== =========== ===========
Diluted loss per share $(0.31) $(1.75) $(5.32) $(27.20)
========= ========== =========== ===========
Shares used in computing:
Basic loss per share 32,261 31,557 32,036 30,748
========= ========== =========== ===========
Diluted loss per share 32,261 31,557 32,036 30,748
========= ========== =========== ===========
Pro forma net income
(loss) 1: $3,738 $(7,963) $(31,276) $(113,812)
Basic income (loss) per
share $0.12 $(0.25) $(0.98) $(3.70)
Diluted income (loss) per
share $0.11 $(0.25) $(0.98) $(3.70)
--------- ---------- ----------- -----------
Shares used in the pro forma diluted income per share for the
fourth quarter of 2002 were 33,081.
1 Pro Forma Reconciliation
Pro forma net income(loss)/income (loss) per share, excludes
restructuring charges, amortization of goodwill, amortization of
acquired technology, impairment of equity investments, charge for
acquired in-process technology, impairment of assets, impairment of
intangible assets and provision for deferred tax asset valuation
allowance. Pro forma net income(loss) is calculated in the following
table:
Three Months Twelve Months
Ended Ended
12/31 12/31
----------------- --------------------
2002 2001 2002 2001
Net loss, generally accepted
accounting principles ($9,977)($55,325) ($170,522)($836,259)
--------------------------------------
Pro forma adjustments:
Restructuring charges 7,299 19,964 110,449 153,284
Amortization of goodwill - 10,700 - 202,542
Amortization of acquired
technology 887 1,446 3,548 8,674
Impairment of equity investments 2,321 8,834 12,633 15,150
Charge for acquired in-process
technology - 6,418 - 6,418
Impairment of assets 3,208 - 6,337 -
Impairment of intangible assets - - - 336,379
Provision for deferred tax asset
valuation allowance - - 6,279 -
--------------------------------------
Total pro forma adjustments 13,715 47,362 139,246 722,447
--------------------------------------
Pro forma net income (loss) $3,738 ($7,963) ($31,276)($113,812)
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