þ
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
o
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|
|
|
Delaware
|
|
94-3184303
|
(State or other jurisdiction of
|
|
(I.R.S. Employer
|
incorporation or organization)
|
|
Identification Number)
|
|
|
|
1600 Seaport
Blvd., Suite 550, North Bldg,
|
|
94063
|
Redwood
City, California
|
|
|
(Address of principal executive offices)
|
|
(Zip code)
|
June
30,
|
December
31,
|
|||||||
2008
|
2007
|
|||||||
(unaudited)
|
*
|
|||||||
ASSETS
|
||||||||
Current
assets:
|
||||||||
Cash
and cash equivalents
|
$
|
55,606
|
$
|
53,973
|
||||
Short-term
investments
|
3,486
|
-
|
||||||
Accounts
receivable, less allowance for doubtful accounts of $513 as of
June 30, 2008 and $585 as of December 31, 2007
|
7,029
|
7,614
|
||||||
Prepaid
and other current assets
|
1,977
|
1,410
|
||||||
Restricted
cash, current portion
|
20
|
20
|
||||||
Total
current assets
|
68,118
|
63,017
|
||||||
Property
and equipment, net
|
580
|
688
|
||||||
Restricted
cash, net of current portion
|
1,000
|
1,000
|
||||||
Goodwill
|
25,066
|
25,066
|
||||||
Other
assets
|
557
|
541
|
||||||
Total
assets
|
$
|
95,321
|
$
|
90,312
|
||||
LIABILITIES
AND STOCKHOLDERS’ EQUITY
|
||||||||
Current
liabilities:
|
||||||||
Accounts
payable
|
$
|
1,210
|
$
|
1,359
|
||||
Accrued
expenses
|
5,897
|
6,386
|
||||||
Warrant
liability
|
1,115
|
4,195
|
||||||
Unearned
revenue
|
2,505
|
2,857
|
||||||
Deferred
maintenance
|
9,494
|
7,726
|
||||||
Total
current liabilities
|
20,221
|
22,523
|
||||||
Other
non-current liabilities
|
2,906
|
3,024
|
||||||
Total
liabilities
|
23,127
|
25,547
|
||||||
Commitments
and contingencies
|
||||||||
Stockholders’
equity:
|
||||||||
Convertible
preferred stock, $0.0001 par value; 1,000 shares authorized as of June 30,
2008 and December 31, 2007; none issued and outstanding
|
-
|
-
|
||||||
Common
stock, $0.0001 par value; 280,000 shares authorized; 109,247 shares
issued and outstanding as of June 30, 2008 and 108,929 shares issued and
outstanding as of December 31, 2007
|
11
|
10
|
||||||
Additional
paid-in capital
|
1,258,070
|
1,257,132
|
||||||
Accumulated
other comprehensive (loss) income
|
(290
|
)
|
16
|
|||||
Accumulated
deficit
|
(1,185,597
|
)
|
(1,192,393
|
)
|
||||
Total
stockholders’ equity
|
72,194
|
64,765
|
||||||
Total
liabilities and stockholders’ equity
|
$
|
95,321
|
$
|
90,312
|
||||
*
Derived from audited consolidated financial statements filed in the
Company’s 2007 Annual Report on Form 10-K.
|
BROADVISION, INC. AND
SUBSIDIARIES
|
(In thousands, except par share
amounts)
|
(Unaudited)
|
Three
Months Ended June 30,
|
Six
Months Ended June 30,
|
|||||||||||||||
2008
|
2007
|
2008
|
2007
|
|||||||||||||
Revenues:
|
||||||||||||||||
Software
licenses
|
$ | 2,448 | $ | 5,494 | $ | 6,425 | $ | 11,228 | ||||||||
Services
|
5,582 | 7,774 | 11,635 | 14,785 | ||||||||||||
Total
revenues
|
8,030 | 13,268 | 18,060 | 26,013 | ||||||||||||
Cost
of revenues:
|
||||||||||||||||
Cost
of software licenses
|
6 | 22 | 13 | 34 | ||||||||||||
Cost
of services
|
2,155 | 2,215 | 4,408 | 4,608 | ||||||||||||
Total
cost of revenues
|
2,161 | 2,237 | 4,421 | 4,642 | ||||||||||||
Gross
profit
|
5,869 | 11,031 | 13,639 | 21,371 | ||||||||||||
Operating
expenses:
|
||||||||||||||||
Research
and development
|
2,309 | 2,483 | 4,646 | 5,138 | ||||||||||||
Sales
and marketing
|
1,961 | 1,781 | 3,846 | 3,850 | ||||||||||||
General
and administrative
|
1,603 | 1,479 | 3,301 | 2,546 | ||||||||||||
Restructuring (credit)
charge
|
(5 | ) | 306 | (23 | ) | 584 | ||||||||||
Total
operating expenses
|
5,868 | 6,049 | 11,770 | 12,118 | ||||||||||||
Operating
income
|
1 | 4,982 | 1,869 | 9,253 | ||||||||||||
Interest
income, net
|
337 | 555 | 801 | 910 | ||||||||||||
Gain
(loss) on revaluation of warrants
|
625 | 3,104 | 3,079 | (4,238 | ) | |||||||||||
Other
income, net
|
476 | 29 | 1,334 | 305 | ||||||||||||
Income
before provision for income taxes
|
1,439 | 8,670 | 7,083 | 6,230 | ||||||||||||
Provision
for income taxes
|
(4 | ) | (230 | ) | (287 | ) | (286 | ) | ||||||||
Net
income
|
$ | 1,435 | $ | 8,440 | $ | 6,796 | $ | 5,944 | ||||||||
Basic
net income per share
|
$ | 0.01 | $ | 0.08 | $ | 0.06 | $ | 0.06 | ||||||||
Diluted
net income per share
|
$ | 0.01 | $ | 0.08 | $ | 0.06 | $ | 0.05 | ||||||||
Shares
used in computing:
|
||||||||||||||||
Weighted
average shares-basic
|
109,300 | 107,424 | 109,131 | 107,047 | ||||||||||||
Weighted
average shares-diluted
|
110,308 | 111,035 | 110,387 | 110,027 | ||||||||||||
Comprehensive
income:
|
||||||||||||||||
Net
income
|
$ | 1,435 | $ | 8,440 | $ | 6,796 | $ | 5,944 | ||||||||
Other
comprehensive (loss) gain, net of tax:
|
||||||||||||||||
Foreign
currency translation adjustment
|
(311 | ) | 106 | (306 | ) | 80 | ||||||||||
Total
comprehensive income
|
$ | 1,124 | $ | 8,546 | $ | 6,490 | $ | 6,024 | ||||||||
BROADVISION, INC. AND SUBSIDIARIES
|
(In thousands, Unaudited)
|
Six
Months Ended June 30,
|
||||||||
2008
|
2007
|
|||||||
Cash
flows from operating activities:
|
||||||||
Net
income
|
$ | 6,796 | $ | 5,944 | ||||
Adjustments
to reconcile net income to net cash provided by operating
activities:
|
||||||||
Depreciation
and amortization
|
130 | 609 | ||||||
Reversal
of accounts receivable allowance
|
(72 | ) | (637 | ) | ||||
Stock-based
compensation
|
474 | 593 | ||||||
(Gain) / loss
on revaluation of warrants
|
(3,079 | ) | 4,238 | |||||
Changes
in operating assets and liabilities:
|
||||||||
Accounts
receivable
|
657 | 2,103 | ||||||
Prepaid
and other current assets
|
(567 | ) | (445 | ) | ||||
Other
non-current assets
|
(16 | ) | 6 | |||||
Accounts
payable and accrued expenses
|
(260 | ) | (1,259 | ) | ||||
Restructuring
accrual
|
(245 | ) | (406 | ) | ||||
Unearned
revenue and deferred maintenance
|
1,416 | (1,668 | ) | |||||
Other
non-current liabilities
|
(252 | ) | (596 | ) | ||||
Net
cash provided by operating activities
|
4,982 | 8,482 | ||||||
Cash
flows from investing activities:
|
||||||||
Purchases
of property and equipment
|
(22 | ) | (413 | ) | ||||
Purchases
of short-term investments
|
(3,486 | ) | - | |||||
Transfer
from restricted cash
|
- | 201 | ||||||
Net
cash used for investing activities
|
(3,508 | ) | (212 | ) | ||||
Cash
flows from financing activities:
|
||||||||
Proceeds
from issuance of common stock, net
|
465 | 814 | ||||||
Net
cash provided by financing activities
|
465 | 814 | ||||||
Effect
of exchange rates on cash and cash equivalents
|
(306 | ) | 80 | |||||
Net
increase in cash and cash equivalents
|
1,633 | 9,164 | ||||||
Cash
and cash equivalents at beginning of period
|
53,973 | 37,003 | ||||||
Cash
and cash equivalents at end of period
|
$ | 55,606 | $ | 46,167 | ||||
Supplemental
information of noncash activities:
|
||||||||
Reclassification
of tax liability to accumulated deficit
|
$ | - | $ | 388 |
Three
Months Ended June 30,
|
Six
Months Ended June 30,
|
|||||||||||||||
2008
|
2007
|
2008
|
2007
|
|||||||||||||
Cost
of services
|
$ | 36,245 | $ | 55,942 | $ | 73,211 | $ | 109,764 | ||||||||
Research
and development
|
80,890 | 109,993 | 119,778 | 232,229 | ||||||||||||
Sales
and marketing
|
82,316 | 69,269 | 136,053 | 137,201 | ||||||||||||
General
and administrative
|
89,188 | 58,152 | 144,756 | 114,008 | ||||||||||||
$ | 288,639 | $ | 293,356 | $ | 473,798 | $ | 593,202 |
Three
Months Ended June 30,
|
Six
Months Ended June 30,
|
|||||||||||||||
2008
|
2007
|
2008
|
2007
|
|||||||||||||
Net
income
|
$ | 1,435 | $ | 8,440 | $ | 6,796 | $ | 5,944 | ||||||||
Weighted-average
common shares outstanding used to compute basic net income per
share
|
109,300 | 107,424 | 109,131 | 107,047 | ||||||||||||
Weighted-average
common equivalent shares from outstanding common stock options and
warrants
|
8 | 3,611 | 1,256 | 2,980 | ||||||||||||
Total
weighted-average common and common equivalent shares outstanding used to
compute diluted net income per share
|
109,308 | 111,035 | 110,387 | 110,027 | ||||||||||||
Basic
net income per share
|
$ | 0.01 | $ | 0.08 | $ | 0.06 | $ | 0.06 | ||||||||
Diluted
net income per share
|
$ | 0.01 | $ | 0.08 | $ | 0.06 | $ | 0.05 |
Accumulated
Other
|
||||
Comprehensive
|
||||
Income
(Loss)
|
||||
Balance,
December 31, 2007
|
$ | 16 | ||
Net
change during period
|
(306 | ) | ||
Balance,
June 30, 2008
|
$ | (290 | ) | |
June
30, 2008
|
December
31, 2007
|
|||||||
Fair
value
|
Fair
value
|
|||||||
(unaudited)
|
||||||||
Cash
and cash equivalents
|
$ | 55,606 | $ | 53,973 | ||||
Short-term
investments
|
3,486 | - | ||||||
Total
cash, cash equivalents, and short-term investments
|
$ | 59,092 | $ | 53,973 |
June
30,
|
December
31,
|
|||||||
2008
|
2007
|
|||||||
(unaudited)
|
||||||||
Furniture
and fixtures
|
$ | 604 | $ | 654 | ||||
Computers
and software
|
5,426 | 5,359 | ||||||
Leasehold
improvements
|
1,300 | 1,296 | ||||||
7,330 | 7,309 | |||||||
Less
accumulated depreciation and amortization
|
(6,750 | ) | (6,621 | ) | ||||
Property
and equipment, net
|
$ | 580 | $ | 688 | ||||
June
30,
|
December
31,
|
|||||||
2008
|
2007
|
|||||||
(unaudited)
|
||||||||
Employee
benefits
|
$ | 1,248 | $ | 1,076 | ||||
Commissions
and bonuses
|
289 | 656 | ||||||
Sales
and other taxes
|
1,223 | 1,245 | ||||||
Income
tax and tax contingency reserves
|
604 | 427 | ||||||
Restructuring
|
381 | 439 | ||||||
Customer
advances
|
283 | 288 | ||||||
Royalties
|
1,376 | 1,376 | ||||||
Other
|
493 | 879 | ||||||
Total
accrued expenses
|
$ | 5,897 | $ | 6,386 |
Underlying
|
Exercise
|
||||||
|
Shares
|
Price per
Share
|
|||||
Issued
to landlord in real estate buyout transaction in
August 2004
|
700,000
|
$
|
5.00
|
||||
Issued
to convertible notes investors in November 2004
|
3,865,811
|
$ |
1.48
|
||||
Total
warrants
|
4,566,431
|
Three
Months Ended June 30,
|
Six
Months Ended June 30,
|
|||||||||||||||
2008
|
2007
|
2008
|
2007
|
|||||||||||||
Warrants
related to the Notes
|
$ | 588 | $ | 2,794 | $ | 2,915 | $ | (3,866 | ) | |||||||
Warrants
related to real estate buyout
|
37 | 310 | 164 | (372 | ) | |||||||||||
Gain
(loss) on revaluation of warrants
|
$ | 625 | $ | 3,104 | $ | 3,079 | $ | (4,238 | ) |
June
30,
|
December
31,
|
|||||||
2008
|
2007
|
|||||||
(unaudited)
|
||||||||
Restructuring
|
$ | 709 | $ | 895 | ||||
Deferred
maintenance and unearned revenue
|
1,500 | 1,481 | ||||||
Other
|
697 | 648 | ||||||
Total
other non-current liabilities
|
$ | 2,906 | $ | 3,024 | ||||
Operating
|
||||
Periods ending
June 30,
|
Leases
|
|||
2008
|
$ | 1.0 | ||
2009
|
1.9 | |||
2010
|
1.4 | |||
2011
|
1.2 | |||
2012
and thereafter
|
0.6 | |||
Total
minimum facilities payments
|
$ | 6.1 |
Three
Months Ended
|
Six
Months Ended
|
|||||||||||||||
June
30,
|
June
30,
|
|||||||||||||||
2008
|
2007
|
2008
|
2007
|
|||||||||||||
Software
licenses
|
$ | 2,448 | $ | 5,494 | $ | 6,425 | $ | 11,228 | ||||||||
Consulting
services
|
1,247 | 1,852 | 2,751 | 3,138 | ||||||||||||
Maintenance
|
4,335 | 5,922 | 8,884 | 11,647 | ||||||||||||
Total
revenues
|
$ | 8,030 | $ | 13,268 | $ | 18,060 | $ | 26,013 |
Three
Months Ended
|
Six
Months Ended
|
|||||||||||||||
June
30,
|
June
30,
|
|||||||||||||||
2008
|
2007
|
2008
|
2007
|
|||||||||||||
Revenues:
|
||||||||||||||||
Americas
|
$ | 4,111 | $ | 8,498 | $ | 9,037 | $ | 15,408 | ||||||||
Europe
|
2,759 | 2,808 | 6,428 | 6,818 | ||||||||||||
Asia/Pacific
|
1,160 | 1,962 | 2,595 | 3,787 | ||||||||||||
Total
revenues
|
$ | 8,030 | $ | 13,268 | $ | 18,060 | $ | 26,013 |
June
30,
|
December
31,
|
|||||||
2008
|
2007
|
|||||||
Long-Lived
Assets:
|
(unaudited)
|
|||||||
Americas
|
$ | 25,483 | $ | 25,581 | ||||
Europe
|
42 | 62 | ||||||
Asia/Pacific
|
121 | 111 | ||||||
Total
long-lived assets
|
$ | 25,646 | $ | 25,754 |
Current
|
Non-Current
|
Total
|
||||||||
Excess
Facilities
|
0.4
|
0.7
|
1.1
|
Total
Future
|
||||
Minimum
|
||||
Years
ending December 31,
|
Payments
|
|||
2008
|
$ | 0.3 | ||
2009
|
0.4 | |||
2010
|
0.2 | |||
2011
|
0.1 | |||
2012
and thereafter
|
0.1 | |||
Total
minimum facilities payments
|
$ | 1.1 |
Amounts
|
||||||||||||||||
Accrued
|
Charged
to
|
|||||||||||||||
Restructuring
|
Restructuring
|
Accrued
|
||||||||||||||
Costs
|
Costs
|
Amounts
Paid
|
Restructuring
|
|||||||||||||
Beginning
|
and
Other
|
or
Written Off
|
Costs,
Ending
|
|||||||||||||
Three
Months Ended June 30, 2008
|
||||||||||||||||
Lease
cancellations and commitments
|
$ | (5 | ) | $ | 39 | $ | 12 | $ | 46 | |||||||
Three
Months Ended June 30, 2007
|
||||||||||||||||
Lease
cancellations and commitments
|
$ | 118 | $ | 2 | $ | (62 | ) | $ | 59 | |||||||
|
||||||||||||||||
Six
Months Ended June 30, 2008
|
||||||||||||||||
Lease
cancellations and commitments
|
$ | 8 | $ | 12 | $ | 26 | $ | 46 | ||||||||
|
||||||||||||||||
Six
Months Ended June 30, 2007
|
||||||||||||||||
Lease
cancellations and commitments
|
$ | 77 | $ | 113 | $ | (131 | ) | $ | 59 |
Amounts
|
||||||||||||||||
Accrued
|
Charged
to
|
|||||||||||||||
Restructuring
|
Restructuring
|
Accrued
|
||||||||||||||
Costs,
|
Costs
|
Amounts
Paid
|
Restructuring
|
|||||||||||||
Beginning
|
and
Other
|
or
Written Off
|
Costs,
Ending
|
|||||||||||||
Three
Months Ended June 30, 2008
|
||||||||||||||||
Lease
cancellations and commitments
|
$ | 1,216 | $ | (51 | ) | $ | (122 | ) | $ | 1,043 | ||||||
Three
Months Ended June 30, 2007
|
||||||||||||||||
Lease
cancellations and commitments
|
$
|
1,966
|
$ | 300 | $ | (525 | ) | $ | 1,741 | |||||||
Termination
payments to employees and related costs
|
352 | 4 | - | 356 | ||||||||||||
$ | 2,318 | $ | 304 | $ | (525 | ) | $ | 2,097 | ||||||||
Six
Months Ended June 30, 2008
|
||||||||||||||||
Lease
cancellations and commitments
|
$ | 1,326 | $ | (42 | ) | $ | (241 | ) | $ | 1,043 | ||||||
Six
Months Ended June 30, 2007
|
||||||||||||||||
Lease
cancellations and commitments
|
$ | 2,138 | $ | 462 | $ | (859 | ) | $ | 1,741 | |||||||
Termination
payments to employees and related costs
|
347 | 9 | - | 356 | ||||||||||||
$ | 2,485 | $ | 471 | $ | (859 | ) | $ | 2,097 |
Software
|
||||||||||||||||||||||||
Licenses
|
%
|
Services
|
%
|
Total
|
%
|
|||||||||||||||||||
Three
Months Ended:
|
||||||||||||||||||||||||
June
30, 2008
|
||||||||||||||||||||||||
Americas
|
$ | 1,410 | 58 | % | $ | 2,701 | 48 | % | $ | 4,111 | 51 | % | ||||||||||||
Europe
|
753 | 31 | 2,006 | 36 | 2,759 | 35 | ||||||||||||||||||
Asia
Pacific
|
285 | 11 | 875 | 16 | 1,160 | 14 | ||||||||||||||||||
Total
|
$ | 2,448 | 100 | % | $ | 5,582 | 100 | % | $ | 8,030 | 100 | % | ||||||||||||
June
30, 2007
|
||||||||||||||||||||||||
Americas
|
$ | 3,302 | 60 | % | $ | 5,196 | 67 | % | $ | 8,498 | 64 | % | ||||||||||||
Europe
|
1,368 | 25 | 1,440 | 19 | 2,808 | 21 | ||||||||||||||||||
Asia
Pacific
|
824 | 15 | 1,138 | 14 | 1,962 | 15 | ||||||||||||||||||
Total
|
$ | 5,494 | 100 | % | $ | 7,774 | 100 | % | $ | 13,268 | 100 | % | ||||||||||||
Six
Months Ended:
|
||||||||||||||||||||||||
June
30, 2008
|
||||||||||||||||||||||||
Americas
|
$ | 3,568 | 56 | % | $ | 5,469 | 47 | % | $ | 9,037 | 50 | % | ||||||||||||
Europe
|
1,964 | 30 | 4,464 | 38 | 6,428 | 36 | ||||||||||||||||||
Asia
Pacific
|
893 | 14 | 1,702 | 15 | 2,595 | 14 | ||||||||||||||||||
Total
|
$ | 6,425 | 100 | % | $ | 11,635 | 100 | % | $ | 18,060 | 100 | % | ||||||||||||
June
30, 2007
|
||||||||||||||||||||||||
Americas
|
$ | 6,414 | 57 | % | $ | 8,994 | 61 | % | $ | 15,408 | 59 | % | ||||||||||||
Europe
|
3,222 | 29 | 3,596 | 24 | 6,818 | 26 | ||||||||||||||||||
Asia
Pacific
|
1,592 | 14 | 2,195 | 15 | 3,787 | 15 | ||||||||||||||||||
Total
|
$ | 11,228 | 100 | % | $ | 14,785 | 100 | % | $ | 26,013 | 100 | % | ||||||||||||
Three
Months Ended June 30,
|
Six
Months Ended June 30,
|
|||||||||||||||||||||||||||||||
2008
|
% | (1) |
2007
|
% | (1) |
2008
|
% | (1) |
2007
|
% | (1) | |||||||||||||||||||||
Cost
of software licenses
|
$ | 6 | - | % | $ | 22 | - | % | $ | 13 | - | % | $ | 34 | - | % | ||||||||||||||||
Cost
of services
|
2,155 | 27 | % | 2,215 | 17 | % | 4,408 | 24 | % | 4,608 | 18 | % | ||||||||||||||||||||
Total
cost of revenues
|
$ | 2,161 | 27 | % | $ | 2,237 | 17 | % | $ | 4,421 | 24 | % | $ | 4,642 | 18 | % | ||||||||||||||||
(1)
|
Expressed
as a percent of total revenues for the period
indicated.
|
Three
Months Ended
|
Six
Months Ended
|
|||||||||||||||||||||||||||||||
June
30,
|
June
30,
|
|||||||||||||||||||||||||||||||
2008
|
% | (1) |
2007
|
% | (1) |
2008
|
% | (1) |
2007
|
% | (1) | |||||||||||||||||||||
Research
and development
|
$ | 2,309 | 29 | % | $ | 2,483 | 19 | % | $ | 4,646 | 26 | % | $ | 5,138 | 20 | % | ||||||||||||||||
Sales
and marketing
|
1,961 | 24 | 1,781 | 13 | 3,846 | 21 | 3,850 | 15 | ||||||||||||||||||||||||
General
and administrative
|
1,603 | 20 | 1,479 | 11 | 3,301 | 18 | 2,546 | 10 | ||||||||||||||||||||||||
Restructuring
charges
|
(5 | ) | - | 306 | 2 | (23 | ) | - | 584 | 2 | ||||||||||||||||||||||
Total
operating expenses
|
$ | 5,868 | 73 | % | $ | 6,049 | 45 | % | $ | 11,770 | 65 | % | $ | 12,118 | 47 | % |
(1)
|
Expressed
as a percent of total revenues for the period
indicated.
|
June
30,
|
December
31,
|
|||||||
2008
|
2007
|
|||||||
(unaudited)
|
||||||||
Cash
and cash equivalents
|
$ | 55,606 | $ | 53,973 | ||||
Restricted
cash, current portion
|
$ | 20 | $ | 20 | ||||
Short-term
investments
|
$ | 3,486 | $ | - | ||||
Working
capital
|
$ | 47,897 | $ | 40,494 | ||||
Working
capital ratio
|
3.37 | 2.80 | ||||||
|
● |
introduction
of products and services and enhancements by us and our
competitors;
|
|
● |
competitive
factors that affect our pricing;
|
|
● |
market
acceptance of new products;
|
|
● |
the
mix of products sold by us;
|
|
● |
changes
in our pricing policies or our competitors;
|
|
● |
changes
in our sales incentive plans;
|
|
● |
the
budgeting cycles of our customers;
|
|
● |
customer
order deferrals in anticipation of new products or enhancements by our
competitors or us or because of macro-economic
conditions;
|
|
● |
nonrenewal
of our maintenance agreements, which generally automatically renew for
one-year terms unless earlier terminated by either party upon 90-days
notice;
|
|
● |
product
life cycles;
|
|
● |
changes
in strategy;
|
|
● |
seasonal
trends;
|
|
● |
the
mix of distribution channels through which our products are
sold;
|
|
● |
the
mix of international and domestic sales;
|
|
● |
the
rate at which new sales people become productive;
|
|
● |
changes
in the level of operating expenses to support projected
growth;
|
|
● |
increase
in the amount of third party products and services that we use in our
products or resell with royalties attached;
|
|
● |
fluctuations
in the recorded value of outstanding common stock warrants that will be
based upon changes to the underlying market value of BroadVision common
stock;
|
|
● |
the
timing of receipt and fulfillment of significant orders;
and
|
|
● |
costs
associated with litigation, regulatory compliance and other corporate
events such as operational
reorganizations.
|
|
● |
develop
leading technologies;
|
|
● |
enhance
our existing products and services;
|
|
● |
develop
new products and services that address the increasingly sophisticated and
varied needs of our prospective customers; and
|
|
● |
respond
to technological advances and emerging industry standards and practices on
a timely and cost-effective basis.
|
|
● |
Systems
integrators may not view their relationships with us as valuable to their
own businesses. The related arrangements typically may be terminated by
either party with limited notice and in some cases are not covered by a
formal agreement.
|
|
● |
Under
our business model, we often rely on our system integrators' employees to
perform implementations. If we fail to work together effectively, or if
these parties perform poorly, our reputation may be harmed and deployment
of our products may be delayed or inadequate.
|
|
● |
Systems
integrators may attempt to market their own products and services rather
than ours.
|
|
● |
Our
competitors may have stronger relationships with our systems integrators
than us and, as a result, these integrators may recommend a competitor's
products and services over ours.
|
|
● |
If
we lose our relationships with our systems integrators, we will not have
the personnel necessary to deploy our products effectively, and we will
need to commit significant additional sales and marketing resources in an
effort to reach the markets and customers served by these
parties.
|
|
● |
difficulties
in staffing and managing foreign operations and safeguarding foreign
assets;
|
|
● |
unexpected
changes in regulatory requirements;
|
|
● |
export
controls relating to encryption technology and other export
restrictions;
|
|
● |
tariffs
and other trade barriers;
|
|
● |
difficulties
in staffing and managing foreign operations;
|
|
● |
political
and economic instability;
|
|
● |
fluctuations
in currency exchange rates;
|
|
● |
reduced
protection for intellectual property rights in some
countries;
|
|
● |
cultural
barriers;
|
|
● |
seasonal
reductions in business activity during the summer months in Europe and
certain other parts of the world; and
|
|
● |
potentially
adverse tax consequences.
|
|
● |
the
composition of our board of directors and, through it, any determination
with respect to our business direction and policies, including the
appointment and removal of officers;
|
|
● |
any
determinations with respect to mergers and other business
combinations;
|
|
● |
our
acquisition or disposition of assets;
|
|
● |
our
financing activities; and
|
|
● |
the
payment of dividends on our capital
stock.
|
|
● |
quarterly
variations in operating results;
|
|
● |
announcements
of technological innovations;
|
|
● |
announcements
of new software or services by us or our competitors;
|
|
● |
changes
in financial estimates by securities analysts;
|
● |
low
trading volume on the OTC Bulletin Board;
|
|
|
● |
general
economic conditions; or
|
|
● |
other
events or factors that are beyond our
control.
|
1)
|
Pehong
Chen, James D. Dixon, Robert Lee and Francois Stieger were elected members
of the Board of Directors to serve until the 2009 Annual Meeting of
Stockholders and until their successors are elected and qualified.
The results of the voting were as
follow:
|
For
|
Withheld
|
||||
Pehong
Chen
|
84,028,998
|
579,286
|
|||
James
D. Dixon
|
84,049,321
|
558,963
|
|||
Robert
Lee
|
84,042,243
|
566,041
|
|||
Francois
Stieger
|
84,063,062
|
545,222
|
|||
2)
|
The
appointment of Odenberg, Ullakko, Muranishi & Co. LLP as independent
auditors for the Company's fiscal year ending December 31, 2008 was
ratified and approved. The vote was 88,007,236 votes for to 416,122 votes
against with 184,926 votes
abstaining.
|
3)
|
The
BroadVision, Inc. 2006 Equity Incentive Plan was approved to add an
additional 3,000,000 shares to the number of share of common stock
issuable under 2006 Equity Incentive Plan. There were 60,952,077 votes for
to 1,437,205 votes against with 41,505 votes abstaining and 22,177,497
broker non-votes.
|
Exhibits
|
|
Description
|
3.1
(1)
|
|
Amended
and Restated Certificate of Incorporation.
|
3.2
(2)
|
|
Certificate
of Amendment of Certificate of Incorporation.
|
3.3
(4)
|
|
Certificate
of Amendment of Certificate of Incorporation.
|
3.4
(3)
|
|
Amended
and Restated Bylaws.
|
4.1
(1)
|
|
References
are hereby made to Exhibits 3.1 to 3.3
|
31.1
|
|
Certification
of the Chief Executive Officer of BroadVision.
|
31.2
|
|
Certification
of the Chief Financial Officer of BroadVision.
|
32.1
|
|
Certification
of the Chief Executive Officer and Chief Financial Officer of BroadVision
pursuant to Section 906 of the Sarbanes-Oxley Act of
2002.
|
|
|
|
(1)
|
|
Incorporated
by reference to the Company's Registration Statement on Form S-1 filed on
April 19, 1996 as amended by Amendment No. 1 filed on May 9,
1996, Amendment No. 2 filed on May 29, 1996 and Amendment
No. 3 filed on June 17, 1996.
|
(2)
|
|
Incorporated
by reference to the Company's Proxy Statement filed on May 14,
2002.
|
(3)
|
|
Incorporated
by reference to the Company's Current Report on Form 8-K filed on December
22, 2005.
|
(4)
|
|
Incorporated
by reference to the Company's Form 10-K for the fiscal year ended December
31, 2006 filed on March 27, 2007.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BROADVISION,
INC.
|
|
|
|
|
|
|
|
|
|
Date:
August 6, 2008
|
|
By:
|
|
/s/ Pehong
Chen
|
|
|
|
|
|
|
Pehong
Chen
|
|
|
|
|
|
|
Chairman
of the Board, President and Chief Executive Officer
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BROADVISION,
INC.
|
|
|
|
|
|
|
|
|
|
Date:
August 6, 2008
|
|
By:
|
|
/s/ Shin-Yuan
Tzou
|
|
|
|
|
|
|
Shin-Yuan
Tzou
|
|
|
|
|
|
|
Chief
Financial Officer
|
Exhibits
|
|
Description
|
||
3.1
(1)
|
|
Amended
and Restated Certificate of Incorporation.
|
||
3.2
(2)
|
|
Certificate
of Amendment of Certificate of Incorporation.
|
||
3.3
(4)
|
|
Certificate
of Amendment of Certificate of Incorporation.
|
||
3.4
(3)
|
|
Amended
and Restated Bylaws.
|
||
4.1
(1)
|
|
References
are hereby made to Exhibits 3.1 to 3.3
|
||
31.1
|
|
Certification
of the Chief Executive Officer of BroadVision.
|
||
31.2
|
Certification
of the Chief Financial Officer of BroadVision.
|
|||
32.1
|
|
Certification
of the Chief Executive Officer and Chief Financial Officer of BroadVision
pursuant to Section 906 of the Sarbanes-Oxley Act of
2002.
|
||
|
|
|
||
(1)
|
|
Incorporated
by reference to the Company's Registration Statement on Form S-1 filed on
April 19, 1996 as amended by Amendment No. 1 filed on May 9,
1996, Amendment No. 2 filed on May 29, 1996 and Amendment
No. 3 filed on June 17, 1996.
|
||
(2)
|
|
Incorporated
by reference to the Company's Proxy Statement filed on May 14,
2002.
|
||
(3)
|
|
Incorporated
by reference to the Company's Current Report on Form 8-K filed on December
22, 2005.
|
||
(4)
|
|
Incorporated
by reference to the Company's Form 10-K for the fiscal year ended December
31, 2006 filed on March 27, 2007.
|