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, |
|||||||
2009 |
2008 |
|||||||
(unaudited) |
* |
|||||||
ASSETS |
||||||||
Current assets: |
||||||||
Cash and cash equivalents |
$ |
44,198 |
$ |
52,884 |
||||
Short-term investments |
18,388 |
9,004 |
||||||
Accounts receivable, less allowance for doubtful accounts of $479 as of June 30, 2009 and $366 as of December 31, 2008 |
5,357 |
8,167 |
||||||
Restricted cash |
20 |
20 |
||||||
Prepaids and other |
1,877 |
2,585 |
||||||
Total current assets |
69,840 |
72,660 |
||||||
Property and equipment, net |
437 |
514 |
||||||
Restricted cash, net of current portion |
1,000 |
1,000 |
||||||
Other assets |
475 |
563 |
||||||
Total assets |
$ |
71,752 |
$ |
74,737 |
||||
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) |
||||||||
Current liabilities: |
||||||||
Accounts payable |
$ |
809 |
$ |
1,251 |
||||
Accrued expenses |
5,548 |
5,415 |
||||||
Warrant liability |
162 |
155 |
||||||
Unearned revenue |
3,138 |
5,810 |
||||||
Deferred maintenance |
7,466 |
8,959 |
||||||
Total current liabilities |
17,123 |
21,590 |
||||||
Other non-current liabilities |
1,998 |
2,429 |
||||||
Total liabilities |
19,121 |
24,019 |
||||||
Stockholders’ equity: |
||||||||
Convertible preferred stock, $0.0001 par value; 1,000 shares authorized; none issued and outstanding |
- |
- |
||||||
Common stock, $0.0001 par value; 11,200 shares authorized; 4,406 and 4,376 shares issued and outstanding as of June 30, 2009 and December 31, 2008, respectively |
- |
- |
||||||
Additional paid-in capital |
1,259,407 |
1,258,604 |
||||||
Accumulated other comprehensive loss |
(856 |
) |
(483 |
) | ||||
Accumulated deficit |
(1,205,920 |
) |
(1,207,403 |
) | ||||
Total stockholders’ equity |
52,631 |
50,718 |
||||||
Total liabilities and stockholders’ equity |
$ |
71,752 |
$ |
74,737 |
||||
* Derived from audited consolidated financial statements filed in the Company’s 2008 Annual Report on Form 10-K. |
Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||||||||||
2009 |
2008 |
2009 |
2008 |
|||||||||||||
Revenues: |
||||||||||||||||
Software licenses |
$ |
3,161 |
$ |
2,448 |
$ |
6,013 |
$ |
6,425 |
||||||||
Services |
5,011 |
5,582 |
10,160 |
11,635 |
||||||||||||
Total revenues |
8,172 |
8,030 |
16,173 |
18,060 |
||||||||||||
Cost of revenues: |
||||||||||||||||
Cost of software licenses |
14 |
6 |
20 |
13 |
||||||||||||
Cost of services |
1,959 |
2,155 |
3,923 |
4,408 |
||||||||||||
Total cost of revenues |
1,973 |
2,161 |
3,943 |
4,421 |
||||||||||||
Gross profit |
6,199 |
5,869 |
12,230 |
13,639 |
||||||||||||
Operating expenses: |
||||||||||||||||
Research and development |
2,009 |
2,309 |
4,177 |
4,646 |
||||||||||||
Sales and marketing |
1,942 |
1,961 |
3,978 |
3,846 |
||||||||||||
General and administrative |
1,146 |
1,603 |
2,597 |
3,301 |
||||||||||||
Restructuring charge (credit) |
56 |
(5 |
) |
54 |
(23 |
) | ||||||||||
Total operating expenses |
5,153 |
5,868 |
10,806 |
11,770 |
||||||||||||
Operating income |
1,046 |
1 |
1,424 |
1,869 |
||||||||||||
Interest income, net |
203 |
337 |
484 |
801 |
||||||||||||
Gain (loss) on revaluation of warrants |
24 |
625 |
(7 |
) |
3,079 |
|||||||||||
Other income (loss), net |
915 |
476 |
(198 |
) |
1,334 |
|||||||||||
Income before provision for income taxes |
2,188 |
1,439 |
1,703 |
7,083 |
||||||||||||
Provision for income taxes |
(79 |
) |
(4 |
) |
(220 |
) |
(287 |
) | ||||||||
Net income |
$ |
2,109 |
$ |
1,435 |
$ |
1,483 |
$ |
6,796 |
||||||||
Basic income per share |
$ |
0.48 |
$ |
0.33 |
$ |
0.34 |
$ |
1.56 |
||||||||
Diluted income per share |
$ |
0.48 |
$ |
0.33 |
$ |
0.34 |
$ |
1.54 |
||||||||
Shares used in computing: |
||||||||||||||||
Weighted average shares-basic |
4,396 |
4,372 |
4,389 |
4,365 |
||||||||||||
Weighted average shares-diluted |
4,399 |
4,419 |
4,391 |
4,415 |
||||||||||||
Comprehensive income: |
||||||||||||||||
Net income |
$ |
2,109 |
$ |
1,435 |
$ |
1,483 |
$ |
6,796 |
||||||||
Other comprehensive gain (loss), net of tax: |
||||||||||||||||
Foreign currency translation adjustment |
105 |
(311 |
) |
(373 |
) |
(306 |
) | |||||||||
Total comprehensive income |
$ |
2,214 |
$ |
1,124 |
$ |
1,110 |
$ |
6,490 |
Six Months Ended June 30, |
||||||||
2009 |
2008 |
|||||||
Cash flows from operating activities: |
||||||||
Net income |
$ |
1,483 |
$ |
6,796 |
||||
Adjustments to reconcile net income to net cash provided by operating activities: |
||||||||
Depreciation and amortization |
114 |
130 |
||||||
Restructuring charge (credit) |
54 |
(23 |
) | |||||
Provision for receivable reserves |
121 |
(72 |
) | |||||
Stock-based compensation |
530 |
474 |
||||||
Gain on cost method investments |
(22 |
) |
- |
|||||
Loss (gain) on revaluation of warrants |
7 |
(3,079 |
) | |||||
Changes in operating assets and liabilities: |
||||||||
Accounts receivable |
2,689 |
657 |
||||||
Prepaids and other |
708 |
(567 |
) | |||||
Other non-current assets |
92 |
(16 |
) | |||||
Accounts payable and accrued expenses |
(216 |
) |
(260 |
) | ||||
Restructuring accrual |
(225 |
) |
(222 |
) | ||||
Unearned revenue and deferred maintenance |
(4,165 |
) |
1,416 |
|||||
Other noncurrent liabilities |
(353 |
) |
(252 |
) | ||||
Net cash provided by operating activities |
817 |
4,982 |
||||||
Cash flows from investing activities: |
||||||||
Purchase of property and equipment |
(41 |
) |
(22 |
) | ||||
Proceeds from sale of cost method investments |
22 |
- |
||||||
Purchase of short term investments |
(9,384 |
) |
(3,486 |
) | ||||
Net cash used for investing activities |
(9,403 |
) |
(3,508 |
) | ||||
Cash flows from financing activities: |
||||||||
Proceeds from issuance of common stock, net |
273 |
465 |
||||||
Net cash provided by financing activities |
273 |
465 |
||||||
Effect of exchange rates on cash and cash equivalents |
(373 |
) |
(306 |
) | ||||
Net (decrease) increase in cash and cash equivalents |
(8,686 |
) |
1,633 |
|||||
Cash and cash equivalents at beginning of period |
52,884 |
53,973 |
||||||
Cash and cash equivalents at end of period |
$ |
44,198 |
$ |
55,606 |
Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||||||||||
2009 |
2008 |
2009 |
2008 |
|||||||||||||
Cost of services |
$ |
27,822 |
$ |
36,245 |
$ |
56,180 |
$ |
73,211 |
||||||||
Research and development |
87,050 |
80,890 |
189,769 |
119,778 |
||||||||||||
Sales and marketing |
62,505 |
82,316 |
114,990 |
136,053 |
||||||||||||
General and administrative |
91,310 |
89,188 |
168,899 |
144,756 |
||||||||||||
$ |
268,687 |
$ |
288,639 |
$ |
529,838 |
$ |
473,798 |
Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||||||||||
2009 |
2008 |
2009 |
2008 |
|||||||||||||
Net income |
$ |
2,109 |
$ |
1,435 |
$ |
1,483 |
$ |
6,796 |
||||||||
Weighted-average common shares outstanding used to compute basic income per share |
4,396 |
4,372 |
4,389 |
4,365 |
||||||||||||
Weighted-average common equivalent shares from outstanding common stock options and warrants |
3 |
47 |
2 |
50 |
||||||||||||
Total weighted-average common and common equivalent shares outstanding used to compute diluted income per share |
4,399 |
4,419 |
4,391 |
4,415 |
||||||||||||
Basic income per share |
$ |
0.48 |
$ |
0.33 |
$ |
0.34 |
$ |
1.56 |
||||||||
Diluted income per share |
$ |
0.48 |
$ |
0.33 |
$ |
0.34 |
$ |
1.54 |
Accumulated Other |
||||
Comprehensive |
||||
Loss |
||||
Balance, December 31, 2008 |
$ |
(483 |
) | |
Net change during period |
(373 |
) | ||
Balance, June 30, 2009 |
$ |
(856 |
) |
June 30, |
December 31, |
|||||||
2009 |
2008 |
|||||||
(unaudited) |
||||||||
Furniture and fixtures |
$ |
555 |
$ |
522 |
||||
Computers and software |
5,045 |
4,996 |
||||||
Leasehold improvements |
1,274 |
1,277 |
||||||
6,874 |
6,795 |
|||||||
Less accumulated depreciation and amortization |
(6,437 |
) |
(6,281 |
) | ||||
Net book value |
$ |
437 |
$ |
514 |
June 30, |
December 31, |
|||||||
2009 |
2008 |
|||||||
(unaudited) |
||||||||
Employee benefits |
$ |
1,163 |
$ |
1,041 |
||||
Commissions and bonuses |
715 |
667 |
||||||
Sales and other taxes |
769 |
792 |
||||||
Income tax and tax contingency reserves |
471 |
301 |
||||||
Restructuring |
333 |
426 |
||||||
Customer advances |
493 |
283 |
||||||
Royalties |
1,086 |
1,376 |
||||||
Other |
518 |
529 |
||||||
Total accrued expenses |
$ |
5,548 |
$ |
5,415 |
· |
Level 1 – Quoted prices in active markets for identical assets or liabilities. |
· |
Level 2 – Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. |
· |
Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. |
Fair Value Measurements at Reporting Date Using |
||||||||||||||||||||
Balance at June 30, 2009 |
Quoted Prices in Active Markets for Identical Assets (Level 1) |
Significant Other Observable Inputs(Level 2) |
Significant Unobservable Input (Level 3) |
Total Gains (Losses) |
||||||||||||||||
Cash and cash equivalents (1) |
$ |
44,198 |
$ |
44,198 |
$ |
- |
$ |
- |
$ |
- |
||||||||||
Short-term investments (2) |
18,388 |
1,878 |
16,510 |
- |
- |
|||||||||||||||
Total |
$ |
62,586 |
$ |
46,076 |
$ |
16,510 |
$ |
- |
$ |
- |
Underlying |
Exercise |
|||||||
Shares |
Price per Share |
|||||||
Issued to landlord in real estate buyout transaction in August 2004 |
28,000 |
$ |
125.00 |
|||||
Issued to convertible notes investors in November 2004 |
154,631 |
37.00 |
||||||
Total warrants |
182,631 |
Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||||||||||
2009 |
2008 |
2009 |
2008 |
|||||||||||||
Warrants related to the convertible notes |
$ |
24 |
$ |
588 |
$ |
(8 |
) |
$ |
2,915 |
|||||||
Warrants related to real estate buyout |
- |
37 |
1 |
164 |
||||||||||||
Gain (loss) on revaluation of warrants and change in value of derivatives |
$ |
24 |
$ |
625 |
$ |
(7 |
) |
$ |
3,079 |
June 30, |
December 31, |
|||||||
2009 |
2008 |
|||||||
(in thousands) |
||||||||
Restructuring |
$ |
341 |
$ |
419 |
||||
Deferred maintenance and unearned revenue |
946 |
1,326 |
||||||
Other |
711 |
684 |
||||||
Total other non-current liabilities |
$ |
1,998 |
$ |
2,429 |
Total Future |
||||
Minimum |
||||
Years ending December 31, |
Payments |
|||
2009 |
$ |
1.1 |
||
2010 |
1.6 |
|||
2011 |
1.2 |
|||
2012 |
0.6 |
|||
2013 and thereafter |
- |
|||
Total minimum facilities payments |
$ |
4.5 |
Three Months Ended |
Six Months Ended |
|||||||||||||||
June 30, |
June 30, |
|||||||||||||||
2009 |
2008 |
2009 |
2008 |
|||||||||||||
Software licenses |
$ |
3,161 |
$ |
2,448 |
$ |
6,013 |
$ |
6,425 |
||||||||
Consulting services |
1,322 |
1,247 |
2,585 |
2,751 |
||||||||||||
Maintenance |
3,689 |
4,335 |
7,575 |
8,884 |
||||||||||||
Total revenues |
$ |
8,172 |
$ |
8,030 |
$ |
16,173 |
$ |
18,060 |
Three Months Ended |
Six Months Ended |
|||||||||||||||
June 30, |
June 30, |
|||||||||||||||
2009 |
2008 |
2009 |
2008 |
|||||||||||||
Revenues: |
||||||||||||||||
Americas |
$ |
4,944 |
$ |
4,111 |
$ |
9,304 |
$ |
9,037 |
||||||||
Europe |
2,475 |
2,759 |
5,232 |
6,428 |
||||||||||||
Asia/Pacific |
753 |
1,160 |
1,637 |
2,595 |
||||||||||||
Total revenues |
$ |
8,172 |
$ |
8,030 |
$ |
16,173 |
$ |
18,060 |
June 30, |
December 31, |
|||||||
2009 |
2008 |
|||||||
Long-Lived Assets: |
||||||||
Americas |
$ |
302 |
$ |
359 |
||||
Europe |
16 |
16 |
||||||
Asia/Pacific |
119 |
139 |
||||||
Total long-lived assets |
$ |
437 |
$ |
514 |
Current |
Non-Current |
Total |
||||||||||
Excess facilities |
$ |
333 |
$ |
341 |
$ |
674 |
Operating |
||||
Years ending December 31, |
Leases |
|||
2009 |
$ |
189 |
||
2010 |
250 |
|||
2011 |
145 |
|||
2012 |
90 |
|||
2013 and thereafter |
- |
|||
Total minimum facilities payments |
$ |
674 |
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, 2009 |
||||||||||||||||
Lease cancellations and commitments |
$ |
66 |
$ |
137 |
$ |
150 |
$ |
353 |
||||||||
Three Months Ended June 30, 2008 |
||||||||||||||||
Lease cancellations and commitments |
$ |
(5 |
) |
$ |
39 |
$ |
12 |
$ |
46 |
|||||||
Six Months Ended June 30, 2009 |
||||||||||||||||
Lease cancellations and commitments |
$ |
65 |
$ |
122 |
$ |
166 |
$ |
353 |
||||||||
Six Months Ended June 30, 2008 |
||||||||||||||||
Lease cancellations and commitments |
$ |
8 |
$ |
12 |
$ |
26 |
$ |
46 |
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, 2009 |
||||||||||||||||
Lease cancellations and commitments |
$ |
656 |
$ |
(81 |
) |
$ |
(254 |
) |
$ |
321 |
||||||
Three Months Ended June 30, 2008 |
||||||||||||||||
Lease cancellations and commitments |
$ |
1,216 |
$ |
(51 |
) |
$ |
(122 |
) |
$ |
1,043 |
||||||
Six Months Ended June 30, 2009 |
||||||||||||||||
Lease cancellations and commitments |
$ |
780 |
$ |
(68 |
) |
$ |
(391 |
) |
$ |
321 |
||||||
Six Months Ended June 30, 2008 |
||||||||||||||||
Lease cancellations and commitments |
$ |
1,326 |
$ |
(42 |
) |
$ |
(241 |
) |
$ |
1,043 |
Software |
||||||||||||||||||||||||
Licenses |
% |
Services |
% |
Total |
% |
|||||||||||||||||||
Three Months Ended: |
||||||||||||||||||||||||
June 30, 2009 |
||||||||||||||||||||||||
Americas |
$ |
2,709 |
86 |
% |
$ |
2,235 |
45 |
% |
$ |
4,944 |
60 |
% | ||||||||||||
Europe |
394 |
12 |
% |
2,081 |
41 |
% |
2,475 |
30 |
% | |||||||||||||||
Asia Pacific |
58 |
2 |
% |
695 |
14 |
% |
753 |
10 |
% | |||||||||||||||
Total |
$ |
3,161 |
100 |
% |
$ |
5,011 |
100 |
% |
$ |
8,172 |
100 |
% | ||||||||||||
June 30, 2008 |
||||||||||||||||||||||||
Americas |
$ |
1,410 |
58 |
% |
$ |
2,701 |
48 |
% |
$ |
4,111 |
51 |
% | ||||||||||||
Europe |
753 |
31 |
% |
2,006 |
36 |
% |
2,759 |
34 |
% | |||||||||||||||
Asia Pacific |
285 |
11 |
% |
875 |
16 |
% |
1,160 |
15 |
% | |||||||||||||||
Total |
$ |
2,448 |
100 |
% |
$ |
5,582 |
100 |
% |
$ |
8,030 |
100 |
% | ||||||||||||
Six Months Ended: |
||||||||||||||||||||||||
June 30, 2009 |
||||||||||||||||||||||||
Americas |
$ |
4,806 |
80 |
% |
$ |
4,498 |
44 |
% |
$ |
9,304 |
58 |
% | ||||||||||||
Europe |
991 |
16 |
% |
4,241 |
42 |
% |
5,232 |
32 |
% | |||||||||||||||
Asia Pacific |
216 |
4 |
% |
1,421 |
14 |
% |
1,637 |
10 |
% | |||||||||||||||
Total |
$ |
6,013 |
100 |
% |
$ |
10,160 |
100 |
% |
$ |
16,173 |
100 |
% | ||||||||||||
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 |
% |
Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||||||||||||||||||||||||||
2009 |
%(1) |
2008 |
%(1) |
2009 |
%(1) |
2008 |
%(1) |
|||||||||||||||||||||||||
Cost of software licenses |
$ |
14 |
0 |
% |
$ |
6 |
0 |
% |
$ |
20 |
0 |
% |
$ |
13 |
0 |
% | ||||||||||||||||
Cost of services |
1,959 |
24 |
% |
2,155 |
27 |
% |
3,923 |
24 |
% |
4,408 |
24 |
% | ||||||||||||||||||||
Total cost of revenues |
$ |
1,973 |
24 |
% |
$ |
2,161 |
27 |
% |
$ |
3,943 |
24 |
% |
$ |
4,421 |
24 |
% |
(1) |
Expressed as a percent of total revenues for the period indicated. |
Three Months Ended |
Six Months Ended |
|||||||||||||||||||||||||||||||
June 30, |
June 30, |
|||||||||||||||||||||||||||||||
2009 |
%(1) |
2008 |
%(1) |
2009 |
%(1) |
2008 |
%(1) |
|||||||||||||||||||||||||
Research and development |
$ |
2,009 |
24 |
% |
$ |
2,309 |
29 |
% |
$ |
4,177 |
26 |
% |
$ |
4,646 |
26 |
% | ||||||||||||||||
Sales and marketing |
1,942 |
24 |
% |
1,961 |
24 |
3,978 |
25 |
% |
3,846 |
21 |
||||||||||||||||||||||
General and administrative |
1,146 |
14 |
% |
1,603 |
20 |
2,597 |
16 |
% |
3,301 |
18 |
||||||||||||||||||||||
Restructuring charges |
56 |
1 |
% |
(5 |
) |
(0 |
) |
54 |
0 |
% |
(23 |
) |
0 |
|||||||||||||||||||
Total operating expenses |
$ |
5,153 |
63 |
% |
$ |
5,868 |
73 |
% |
$ |
10,806 |
67 |
% |
$ |
11,770 |
65 |
% |
(1) |
Expressed as a percent of total revenues for the period indicated. |
June 30, |
December 31, |
|||||||
2009 |
2008 |
|||||||
(unaudited) |
||||||||
Cash and cash equivalents |
$ |
44,198 |
$ |
52,884 |
||||
Short-term investments |
$ |
18,388 |
$ |
9,004 |
||||
Restricted cash, current portion |
$ |
20 |
$ |
20 |
||||
Restricted cash, net of current portion |
$ |
1,000 |
$ |
1,000 |
||||
Working capital |
$ |
52,717 |
$ |
51,070 |
||||
Working capital ratio |
4.08 |
3.37 |
• |
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. |
• |
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; | |
• |
the timing of receipt, fulfillment and recognition as revenue of significant orders; | |
• |
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; and | |
• |
costs associated with litigation, regulatory compliance and other corporate events such as operational reorganizations. |
• |
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 NASDAQ Global Market; | |
• |
general economic conditions; or | |
• |
other events or factors that are beyond our control. |
1) |
Dr. Pehong Chen, James D. Dixon, Robert Lee and Francois Stieger were elected members of the Board of Directors to serve until the 2010 Annual Meeting of Stockholders and until their successors are elected and qualified. The results of the voting were as follow: |
For |
Withheld | ||||
Pehong
Chen |
3,458,728 |
57,089 | |||
James
D. Dixon |
3,451,448 |
64,369 | |||
Robert
Lee |
3,457,605 |
58,212 | |||
Francois
Stieger |
3,452,957 |
62,860 |
2) |
The appointment of Odenberg, Ullakko, Muranishi & Co. LLP as independent auditors for the Company's fiscal year ending December 31, 2009 was ratified and approved. The vote was 3,476,227 votes for to 35,863 votes against with 3,726 votes abstaining. |
3) |
The BroadVision, Inc. the Amended and Restated BroadVision, Inc. 2006 Equity Incentive Plan was approved to, among other things, (i) provide the Board with additional flexibility to approve and effect repricings, exchanges and similar transactions without seeking additional stockholder approval, (ii) increase the aggregate number of shares
authorized for issuance under the Plan by 174,807 shares and (iii) to include an "evergreen" provision in the Plan that provides for automatic annual increases in the number of shares authorized for issuance. There were 2,433,536 votes for to 80,980 votes against with 1,175 votes abstaining. |
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 | |
10.1(5)(a) |
Employee Stock Purchase Plan Offering (Subsequent Offering). | |
10.2(6) |
Termination Notice for Sublease dated December 21, 2006 between BroadVision, Inc. and Dexterra, Inc. | |
10.3(7) |
Settlement Agreement for Sublease Termination dated for May 28, 2009, by and between Dexterra Inc. and BroadVision, Inc. | |
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 Form 10-K for the fiscal year ended December 31, 2006 filed on March 27, 2007. | |
(3) |
Incorporated by reference to the Company's Current Report on Form 8-K filed on October 16, 2008. | |
(4) |
Incorporated by reference to the Company’s Form 10-Q for the fiscal quarter ended September 30, 2008 filed on November 6, 2008. | |
(5) |
Incorporated by reference to the Company's Registration Statement on Form S-8 filed on May 8, 2009. | |
(6) |
Incorporated by reference to the Company's Current Report on Form 8-K filed on May 28, 2009. | |
(7) |
Incorporated by reference to the Company's Current Report on Form 8-K filed on June 15, 2009. | |
(a) |
Represents a management contract or Compensatory plan or arrangement. |
BROADVISION, INC. |
||||||
Date: August 7, 2009 |
By: |
/s/ Pehong Chen |
||||
Pehong Chen |
||||||
Chairman of the Board, President and Chief Executive Officer |
BROADVISION, INC. |
||||||
Date: August 7, 2009 |
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 | |
10.1(5)(a) |
Employee Stock Purchase Plan Offering (Subsequent Offering). | |
10.2(6) |
Termination Notice for Sublease dated December 21, 2006 between BroadVision, Inc. and Dexterra, Inc. | |
10.3(7) |
Settlement Agreement for Sublease Termination dated for May 28, 2009, by and between Dexterra Inc. and BroadVision, Inc. | |
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 Form 10-K for the fiscal year ended December 31, 2006 filed on March 27, 2007. | |
(3) |
Incorporated by reference to the Company's Current Report on Form 8-K filed on October 16, 2008. | |
(4) |
Incorporated by reference to the Company’s Form 10-Q for the fiscal quarter ended September 30, 2008 filed on November 6, 2008. | |
(5) |
Incorporated by reference to the Company's Registration Statement on Form S-8 filed on May 8, 2009. | |
(6) |
Incorporated by reference to the Company's Current Report on Form 8-K filed on May 28, 2009. | |
(7) |
Incorporated by reference to the Company's Current Report on Form 8-K filed on June 15, 2009. | |
(a) |
Represents a management contract or Compensatory plan or arrangement. |