BroadVision, Inc. (OTCBB:BVSN), a global provider of strategic e-business solutions, today reported financial results for its second quarter ended June 30, 2008. Revenues for the second quarter were $8.0 million, compared with revenues of $10.0 million for the first quarter ended March 31, 2008 and $13.3 million for the comparable quarter of 2007.
License revenue for the second quarter of 2008 was $2.4 million versus $4.0 million in the prior quarter and $5.5 million in the comparable quarter of 2007. The majority of the second quarter license revenue was generated from the Company’s core Business Agility Suite™, Commerce Agility Suite™ and eMerchandising™ solutions, from customers including PETCO, Oreck Corporation, BioRad Laboratories, Malayan Banking Berhad, Singapore and several other brand name global customers.
In the second quarter of 2008, BroadVision posted net income on a U.S. Generally Accepted Accounting Principles (“GAAP”) basis of $1.4 million, or $0.01 per basic and diluted share, as compared with GAAP net income of $5.4 million, or $0.05 per basic and diluted share, for the first quarter of 2008 and GAAP net income of $8.4 million, or $0.08 per basic and diluted share, for the second quarter of 2007.
Non-GAAP measure net income for the second quarter of 2008 was $1.1 million, or $0.01 per basic and diluted share, compared with non-GAAP measure net income of $3.1 million, or $0.03 per basic and diluted share, in the first quarter of 2008 and non-GAAP measure net income of $5.9 million, or $0.06 per basic and $0.05 diluted share, in the second quarter of 2007. These non-GAAP measure net income figures exclude restructuring charges, stock compensation expense under SFAS 123(R), and revaluation of warrant liabilities. A reconciliation of these non-GAAP measure figures to GAAP net income figures is included in a table on the attached financial statements. The Company believes these non-GAAP measure net income figures provide useful information because they reflect the Company's financial performance excluding certain charges, credits, gains and losses that the Company believes are not indicative of its ongoing operations.
As of June 30, 2008, the Company had $55.6 million of cash and cash equivalents, and $3.5 million time deposit classified as short-term investment. The combined $59.1 million, previously classified all as cash, representing a $1.4 million, or 2%, increase over the March 31, 2008 balance of $57.7 million and a 9% increase from the balance as of the end of 2007 of $ 54.0 million. This increase is due primarily to positive cash flow generated from operations.
The Company will be participating at a number of key industry events around the world in the third quarter, including the Shop.org Annual Summit 2008, September 15-17, in Las Vegas to showcase eMerchandising and the Commerce Agility Suite; and the Asia Human Resource Expo, September 19-20, in Shanghai, China to officially introduce the CHRM™ solution to the broader Asia-Pacific HR community. The Company will also be giving a presentation at Convention e-Commerce Paris 2008, September 23-25. The presentation will include a testimonial from customer La Poste to highlight the BroadVision® Business Agility Suite 8.1 and eMerchandising.
“Leveraging new product footprints of the K2 e-business suites, eMerchandising, and CHRM, our mission this year is to transition our core business from an installed-base centric model to a more robust and balanced portfolio of incremental customers,” said Dr. Pehong Chen, President and CEO, BroadVision. “Given resource constraints and market conditions, this process is taking longer than anticipated, resulting in revenue declines during the first half of this year. Despite this temporary setback, we continued to operate a profitable business model, generating positive cash flows with a strong balance sheet. We firmly believe in our three-prong product strategy and the total value offered by our solutions, which has been solidified by positive market and customer feedback and the strengthening of our sales pipeline. We are optimistic about the opportunities going forward.”
Conference Call Information
BroadVision management will host a conference call today, Thursday July 31, 2008, at 2:00 p.m. PDT. The conference call may be accessed by dialing: 1-866-551-1530, with pin code 6769093#. Callers outside the North America should call 1-212-401-6700 to be connected. A web replay will also be available following the call on the Company’s website until it releases its third quarter 2008 financial results.
About BroadVision
Driving innovation since 1993, BroadVision is a global provider of strategic, e-business solutions. Our modular applications and agile toolsets, built on a robust framework for personalization and self-service, power mission-critical web initiatives that deliver unparalleled value to diverse customers worldwide. Hundreds of organizations, serving over 50 million registered users — including Baker Hughes, BioRad Laboratories, Club Méditerranée, Fiat, Hilti, Iberia, ING Bank, PETCO, Prime Polymer, Verifone, Xerox and Malayan Banking Berhad, Singapore — rely on BroadVision as their platform of choice for e-business.
For more information about BroadVision, Inc., call 650-331-1000, email ir1@broadvision.com or visit www.broadvision.com.
BroadVision, Business Agility Suite, Commerce Agility Suite, eMerchandising, and CHRM are trademarks or registered trademarks of BroadVision, Inc. in the United States and other countries. All other company names, product names, and marks are the property of their respective owners.
Information Concerning Forward-Looking Statements
Information in this release that involves expectations, beliefs, hopes, plans, intentions or strategies regarding the future are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, which forward-looking statements involve risk and uncertainties. All forward-looking statements included in this release, including, but not limited to, BroadVision's continued execution in accordance with its strategic roadmap and transitioning its business model, 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. Various factors and risks associated with BroadVision's business are discussed in its most recent annual report on Form 10-K and in BroadVision's quarterly reports on Form 10-Q as filed with the Securities and Exchange Commission.
| BROADVISION, INC. AND SUBSIDIARIES | ||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||
| (In thousands) | ||||||
June 30 | December 31 | |||||
2008 | 2007 | |||||
(Unaudited) | ||||||
| ASSETS | ||||||
| Current assets: | ||||||
| Cash, cash equivalents and short-term investments | $ | 59,092 | $ | 53,973 | ||
| Other current assets | 9,026 | 9,044 | ||||
| Total current assets | 68,118 | 63,017 | ||||
| Goodwill | 25,066 | 25,066 | ||||
| Other non-current assets | 2,137 | 2,229 | ||||
| Total assets | $ | 95,321 | $ | 90,312 | ||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||
| Current liabilities | $ | 20,221 | $ | 22,523 | ||
| Other non-current liabilities | 2,906 | 3,024 | ||||
| Total liabilities | 23,127 | 25,547 | ||||
| Total stockholders’ equity | 72,194 | 64,765 | ||||
| Total liabilities and stockholders’ equity | $ | 95,321 | $ | 90,312 | ||
| BROADVISION, INC. AND SUBSIDIARIES | ||||||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||
| (In thousands, except per share data) | ||||||||||||||||
| (unaudited) | ||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||
| June 30 | 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 | ||||||||||||
| Other income (expense), net | 1,438 | 3,688 | 5,214 | (3,023 | ) | |||||||||||
| 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 income per share | $ | 0.01 | $ | 0.08 | $ | 0.06 | $ | 0.06 | ||||||||
| Diluted 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 | 110,380 | 111,035 | 110,387 | 110,027 | ||||||||||||
BROADVISION, INC. AND SUBSIDIARIES | ||||||||||||||||||||
NON-GAAP MEASURE CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||||||
(in thousands, except per share amounts) | ||||||||||||||||||||
(unaudited) | ||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||
Jun. 30 | Mar. 31 | Jun. 30 | Jun. 30 | Jun. 30 | ||||||||||||||||
2008 | 2008 | 2007 | 2008 | 2007 | ||||||||||||||||
| Revenues: | ||||||||||||||||||||
| Software licenses | $ | 2,448 | $ | 3,977 | $ | 5,494 | $ | 6,425 | $ | 11,228 | ||||||||||
| Services | 5,582 | 6,053 | 7,774 | 11,635 | 14,785 | |||||||||||||||
| Total revenues | 8,030 | 10,030 | 13,268 | 18,060 | 26,013 | |||||||||||||||
| Cost of revenues: | ||||||||||||||||||||
| Cost of software licenses | 6 | 7 | 22 | 13 | 34 | |||||||||||||||
| Cost of services | 2,119 | 2,216 | 2,159 | 4,335 | 4,498 | |||||||||||||||
| Total cost of revenues | 2,125 | 2,223 | 2,181 | 4,348 | 4,532 | |||||||||||||||
| Gross profit | 5,905 | 7,807 | 11,087 | 13,712 | 21,481 | |||||||||||||||
| Operating expenses: | ||||||||||||||||||||
| Research and development | 2,228 | 2,298 | 2,373 | 4,526 | 4,906 | |||||||||||||||
| Sales and marketing | 1,878 | 1,831 | 1,713 | 3,709 | 3,714 | |||||||||||||||
| General and administrative | 1,514 | 1,643 | 1,420 | 3,157 | 2,431 | |||||||||||||||
| Total operating expenses | 5,620 | 5,772 | 5,506 | 11,392 | 11,051 | |||||||||||||||
| Non-GAAP measure operating income | 285 | 2,035 | 5,581 | 2,320 | 10,430 | |||||||||||||||
| Other income, net | 813 | 1,322 | 584 | 2,135 | 1,215 | |||||||||||||||
| Non-GAAP measure income before provision for income taxes | 1,098 | 3,357 | 6,165 | 4,455 | 11,645 | |||||||||||||||
| Provision for income taxes | (4 | ) | (283 | ) | (230 | ) | (287 | ) | (286 | ) | ||||||||||
| Non-GAAP measure net income | $ | 1,094 | $ | 3,074 | $ | 5,935 | $ | 4,168 | $ | 11,359 | ||||||||||
| Basic non-GAAP measure net income per share | $ | 0.01 | $ | 0.03 | $ | 0.06 | $ | 0.04 | $ | 0.11 | ||||||||||
| Diluted non-GAAP measure net income per share | $ | 0.01 | $ | 0.03 | $ | 0.05 | $ | 0.04 | $ | 0.10 | ||||||||||
| Shares used in computing basic non-GAAP measure net income per share | 109,300 | 108,961 | 107,424 | 109,131 | 107,047 | |||||||||||||||
| Shares used in computing diluted non-GAAP measure net income per share | 110,308 | 110,327 | 111,035 | 110,387 | 110,027 | |||||||||||||||
BROADVISION, INC. AND SUBSIDIARIES | ||||||||||||||||||||
RECONCILIATION OF U.S. GAAP TO NON-GAAP MEASURE NET INCOME | ||||||||||||||||||||
(unaudited; in thousands) | ||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||
Jun. 30 | Mar. 31 | Jun. 30 | Jun. 30 | Jun. 30 | ||||||||||||||||
2008 | 2008 | 2007 | 2008 | 2007 | ||||||||||||||||
Net income, U.S. GAAP | $ | 1,435 | $ | 5,361 | $ | 8,440 | $ | 6,796 | $ | 5,944 | ||||||||||
| Non-GAAP measure adjustments: | ||||||||||||||||||||
| Restructuring (credit) charge | (5 | ) | (18 | ) | 306 | (23 | ) | 584 | ||||||||||||
| SFAS 123R Expense [2] | 289 | 185 | 293 | 474 | 593 | |||||||||||||||
| Revaluation of warrants liabilities [1] | (625 | ) | (2,454 | ) | (3,104 | ) | (3,079 | ) | 4,238 | |||||||||||
| Non-GAAP measure net income | $ | 1,094 | $ | 3,074 | $ | 5,935 | $ | 4,168 | $ | 11,359 | ||||||||||
| [1] Included as a component of other income, net, for each period presented. | ||||||||||||||||||||
| [2] Included as a component of cost of service and operating expense for each period presented. | ||||||||||||||||||||
Contacts:
Andrew Hub, 650-331-1000
Investor Relations
ir1@broadvision.com
