BroadVision, Inc. (OTCBB: BVSN), a global provider of strategic e-business solutions, today reported financial results for its third quarter ended September 30, 2008. Revenues for the third quarter were $8.2 million, compared with revenues of $8.0 million for the second quarter ended June 30, 2008 and $12.8 million for the comparable quarter of 2007.
License revenue for the third quarter of 2008 was $2.1 million, compared with $2.4 million for the prior quarter and $5.3 million for the comparable quarter of 2007. The majority of the third quarter license revenue was generated from the BroadVision® core Business Agility Suite™, Commerce Agility Suite™, eMerchandising™ and QuickSilver solutions, from customers including the State of Minnesota, Epson, Raiffeisen Bank, Honeywell and other brand-name, global customers.
In the third quarter of 2008, BroadVision posted net income on a U.S. Generally Accepted Accounting Principles (“GAAP”) basis of $0.3 million, or break even per basic and diluted share, as compared with GAAP net income of $1.4 million, or $0.01 per basic and diluted share, for the second quarter of 2008 and GAAP net income of $5.5 million, or $0.05 per basic and diluted share, for the third quarter of 2007.
Non-GAAP measure net income for the third quarter of 2008 was $0.1 million, or break even per basic and diluted share, compared with non-GAAP measure net income of $1.1 million, or $0.01 per basic and diluted share, for the second quarter of 2008 and non-GAAP measure net income of $6.7 million, or $0.06 per basic and diluted share, for the third 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 September 30, 2008, the Company had $62.5 million of cash, cash equivalents, and short-term investments, representing a $3.4 million, or 6%, increase over the June 30, 2008 combined balance of $59.1 million, and a 16% increase over the balance as of the end of 2007 of $54.0 million. This increase is due primarily to positive cash flow generated from operations.
“We are making steady progress in the marketplace transitioning to our new generation of products,” said Dr. Pehong Chen, President and CEO, BroadVision. “Despite a challenging macroeconomic environment, we are optimistic about future opportunities due to our improved pipeline and visibility; strengthening of revenue backlogs; and a solid balance sheet with strong cash positions.”
Conference Call Information
BroadVision management will host a conference call today, Wednesday, October 22, 2008, at 2:00 p.m. PDT. The conference call may be accessed by dialing: 1-866-551-3680, with pincode 6835310#. Callers outside North America should call 1-212-401-6760 to be connected. A web replay will also be available following the call on the Company’s website until it releases its fourth 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, Fiat, Hilti, Iberia, ING Bank, PETCO, Prime Polymer, Verifone, and Xerox — 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, and eMerchandising 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 future business opportunities and progress transitioning to new products, 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) | |||||
| September 30 | December 31 | ||||
| 2008 | 2007 | ||||
| (Unaudited) | |||||
| ASSETS | |||||
| Current assets: | |||||
| Cash, cash equivalents and short-term investments | $ | 62,530 | $ | 53,973 | |
| Other current assets | 7,968 | 9,044 | |||
| Total current assets | 70,498 | 63,017 | |||
| Goodwill | 25,066 | 25,066 | |||
| Other non-current assets | 2,180 | 2,229 | |||
| Total assets | $ | 97,744 | $ | 90,312 | |
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||
| Current liabilities | $ | 21,590 | $ | 22,523 | |
| Other non-current liabilities | 3,100 | 3,024 | |||
| Total liabilities | 24,690 | 25,547 | |||
| Total stockholders’ equity | 73,054 | 64,765 | |||
| Total liabilities and stockholders’ equity | $ | 97,744 | $ | 90,312 | |
| BROADVISION, INC. AND SUBSIDIARIES | ||||||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||
| (In thousands, except per share data) | ||||||||||||||||
| (unaudited) | ||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||
| September 30 | September 30 | |||||||||||||||
| 2008 | 2007 | 2008 | 2007 | |||||||||||||
| Revenues: | ||||||||||||||||
| Software licenses | $ | 2,096 | $ | 5,280 | $ | 8,521 | $ | 16,508 | ||||||||
| Services | 6,095 | 7,476 | 17,729 | 22,261 | ||||||||||||
| Total revenues | 8,191 | 12,756 | 26,250 | 38,769 | ||||||||||||
| Cost of revenues: | ||||||||||||||||
| Cost of software licenses | 7 | 3 | 20 | 37 | ||||||||||||
| Cost of services | 2,218 | 2,102 | 6,626 | 6,710 | ||||||||||||
| Total cost of revenues | 2,225 | 2,105 | 6,646 | 6,747 | ||||||||||||
| Gross profit | 5,966 | 10,651 | 19,604 | 32,022 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Research and development | 2,217 | 2,283 | 6,863 | 7,422 | ||||||||||||
| Sales and marketing | 1,937 | 1,898 | 5,783 | 5,748 | ||||||||||||
| General and administrative | 1,659 | 1,705 | 4,960 | 4,250 | ||||||||||||
| Restructuring charge (credit) | 6 | 260 | (17 | ) | 845 | |||||||||||
| Total operating expenses | 5,819 | 6,146 | 17,589 | 18,265 | ||||||||||||
| Operating income | 147 | 4,505 | 2,015 | 13,757 | ||||||||||||
| Other income (expense), net | 183 | 538 | 5,399 | (2,484 | ) | |||||||||||
| Income before provision for income taxes | 330 | 5,043 | 7,414 | 11,273 | ||||||||||||
| (Provision) benefit for income taxes | (41 | ) | 419 | (328 | ) | 133 | ||||||||||
| Net income | $ | 289 | $ | 5,462 | $ | 7,086 | $ | 11,406 | ||||||||
Basic net income per share[1] | $ | - | $ | 0.05 | $ | 0.06 | $ | 0.11 | ||||||||
Diluted net income per share[1] | $ | - | $ | 0.05 | $ | 0.06 | $ | 0.10 | ||||||||
| Shares used in computing: | ||||||||||||||||
Weighted average shares-basic[1] | 110,771 | 108,253 | 109,684 | 107,454 | ||||||||||||
Weighted average shares-diluted[1] | 111,649 | 111,577 | 110,819 | 110,426 | ||||||||||||
[1] Share and per share data is presented assuming information before pending reverse stock split at 25:1, expected to be effective on or about October 24, 2008. | ||||||||||||||||
| BROADVISION, INC. AND SUBSIDIARIES | |||||||||||||||||||
| NON-GAAP MEASURE CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||||||
| (in thousands, except per share amounts) | |||||||||||||||||||
| (unaudited) | |||||||||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||||||
| Sep. 30 | Jun. 30 | Sep. 30 | Sep. 30 | Sep. 30 | |||||||||||||||
| 2008 | 2008 | 2007 | 2008 | 2007 | |||||||||||||||
| Revenues: | |||||||||||||||||||
| Software licenses | $ | 2,096 | $ | 2,448 | $ | 5,280 | $ | 8,521 | $ | 16,508 | |||||||||
| Services | 6,095 | 5,582 | 7,476 | 17,729 | 22,261 | ||||||||||||||
| Total revenues | 8,191 | 8,030 | 12,756 | 26,250 | 38,769 | ||||||||||||||
| Cost of revenues: | |||||||||||||||||||
| Cost of software licenses | 7 | 6 | 3 | 20 | 37 | ||||||||||||||
| Cost of services | 2,158 | 2,119 | 2,038 | 6,493 | 6,536 | ||||||||||||||
| Total cost of revenues | 2,165 | 2,125 | 2,041 | 6,513 | 6,573 | ||||||||||||||
| Gross profit | 6,026 | 5,905 | 10,715 | 19,737 | 32,196 | ||||||||||||||
| Operating expenses: | |||||||||||||||||||
| Research and development | 2,079 | 2,228 | 2,163 | 6,605 | 7,069 | ||||||||||||||
| Sales and marketing | 1,842 | 1,878 | 1,831 | 5,552 | 5,545 | ||||||||||||||
| General and administrative | 1,540 | 1,514 | 1,640 | 4,697 | 4,071 | ||||||||||||||
| Total operating expenses | 5,461 | 5,620 | 5,634 | 16,854 | 16,685 | ||||||||||||||
| Non-GAAP measure operating income | 565 | 285 | 5,081 | 2,883 | 15,511 | ||||||||||||||
| Other (expenses) income, net | (397 | ) | 813 | 1,218 | 1,738 | 2,434 | |||||||||||||
| Non-GAAP measure income before provision for income taxes | 168 | 1,098 | 6,299 | 4,621 | 17,945 | ||||||||||||||
| (Provision) benefit for income taxes | (41 | ) | (4 | ) | 419 | (328 | ) | 133 | |||||||||||
| Non-GAAP measure net income | $ | 127 | $ | 1,094 | $ | 6,718 | $ | 4,293 | $ | 18,078 | |||||||||
Basic non-GAAP measure net income per share[1] | $ | - | $ | 0.01 | $ | 0.06 | $ | 0.04 | $ | 0.17 | |||||||||
Diluted non-GAAP measure net income per share[1] | $ | - | $ | 0.01 | $ | 0.06 | $ | 0.04 | $ | 0.16 | |||||||||
Shares used in computing basic non-GAAP measure net income per share[1] | 110,771 | 109,300 | 108,253 | 109,684 | 107,454 | ||||||||||||||
Shares used in computing diluted non-GAAP measure net income per share[1] | 111,649 | 110,308 | 111,577 | 110,819 | 110,426 | ||||||||||||||
[1] Share and per share data is presented assuming information before pending reverse stock split at 25:1, expected to be effective on or about October 24, 2008. | |||||||||||||||||||
| BROADVISION, INC. AND SUBSIDIARIES | |||||||||||||||||||
| RECONCILIATION OF U.S. GAAP TO NON-GAAP MEASURE NET INCOME | |||||||||||||||||||
| (unaudited; in thousands) | |||||||||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||||||
| Sep. 30 | Jun. 30 | Sep. 30 | Sep. 30 | Sep. 30 | |||||||||||||||
| 2008 | 2008 | 2007 | 2008 | 2007 | |||||||||||||||
| Net income, U.S. GAAP | $ | 289 | $ | 1,435 | $ | 5,462 | $ | 7,086 | $ | 11,406 | |||||||||
| Non-GAAP measure adjustments: | |||||||||||||||||||
| Restructuring charge (credit) | 6 | (5 | ) | 260 | (17 | ) | 844 | ||||||||||||
| SFAS 123R Expense [1] | 412 | 289 | 316 | 885 | 909 | ||||||||||||||
| Revaluation of warrant liabilities [2] | (580 | ) | (625 | ) | 680 | (3,661 | ) | 4,919 | |||||||||||
| Non-GAAP measure net income | $ | 127 | $ | 1,094 | $ | 6,718 | $ | 4,293 | $ | 18,078 | |||||||||
| [1] Included as a component of cost of service and operating expense for each period presented. | |||||||||||||||||||
| [2] Included as a component of other income, net, for each period presented. | |||||||||||||||||||
Contacts:
Andrew Hub, 650-331-1000 (Investor Relations)
ir1@broadvision.com
