BroadVision, Inc. (OTCBB:BVSN), a global provider of e-business
solutions, today reported financial results for its fourth quarter
ended December 31, 2007. Revenues for the fourth quarter were $11.2
million, compared with revenues of $12.8 million for the third quarter
ended September 30, 2007 and $13.0 million for the comparable quarter
of 2006.
License revenue for the fourth quarter was $4.6 million versus
$5.3 million in the prior quarter and $4.0 million in the comparable
quarter of 2006. The majority of the fourth quarter license revenue
was generated from the company´s core Commerce and Process solutions
from customers including Audible.com, Bristol-Myers Squibb, Hilti,
OfficeMax, Vodafone and several other brand name global customers.
In the fourth quarter of 2007, BroadVision posted net income on a
U.S. Generally Accepted Accounting Principles ("GAAP") basis of $5.9
million, or $0.05 per basic and diluted share, as compared with GAAP
net income of $5.5 million, or $0.05 per share, for the third quarter
of 2007 and GAAP net income of $7.0 million, or $0.09 per basic and
diluted share, for the fourth quarter of 2006.
Pro forma net income for the fourth quarter of 2007 was $4.4
million, or $0.04 per basic and diluted share, compared with a pro
forma net income of $6.7 million, or $0.06 per basic and diluted
share, in the third quarter of 2007 and a pro forma net income of $6.1
million, or $0.08 per basic and diluted share, in the fourth quarter
of 2006. These pro forma results exclude restructuring charges, stock
compensation expense under SFAS 123 (R), and revaluation of warrant
liabilities. A reconciliation of these pro-forma figures to GAAP net
income figures is included in a table on the attached financial
statements. The Company believes its pro forma results 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.
Full-year 2007 revenues totaled $50.0 million, with GAAP net
income of $17.3 million, or $0.16 per diluted share, compared to 2006
revenues of $52.0 million, with a GAAP net income of $15.0 million, or
$0.23 per diluted share. Full-year 2007 license revenue was $21.1
million, compared with 2006 license revenue of $15.2 million.
Full-year 2006 net income of $15.0 million includes a $3.4 million
pre-tax restructuring credit and a $1.3 million pre-tax charge on
warrants re-valuation. Full-year 2007 net income of $17.3 million
includes a $3.1 million pre-tax charge related to the revaluation of
warrants liabilities.
As of December 31, 2007, the company had a cash balance of $54.0
million, representing a $3.3 million, or 7%, increase over the
September 30, 2007 balance of $50.7 million and a 46% increase from
the year´s starting cash position of $37.0 million, due primarily to
positive cash flow generated from operations of about $14.6 million
and about $2.0 million from issuance of common stock.
The Company formally released BroadVision 8.1(TM) on time at the
beginning of the fourth quarter, a major milestone in completing the
Company´s new K2 (Kona * Kukini)(TM) e-business solution sets.
Furthermore, BroadVision OnDemand, Ltd. launched the Chinese Edition
of CHRM*060(TM) in November 2007 and its English Edition in January
2008. As the centerpiece of the CHRM(TM) family of workforce
relationship management solutions, CHRM*060(TM) has generated more
than 30 customers, totaling nearly 20,000 subscribers, in less than
two months since its launch.
"Having completed several new product releases last year, we now
have a very focused goal for 2008," said Dr. Pehong Chen, President
and CEO, BroadVision, "To accelerate our go-to market efforts in sales
and marketing, and to deliver significant ROI to global customers via
our comprehensive BroadVision 8.1 B2B/B2C/B2E e-business solution
sets."
Conference Call Information
BroadVision management will host a conference call today,
Wednesday February 6, 2008, at 2:00 p.m. PST. The conference call may
be accessed by dialing: 1-866-463-5401 pin code 694001#. Callers
outside the North America should call 1-212-457-9857 to be connected.
A web replay will also be available following the call on the
company´s website until it releases its first quarter 2008 financial
results.
About BroadVision
Driving innovation since 1993, BroadVision is a global provider of
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, Citibank, Epson America, Fiat, Hilti, Iberia, ING Bank,
Prime Polymer, Renault, Sony, Standard Bank of Argentina, Vodafone 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, K2, Kona, Kukini, and BroadVision 8.1 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 the timing and success of product launches,
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.
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BROADVISION, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
December 31 December 31
2007 2006
----------- -----------
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents $53,973 $37,003
Other current assets 9,044 12,211
------- -------
Total current assets 63,017 49,214
Goodwill 25,066 25,066
Other non-current assets 2,229 2,662
------- -------
Total assets $90,312 $76,942
======= =======
LIABILITIES AND STOCKHOLDERS´ EQUITY
Current liabilities $22,523 $30,259
Other non-current liabilities 3,024 3,429
------- -------
Total liabilities 25,547 33,688
Total stockholders´ equity 64,765 43,254
------- -------
Total liabilities and stockholders´ equity $90,312 $76,942
======= =======
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BROADVISION, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
Three Months Ended Years Ended
December 31, December 31,
-------------------- --------------------
2007 2006 2007 2006
----------- -------- ----------- --------
(unaudited) (unaudited)
Revenues:
Software licenses $ 4,620 $ 3,956 $ 21,127 $15,215
Services 6,629 9,090 28,891 36,769
----------- -------- ----------- --------
Total revenues 11,249 13,046 50,018 51,984
Cost of revenues:
Cost of software licenses 8 32 45 258
Cost of services 2,251 2,173 8,961 12,456
----------- -------- ----------- --------
Total cost of revenues 2,259 2,205 9,006 12,714
Gross profit 8,990 10,841 41,012 39,270
Operating expenses:
Research and development 2,247 2,708 9,668 10,510
Sales and marketing 2,383 2,529 8,131 8,653
General and administrative 2,042 613 6,293 8,019
Restructuring charge
(credit) (195) (1,966) 649 (3,369)
----------- -------- ----------- --------
Total operating
expenses 6,477 3,884 24,741 23,813
----------- -------- ----------- --------
Operating income 2,513 6,957 16,271 15,457
Other income (expense), net 3,419 248 934 193
----------- -------- ----------- --------
Income before provision for
income taxes 5,932 7,205 17,205 15,650
Benefit from (Provision for)
income taxes (60) (185) 73 (634)
----------- -------- ----------- --------
Net income $ 5,872 $ 7,020 $ 17,278 $15,016
=========== ======== =========== ========
Basic income per share $ 0.05 $ 0.09 $ 0.16 $ 0.23
Diluted income per share $ 0.05 $ 0.09 $ 0.16 $ 0.23
Shares used in computing:
Weighted average shares-
basic 108,648 80,878 107,755 65,734
Weighted average shares-
diluted 111,896 80,878 110,746 65,734
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BROADVISION, INC. AND SUBSIDIARIES
PRO FORMA CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(unaudited)
Three Months Ended Years Ended
Dec. 31 Sep. 30 Dec. 31 Dec. 31 Dec. 31
2007 2007 2006 2007 2006
------- ------- ------- ------- -------
Revenues:
Software licenses $4,620 $5,280 $3,956 $21,127 $15,215
Services 6,629 7,476 9,090 28,891 $36,769
------- ------- ------- ------- -------
Total revenues 11,249 12,756 13,046 50,018 51,984
Cost of revenues:
Cost of software licenses 8 3 31 46 258
Cost of services 2,157 2,038 2,014 8,693 12,296
------- ------- ------- ------- -------
Total cost of revenues 2,165 2,041 2,045 8,739 12,554
------- ------- ------- ------- -------
Gross profit 9,084 10,715 11,001 41,279 39,430
Operating expenses:
Research and development 2,033 2,163 2,326 9,101 10,128
Sales and marketing 2,268 1,831 2,298 7,813 8,422
General and administrative 1,927 1,640 1,003 5,998 7,841
------- ------- ------- ------- -------
Total operating expenses 6,228 5,634 5,627 22,912 26,391
------- ------- ------- ------- -------
Pro forma operating income 2,856 5,081 5,374 18,367 13,039
Other income, net 1,648 1,218 878 4,081 1,526
------- ------- ------- ------- -------
Pro forma income before
provision for income taxes 4,504 6,299 6,252 22,448 14,565
Benefit from (Provision for)
income taxes (60) 419 (186) 73 (634)
------- ------- ------- ------- -------
Pro forma net income $4,444 $6,718 $6,066 $22,521 $13,931
======= ======= ======= ======= =======
Basic pro forma net income
per share $0.04 $0.06 $0.08 $0.21 $0.21
Diluted pro forma net income
per share $0.04 $0.06 $0.08 $0.20 $0.21
Shares used in computing
basic pro forma net income
per share 108,648 108,253 80,878 107,755 65,734
Shares used in computing
diluted pro forma net
income per share 111,896 111,577 80,878 110,746 65,734
BROADVISION, INC. AND SUBSIDIARIES
RECONCILIATION OF U.S. GAAP TO PRO FORMA NET INCOME
(unaudited; in thousands)
Three Months Ended Years Ended
Dec. 31 Sep. 30 Dec. 31 Dec. 31 Dec. 31
2007 2007 2006 2007 2006
------- ------- ------- ------- -------
Net income, U.S. GAAP $5,872 $5,462 $7,021 $17,278 $15,016
Pro forma adjustments:
Restructuring (credits)
charges (195) 260 (1,967) 649 (3,371)
SFAS 123R Expense (2) 538 316 382 1,447 951
Revaluation of warrants
liabilities (1) (1,771) 680 630 3,147 1,335
------- ------- ------- ------- -------
Pro forma net income $4,444 $6,718 $6,066 $22,521 $13,931
======= ======= ======= ======= =======
(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.
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