E-customer relationship management software vendor BroadVision (Nasdaq: BVSN) announced a disappointing fourth quarter after the market's close yesterday, citing increased expenses and growth-related inefficiencies. On a positive note, in last night's conference call, CFO Randall Bolten reiterated the company's 2001 revenue forecast. Still, with an economic slowdown tightening information technology (IT) budgets, it appears things won't get better for BroadVision anytime soon.
BroadVision reported fourth-quarter (ended Dec. 31) pro forma net income of $4.5 million, or $0.02 per share, compared to $8.1 million, or $0.03 per share, in the year-ago period. That fell three cents short of the Street's consensus. The company reported revenue of $136.9 million, compared to $43.7 million in the year-ago period and slightly ahead of the Street's estimate of $135.0 million.
The company's expenses increased significantly in a number of areas. Sales and marketing expenditures represented roughly 37% of sales in the third quarter of last year, but jumped to 46% in Q4. BroadVision has also been engaged in a hiring spree. According to the company, that contributed to nearly $4 million in unexpected salary costs in the quarter. Not only did the company hire 1,600 people in 2000, but roughly 1,000 of those people came in the middle of the year with a great deal of related expenses hitting the books in Q4.
Due to a high number of large deals closed in the quarter by top members of its sales force, BroadVision was also forced pay out a number of large commissions. BroadVision indicated that unanticipated commissions added roughly $3 million in expenses. There was also a number of growth-related inefficiencies that added an additional $2 million to $3 million in extra expenses.
Adding insult to injury, BroadVision's competitor Art Technology Group (Nasdaq: ARTG) announced better-than-expected results after the market's close yesterday. The company had Q4 net income of $7.2 million, or $0.10 per share, compared to a loss of $9.5 million, or $0.15 per share, in the year-ago period. That beat the Street by two cents. Sales grew to $62.8 million versus $13.3 million last year. The company also boosted its profit forecast for Q1 to $0.10 or $0.11 per share. The Street expected $0.09 per share.
BroadVision maintained its full-year revenue guidance last night. The company expects Q1 revenue between $137 million and $140 million. The Street was expecting revenue around $137 million. In 2001, it expects to post a top line between $600 million and $630 million, which represents year-over-year growth of 45% to 52%.
BroadVision reported fourth-quarter (ended Dec. 31) pro forma net income of $4.5 million, or $0.02 per share, compared to $8.1 million, or $0.03 per share, in the year-ago period. That fell three cents short of the Street's consensus. The company reported revenue of $136.9 million, compared to $43.7 million in the year-ago period and slightly ahead of the Street's estimate of $135.0 million.
The company's expenses increased significantly in a number of areas. Sales and marketing expenditures represented roughly 37% of sales in the third quarter of last year, but jumped to 46% in Q4. BroadVision has also been engaged in a hiring spree. According to the company, that contributed to nearly $4 million in unexpected salary costs in the quarter. Not only did the company hire 1,600 people in 2000, but roughly 1,000 of those people came in the middle of the year with a great deal of related expenses hitting the books in Q4.
Due to a high number of large deals closed in the quarter by top members of its sales force, BroadVision was also forced pay out a number of large commissions. BroadVision indicated that unanticipated commissions added roughly $3 million in expenses. There was also a number of growth-related inefficiencies that added an additional $2 million to $3 million in extra expenses.
Adding insult to injury, BroadVision's competitor Art Technology Group (Nasdaq: ARTG) announced better-than-expected results after the market's close yesterday. The company had Q4 net income of $7.2 million, or $0.10 per share, compared to a loss of $9.5 million, or $0.15 per share, in the year-ago period. That beat the Street by two cents. Sales grew to $62.8 million versus $13.3 million last year. The company also boosted its profit forecast for Q1 to $0.10 or $0.11 per share. The Street expected $0.09 per share.
BroadVision maintained its full-year revenue guidance last night. The company expects Q1 revenue between $137 million and $140 million. The Street was expecting revenue around $137 million. In 2001, it expects to post a top line between $600 million and $630 million, which represents year-over-year growth of 45% to 52%.
