BroadVision, Inc. Reports Fourth Quarter and Year End 2001 Results; Three Cent Pro Forma Loss per Share Beats Consensus, Excluding Asset Impairment Charge
REDWOOD CITY, Calif., Jan 24, 2002 (BUSINESS WIRE) -- BroadVision, Inc.
(Nasdaq: BVSN), a leading provider of enterprise self-service applications, today
reported financial results for the fourth quarter and year ended December 31,
2001.
Revenues for the fourth quarter ended December 31, 2001 were $48.0 million,
compared with revenues of $51.2 million for the third fiscal quarter ended
September 30, 2001. License revenue for the fourth quarter of 2001 totaled $20.8
million, a 6% sequential increase compared with the previous quarter. Pro forma
net loss for the quarter ended December 31, 2001 was $8.2 million, or $0.03 per
share, versus pro forma net loss of $15.9 million, or $0.06 per share, in the
third quarter. Pro forma results for both periods exclude the amortization of
goodwill and intangibles, in-process technology charges, as well as
restructuring charges, which in the fourth quarter totaled $20.0 million. In
addition, pro forma results for the fourth quarter exclude an $8.8 million
non-operating asset impairment charge to reflect the reduced market value of
equity investments made by the company, predominantly in early stage companies.
"Given the sluggish economy, we were pleased to deliver a narrower loss than
expected in the fourth quarter. Our fourth quarter results improved on a number
of fronts, including modest sequential growth in license revenue and a dramatic
reduction in our breakeven point driven by an aggressive expense management
campaign," said Pehong Chen, BroadVision's president and CEO. "This performance
in a challenging environment demonstrates our commitment to prudent fiscal
policy, while maintaining focused investment to preserve our technology and
thought leadership position, solution strength, customer satisfaction, and
execution capability. While the near-term outlook remains difficult to predict,
we believe our strong new product cycle, large installed base, and improved
efficiency all combine to position us for growth as industry conditions
improve."
During the quarter, the company also furthered its reputation for providing its
customers with the latest technology to meet their e-business needs with the
release of BroadVision One-To-One(R) Content(TM) 6.0, BroadVision's
next-generation content management solution. BroadVision One-To-One Content 6.0
is revolutionary in that it is a content management solution that supports every
part of the content management lifecycle - including design, creation,
management, deployment, distribution, analysis and expiration of content. The
product's advanced XML-based architecture allows customers to use the product
with BroadVision's suite of enterprise self-service applications or to easily
integrate with other applications powered by leading J2EE-based application
servers.
Net loss for the fourth quarter on a generally accepted accounting principles
basis was $55.6 million, or $0.20 per share, compared with a net loss of $64.0
million, or $0.24 per share, for the quarter ended December 31, 2000. For the
twelve-month period ended December 31, 2001, the company recorded a net loss of
$833.0 million, or $3.01 per share, versus a net loss of $161.6 million, or
$0.62 per share, for the twelve-month period ended December 31, 2000.
New Customers and Live Sites
New BroadVision customers during the fourth quarter included Helzberg Diamonds,
Indian Rail, Methodist Healthcare System, Ministry of National Defense (Taiwan),
OMV and State of Minnesota. Major repeat customers for the quarter included
BASF, Becton Dickinson and Company, Boeing, British Telecom plc, Canadian
Imperial Bank of Commerce (CIBC), Compaq, FleetBoston Financial, Highmark, KPN,
Lafarge, Sears Roebuck and Co., State of California, Tellabs, US Air Force,
Vodafone, Xilinx, and Xerox. In addition, a number of BroadVision-powered sites
went live during the quarter including CIBC, Credit Suisse Private Banking,
Finnair, France Telecom, Lafarge, MultiCare Health System, NCR, Opodo and RS
Components.
Conference Call
Broadvision will hold a conference call to discuss this press release and
related matters at 1:30 pm Pacific Time, January 24, 2002. The call, open to the
public and hosted by Dr. Pehong Chen, President and CEO of BroadVision, can be
accessed by going to the investor relations section of the company's website at
www.broadvision.com. A replay of the call will also be available for 7 days on
the company's website.
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 and Section 21E
of the Securities Exchange Act of 1934, which forward-looking statements involve
risk and uncertainties. All forward-looking statements included in this release
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. Factors which could cause or contribute to such
differences include, but are not limited to: lack of market acceptance of
BroadVision's products or services; BroadVision's inability to continue to
develop competitive new products and services on a timely basis; introduction of
new products or services by competitors; general economic conditions and
BroadVision's inability to attract and retain qualified employees. These and
other factors and risks associated with BroadVision's business are discussed in
its most recent annual report on Form 10-K as filed with the Securities and
Exchange Commission and in BroadVision's quarterly reports on Form 10-Q filed
subsequent to the filing of the Form 10-K.
About BroadVision
BroadVision's (Nasdaq: BVSN) (Neuer Markt:BDN) enterprise self-service
applications create immediate business value by transforming the way
organizations do business -- moving relationships to a personalized,
self-service model that enhances growth, reduces costs and improves
productivity. Leading global companies use BroadVision to power their enterprise
self-service initiatives -- using the web and wireless devices to unify and
extend an enterprise's applications, information and business processes to serve
its employees, partners and customers in a personalized and collaborative way.
For more information about BroadVision, Inc., call 650/261-5100, email
info@broadvision.com or visit www.broadvision.com.
BroadVision, BroadVision One-To-One, BroadVision One-To-One Enterprise,
BroadVision Retail Commerce, BroadVision Business Commerce, BroadVision
MarketMaker, and BroadVision InfoExchange Portal are trademarks or registered
trademarks of BroadVision, Inc. in the United States and other countries. Other
names herein may be the property of their respective owners.
BROADVISION, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
December 31, December 31,
2001 2000
---------- ----------
ASSETS
Current assets:
Cash and cash equivalents $ 75,758 $ 153,137
Short-term investments 95,654 69,397
Accounts receivable, less reserves
of $8,194 and $4,015 for 2001
and 2000, respectively
39,768 104,811
Prepaids and other 10,094 17,417
---------- ----------
Total current assets 221,274 344,762
Property and equipment, net 67,619 76,685
Deferred tax asset 5,579 5,579
Long-term investments 22,135 78,769
Equity investments 5,583 23,786
Goodwill and other intangibles 60,867 607,501
Other assets 9,760 5,942
---------- ----------
Total assets $ 392,817 $1,143,024
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 11,276 $ 15,711
Accrued expenses 66,398 53,676
Unearned revenue 19,705 16,330
Deferred maintenance 30,337 42,237
Current portion of long-term debt 977 977
---------- ----------
Total current liabilities 128,693 128,931
Long-term debt, net of current portion 2,922 3,897
Other noncurrent liabilities 54,780 898
---------- ----------
Total liabilities 186,395 133,726
Stockholders' equity:
Common stock 28 27
Additional paid-in capital 1,207,046 1,176,042
Accumulated other comprehensive
loss, net of tax (5,245) (4,348)
Accumulated deficit (995,407) (162,423)
---------- ----------
Total stockholders' equity 206,422 1,009,298
---------- ----------
Total liabilities and
stockholders' equity $ 392,817 $1,143,024
========== ==========
BROADVISION, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per-share amounts)
Three Months Ended Years Ended
December 31, December 31,
2001 2000 2001 2000
(Unaudited)(Unaudited)
Revenues:
Software licenses $ 20,813 $ 80,926 $ 104,655 $ 250,838
Services 27,166 55,951 143,118 163,078
--------- --------- --------- ---------
Total revenues 47,979 136,877 247,773 413,916
Cost of revenues:
Cost of software licenses 3,287 2,805 9,895 7,827
Cost of services 11,705 37,838 93,714 117,808
--------- --------- --------- ---------
Total cost of revenues 14,992 40,643 103,609 125,635
--------- --------- --------- ---------
Gross profit 32,987 96,234 144,164 288,281
Operating expenses:
Research and development 14,860 21,168 78,677 51,621
Sales and marketing 19,657 64,846 139,799 167,415
General and administrative 6,604 9,600 42,311 28,195
Goodwill and intangible
amortization 12,146 66,089 211,216 187,748
Charge for acquired
in-process Technology 6,418 - 6,418 10,100
Restructuring charge 19,964 - 153,284 -
Impairment of intangibles - - 336,379 -
--------- --------- --------- ---------
Total operating
expenses 79,649 161,703 968,084 445,079
Operating loss (46,662) (65,469) (823,920) (156,798)
Other income (expense), net (8,346) 2,710 (6,928) 18,217
--------- --------- --------- ---------
Loss before provision for
income taxes (55,008) (62,759) (830,848) (138,581)
Provision for income taxes 568 1,279 2,136 23,048
--------- --------- --------- ---------
Net loss $ (55,576) $ (64,038) $(832,984) $(161,629)
Basic loss per share $ (0.20) $ (0.24) $ (3.01) $ (0.62)
Diluted loss per share $ (0.20) $ (0.24) $ (3.01) $ (0.62)
Shares used in computing:
Basic (loss) earnings
per share 284,016 268,315 276,733 259,780
Diluted (loss) earnings
per share 284,016 268,315 276,733 259,780
Pro forma net (loss) income,
excluding impairments of
equity investments(a) $ (8,214) $ 3,623 $(110,537) $ 37,791
Basic (loss) earnings
per share $ (0.03) $ 0.01 $ (0.40) $ 0.15
Diluted (loss) earnings
per share $ (0.03) $ 0.01 $ (0.40) $ 0.13
(a) Pro forma net (loss) income/EPS, excludes impairment of equity
investments, impairment and amortization of goodwill and acquired
technology, the charge for acquired in-process technology, and
restructuring charges. Equity investment impairments were $8,834 and
$1,572 for the three months ended December 31, 2001 and 2000,
respectively. Equity investment impairments were $15,150 and $1,572
for the years ended December 31, 2001 and 2000, respectively. Goodwill
amortization was $10,700 and $63,680 for the three months ended
December 31, 2001 and 2000, respectively. Acquired technology
amortization was $1,446 and $2,409 for the three months ended December
31, 2001 and 2000, respectively. Goodwill amortization was $202,542
and $180,922 for the year ended December 31, 2001 and 2000,
respectively. Acquired technology amortization was $8,674 and $6,826
for the year ended December 31, 2001 and 2000, respectively. The
charge for acquired in-process technology was $6,418 for the three
months and year ended December 31, 2001 and $0 and $10,100 for the
three months and year ended December 31, 2000, respectively.
Restructuring charges were $19,964 and $153,284 for the three months
and year ended December 31, 2001 and $0 for the three months and year
ended December 31, 2000. Impairment charges for goodwill and other
intangibles were $336,379 for the year ended December 31, 2001. Shares
used for the pro forma diluted earnings per share calculations are
296,834 and 295,581 for the three months and year ended December 31,
2000, respectively.
CONTACT: BroadVision Public Relations
Keith Crosley, 650/542-5824
keith.crosley@broadvision.com
or
BroadVision Investor Relations
Bob Okunski, 650/542-4659
bob.okunski@broadvision.com
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KEYWORD: CALIFORNIA
INDUSTRY KEYWORD: SOFTWARE
INTERNET
NETWORKING
EARNINGS
SOURCE:
BroadVision