BroadVision, Inc. Reports Record-Setting Results for Second Quarter
REDWOOD CITY, Calif., Jul 20, 2000 (BUSINESS WIRE) -- BroadVision, Inc.
(Nasdaq: BVSN), a leading provider of personalized e-business applications,
today reported financial results for the quarter ended June 30, 2000.
Key financial results for the quarter and comparisons versus prior quarters are
as follows:
Quarter ended Quarter ended Quarter ended
Q2'00 Q2'99 Annual Q1'00 Sequential
Growth Growth
Revenues $95.3 million $23.5 million 306% $61.5 million 55%
Operating
Income $13.5 million $2.9 million 366% $9.2 million 47%
(Pro Forma-
Q2'00 only)
Net Income $10.6 million $3.3 million 221% $10.0 million 6%
(Pro Forma
-Q2'00 only)
Diluted EPS $0.04 $0.01 300% $0.04 0%
(Pro Forma-
Q2'00 only)
Key financial results for the first six months of 2000 as compared to the same
period of 1999 are as follows:
Annual
Q1-Q2'00 Q1-Q2'99 Growth
Revenues $156.8 million $41.9 million 274%
Operating Income $22.7 million $5.5 million 313%
(Pro Forma Fiscal 2000 only)
Net Income $20.7 million $6.3 million 229%
(Pro Forma-Fiscal 2000 only)
Diluted EPS $0.07 $0.02 250%
(Pro Forma-Fiscal 2000 only)
"This quarter, BroadVision achieved an impressive number of milestones,
particularly in terms of providing consistent and profitable revenue growth,
customer wins, partnership expansion, live site announcements, product offerings
and new business initiatives. These positive results reaffirm that BroadVision
is the solution enterprises trust to power their e-businesses," said Dr. Pehong
Chen, president and CEO, BroadVision, Inc. "BroadVision's commitment to
providing solutions that address customer needs, from strategic planning to
implementation and operational support, is illustrated by our ever-growing
roster of domestic and international clients and solid business operations."
New Customers
During the quarter, BroadVision signed 161 new licensed customers (136 end-user
customers and 25 partner organizations) -- a record number, bringing the total
number of BroadVision license installed base to 920 accounts across top vertical
markets worldwide.
A sampling of new BroadVision customers includes:
-- B2B Digital Marketplaces -- e-CityDesk, Ecomm Systems
Corporation, Inc., Italcementi, Printmountain, Volk
Enterprises, Samsung Electronics America, VCAPITAL;
-- Financial Services -- Adhesion Technologies (First Union
Bank), Barclays B2B.com, Bank of America, Bremische Volksbank
eG, Credit Lyonnais, Ilit Insurance Company Ltd., Israel
Discount Bank Ltd., eRIA.net, E*TRADE, FleetBoston Financial,
Gold Peak Industries, Banca San Paolo, SICOVAM, Thai Military
Bank, Zurich Financial Services;
-- Retail and Wholesale -- Dickson Cyber Concepts Limited,
Mobilia Corp., LiFung.com, Road Runner Sports, Wellsteads,
Yankee Candle;
-- Manufacturing/High-Technology -- Brunswick, Electrolux, Epson
Taiwan, Ericsson, FG Wilson, Fujitsu, Infineon Technologies,
LoyaltyWorks, Maytag, NEC PC;
-- Media/Entertainment -- Asimba.com, Enband.com,
IndoPortals.com, Miller Freeman, New Frequency Media, PlayNet,
Inc.;
-- Professional Services -- AARP (American Association of Retired
Persons), Deloitte & Touche (Triomphe Online),
PricewaterhouseCoopers (Unifi.com);
-- Travel and Tourism -- Amadeus, Japan Airlines, Allmyway.com;
and
-- Healthcare -- Baxter, HealthSouth Corporation, Janssen,
Pharmatrak Corporation.
Additionally, the company received significant repeat business in new revenue
during the quarter from a number of existing customers including Agilent
Technologies, Air Liquide, American Airlines, Circuit City, e-Greenbiz.com,
Fingerhut, Getronics ESI, Hartford Life, ING Bank, Le Shop, Nortel Networks,
Primedia, Ricoh, Samsung, Toshiba, Siemens, and Swiss Post.
The Latest Live Sites
This quarter, 82 BroadVision customers went "live," employing robust and
innovative e-business applications and experiencing quick time-to-market. A
sampling of the sites that went live during the quarter demonstrate the power of
BroadVision One-To-One(TM) applications:
-- Barclays Bank (Barclays B2B.com)
One of the fastest implementations using BroadVision One-To-One
Financial, Barclays, one of the leading European banking groups,
purchased and launched their site, Barclays B2B.com, during the
second quarter of 2000. The bank's overall vision was to create an
electronic trading network, selling value-added business and
financial services to meet a broad range of their corporate
customers' needs, and become the UK's premier hub for
business-to-business trading. Barclays B2B.com is a Web-based,
easy-to-use, secure business service that has focused initially on
procurement and settlement. BroadVision assisted Barclays B2B.com
in enabling it to create an integrated end-to-end service and to
provide secure electronic communications between companies and
trading communities as well as improvements to companies' internal
operations.
-- Rockwell Automation (www.PTplace.com)
Rockwell Automation, a business of Rockwell International
Corporation (a $7 billion electronic controls and communications
company with global leadership positions in industrial automation,
avionics and communications, and electronic commerce) uses
BroadVision One-To-One applications. The company launched
www.PTplace.com, a site that will target the $30 billion global
marketplace for electric motors, mechanical power transmission and
drive controls, allowing authorized Rockwell Automation customers
and distributors to access DODGE(R) and Reliance Electric(R) brand
power transmission and drive control products directly through the
Web. PTplace.com is a one-stop shop for authorized users
containing a variety of search functions, complete catalog data,
net pricing, inventory views, invoice information and shipping
information.
-- Boeing (myboeingfleet.com)
The Boeing Company, one of the world's major aerospace firms,
launched myboeingfleet.com, a site providing service manuals and
product repair information from manufacturers to the hundreds of
customers in Boeing's B2B network. Myboeingfleet.com uses
BroadVision One-To-One Knowledge to deliver one of the most
powerful features of the site -- its ability to personalize
content by user. The site's "My Profile" application allows users
to specify access to documents and information that relate to
their professional responsibilities. myboeingfleet.com provides
access to a wide range of data including service bulletins, major
maintenance manuals for selected airplanes, maintenance tips,
in-service activity reports, service letters, configuration change
data, engineering drawings, airplane flight manual status reports
and master minimum equipment lists. The site also offers access to
the Boeing Web-based spare parts ordering system, the PART Page.
Partnership Expansion
This quarter, 25 leading firms joined BroadVision's expanding network of systems
integration, consulting and reseller partners to expand its distribution
channels, broaden product integration, and develop and launch new technology and
services to further penetrate markets in leading industries worldwide.
Highlights this quarter include partnerships with:
-- Leapnet, Inc., to jointly develop and implement a structured
framework designed to provide enterprise application solutions
with front- and back-end office systems, e-business strategy,
content management and creative design, particularly in the
travel market;
-- Brience, Inc., to collaborate with BroadVision to integrate
technologies, and jointly identify and pursue key growth areas
in the broadband and wireless market;
-- Adexa, Inc., to integrate its iCollaboration strategy with
BroadVision applications to deliver supply chain optimization
and e-commerce solutions for trading exchanges and B2B
clients, and;
-- Organic, Inc., to integrate the BroadVision application suite
to its services of strategic consulting and research, site
design, software engineering and other Internet professional
services.
Training more than 2,000 external consultants and influencing more than 80
percent of second-quarter revenues, BroadVision worked closely with existing
partners Andersen Consulting, Context Integration, Cambridge Technology Partners
(CTP), Computer Science Corporation (CSC), Computer Technology Associates (CTA),
Corio, Deloitte & Touche, Ernst & Young, Groundswell, Hewlett-Packard, KPMG,
iXL, MediData, NexGenix, PricewaterhouseCoopers, Softek, Xpedior, and
USinternetworking.
Quarterly News Highlights
-- BroadVision announced a major agreement with Ericsson to offer
BroadVision's application software as part of Ericsson's
WISE(TM) mobile portal solutions. The software will enable
WISE(TM) portal customers to create advanced, profile-based
content and transaction services. Included in the terms of the
agreement, Ericsson will bundle BroadVision software with 3G
network equipment for robust m-commerce functionality. In
exchange, BroadVision will garner ongoing revenue from annual
subscriber fees based on network usage and phone equipment
utilization.
-- BroadVision introduced One-To-One Publishing to enhance its
suite of enterprise e-business solutions, combining
BroadVision One-To-One e-commerce applications with a powerful
content management solution to provide an innovative,
structured and convenient publishing solution for a wide range
of media including Web, wireless, and print.
-- BroadVision shipped its new Enterprise Relationship Management
(ERM) Application, which allows corporations to quickly build
and manage corporate information portals. Employees, customers
and partners using the ERM application can manage their
e-relationships by personalizing and collaborating the flow of
information among constituencies and across the organization.o
-- Amadeus Global Travel and BroadVision entered into a strategic
alliance to develop a global online travel booking application
that will power a new generation of personalized e-commerce
travel services.
-- Bank of America, the largest bank in the United States, and
BroadVision announced an agreement designed to accelerate the
creation and adoption of business-to-employee (B2E) portal
solutions for corporate intranets. Other alliance members
include Hewlett-Packard Company and Amadeus Global Travel
Distribution.
-- WPP, Deloitte Consulting and BroadVision launched Roundarch, a
new kind of e-business professional services firm which fuses
brand marketing, strategy and technology together in a totally
new way, helping organizations build business-to-business
(B2B) and business-to-consumer (B2C) e-business capabilities.
Based upon BroadVision's technical platform, Roundarch
provides a service that integrates leaders in e-marketing,
e-service, e-fulfillment, CRM and ERP to create a robust,
pre-integrated, end-to-end solution.
-- BroadVision hosted its fourth annual 2000 BroadVision
International User Conference, a customer-oriented event,
attracting more than 1,300 leading e-commerce and e-business
industry leaders and 72 exhibitors representing more than 40
countries worldwide.
Industry Accolades
During the quarter, BroadVision received an impressive array of industry awards
and accolades. Recently, BroadVision was named in Business Week's Infotech 100
as one of the "World's Best Performing Tech Companies" and was ranked number one
by International Data Corporation (IDC) in the e-commerce software applications
market for 1999. In April, BroadVision was listed number 365 among the Forbes
500 Companies, was ranked number 34 in Barron's 500 Annual Report, was
recognized by NetworkWorld 200 for the largest increase in profits in 1998-1999,
and was named one of the "Top Ten Companies to Work For" by Inter@ctive Week. In
June, BroadVision was listed among Red Herring's 100 Top 50 Public Companies and
chosen as one of the "Top Ten Tech Stocks" by Individual Investor.
Forward-Looking Statements
The company noted that each of the above forward-looking statements is subject
to change, based on various important factors, including, without limitation,
changes in the market and competition. Additional information on potential
factors that could affect the company's financial results is included in the
company's prospectus, Forms 10-K and 10-Q, and other documents filed with the
Securities and Exchange Commission.
About BroadVision
BroadVision, Inc. (Nasdaq: BVSN, Neuer Markt: BDN) is a leader in personalized
e-business applications. BroadVision's comprehensive suite of integrated
applications is built for delivery via the Web and wireless devices. Companies
using BroadVision's proven applications get to market quickly, launching
innovative e-commerce, self-service and enterprise information sites. These
sites enable personalized interactions and transactions with customers,
partners, suppliers and employees. BroadVision One-To-One(TM) applications power
innovative business-to-consumer sites and business-to-business exchanges for the
world's top companies in financial services, telecommunications, retail and
travel. BroadVision applications are available in more than 120 countries
worldwide. Headquartered in Redwood City, Calif., USA, the company can be
reached at 650/261-5100 or at www.broadvision.com.
Note to Editors: BroadVision is a registered trademark and BroadVision
One-To-One is a trademark 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 STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
Three Months Ended Six Months Ended
June 30, June 30,
2000 1999 2000 1999
Revenues:
Software licenses $ 56,848 $ 15,484 $ 97,562 $ 28,267
Services 38,496 7,992 59,283 13,673
--------- --------- --------- ---------
Total revenues 95,344 23,476 156,845 41,940
Cost of revenues:
Cost of license
revenues 1,563 1,037 3,626 1,784
Cost of service
revenues 30,282 4,624 45,956 7,945
--------- --------- --------- ---------
Total cost of
revenues 31,845 5,661 49,582 9,729
--------- --------- --------- ---------
Gross profit 63,499 17,815 107,263 32,211
Operating expenses:
Research and
development 9,706 3,268 15,465 6,169
Sales and marketing 33,570 10,019 58,770 17,684
General and
administrative 6,733 1,611 10,344 2,882
Goodwill and intangible
amortization, net 55,404 -- 55,404 --
--------- --------- --------- ---------
Charge for acquired
in-process Technology 10,100 -- 10,100 --
--------- --------- --------- ---------
Total operating
expenses 115,513 14,898 150,083 26,735
--------- --------- --------- ---------
Operating income (loss) (52,014) 2,917 (42,820) 5,476
Other income, net 3,940 593 11,187 1,110
--------- --------- --------- ---------
Income (loss) before
provision for income
taxes (48,074) 3,510 (31,633) 6,586
Provision for income
taxes 6,797 195 13,204 334
--------- --------- --------- ---------
Net income (loss) $ (54,871) $ 3,315 $ (44,837) $ 6,252
========= ========= ========= =========
Basic earnings (loss)
per share $ (0.21) $ 0.01 $ (0.18) $ 0.03
========= ========= ========= =========
Diluted earnings
(loss) per share $ (0.21) $ 0.01 $ (0.18) $ 0.02
========= ========= ========= =========
Shares used in
computing:
Basic earnings (loss)
per share 258,935 226,107 252,288 223,974
========= ========= ========= =========
Diluted earnings
(loss) per share 258,935 253,386 252,288 251,514
========= ========= ========= =========
Pro Forma Net
Income(a) $ 10,633 N/A $ 20,667 N/A
========= ========= ========= =========
Pro forma basic
earnings per share $ 0.04 N/A $ 0.08 N/A
========= ========= ========= =========
Pro forma diluted
earnings per share $ 0.04 N/A $ 0.07 N/A
========= ========= ========= =========
§ (a) Pro Forma net income/EPS excludes amortization of goodwill and
acquired technology and the charge for acquired in-process
technology. In the second quarter of 2000, goodwill
amortization was $53,396 and acquired technology amortization
was $2,008. The charge for acquired in-process technology was
$10,100. Shares used for the pro forma diluted earnings per
share calculations are 295,371 and 290,906 for the three and
six months ended June 30, 2000, respectively.
BROADVISION, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
June 30, December 31,
2000 1999
ASSETS
Current assets:
Cash and cash equivalents $ 148,830 $ 279,823
Short-term investments 178,424 68,758
Accounts receivable, less doubtful
accounts allowances of $2,142 and
$1,446 for 2000 and 1999, respectively 66,880 26,540
Prepaids and other 9,424 5,085
----------- -----------
Total current assets 403,558 380,206
Property and equipment, net 32,334 16,751
Long-term investments 21,632 4,414
Goodwill and other intangibles, net 741,236 --
Other assets 5,657 4,757
----------- -----------
Total assets $ 1,204,417 $ 406,128
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 12,299 $ 5,754
Accrued expenses 27,395 13,156
Unearned revenue 27,280 3,896
Deferred maintenance 27,467 15,228
Income taxes 2,881 151
Current portion of capital lease
obligations 20 270
Current portion of long-term debt 1,412 977
----------- -----------
Total current liabilities 98,754 39,432
Long-term debt 5,214 4,890
Deferred income taxes -- 16,618
----------- -----------
Total liabilities 103,968 60,940
Stockholders' equity:
Common stock 27 24
Additional paid-in capital 1,141,160 320,259
Deferred compensation (67) (226)
Accumulated other comprehensive income,
net of tax 4,960 25,925
Accumulated deficit (45,631) (794)
----------- -----------
Total stockholders' equity 1,100,449 345,188
----------- -----------
Total liabilities and stockholders'
equity $ 1,204,417 $ 406,128
=========== ===========
CONTACT: BroadVision, Inc.
Peter Downs, 650/261-5958
pdowns@broadvision.com
Janine Kromhout, 650/261-5940
jkromhout@broadvision.com
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KEYWORD: CALIFORNIA
INDUSTRY KEYWORD: SOFTWARE
E-COMMERCE
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