EXHIBIT 99.1
BroadVision Announces Fourth Quarter 2008 and Full-Year Results
REDWOOD CITY, Calif., Jan. 28, 2009 (GLOBE NEWSWIRE) -- BroadVision, Inc. (Nasdaq:BVSN), a global provider of strategic e-business solutions, today reported financial results for its fourth quarter ended December 31, 2008. Revenues for the fourth quarter were $9.7 million, compared with revenues of $8.2 million for the third quarter ended September 30, 2008 and $11.3 million for the comparable quarter of 2007.
License revenue for the fourth quarter of 2008 was $3.6 million versus $2.1 million for the prior quarter and $4.6 million for the comparable quarter of 2007. The majority of the fourth quarter license revenue was generated from the Company's core BroadVision(r) Business Agility Suite(tm), Commerce Agility Suite(tm) and eMerchandising(tm) solutions, from customers including, NTT Software Corporation, Achmea Verzekerings Holding N.V, Siemens Medical Solutions USA, Inc. Datasiel Spa, and several other brand name global customers.
In the fourth quarter of 2008, BroadVision posted net loss on a U.S. Generally Accepted Accounting Principles ("GAAP") basis of $22.1 million, or $5.04 per basic and diluted share, as compared with GAAP net income of $0.3 million, or $0.07 per basic share and $0.06 per diluted share, for the third quarter of 2008 and GAAP net income of $5.9 million, or $1.35 per basic share and $1.31 per diluted share, for the comparable quarter of 2007. The GAAP loss in the most recent quarter included a charge related to the impairment of goodwill of $25.1 million.
Non-GAAP measure net income for the fourth quarter of 2008 was $2.8 million, or $0.64 per basic share and diluted share, compared with non-GAAP measure net income of $0.1 million, or $0.03 per basic and diluted share, in the third quarter of 2008 and non-GAAP measure net income of $4.4 million, or $1.02 per basic share and $0.99 per diluted share, for the comparable quarter of 2007. These non-GAAP measure results exclude restructuring credit, goodwill impairment 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 these non-GAAP measure 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 2008 revenues totaled $35.9 million, with GAAP net loss of $15.0 million, or $3.43 per basic and diluted share, which included a goodwill impairment charge of $25.1 million that has no tax benefit and is a non-cash item, compared to 2007 revenues of $50.0 million and GAAP net income of $17.3 million, or $4.01 per basis share and $3.90 per diluted share. 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, 2008, the Company had $61.9 million of cash and cash equivalents and short-term investments, compared to a combined balance of $62.5 million as of September 30, 2008 and a combined balance of $54.0 million as of December 31, 2007.
"Excluding the $25.1 million goodwill impairment required under GAAP rules due to our unusual below-book-value market capitalization amidst a very negative general business and stock market environment, we actually made considerable progress during the quarter in both sequential top-line growth and bottom line results," said Dr. Pehong Chen, President and CEO, BroadVision. "With a solid balance sheet, rigorous discipline in cost control, and a strong product portfolio, we are well positioned to not only pull through the global recession successfully, but also transform ourselves into a more competitive player beyond the current economic crisis."
Conference Call Information
BroadVision management will host a conference call today, Wednesday, January 28, 2009, at 2:00 p.m. PST. The conference call may be accessed by dialing: 1-866-551-3680, with pin code 3792786#. Callers outside the 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 first quarter 2009 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, 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 1-650-331-1000; e-mail mediarelations@broadvision.com or visit http://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.
The BroadVision logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=5621
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 financial positioning and competitiveness, 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 F orm 10-Q as filed with the Securities and Exchange Commission.
BROADVISION, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
Dec. 31 Dec. 31
2008 2007
------- -------
(unaudited)
ASSETS
Current assets:
Cash, cash equivalents and short-term
investments $61,888 $53,973
Other current assets 10,772 9,044
------- -------
Total current assets 72,660 63,017
Goodwill -- 25,066
Other non-current assets 2,077 2,229
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Total assets $74,737 $90,312
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities $21,590 $22,523
Other non-current liabilities 2,429 3,024
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Total liabilities 24,019 25,547
Total stockholders' equity 50,718 64,765
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Total liabilities and stockholders' equity $74,737 $90,312
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BROADVISION, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
Three Months Ended Twelve Months Ended
December 31 December 31
----------------- -----------------
2008 2007 2008 2007
-------- ------- -------- -------
(unaudited) (unaudited)
Revenues:
Software licenses $ 3,616 $ 4,620 $ 12,137 $21,127
Services 6,036 6,629 23,766 28,891
-------- ------- -------- -------
Total revenues 9,652 11,249 35,903 50,018
Cost of revenues:
Cost of software licenses 6 8 26 45
Cost of services 2,259 2,251 8,885 8,961
-------- ------- -------- -------
Total cost of revenues 2,265 2,259 8,911 9,006
Gross profit 7,387 8,990 26,992 41,012
Operating expenses:
Research and development 2,320 2,247 9,183 9,668
Sales and marketing 1,989 2,383 7,772 8,131
General and administrative 1,452 2,042 6,412 6,293
Goodwill impairment 25,066 -- 25,066 --
Restructuring (credit) charge (9) (195) (26) 649
-------- ------- -------- -------
Total operating expenses 30,818 6,477 48,407 24,741
-------- ------- -------- -------
Operating (loss) income (23,431) 2,513 (21,415) 16,271
Other income (expense), net 1,528 3,419 6,925 934
-------- ------- -------- -------
(Loss) income before provision
for income taxes (21,903) 5,932 (14,490) 17,205
(Provision) benefit for income
taxes (192) (60) (520) 73
-------- ------- -------- -------
Net (loss) income $(22,095) $ 5,872 $(15,010) $17,278
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Basic (loss) income per share $ (5.04) $ 1.35 $ (3.43) $ 4.01
Diluted (loss) income per share $ (5.04) $ 1.31 $ (3.43) $ 3.90
Shares used in computing:
Weighted average shares-basic 4,382 4,346 4,374 4,310
Weighted average shares-diluted 4,384 4,476 4,414 4,430
BROADVISION, INC. AND SUBSIDIARIES
NON-GAAP MEASURE CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(unaudited)
Three Months Ended Twelve Months Ended
----------------------- ----------------
Dec. 31 Sept. 30 Dec. 31 Dec. 31 Dec. 31
2008 2008 2007 2008 2007
------ ------ ------- ------- -------
Revenues:
Software licenses $3,616 $2,096 $ 4,620 $12,137 $21,127
Services 6,036 6,095 6,629 23,766 28,891
------ ------ ------- ------- -------
Total revenues 9,652 8,191 11,249 35,903 50,018
Cost of revenues:
Cost of software licenses 6 7 8 26 46
Cost of services 2,230 2,158 2,157 8,722 8,693
------ ------ ------- ------- -------
Total cost of revenues 2,236 2,165 2,165 8,748 8,739
------ ------ ------- ------- -------
Gross profit 7,416 6,026 9,084 27,155 41,279
Operating expenses:
Research and development 2,265 2,079 2,033 8,870 9,101
Sales and marketing 1,911 1,842 2,268 7,463 7,813
General and
administrative 1,370 1,540 1,927 6,067 5,998
------ ------ ------- ------- -------
Total operating
expenses 5,546 5,461 6,228 22,400 22,912
------ ------ ------- ------- -------
Non-GAAP measure
operating income 1,870 565 2,856 4,755 18,367
Other income (expense),
net 1,148 (397) 1,648 2,885 4,081
------ ------ ------- ------- -------
Non-GAAP measure income
before provision for
income taxes 3,018 168 4,504 7,640 22,448
(Provision) benefit for
income taxes (192) (41) (60) (520) 73
------ ------ ------- ------- -------
Non-GAAP measure net
income $2,826 $ 127 $ 4,444 $ 7,120 $22,521
====== ====== ======= ======= =======
Basic non-GAAP measure
net income per share $ 0.64 $ 0.03 $ 1.02 $ 1.63 $ 5.23
Diluted non-GAAP measure
net income per share $ 0.64 $ 0.03 $ 0.99 $ 1.61 $ 5.08
Shares used in computing
basic non-GAAP measure
net income per share 4,382 4,431 4,346 4,374 4,310
Shares used in computing
diluted non-GAAP measure
net income per share 4,384 4,466 4,476 4,414 4,430
BROADVISION, INC. AND SUBSIDIARIES
RECONCILIATION OF U.S. GAAP TO NON-GAAP MEASURE NET INCOME
(unaudited; in thousands)
Three Months Ended Twelve Months Ended
-------------------------- -----------------
Dec. 31 Sept. 30 Dec. 31 Dec. 31 Dec. 31
2008 2008 2007 2008 2007
-------- ------ -------- -------- -------
Net (loss) income, U.S.
GAAP $(22,095) $ 289 $ 5,872 $(15,010) $17,278
Non-GAAP measure
adjustments:
Restructuring (credit)
charge (9) 6 (195) (26) 649
Goodwill impairment 25,066 -- -- 25,066 --
SFAS 123R Expense (1) 244 412 538 1,130 1,447
Revaluation of warrants
liabilities (2) (380) (580) (1,771) (4,040) 3,147
-------- ------ -------- -------- -------
Non-GAAP measure net
income $ 2,826 $ 127 $ 4,444 $ 7,120 $22,521
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(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.
CONTACT: BroadVision, Inc.
Investor Relations
Andrew Hub
650-331-1000
ir1@broadvision.com
