EXHIBIT 99.1
BroadVision Announces Profitable Third Quarter 2009 Results
REDWOOD CITY, Calif., Oct. 28, 2009 (GLOBE NEWSWIRE) -- BroadVision, Inc. (Nasdaq:BVSN), an innovative provider of online commerce and business social networking solutions, today reported financial results for its third quarter ended September 30, 2009. Revenues for the third quarter were $7.5 million, compared with revenues of $8.2 million for the second quarter ended June 30, 2009 and $8.2 million for the comparable quarter of 2008, respectively.
License revenue for the third quarter of 2009 was $2.7 million, compared with $3.2 million for the prior quarter and $2.1 million for the comparable quarter of 2008. The majority of the third quarter license and subscription revenue was generated from the Company's BroadVision(R) Business Agility Suite(TM), Commerce Agility Suite(TM), QuickSilver(TM), CLEAR(TM) and Clearvale(TM) solutions. Revenue during the quarter was generated from sales to both new and existing customers, such as the Department of Defence, India; Exempla Healthcare; ClubMed; Siemens AG and several other brand-name global customers.
In the third quarter of 2009, BroadVision posted net income on a U.S. Generally Accepted Accounting Principles ("GAAP") basis of $1.8 million, or $0.41 per basic and diluted share, as compared with GAAP net income of $2.1 million, or $0.48 per basic and diluted share, for the second quarter of 2009 and GAAP net income of $0.3 million, or $0.07 per basic and $0.06 diluted share, for the comparable quarter of 2008.
Non-GAAP measure net income for the third quarter of 2009 was $2.0 million, or $0.45 per basic and diluted share, compared with non-GAAP measure net income of $2.4 million or $0.55 per basic and diluted share, in the second quarter of 2009 and non-GAAP measure net income of $0.1 million, or $0.03 per basic and diluted share, for the comparable quarter of 2008. These non-GAAP measure results exclude restructuring (credit) charge, stock compensation expense and revaluation of warrant liabilities. A reconciliation of these 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.
As of September 30, 2009, the Company had $63.2 million of cash and cash equivalents and short-term investments, compared to a combined balance of $62.6 million as of June 30, 2009 and $61.9 million as of December 31, 2008.
"As we continue our product transition strategy, we are pleased with our profitable financial results, as well as sharply-executed customer migrations to the newest BroadVision 8.2 platform," said Dr. Pehong Chen, President and CEO, BroadVision. "Specifically, positive momentum has been building up for Clearvale, a new brand of enterprise social network service, exceeding 2,000 networks in less than four months since its launch. It is very exciting to see global organizations begin to recognize the unprecedented potential an ESN solution like Clearvale can deliver to improve enterprise performance and output. We believe that our expertise and experience in bridging and blending Enterprise 1.0 and 2.0 technologies and business models is unique, and will benefit our customers tremendously."
Conference Call Information
BroadVision management will host a conference call today, Wednesday, October 28, 2009, at 2:00PM Pacific Daylight Time (PDT). The conference call may be accessed by dialing: 1-866-551-3680, with pin code 2281820#. Callers outside North America should call +1-212-401-6760 to be connected. These numbers can be accessed 15 minutes before the call begins, as well as during the call. A web replay will also be available following the call on the Company's website until it releases its fourth quarter 2009 financial results.
About BroadVision
Driving innovation since 1993, BroadVision an innovative provider of online commerce and business social networking solutions. More information about the Clearvale(TM) business social network solution can be found at http://www.broadvision.com/en/software-solutions/saas/clearvale or visit www.clearvale.com to sign up immediately for a Clearvale network. For complete information about BroadVision, please visit our website, http://www.broadvision.com/en/press/backgrounders.
The BroadVision logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=5621
BroadVision, Business Agility Suite, Commerce Agility Suite, QuickSilver and Clearvale 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, Clearvale's acceptance by current and potential customers, 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.
BROADVISION, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
30-Sep 31-Dec
2009 2008
----------- -----------
(Unaudited)
ASSETS
Current assets:
Cash, cash equivalents and short-term
investments $63,179 $61,888
Other current assets 5,200 10,772
----------- -----------
Total current assets 68,379 72,660
Other non-current assets 1,910 2,077
----------- -----------
Total assets $70,289 $74,737
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities $13,769 $21,590
Other non-current liabilities 1,858 2,429
----------- -----------
Total liabilities 15,627 24,019
Total stockholders' equity 54,662 50,718
----------- -----------
Total liabilities and stockholders' equity $70,289 $74,737
=========== ===========
BROADVISION, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
------------------ ------------------
2009 2008 2009 2008
-------- -------- -------- --------
Revenues:
Software licenses $ 2,663 $ 2,096 $ 8,676 $ 8,521
Services 4,879 6,095 15,039 17,729
-------- -------- -------- --------
Total revenues 7,542 8,191 23,715 26,250
Cost of revenues:
Cost of software licenses 6 7 26 20
Cost of services 1,784 2,218 5,707 6,626
-------- -------- -------- --------
Total cost of revenues 1,790 2,225 5,733 6,646
-------- -------- -------- --------
Gross profit 5,752 5,966 17,982 19,604
Operating expenses:
Research and development 2,169 2,217 6,346 6,863
Sales and marketing 2,024 1,937 6,002 5,783
General and administrative 1,006 1,659 3,603 4,960
Restructuring (credit)
charge (4) 6 50 (17)
-------- -------- -------- --------
Total operating expenses 5,195 5,819 16,001 17,589
-------- -------- -------- --------
Operating income 557 147 1,981 2,015
Other income, net 1,138 183 1,417 5,399
-------- -------- -------- --------
Income before benefit
(provision) for income
taxes 1,695 330 3,398 7,414
Benefit (provision) for
income taxes 104 (41) (116) (328)
-------- -------- -------- --------
Net income $ 1,799 $ 289 $ 3,282 $ 7,086
-------- -------- -------- --------
Basic income per share $ 0.41 $ 0.07 $ 0.75 $ 1.62
Diluted income per share $ 0.41 $ 0.06 $ 0.75 $ 1.60
Shares used in computing:
Weighted average
shares-basic 4,415 4,431 4,397 4,387
Weighted average
shares-diluted 4,435 4,466 4,400 4,433
BROADVISION, INC. AND SUBSIDIARIES
NON-GAAP MEASURE CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
------------------ ------------------
2009 2008 2009 2008
-------- -------- -------- --------
Revenues:
Software licenses $ 2,663 $ 2,096 $ 8,676 $ 8,521
Services 4,879 6,095 15,039 17,729
-------- -------- -------- --------
Total revenues 7,542 8,191 23,715 26,250
Cost of revenues:
Cost of software licenses 6 7 26 20
Cost of services 1,748 2,158 5,615 6,493
-------- -------- -------- --------
Total cost of revenues 1,754 2,165 5,641 6,513
-------- -------- -------- --------
Gross profit 5,788 6,026 18,074 19,737
Operating expenses:
Research and development 2,033 2,079 6,020 6,605
Sales and marketing 1,946 1,842 5,808 5,552
General and administrative 905 1,540 3,333 4,697
-------- -------- -------- --------
Total operating expenses 4,884 5,461 15,161 16,854
-------- -------- -------- --------
Non-GAAP measure operating
income 904 565 2,913 2,883
Other income (expense), net 985 (397) 1,270 1,738
-------- -------- -------- --------
Non-GAAP measure income before
benefit (provision) for
income taxes 1,889 168 4,183 4,621
Benefit (provision) for
income taxes 104 (41) (116) (328)
-------- -------- -------- --------
Non-GAAP measure net income $ 1,993 $ 127 $ 4,067 $ 4,293
-------- -------- -------- --------
Basic non-GAAP measure net
income per share $ 0.45 $ 0.03 $ 0.92 $ 0.98
Diluted non-GAAP measure net
income per share $ 0.45 $ 0.03 $ 0.92 $ 0.97
Shares used in computing basic
non-GAAP measure net income
per share 4,415 4,431 4,397 4,387
Shares used in computing
diluted non-GAAP measure
net income per share 4,435 4,466 4,400 4,433
BROADVISION, INC. AND SUBSIDIARIES
RECONCILIATION OF U.S. GAAP NET INCOME TO NON-GAAP NET INCOME
(unaudited; in thousands)
Three Months Ended Nine Months Ended
------------------------- ----------------
Sep. 30 Jun. 30 Sep. 30 Sep. 30 Sep. 30
2009 2009 2008 2009 2008
------- ------- ------- ------- -------
Net income,
U.S. GAAP $ 1,799 $ 2,109 $ 289 $ 3,282 $ 7,086
Non-GAAP measure
adjustments:
Restructuring
(credit) charge (4) 56 6 50 (17)
Stock compensation
expense (1) 352 269 412 882 885
Revaluation of
warrants
liabilities (2) (154) (24) (580) (147) (3,661)
------- ------- ------- ------- -------
Non-GAAP measure
net income $ 1,993 $ 2,410 $ 127 $ 4,067 $ 4,293
======= ======= ======= ======= =======
(1) Included as a component of cost of service and operating expense
for each period presented.
(2) Included as a component of other income (expense), net, for each
period presented.
CONTACT: BroadVision
Investor Relations
Andrew Hub
650-331-1000
ir1@broadvision.com
