EX-99.1 2 exhibit99-1.htm PRESS RELEASE DATED FEBRUARY 6, 2008 exhibit99-1.htm
FOR IMMEDIATE RELEASE
BroadVision Contact:
Andrew Hub
Investor Relations
650-331-1000
ir1@broadvision.com

BroadVision Announces Profitable Fourth Quarter and Full-Year 2007 Results

REDWOOD CITY, CALIF. -- February 6, 2008 -- BroadVision, Inc. (OTCBB: BVSN), a global provider of e-business solutions, today reported financial results for its fourth quarter ended December 31, 2007.  Revenues for the fourth quarter were $11.2 million, compared with revenues of $12.8 million for the third quarter ended September 30, 2007 and $13.0 million for the comparable quarter of 2006.

License revenue for the fourth quarter was $4.6 million versus $5.3 million in the prior quarter and $4.0 million in the comparable quarter of 2006.  The majority of the fourth quarter license revenue was generated from the company's core Commerce and Process solutions from customers including Audible.com, Bristol-Myers Squibb, Hilti, OfficeMax, Vodafone and several other brand name global customers.

In the fourth quarter of 2007, BroadVision posted net income on a U.S. Generally Accepted Accounting Principles ("GAAP") basis of $5.9 million, or $0.05 per basic and diluted share, as compared with GAAP net income of $5.5 million, or $0.05 per share, for the third quarter of 2007 and GAAP net income of $7.0 million, or $0.09 per basic and diluted share, for the fourth quarter of 2006.

Pro forma net income for the fourth quarter of 2007 was $4.4 million, or $0.04 per basic and diluted share, compared with a pro forma net income of $6.7 million, or $0.06 per basic and diluted share, in the third quarter of 2007 and a pro forma net income of $6.1 million, or $0.08 per basic and diluted share, in the fourth quarter of 2006.  These pro forma results exclude restructuring 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 its pro forma 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 2007 revenues totaled $50.0 million, with GAAP net income of $17.3 million, or $0.16 per diluted share, compared to 2006 revenues of $52.0 million, with a GAAP net income of $15.0 million, or $0.23 per diluted share.  Full-year 2007 license revenue was $21.1 million, compared with 2006 license revenue of $15.2 million.  Full-year 2006 net income of $15.0 million includes a $3.4 million pre-tax restructuring credit and a $1.3 million pre-tax charge on warrants re-valuation.  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, 2007, the company had a cash balance of $54.0 million, representing a $3.3 million, or 7%, increase over the September 30, 2007 balance of $50.7 million and a 46% increase from the year's starting cash position of $37.0 million, due primarily to positive cash flow generated from operations of about $14.6 million and about $2.0 million from issuance of common stock.

The Company formally released BroadVision 8.1™ on time at the beginning of the fourth quarter, a major milestone in completing the Company's new K2 (Kona * Kukini)™ e-business solution sets.   Furthermore, BroadVision OnDemand, Ltd. launched the Chinese Edition of CHRM*060™ in November 2007 and its English Edition in January 2008.  As the centerpiece of the CHRM™ family of workforce relationship management solutions, CHRM*060™ has generated more than 30 customers, totaling nearly 20,000 subscribers, in less than two months since its launch.

"Having completed several new product releases last year, we now have a very focused goal for 2008:" said Dr. Pehong Chen, President and CEO, BroadVision, "To accelerate our go-to market efforts in sales and marketing, and to deliver significant ROI to global customers via our comprehensive BroadVision 8.1 B2B/B2C/B2E e-business solution sets."

Conference Call Information
 
BroadVision management will host a conference call today, Wednesday February 6, 2008, at 2:00 p.m. PST.  The conference call may be accessed by dialing: 1-866-463-5401 pin code 694001#. Callers outside the North America should call 1-212-457-9857 to be connected. A web replay will also be available following the call on the company's website until it releases its first quarter 2008 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, Citibank, Epson America, Fiat, Hilti, Iberia, ING Bank, Prime Polymer, Renault, Sony, Standard Bank of Argentina, Vodafone and Xerox -- rely on BroadVision as their platform of choice for e-business.

For more information about BroadVision, Inc., call 650.331-1000, email ir1@broadvision.com or visit www.broadvision.com.
#   #   #
BroadVision, K2, Kona,  Kukini, and BroadVision 8.1 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, BroadVision's continued execution in accordance with its strategic roadmap and the timing and success of product launches, 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)
 
   
December 31
   
December 31
 
   
2007
   
2006
 
   
(Unaudited)
       
ASSETS
           
Current assets:
           
Cash and cash equivalents
  $ 53,973     $ 37,003  
Other current assets
    9,044       12,211  
           Total current assets
    63,017       49,214  
Goodwill
    25,066       25,066  
Other non-current assets
    2,229       2,662  
Total assets
  $ 90,312     $ 76,942  
LIABILITIES AND STOCKHOLDERS' EQUITY
               
Current liabilities
  $ 22,523     $ 30,259  
Other non-current liabilities
    3,024       3,429  
           Total liabilities
    25,547       33,688  
Total stockholders' equity
    64,765       43,254  
Total liabilities and stockholders' equity
  $ 90,312     $ 76,942  



BROADVISION, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
   
Three Months Ended
   
Years Ended
 
   
December 31,
   
December 31,
 
   
2007
   
2006
   
2007
   
2006
 
Revenues:
 
(unaudited)
         
(unaudited)
       
Software licenses
  $ 4,620     $ 3,956     $ 21,127     $ 15,215  
Services
    6,629       9,090       28,891       36,769  
     Total revenues
    11,249       13,046       50,018       51,984  
Cost of revenues:
                               
Cost of software licenses
    8       32       45       258  
Cost of services
    2,251       2,173       8,961       12,456  
     Total cost of revenues
    2,259       2,205       9,006       12,714  
Gross profit
    8,990       10,841       41,012       39,270  
Operating expenses:
                               
Research and development
    2,247       2,708       9,668       10,510  
Sales and marketing
    2,383       2,529       8,131       8,653  
General and administrative
    2,042       613       6,293       8,019  
Restructuring charge (credit)
    (195 )     (1,966 )     649       (3,369 )
     Total operating expenses
    6,477       3,884       24,741       23,813  
Operating income
    2,513       6,957       16,271       15,457  
Other income (expense), net
    3,419       248       934       193  
Income before provision for income taxes
    5,932       7,205       17,205       15,650  
Benefit from (Provision for) income taxes
    (60 )     (185 )     73       (634 )
Net income
  $ 5,872     $ 7,020     $ 17,278     $ 15,016  
Basic income per share
  $ 0.05     $ 0.09     $ 0.16     $ 0.23  
Diluted income per share
  $ 0.05     $ 0.09     $ 0.16     $ 0.23  
Shares used in computing:
                               
Weighted average shares-basic
    108,648       80,878       107,755       65,734  
Weighted average shares-diluted
    111,896       80,878       110,746       65,734  



BROADVISION, INC. AND SUBSIDIARIES
PRO FORMA CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(unaudited)
   
Three Months Ended
   
Years Ended
 
   
December 31
   
September 30
   
December 31
   
December 31
   
December 31
 
   
2007
   
2007
   
2006
   
2007
   
2006
 
Revenues:
                             
Software licenses
  $ 4,620     $ 5,280     $ 3,956     $ 21,127     $ 15,215  
Services
    6,629       7,476       9,090       28,891       36,769  
Total revenues
    11,249       12,756       13,046       50,018       51,984  
Cost of revenues:
                                       
Cost of software licenses
    8       3       31       46       258  
Cost of services
    2,157       2,038       2,014       8,693       12,296  
Total cost of revenues
    2,165       2,041       2,045       8,739       12,554  
Gross profit
    9,084       10,715       11,001       41,279       39,430  
Operating expenses:
                                       
Research and development
    2,033       2,163       2,326       9,101       10,128  
Sales and marketing
    2,268       1,831       2,298       7,813       8,422  
General and administrative
    1,927       1,640       1,003       5,998       7,841  
Total operating expenses
    6,228       5,634       5,627       22,912       26,391  
Pro forma operating income
    2,856       5,081       5,374       18,367       13,039  
Other income, net
    1,648       1,218       878       4,081       1,526  
Pro forma income before provision for income taxes
    4,504       6,299       6,252       22,448       14,565  
Benefit from (Provision for) income taxes
    (60 )     419       (186 )     73       (634 )
Pro forma net income
  $ 4,444     $ 6,718     $ 6,066     $ 22,521     $ 13,931  
Basic pro forma net income per share
  $ 0.04     $ 0.06     $ 0.08     $ 0.21     $ 0.21  
Diluted pro forma net income per share
  $ 0.04     $ 0.06     $ 0.08     $ 0.20     $ 0.21  
Shares used in computing basic pro forma net income per share
    108,648       108,253       80,878       107,755       65,734  
Shares used in computing diluted pro forma net income per share
    111,896       111,577       80,878       110,746       65,734  
 
BROADVISION, INC. AND SUBSIDIARIES
RECONCILIATION OF U.S. GAAP TO PRO FORMA NET INCOME
(unaudited; in thousands)
   
 Three Months Ended
   
Years Ended
 
   
December 31
   
September 30
   
December 31
   
December 31
   
December 31
 
   
2007
   
2007
   
2006
   
2007
   
2006
 
                                         
Net income, U.S. GAAP
  $ 5,872     $ 5,462     $ 7,021     $ 17,278     $ 15,016  
Pro forma adjustments:
                                       
Restructuring (credits) charges
    (195 )     260       (1,967 )     649       (3,371 )
SFAS 123R Expense [2]
    538       316       382       1,447       951  
    Revaluation of warrants liabilities [1]
    (1,771 )     680       630       3,147       1,335  
Pro forma net income
  $ 4,444     $ 6,718     $ 6,066     $ 22,521     $ 13,931  
                                         
[1] Included as a component of other income, net, for each period presented.
[2] Included as a component of cost of service and operating expense for each period presented.