BROADVISION, INC. ANNOUNCES FIRST QUARTER 2005 RESULTS
REDWOOD CITY, CALIF. -- April 20, 2005 -- BroadVision, Inc. (NASDAQ: BVSN), a global provider of web self-service solutions, today reported financial results for its first quarter ended March 31, 2005. Revenue for the first quarter was $16.4 million, compared with revenue of $19.8 million for the fourth quarter ended December 31, 2004 and $20.9 million for the first quarter of 2004. License revenue for the quarter totaled $4.4 million versus $7.3 million in the fourth quarter of 2004 and $7.8 million in the comparable quarter of 2004.
In the first quarter, BroadVision posted net income on a generally accepted accounting principles (GAAP) basis of $2.9 million, or $0.09 per diluted share, as compared with a GAAP net loss of $386,000, or $0.01 per share, for the fourth quarter of 2004, and a GAAP net loss of $867,000, or $0.03 per share, in the first quarter of 2004. The GAAP profit in the most recent quarter included non-operating and restructuring credits of over $5.5 million, consisting of a $1.1 million gain on the disposition of equity investments, a $2.5 million gain on the revaluing of common stock warrants and a $2.0 million tax benefit related to the reversal of certain income tax accruals determined during the first fiscal quarter to be no longer required.
Pro forma net loss for the first quarter of 2005 was $1,547,000, or $0.05 per share, compared with pro forma net income of $930,000, or $0.03 per diluted share, in the fourth quarter of 2004and a pro forma net loss of $297,000, or $0.01 per share, in the first quarter of 2004. These pro forma results exclude restructuring charges and credits, gains and losses from the revaluation of common stock warrants, and credits from the reversal of income tax accruals. A reconciliation of pro forma results to GAAP results is provided in the financial information attached to this press release. 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.
"The first fiscal quarter revenue is usually relatively weak due to seasonality and we continued to see a challenging selling environment across all geographies," said Dr. Pehong Chen, BroadVision president and CEO. "We experienced some purchasing delays at quarter-end for deals that closed in the first week of April. We will continue to focus on improved execution and expense controls that maximize efficiencies and shareholder value."
During the first quarter of 2005, BroadVision closed new and repeat business in all key vertical markets with customers such as Children`s Hospital of Philadelphia (CHOP), EBS Dealing Resources, Indian Railways, Himawari Networks, Pillsbury Winthrop LLP, Baker Hughes and Stream/NTT.
Pending Stockholder Approval
As previously disclosed, the terms of the Company`s outstanding $16 million of convertible notes issued in November 2004 require principal repayments beginning in June 2005. The monthly repayments of $1.1 million (which will likely increase to $2.1 million effective September 2005) may be made in either cash or, upon the satisfaction of various conditions, shares of the Company`s common stock. These conditions include the Company`s compliance with all requirements of the note agreements and applicable Nasdaq listing standards, which require among other things that the Company obtain stockholder approval to make payments on the notes in stock.
A vote on this matter will be taken at the Company`s upcoming annual meeting of stockholders on May 24, 2005. The Company believes that the passage of this proposal and the satisfaction of the aforementioned conditions are important to ensure that the Company retains sufficient working capital to operate its business. Further, the proxy statement includes the recommendation of the Company`s Board of Directors for a "yes" vote.
Conference Call
BroadVision will hold a conference call to discuss this press release and related matters at 5:00 pm Eastern Time, April 20, 2005. The call, hosted by Dr. Pehong Chen, can be accessed live by dialing 800-901-5217; pass code 18760210 or live and thereafter by visiting the investor relations section of the Company`s website at www.broadvision.com/ir.
Information ConcerningForward-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, including, but not limited to, our ability to finalize revenue transactions in future quarters and our ability to generate revenue growth, earnings and adequate cash flows in 2005, 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 existing and new 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 and in BroadVision`s quarterly reports on Form 10-Q as filed with the Securities and Exchange Commission.
About BroadVision
BroadVision (NASDAQ: BVSN) is a global provider of web self-service solutions. Our agile commerce and portal applications enable customers to quickly create and adapt online processes to keep pace with changing business requirements. Over 1,000 organizations -- including Circuit City, Yankee Candle, Vodafone, Cardinal Health, Hewlett-Packard, Toyota, Japan Airlines and the U.S. Air Force -- serving nearly 60 million registered users, rely on BroadVision`s open solutions to power and personalize their mission-critical web initiatives.
For more information about BroadVision, Inc., call 650.542.5100 or visit www.broadvision.com.
BroadVision is a trademark or registered trademark of BroadVision, Inc. in the United States and other countries.
BroadVision Contact
Bill Herrick
BroadVision Investor Relations
650.542.3865
ir1@broadvision.com
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