BROADVISION Announces Profitable, Record-setting First Quarter 2000....beats est by 2cents
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Company Press Release
Broadvision Announces Profitable, Record-setting First Quarter 2000
REDWOOD CITY, Calif.--(BUSINESS WIRE)--April 26, 2000-- BroadVision, Inc. (Nasdaq:BVSN - news), a leading worldwide supplier of personalized e-business applications, today reported financial results for the quarter ended March 31, 2000.
Key financial results for the quarter and comparisons versus prior quarters are as follow:
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Q1'00 Q1'99 Growth Q4'99 Growth
Revenues $61.5 million $18.5 million 232% $43.7 million 41%
EBIT
(Earnings
Before
Income Tax) $16.4 million $3.1 million 429% $8.5 million 93%
Net Income $10.0 million $2.9 million 245% $8.1 million 23%
Diluted
EPS(1)
(post-split) $0.04 $0.01 300% $0.03 33%
(1) Incorporates both the November, 1999, 3 - for - 1 stock split and
the February, 2000, 3 - for - 1 stock split
``Once again our strong and profitable first quarter results set the stage for BroadVision to move forward aggressively in the coming year,'' said Dr. Pehong Chen, president and CEO of BroadVision, Inc. ``Our goal is to help enterprises create profitable e-relationships with their customers, suppliers and employees using our complete suite of personalized e-business applications. In essence, these enterprises rely on BroadVision to solidify the company's entire value chain, known as `B2B2C', so that they can become serious players in the New Economy. The market adoption of our solutions around this B2B2C value chain has accelerated since the beginning of this year.''
New Customers
During the quarter, BroadVision signed 110 new licensed customers (102 end-user customers and 8 partner organizations) -- a record number. The company not only continued to garner market share in its core verticals -- financial services, retail/wholesale, manufacturing/high-tech, travel/tourism, and telecommunications -- but also significantly expanded its presence into new industries such as energy, healthcare, media/entertainment, government and B2B digital marketplaces.
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A sampling of new BroadVision customers includes:
-- Financial Services-- AGF Banque, Answer Financial, Banca Populare
di Verona, Banca Profilo, ICICI Ltd., Frost Bank, Motability
Finance,
-- Retail and Wholesale -- Carboulevard, CiaoWeb (Fiat Group),
Dixons, Epson, e-Stamp.com, Fashion500.com, Long's Drug Stores,
OfficeFurniture.com, RedEnvelope, ShopNow.com, Wine & Co.,
-- Manufacturing/High-Technology -- Across Media Networks, Apar
Infotech, Cybertouch, Dade Behring, Inc., Groupe Renault, Legend
Technology, Molex, NEC PC Group, NetShop, NextNordic, Nihon
Unisys, Promon, Taiwan Semiconductor Manufacturing Company, Xerox
do Brasil,
-- Travel and Tourism -- Aer Lingus, Airtours, China Travel, ClubMed,
Liberty Channels, Rail Europe,
-- Telecommunications/ISP -- Equinix, GTE, iABC, Mannesmann,
-- Energy -- Cooper Cameron, Tosco Corporation,
-- Healthcare -- Blue Shield Blue Cross (Highmark), MediMania,
MCY.com (Mediacity), myskinMD, YourDoc.com,
-- Media/Entertainment -- Across Media Networks, billboardlive.com,
Haowan.com, MyAlert.com, Ontempo.com, Televisa, YouBet.com,
-- E-Government -- General Services Administration, San Diego
Workforce; and
-- B2B Digital Marketplaces -- idmarket.com, FuelQuest.com, Planet
Salvage, Planetsat, TheDock.com, WellNet.
Additionally, the company received significant repeat business in new license revenue during the quarter from a number of existing customers including: Agilent Technologies, Air Canada, American Airlines, British Telecom, GE Supply, Getronics ESI, Grainger, LeShop, Mercata, Nortel Networks, Prudential, Sears, USPS, and Wind River.
New Product Offerings
During the first quarter BroadVision shipped three new products. BroadVision One-To-One(TM) Billing is the newest offering in the BroadVision One-To-One applications family. One-To-One Billing is one of the first personalized bill presentment/payment application available that enables one-to-one relationship management with customers while reducing the costs associated with customer care and paper-based billing.
Along with Enterprise Application Integration (EAI) partner Software Technology Corporation (STC), BroadVision developed the SAP One-To-One Intelligent Bridge for Business Commerce providing BroadVision and its customers a solution with strong visual tools for integrating BroadVision One-To-One Commerce with SAP R/3.
Finally, Version 5 of BroadVision One-To-One Enterprise, the company's flagship e-business application for personalized e-business, was made generally available. BroadVision One-To-One Enterprise is a robust foundation for real-time, individualized targeting; easy, flexible content management; and, a foundation for the next-generation of BroadVision applications deployable in both Web and wireless environments. Advanced load balancing, caching and other performance features keep BroadVision sites running in the most demanding environments. BroadVision One-To-One Enterprise is designed to provide an open, extensible architecture for rapid development and deployment of distributed applications. BroadVision One-To-One Enterprise adds extended support for Java, XML, and WAP to existing support of JavaScript, COM, LDAP, and CORBA.
Acquisition
In the first quarter, BroadVision announced a definitive agreement to acquire Interleaf, Inc. including Interleaf's e-content(TM) business dedicated to the development, marketing and sale of XML-based content management tools and WAP technology for wireless delivery of content. Key to the acquisition was the e-content company, a separate Interleaf business unit dedicated to the development, marketing and sale of XML-based content management tools. These tools enable the creation, publication, management and re-use of dynamic, intelligent content for Web and wireless applications. The acquisition was completed on April 14.
Patent Litigation Settlement
During the quarter, BroadVision settled its patent infringement suit against Art Technology Group, Inc., filed by the company in December 1998. As part of the settlement, Art Technology Group agreed to pay an up-front licensing fee as well as payments over a period of three years to BroadVision and receives a license to BroadVision's United States patent number 5,710,887. The total fees will be recognized by BroadVision as licensed revenue ratably over this three year term. This patent protects certain elements of BroadVision's core technology, which is the foundation for BroadVision One-To-One applications, tools and services.
The Latest Live Sites
During the first quarter, 56 BroadVision customers went ``live,'' employing robust and innovative e-business applications. A sampling of the sites that went live during the quarter illustrate the power of BroadVision One-To-One applications:
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-- WellNet Holdings Limited, headquartered in Taiwan, launched
Worldmetal.com, an online metal exchange portal enabling metal
manufacturers and traders around the world to participate in
auctions and procure supplies. Using BroadVision One-To-One
Business Commerce, their Web sites enable registered members to
access industry news and online trading services in English and
Chinese languages. The online exchange has trading in ferrous
products, including steel, and by the end of the year it will
expand into non-ferrous metals such as copper and aluminum. In
addition to a worldwide network of metal manufacturers and metal
traders, other participants providing services will include
banking, insurance, shipping and inspection companies as well as
energy suppliers.
-- Postage meter maker Pitney Bowes is now able to sell stamps over
the Internet using BroadVision One-To-One Retail Commerce. Aimed
primarily at small business owners, their Web site,
www.pitneyworks.com, allows customers to download and print
postage from their personal computers via ClickStamp, a branded
feature on the pitneyworks site. ClickStamp is the first in a
series of Internet postage products to be introduced for the
small business and small office of home office markets by Pitney
Bowes. With a personal computer, an Internet connection and an
inkjet or laser printer, users can print First Class Mail,
Priority Mail, Express Mail and Parcel Post. It allows business
owners to customize their letters and packages with logos and
messages. ClickStamp also has a mail management function to
verify addresses and calculate postage. Pitney Bowes will soon
launch ClickStamp Plus, which will allow customers to download
postage from the Internet to a secure vault attached to their
computer and print as needed without connecting to the Internet.
-- The Sony U.K. Web site www.sonypresentation.com is powered by
BroadVision One-To-One Enterprise and One-To-One Retail Commerce,
delivering personalized information tailored to users'
interest/needs and provides the opportunity to buy or lease a
range of Sony projectors. The site's creative design presents
images targeted to users' profiles and a solutions agent
intelligently guides the user to a suggested product, based on a
series of questions and answers created in the BroadVision
One-To-One Command Center. The site offers multi-lingual and
multi-currency services with live integration into Sony's SAP
system to handle order processing to existing dealers or the
finance leasing company.
New Partnerships and Channel Sales
During the quarter, BroadVision expanded its strategic partnership with Sun Microsystems. This new global collaboration allows the companies to join forces on engineering, marketing and sales initiatives to develop next-generation commerce applications based on Sun's industry-leading standard J2EE technology. With the purpose of incorporating next-generation J2EE platform functionality into the BroadVision applications and enabling the delivery of e-commerce information to any device, anywhere, both companies have committed design and technical resources to support product development on the Sun(TM) platform.
BroadVision also established relationships with leading Enterprise Application Integration (EAI) vendors Software Technologies Corporation and New Era of Networks, Inc. to create out-of-the-box integration applications to link legacy, back-end applications like SAP, PeopleSoft and Oracle to BroadVision One-To-One applications.
With momentum growing worldwide especially in Europe, India, Japan, South America and Australia, BroadVision continues to leverage its relationship with its largest consulting services partner, PricewaterhouseCoopers. Together, the two organizations are focusing on several key industries with industry prototype solutions built for Telecommunications, Consumer Packaged Goods, Retail and Energy & Utilities and Entertainment. PricewaterhouseCoopers, with more than 550 consultants trained worldwide on BroadVision, continues to expand its relationship with BroadVision, as a key strategic e-business vendor.
During the quarter, BroadVision worked closely with its network of 28 systems integration, consulting and reseller partners. To date more than 5,000 external consultants have been trained from companies including Hewlett Packard, Xpedior, PricewaterhouseCoopers, Deloitte Consulting, KPMG, and Andersen Consulting, to help continue the momentum and positive results of the company's focus in partnerships. More than 75 percent of BroadVision's first quarter revenues were either heavily influenced by our systems integrator partners or directly produced by resellers.
Industry Accolades
Adding to its list of awards and accolades, BroadVision was ranked number 365 in the Forbes 500 Companies in America directory published April 17 and listed number 34 in the Barron's 500 annual report in the April 24 issue. In the April 24 issue of Network World, BroadVision was ranked 143 in the NetworkWorld 200 with recognition for having the largest increase in profits 1998-1999 and the fastest growing company in terms of employee hires. In addition, the company was recognized by Inter@ctive Week as one of the Top 10 Companies To Work For in the April 6 issue.
3-For-1 Stock Split
On February 9, 2000, the company announced a 3-for-1 stock split in the form of a stock dividend. The record date of the split was February 21, 2000, the payment date was March 13, 2000, and the ex-dividend date was March 14, 2000.
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 - news; 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.
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BROADVISION, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands)
March 31, December 31,
2000 1999
ASSETS
Current assets:
Cash and cash equivalents $ 283,908 $ 279,823
Short-term investments 86,581 68,758
Accounts receivable, less
doubtful accounts allowances
of $1,746 and $1,446 for
2000 and 1999, respectively 38,006 26,540
Prepaids and other 9,496 5,085
Total current assets 417,991 380,206
Property and equipment, net 21,982 16,751
Long-term investments 13,208 4,414
Other assets 5,673 4,757
Total assets $ 458,854 $ 406,128
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 10,484 $ 5,754
Accrued expenses 13,826 13,156
Unearned revenue 17,315 3,896
Deferred maintenance 24,157 15,228
Income taxes 23,597 151
Current portion of lease obligations 145 270
Current portion of long-term debt 977 977
Total current liabilities 90,501 39,432
Long-term debt 4,615 4,890
Deferred income taxes -- 16,618
Total liabilities 95,116 60,940
Stockholders' equity:
Common stock 25 24
Additional paid-in capital 326,174 320,259
Deferred compensation (147) (226)
Accumulated other comprehensive
income, net of tax 28,444 25,925
Retained earnings
(accumulated deficit) 9,242 (794)
Total stockholders' equity 363,738 345,188
Total liabilities and
stockholders' equity $ 458,854 $ 406,128
BROADVISION, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
Three Months Ended
March 31, -------------------------------
2000 1999
Revenues:
Software licenses $ 40,713 $ 12,783
Services 20,788 5,681
Total revenues 61,501 18,464
Cost of revenues:
Cost of license revenues 2,064 747
Cost of service revenues 15,673 3,322
Total cost of revenues 17,737 4,069
Gross profit 43,764 14,395
Operating expenses:
Research and development 5,759 2,901
Sales and marketing 25,200 7,664
General and administrative 3,611 1,271
Total operating expenses 34,570 11,836
Operating income 9,194 2,559
Other income, net 7,248 516
Income before income tax provision 16,442 3,075
Income tax provision 6,406 138
Net income $ 10,036 $ 2,937
Basic earnings per share $ 0.04 $ 0.01
Diluted earnings per share $ 0.04 $ 0.01
Shares used in computing:
Basic earnings per share 245,495 222,030
Diluted earnings per share 284,688 250,020
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