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Technology Stocks : BroadVision (BVSN) -- Ignore unavailable to you. Want to Upgrade?

To: goro who wrote (675)	9/23/1998 6:09:00 PM
From: Dave Twibell	Read Replies (2) \| Respond to of 3773

Article from theStreet.com. --------------------------------------------------------------------- Top Stories: Broadvision Tumbles on Accounting Concerns By Suzanne Kapner Staff Reporter 9/23/98 5:40 PM ET Broadvision (BVSN:Nasdaq) shares tumbled 23% to 14 3/16 on heavy volume Wednesday after a report by the Center For Financial Research and Analysis raised questions about the Internet software company's second-quarter revenues and earnings. According to a copy of the report obtained by TheStreet.com, CFRA, run by accounting sleuth Howard Schillet, highlighted issues ranging from revenue recognition in a barter transaction to non-operating earnings making up the majority of net income for the quarter ending June 30. Prior to the June quarter, Broadvision was obligated to make royalty payments to vendors based on a percentage of product revenues. But that royalty agreement was modified in the June period, CFRA says, to a barter transaction. Broadvision agreed to provide a vendor with software in exchange for a reduction in future royalty payments. Nonetheless, CFRA said Broadvision recognized $1.31 million in revenue from that transaction -- 9% of its total for the period. Furthermore, CFRA pointed out that most of Broadvision's second-quarter earnings "constituted interest from investing the proceeds of an equity offering." In the company's first profitable quarter, Broadvision earned $693,000, or 3 cents a share, on revenue of $11.4 million. That compares with a loss of $2.1 million, or 10 cents a share, on revenues of $6 million last year. Excluding both the revenue recognized from the barter transaction and the non-operating earnings, Broadvision's 3-cent profit in its second quarter would have turned into a 3-cent-a-share loss, CFRA concludes. Broadvision, based in Redwood City, Calif., is hosting a conference call after market hours Thursday to discuss CFRA's findings. "The real issue going forward is confidence in Broadvision's revenue and growth prospects," says Sarah Bernstein, an analyst with Wheat First Union in Richmond, Va., who rates the company a buy. (Her firm hasn't performed underwriting services for the company.) "From what I can tell they're sound despite the CFRA report." CFRA declined to comment on the report or provide a copy to TheStreet.