REDWOOD CITY, Calif. — April 23, 2003 — BroadVision, Inc. (Nasdaq: BVSN), a leading provider of enterprise portal applications, today reported financial results for the first quarter ended March 31, 2003. Revenues for the first quarter of 2003 were $24.5 million, compared with revenues of $28.8 million for the fourth quarter ended December 31, 2002 and $30.5 million for the first quarter of 2002. License revenue for the quarter totaled $8.0 million, and services revenue totaled $16.5 million. In the first quarter, BroadVision posted net income on a generally accepted accounting principles (GAAP) basis of $1.3 million, or $0.04 per share, and recorded an increase in cash and cash investments of $0.4 million. The GAAP net income for the quarter compares with a GAAP net loss of $10.0 million, or $0.31 per share, for the fourth quarter of 2002, and a GAAP net loss of $36.1 million, or $1.14 per share, in the first quarter of 2002.
Pro forma net income for the first quarter of 2003 was $3.3 million, or $0.09 per diluted share, compared with pro forma net income of $3.7 million, or $0.11 per diluted share, in the fourth quarter of 2002. In the first quarter of 2002, the Company reported a pro forma net loss of $19.0 million, or $0.60 per share. Pro forma results exclude certain charges that totaled $1.9 million in the first quarter of 2003, $13.7 million in the fourth quarter of 2002 and $17.1 million in the first quarter of 2002. The charges in the first quarter of 2003 were comprised of restructuring costs and amortization charges related to previously acquired technology. The Company believes its pro forma results provide useful information because they reflect the Company's financial performance excluding certain non-cash and restructuring expenses that the Company believes are not indicative of its core operations.
During the first quarter, BroadVision recorded a $1.4 million credit related to telecommunications costs renegotiated during the quarter. This credit reduced first quarter expenses and increased both GAAP and pro forma net income by approximately $1.4 million.
“We are very pleased to report both GAAP profitability and positive cash flow in our first quarter, despite a challenging selling environment,” commented Dr. Pehong Chen, BroadVision’s president and CEO. “Some top line softness was attributable to seasonal factors, on top of economic and geopolitical uncertainties that contributed to delays in a number of transactions. However, the strength of our installed base was a highlight, evidence that customers are continuing to favor proven vendors such as BroadVision when making new purchase decisions.”
Chen continued, “From an operational standpoint, our expenses were well-controlled, even as we invested substantially in product development and customer support. Our management team is now complete, energized, and focused on increasing our productivity. We believe that our demonstrated product and organizational leadership have positioned us well to capitalize on future market opportunities.”
During the first quarter of 2003, BroadVision expanded its market presence by closing business with new customers, including AEON, Gemeente Tilburg, Raiffeisen bank SA Romania, and Junta Castilla Y Leon. In addition, the Company generated repeat business with Cardinal Health, City of Chicago, ENI Spa, Ericsson, Exempla Healthcare, Infineon, Japan Airlines, Pharmacia, Pitney Bowes, Seiko Epson, State of California and Xerox.
Market adoption continued to grow for the BroadVision 7.0 suite of enterprise portal applications, with customers including CIBC, Infineon, Telecom Italia and Vodaphone Omnitel going live on release 7.0 during the quarter. Additionally, a number of customers and strategic partners leveraged BroadVision solutions in developing portal applications for vertical markets. For example, TXT E-Solutions, Europe’s leading provider of supply chain management solutions, is extending BroadVision applications to provide portal-based supply chain management solutions for the fashion industry. Working with strategic partners to provide specialized vertical solutions contributed to BroadVision’s success in the past quarter and is a key element in BroadVision’s future product roadmap.
A copy of the full story, plus the detailed financial information, can be downloaded at:
http://www.broadvision.com/content/investor/Q103EarningsRelease.pdf
Contact:
BroadVision
Bob Okunski, 650/542-4659 (Investor Relations)
bob.okunski@broadvision.com