U.S. Markets close in 5 hrs 55 mins

BroadVision Announces Second Quarter 2019 Results

REDWOOD CITY, Calif., Aug. 15, 2019 (GLOBE NEWSWIRE) -- BroadVision, Inc. (BVSN), a leading provider of e-business and engagement management solutions, today reported financial results for its second quarter ended June 30, 2019. This was the second quarter for which BroadVision’s balance sheet and results of operations reported under U.S. Generally Accepted Accounting Principles (“GAAP”) included the balance sheet and results of operations of its subsidiary, Vmoso, Inc. (“VMSO”), which is consolidated with BroadVision for GAAP purposes. BroadVision completed the financing of and transfer of its Vmoso and Clearvale platforms to VMSO in the first quarter of 2019 (collectively, the “VMSO transactions”). Revenues for the second quarter were $0.9 million, of which $0.2 million related to VMSO, compared with revenues of $1.1 million for the first quarter ended March 31, 2019, of which $0.2 million related to VMSO, and $1.2 million for the comparable quarter of 2018, which was prior to the completion of the VMSO transactions. 

License revenue for the second quarter of 2019 was $0.5 million, of which $0.2 million was related to VMSO, compared with revenues of $0.6 million for the first quarter ended March 31, 2019, of which $0.2 million was related to VMSO, and $0.6 million for the comparable quarter of 2018, which was prior to the completion of the VMSO transactions. The majority of the second quarter license revenue was generated from the Company's BroadVision® Business Agility Suite™, Commerce Agility Suite™, QuickSilver™, and Clearvale® solutions. Revenue during the quarter was generated from sales to both new and existing customers.

In the second quarter of 2019, BroadVision posted net loss attributable to BroadVision on a GAAP basis of $0.3 million, or $0.06 per basic and diluted share, as compared with GAAP net loss of $0.3 million, or $0.06 per basic and diluted share, for the first quarter of 2019 and GAAP net loss of $2.2 million, or $0.43 per basic and diluted share, for the comparable quarter of 2018. 

As of June 30, 2019, the Company had $4.6 million of cash and cash equivalents, including $2.1 million related to VMSO, compared to a combined balance of $2.6 million as of December 31, 2018, which was prior to the completion of the VMSO transactions.

"For the first time this quarter we are including separate figures for our VMSO subsidiary within our reported results. These figures show that VMSO continued to require investment levels expected for a startup, while the core BroadVision business continued to generate revenues," said Dr. Pehong Chen, President, CEO and Interim CFO of BroadVision.

About BroadVision
Driving innovation since 1993, BroadVision (BVSN) provides e-business solutions that enable the enterprise and its employees, partners, and customers to stay actively engaged, socially connected, and universally organized to achieve greater business results.  BroadVision® solutions—including Vmoso for virtual, mobile, and social business collaboration, and Clearvale for enterprise social networking, both of which are now owned and being developed by BroadVision’s consolidated subsidiary, VMSO—are available globally in the cloud via the Web and mobile applications. Visit www.BroadVision.com for more details.

BroadVision, Business Agility Suite, Commerce Agility Suite, QuickSilver, and Clearvale are trademarks or registered trademarks of BroadVision, Inc. or VMSO 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, including statements regarding BroadVision’s ability to enhance customers’ businesses and BroadVision’s ability to serve its markets and customers better following the VMSO transactions, 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 involve risks and uncertainties that could cause actual results to differ materially from those expressed or implied in the forward-looking statements. These risks and uncertainties include without limitation uncertainty regarding market acceptance of BroadVision’s and VMSO’s products and services, VMSO’s ability to sell Vmoso to its existing customers and new customers, BroadVision’s ability to provide reliable, scalable and cost-efficient Cloud-based offerings, BroadVision’s ability to effectively compete in its intensely competitive market and respond effectively to rapidly changing technology, evolving industry standards and changing customer needs, requirements or preferences, and the other risks set forth in BroadVision’s most recent quarterly report on Form 10-Q, and subsequent reports filed with the Securities and Exchange Commission. All forward-looking statements included in this release 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 except as required by law. These statements are not guarantees of future performance and actual results could differ materially from BroadVision's current expectations.

             
BROADVISION, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
           
  June 30,   December 31,
  2019   2018
ASSETS     (unaudited)      
Current assets:            
Cash, cash equivalents and short-term investments   $  4,620   $  2,574
Other current assets      706      1,168
Total current assets      5,326      3,742
Other non-current assets      184      111
Total assets   $  5,510   $  3,853
LIABILITIES AND STOCKHOLDERS' EQUITY            
Current liabilities   $  2,236   $  1,889
Other non-current liabilities      587     563
Total liabilities      2,823      2,452
Total stockholders’ equity before noncontrolling interest      864      1,401
 Noncontrolling interest      1,823      —
Total stockholders' equity      2,687      1,401
Total liabilities and stockholders' equity   $  5,510   $  3,853
             


                         
BROADVISION, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(In thousands, except per share data)
(unaudited)
                         
    Three Months Ended   Six Months Ended
    June 30,   June 30,
    2019     2018     2019     2018  
Revenues:                        
Software licenses   $  516     $  619     $  1,089     $  1,544  
Services      415        624        910        1,302  
Total revenues      931        1,243        1,999        2,846  
Cost of revenues:                        
Cost of software revenues      1        44        2        77  
Cost of services      251        487        523        1,037  
Total cost of revenues      252        531        525        1,114  
Gross profit      679        712        1,474        1,732  
Operating expenses:                        
Research and development      675        1,297        1,336        2,700  
Sales and marketing      293        464        595        1,030  
General and administrative      705        796        1,315        1,537  
Total operating expenses      1,673        2,557        3,246        5,267  
Operating loss      (994 )      (1,845 )      (1,772 )      (3,535 )
Interest income, net      12        20        22        36  
Other income (loss), net      107        (334 )      15        (151 )
Loss before income taxes      (875 )      (2,159 )      (1,735 )      (3,650 )
Income tax expense      (12 )      (1 )      (16 )      (2 )
Net loss      (887 )      (2,160 )      (1,751 )      (3,652 )
Net loss attributable to noncontrolling interest      (602 )      —        (1,177 )      —  
Net loss attributable to BroadVision   $  (285 )   $  (2,160 )   $  (574 )   $  (3,652 )
                         
Net loss per share, basic and diluted:                        
Basic and diluted net loss per share   $  (0.06 )   $  (0.43 )   $  (0.11 )   $  (0.73 )
Shares used in computing:                        
Weighted average shares, basic and diluted      5,018        4,997        5,010        4,996  
                                 


             
VMOSO, INC.
             
Financial Position (in thousands):
             
          June 30, 2019  
Current assets         $  2,109  
Total assets            2,109  
Current liabilities         $  874  
Total liabilities            874  
Stockholders' equity attributed to BroadVision            (588 )
Stockholders’ equity attributed to non-controlling interest         $  1,823  
Total Liabilities and Stockholders' Equity         $  2,109  
             
Results of Operations (in thousands):
             
    Three Months
Ended
  Six Months
Ended
    June 30,   June 30,
    2019     2019  
Revenues   $  239     $  410  
Cost of revenues      187        365  
Gross profit      52        45  
Operating expenses      944        1,804  
Operating loss      (892 )      (1,759 )
Interest income      9        14  
Other income (expense)      (20 )      (20 )
Net loss attributed to BroadVision      (301 )      (588 )
Net loss attributed to non-controlling interest   $  (602 )   $  (1,177 )
                 

BroadVision Contact:

Pehong Chen
Investor Relations
(650) 331-1000          
Ir1@broadvision.com