widened its anticipated second-quarter
loss to 17 to 20 cents a share on diminished revenues and said its executive
vice president and chief financial officer, Randall Bolten, has resigned.
Wall Street analysts on average had been expecting the provider of
personalized e-commerce apps to report a loss a loss of 11 cents a share on
revenues of about $85 million.
The Redwood City, Calif.-based company said it expects revenues to come in at
about $52 million to $58 million as results for the quarter were “adversely
affected by the continued uncertainties surrounding the current IT spending
BroadVision stock was down 74 cents on the news in mid-morning trading, to
$4.19 a share. Unlike a lot of Internet companies, BroadVision has made
money; its last profitable quarter was the first period of last year, when it
made 4 cents a share. For the first quarter of this year, it lost 39 cents a
share as it ran head-on into the Internet slowdown.
The company also said that as of June 30, it has reduced its workforce to
approximately 1,500 employees, a reduction of 32 percent, or approximately
695 employees, since March 31, including 150 employees from the previously
announced divestiture of its e-Pubs subsidiary.
Bolten, who joined BroadVision in 1995, will step down in late July. Terry
Davis, corporate treasurer, has been appointed interim chief financial
“Our results were affected again in the second quarter by a continued
slowness in the economy,” said Pehong Chen, BroadVision’s president and CEO.
“Although we believe our applications and technology remain the strongest in
the industry, the current environment has caused many customers to postpone
major IT expenditures.”
“If conditions do not improve in the second half of the year, we are prepared
to make additional adjustments in our spending policies and staffing levels,”
he said. “Likewise, if improving business conditions warrant, we will add
resources to grow our business. Our balance sheet remains strong with cash in
excess of $200 million …”
BroadVision Expects Wider Loss