BroadVision execs were clearly pleased with the respectable showing in a quarter characterized by worsening economic conditions and the company's attempts to redefine itself. In May, BroadVision launched BroadVision 7, a major revision of its application suite designed to help the vendor narrow its focus from providing self-service E-business apps. Execs credited the new apps with helping to reverse the downward trend in license revenue. BroadVision also slashed operating expenses to $33.8 million, from $76.7 million a year ago, fueled in part by a staff-reduction plan that will leave the company with about 550 employees by the end of the quarter, down from 670 as of June 30.
CEO Pehong Chen said during a conference call that the company already is seeing the benefits of its new portal-oriented strategy. Customers who've invested heavily in what Chen called the "enterprise footprint"--back-end CRM and ERP systems, for example--now are "looking for incremental investments that can unlock" the data residing in that infrastructure.
For the quarter ended June 30, BroadVision posted a loss of $56.7 million on revenue of $29.4 million, compared with a loss of $242.8 million on revenue of $58.0 million a year earlier. Excluding restructuring charges and other one-time expenses, the company's loss was $13.6 million, down from $49.9 million last year. Licensing revenue was $10.3 million, up 26% from the previous quarter but still well below the $21.0 million posted a year earlier.