BroadVision Announces Profitable Fourth Quarter and Full-Year 2007 Results

BroadVision, Inc. (OTCBB:BVSN), a global provider of e-business solutions, today reported financial results for its fourth quarter ended December 31, 2007. Revenues for the fourth quarter were $11.2 million, compared with revenues of $12.8 million for the third quarter ended September 30, 2007 and $13.0 million for the comparable quarter of 2006.

License revenue for the fourth quarter was $4.6 million versus $5.3 million in the prior quarter and $4.0 million in the comparable quarter of 2006. The majority of the fourth quarter license revenue was generated from the company’s core Commerce and Process solutions from customers including Audible.com, Bristol-Myers Squibb, Hilti, OfficeMax, Vodafone and several other brand name global customers.

In the fourth quarter of 2007, BroadVision posted net income on a U.S. Generally Accepted Accounting Principles (“GAAP”) basis of $5.9 million, or $0.05 per basic and diluted share, as compared with GAAP net income of $5.5 million, or $0.05 per share, for the third quarter of 2007 and GAAP net income of $7.0 million, or $0.09 per basic and diluted share, for the fourth quarter of 2006.

Pro forma net income for the fourth quarter of 2007 was $4.4 million, or $0.04 per basic and diluted share, compared with a pro forma net income of $6.7 million, or $0.06 per basic and diluted share, in the third quarter of 2007 and a pro forma net income of $6.1 million, or $0.08 per basic and diluted share, in the fourth quarter of 2006. These pro forma results exclude restructuring charges, stock compensation expense under SFAS 123 (R), and revaluation of warrant liabilities. A reconciliation of these pro-forma figures to GAAP net income figures is included in a table on the attached financial statements. The Company believes its pro forma results provide useful information because they reflect the Company’s financial performance excluding certain charges, credits, gains and losses that the Company believes are not indicative of its ongoing operations.

Full-year 2007 revenues totaled $50.0 million, with GAAP net income of $17.3 million, or $0.16 per diluted share, compared to 2006 revenues of $52.0 million, with a GAAP net income of $15.0 million, or $0.23 per diluted share. Full-year 2007 license revenue was $21.1 million, compared with 2006 license revenue of $15.2 million. Full-year 2006 net income of $15.0 million includes a $3.4 million pre-tax restructuring credit and a $1.3 million pre-tax charge on warrants re-valuation. Full-year 2007 net income of $17.3 million includes a $3.1 million pre-tax charge related to the revaluation of warrants liabilities.

As of December 31, 2007, the company had a cash balance of $54.0 million, representing a $3.3 million, or 7%, increase over the September 30, 2007 balance of $50.7 million and a 46% increase from the year’s starting cash position of $37.0 million, due primarily to positive cash flow generated from operations of about $14.6 million and about $2.0 million from issuance of common stock.

The Company formally released BroadVision 8.1™ on time at the beginning of the fourth quarter, a major milestone in completing the Company’s new K2 (Kona * Kukini)™ e-business solution sets. Furthermore, BroadVision OnDemand, Ltd. launched the Chinese Edition of CHRM*060™ in November 2007 and its English Edition in January 2008. As the centerpiece of the CHRM™ family of workforce relationship management solutions, CHRM*060™ has generated more than 30 customers, totaling nearly 20,000 subscribers, in less than two months since its launch.

“Having completed several new product releases last year, we now have a very focused goal for 2008,” said Dr. Pehong Chen, President and CEO, BroadVision, “To accelerate our go-to market efforts in sales and marketing, and to deliver significant ROI to global customers via our comprehensive BroadVision 8.1 B2B/B2C/B2E e-business solution sets.”