BroadVision Narrowing Its Focus
The international company based in California is cutting jobs and revamping its business operations after announcing its revenues dropped by 2/3 over the year.A sharp drop off in IT spending has hurt software and portal application developer BroadVision Inc.
, forcing the company to cut 300 jobs and restructure, officials said Wednesday evening after the bell.
Reporting first quarter 2002 results to Wall Street, Dr. Pehong Chen, BroadVision president and chief executive officer, said the business revamp is a necessary one while waiting for the enterprise customer relationship management (CRM) industry to pick up again.
"The first quarter was challenging, as customers continued to delay IT spending on broad new initiatives," he said. "In response, until conditions improve, we are sharpening the focus of our investments to concentrate on opportunities in the enterprise business portal space. We believe targeting this type of application will enable us to demonstrate the unique advantages of our portal solution..."
The 670 employees left at BroadVision will need to pick up the pieces of a once-popular Silicon Valley start up. Revenues of $30.5 million are only one-third of the funds coming into the company only a year ago, though net losses in the first quarter of 2002 have dropped, from $55.3 million to $36.1 million.
Once a company with international clout, with a worldwide clientele in countries like London and Germany, the company is drastically cutting back on its international presence.
Before announcing its financial results Wednesday, the company announced it would de-list its shares running on the Frankfurt Stock Exchange, effective in three months.
"While we have been pleased with our listing on the Neuer Market, unfortunately, given our recent restructuring efforts, we feel it is prudent to take this action at this time, Chen said. "I would like to reiterate that, as a company, we remain very committed to the European market and this action will not affect our relationships or support of our European customers and partners."
BroadVision currently trades on Nasdaq, hovering Thursday morning between $1.00-1.10 per share. If the company dips below $1 for 30 consecutive days, it could find them de-listed from another stock exchange.
Chen believes the situation is only a temporary one, and points to a list of companies worldwide signing up for BroadVision services.
"With hundreds of portal customers and what we believe is the only portal solution that integrates content management, commerce and personalization technology, BroadVision is well-positioned to extend our market leadership," he said.