Shin-Yuan Tzou - CFO
Peter Chu - VP, Strategy & Product Management
BroadVision, Inc. (BVSN) Q1 2013 Earnings Call April 24, 2013 5:00 PM ET
Hello and welcome to the BroadVision Q1 Year 2013 Earnings Announcement and Investor Conference Event. Throughout the call all participants will be in a listen-only mode. Afterwards there will be a question-and-answer session. (Operator Instructions) Today, I am pleased to present Peter Chu. Please begin your event.
Thank you. Good afternoon everyone. My name is Peter Chu, Vice President of Strategy, Products and Marketing at BroadVision. Welcome to our 2013 Q1 Financial Results Announcement and Conference Call. I will first provide our standard cautionary comments on forward-looking statements and other legal matters. Next, Dr. Shin-Yuan Tzou, our CFO, will review the first quarter results which were announced in a press release earlier this afternoon. Next I will provide product and marketing updates and then wrap up with a summary. As always we will be pleased to take your questions following the formal portion of the call.
During the course of this conference call BroadVision may make forward-looking statements. All forward-looking statements included in this call are based upon information available to BroadVision as of the date of this call, including statements regarding our expectations of future financial results and product releases, and BroadVision assumes no obligation to update or correct any such forward-looking statements. These statements are not guarantees of future performance and actual results could differ materially from BroadVision’s current expectations. Actual future results may be impacted by various important factors including without limitation, changes in the market, competitive environment and macroeconomic conditions. Additional information on the potential factors that could affect the company’s financial results is included in the company’s periodic reports on Forms 10-K and 10-Q, and other documents filed with the SEC.
All statements and information can also be found on our website at www.broadvision.com under the company investor Information tab and press release page. You can also view our SEC filings and historical financial results under the company investor information tab, SEC filings page.
Now I will turn the call over to Shin-Yuan.
Thanks, Peter. Now our 2013 results in terms of P&L, balance sheet and other operating highlights. Revenues, Q1 total revenues were $3.8 million with $1.6 million in licenses, $1.6 million in maintenance and $0.6 million in consulting services. Sequentially, this compares to Q4 '12 total revenue of $4.1 million with $1.3 million in licenses, $1.9 million in maintenance and $0.9 million in consulting services. In comparison, Q1 '12 total revenues were $3.8 million with $1.4 million in licenses, $1.7 million in maintenance and $0.7 million in consulting services.
Q1 '13 revenues by region were 49% Americas, 49% EMEA, and 22% APJ, compared to 41% Americas, 34% EMEA, and 25% APJ in Q4 '12, and 43% Americas, 33% EMEA, and 21% APJ in Q1 '12. As we have discussed in the past, we expect our geographical mix to fluctuate somewhat from quarter-to-quarter mainly due to our small footprint.
On a GAAP basis, our total operating cost plus cost of revenue were $5.4 million in Q1 '13 compared to $5.5 million in Q4 '12 and $5.5 million in Q1 '12. In Q1 '13, we generated a GAAP net loss of $2.1 million or $0.46 per basic and diluted share compared to a net loss of $1.1 million or $0.25 per basic and diluted share in Q4 '12, and net loss of $1.3 million or $0.29 per basic and diluted share in Q1 '12.
Looking at all four main cost centers. First cost of goods sold, concentrated mainly on cost of services, was $1.2 million in Q1 '13 compared to $1.3 million in Q4 '12. Second, R&D expenses for Q1 '13 was $1.7 million compared to $1.6 million in Q4 '12. Sales and marketing expenses in Q1 '13 was $1.4 million compared to $1.5 million in Q4 '12. Finally, G&A expenses for Q1 '13 was $1.1 million compared to $0.9 million in Q4 '12.
Balance sheet. As of March 31st '13, we had $51.4 million of cash and cash equivalents and short-term investments with no long term debt, compared to $52.3 million at the end of Q4 '12. Accounts receivable were $2.4 million at the end of Q1 '13 compared to $4.0 million at the end of Q4 '12. Days sales outstanding in Q1 '13 was 56 days compared to 91 days in Q4 '12. Prepaid expenses and other current assets were $1.1 million at the end of Q1 '13, same as in Q4 '12.
Other current assets were $0.5 million at the end Q1 '13, same as in Q4 '12. Accounts payable was $0.8 million at the end of Q1 '13 compared to $0.7 million in Q4 '12. Accrued expenses were $2.0 million at the end of Q1 '13, compared to $2.2 million in Q4 '12. Deferred maintenance was $3.5 million at the end of Q1 '13 compared to $3.8 million in Q4 '12. Earned revenue were $2.4 million at the end of Q1 '13, compared to $2.3 million in Q4 '12. Other noncurrent liabilities were $1.0 million at the end of Q1 '13 compared to $1.2 million in Q4 '12.
I'll now turn to Peter for product and marketing updates. Peter?
Thanks, Shin-Yuan. Yesterday, we announced the new release of Clearvale to enhance our flagship enterprise social networking solution. In this release, we enhance Clearvale's ability to control distribution and display of view only documents. Extend our integration capabilities with Microsoft SharePoint, and added many other security features required by our enterprise customers.
The enhanced Clearvale capabilities will also be added to our BroadVision 9 solution, announced last quarter to offer a unified and integrated engagement solutions based on Clearvale's social and mobile capabilities, and [K2 e-business] or relationship management platform, which is BroadVision's personalization and transaction management solution.
On the BroadVision 9, enterprises looking to move to enterprise 2.0 in the context of cloud computing, can now engage with their employees, partners, suppliers and customers by leveraging virtual, social and mobile technologies to deliver immediate top and bottom line impact. In Q1 our R&D efforts have been focused on meeting critical customer needs, to expand their reach, engagement and functional depth of the engagement management solutions.
The Clearvale product family are built on a platform of enterprise grade services with focus on security, flexibility, and scalability. The Clearvale platform is also made widely acceptable from multiple mobility platforms, across leading devices including native apps support for iOS and Android smartphones and tablets, as well as support for widely installed browsers. Meeting the needs of global enterprises with increasing and critical needs to engage more effectively and seamlessly with their employees, partners, suppliers and customers across time zones and across geographies. Our support for 12 leading European and Asian languages has differentiated our product for customers with multi-geographies value chains.
At BroadVision, we invest, create greater choices and options for our valued customers. In Q1, we did 25 Clearvale partner and paid customer transactions in manufacturing, healthcare, hospitality, distribution, financial, and IT industry sectors. Clearvale customers come in all sizes but primarily mid-size enterprises and some difference verticals worldwide, including all of our key focuses in knowledge intensive, interaction intensive and service intensive industries such as technology, telecom, consulting, healthcare, retail, education etcetera.
While most bookings remain relatively small because customers generally start with a limited trial for something as new as social business, they could lead to considerable upside for future growth if these customers expand their usage in the future upon successful adoption. The so called long tail effect. We’re also excited to report that leading accounts continues to increase the user base significantly after their first year of adoption.
In Q1, NTT Communications became one of our latest Passport partners. NTT communications launched [test] management services as an ESN, or enterprise social networking option for the company's cloud based enterprise email service Biz Mail on February 1. Thus, we continue to enhance our integrated Enterprise 2.0 Suite, Clearvale, which consists of the following components. Clearvale Enterprise, the comprehensive enterprise platform of engagement. It offers the most extensive network of networks, which maximizes business returns by embedding valuable social behavior into real business relationships and processes.
Clearvale Express, the simplified version of Clearvale targeted for easy adoption and [vital] expansion. It is easily upgradeable to our enterprise solution. Clearvale Passport, which embodies the above solutions in one integrated suite, is our platform as a service solution targeted at both cloud hosts such as Telcos and ISPs, as well at resellers such as systems integrators, hardware OEMs and vertical, horizontal software buyers. This solution enables our partners to offer their own cloud based social business ecosystem without any heavy upfront investment.
BroadVision 9, our mobile and social engagement management solution integrated with K2 e-business relationship management platform. With respect to go-to-market strategy, we continue to invest in both direct and partnership approach. We extended our web presence to our company portal as well as launching newer programs in select geographies around the world. Our commitment to develop and support our worldwide Clearvale Passport channel programs has made very exciting progress across the board, including Telcos and other service providers, large systems integrators and smaller regional resellers.
In conclusion, we continue our development to establish BroadVision as a key player in the enterprise, social network business. We continue to focus and invest in our product solutions and go-to-market strategy. The go-to-market strategy consists of a two-pronged approach to acquire lighthouse customers through direct sales efforts and in parallel the development of our valuable and global network of partners through our Passport channel program, where partners can market their own branded, cloud-based social enterprise ecosystems powered by Clearvale.
In closing, Clearvale is unique in its depth and breadth as a comprehensive platform for enterprises embracing the virtual, mobile and social business paradigm. Our compelling cloud based mobile and multi-lingual offerings will enable greater penetration of organizations across industries. Our product teams continue to enhance the Clearvale collaboration solutions to increase productivity and efficiencies across business and processes. The focus of our product strategy has always been to focus on four core areas of differentiation where we lead in our industry. They are, one, social business processes; two, social ecosystem or network of networks built to mimic real business relationships and processes; three, social analytics for engagement; and four, full solution delivered as a partner enabled platform.
With that, we thank you for listening and now let’s open it up for your questions.
(Operator Instructions) We have no questions at this time.
Okay. We want to thank everybody for their participation and we will see you next quarter.
Thank you ladies and gentlemen. This concludes our event. Thank you all for participating. You may now disconnect your lines.
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