BroadVision warns of loss, announces layoffs

Summary:The software developer says it will post a loss in its first quarter and lay off 15 percent of its staff in a cost-cutting move.

BroadVision warned after the bell Monday that it will post a loss in its first quarter, miss analysts' sales estimates by at least $45 million and lay off 15 percent of its work force.

The e-business software developer said it now expects to lose between 14 cents and 16 cents a share in its first quarter on sales of between $85 million and $90 million.

First Call consensus pegged BroadVision for a profit of 2 cents a share on sales of $134.3 million.

BroadVision shares closed off 84 cents, or 16 percent, to $4.50 ahead of the warning before falling to $4.25 in after-hours trading.

BroadVision executives said it will also take an unspecified restructuring charge in the second quarter to cover the costs of laying off 325 employees, or roughly 15 percent of its staff.

It also said it absorbed an additional $4 million in charges in its fourth quarter, resulting in actual earnings of 1 cent a share in the quarter instead of the 2 cents a share it reported in January.

"Our first quarter results reflect economic uncertainties, which caused some customers to postpone major IT expenditures," said CEO Pehong Chen in a prepared release. "Given continuing concerns surrounding the economic and IT spending environments, we are taking decisive short-term actions intended to return the company to profitable operation as quickly as possible, including streamlining our organization and aggressively containing discretionary spending."

Last quarter, BroadVision missed analysts' estimates when it made a profit of $4.5 million, or 1 cent a share.

The stock moved as high as $63.69 in June before falling to a 52-week low Monday.

Fourteen of the 27 analysts tracking the stock maintain either a "buy" or "strong buy" recommendation.

Topics: Tech Industry

About

Larry Barrett is a freelance journalist and blogger who has covered the information technology and business sectors for more than 15 years. Most recently, he served as the online news editor for 1105 Media's Office Technology Group and as the online managing editor for SourceMedia's Investment Advisory Group publications Financial Pl... Full Bio

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