BroadVision(Nasdaq: BVSN) fell US$1.31 to $3.19 in morning trading Tuesday, after the e-commerce softwaremaker said that slowing demand for its products is hurting business, and that itexpects a loss for the quarter just ended.
The company also said it will lay off about 325 people, or 15 percent of itsworkforce, and take a charge to results for the second quarter ending inJune. In addition, BroadVision restated fourth-quarter results to reflect $4million in additional expenses.
BroadVision, of Redwood City, California, said it expects a loss of 14 to 16cents per share for the first quarter ended March 31st, on revenue of $85million to $90 million. Analysts had expected BroadVision to earn 2 cents a share in the firstquarter.
Results were hurt “by uncertainties surrounding thecurrent economic and (information technology) spending environments, whichcaused customers to delay purchases of the company’s products,” BroadVisionsaid.
“Although revenues grew approximately 40 percent year over year, due toexternal factors, we closed fewer transactions than anticipated, the impactof which was especially pronounced among transactions greater than $1million that tend to close at or near the end of the quarter,” saidpresident and chief executive officer Pehong Chen.
According to Chen, because of the economic and IT spendingenvironments, BroadVision is “taking decisive short-term actions intended to returnthe company to profitable operation as quickly as possible, includingstreamlining our organization and aggressively containing discretionaryspending.”
The company said it will give an estimate of the sizeof the charge it plans to take when it reportsfirst-quarter results on April 24th.
Fourth-quarter pro forma earnings, meanwhile, were reduced to a penny pershare from an originally reported 2 cents, to take into account previouslyunrecognized expenses. Full-year pro forma earnings were revised to 12 centsfrom 13 cents.