BroadVision Slashes Guidance, Cuts 15% of Employees

BroadVision (BVSN Quote - Cramer on BVSN - Stock Picks) sharply lowered its first-quarter guidance, citing the slowing economy and reduced information technology spending, and the company set plans to terminate about 325 employees, or 15% of its workforce.

The company expects revenue for the first quarter ended March 31 of $85 million to $90 million, with a loss of 14 cents to 16 cents a share. According to Thomson Financial/First Call, analysts expect BroadVision to earn 2 cents a share on revenue of $134.4 million. In the same period a year ago, the company earned 4 cents a share, with a top line of $61.5 million.

The company, a developer of e-commerce software applications, plans on recording a restructuring charge in the second quarter. An estimate of the charge will be disclosed when the company reports first-quarter financial results on April 24.

BroadVision, which is based in Redwood City, Calif., also revised downward its previously released financial results for the fourth quarter to include about $4 million of additional expenses. The additional expenses reduced reported fourth-quarter earnings to a penny a share from 2 cents and lowered fiscal 2000 income to 12 cents a share from 13 cents.