BroadVision, Inc. Announces Settlement of Administrative Proceedings With SEC

BroadVision, Inc. Announces Settlement of Administrative Proceedings With SEC

REDWOOD CITY, Calif., Jan. 7 /PRNewswire-FirstCall/ -- BroadVision, Inc. (NASDAQ:BVSN), a global provider of self-service web applications, said today that it had reached agreement with the U.S. Securities and Exchange Commission to settle administrative proceedings in connection with the Company's restatement of its financial results for the third quarter of fiscal 2001. There are no fines or financial penalties associated with the settlement.

Without admitting or denying any wrongdoing, BroadVision consented to the Commission's entry of an administrative order that included findings that the Company issued a false and misleading earnings press release and misleading quarterly report. The order requires that the Company cease and desist from committing or causing violations of specified provisions of the federal securities laws. The SEC found that a former executive in charge of professional services who left the Company in 2002 was responsible for the improper accounting.

The restatement concerned revenue related to one software license agreement. Following receipt of payment in full by the customer, the Company recognized revenue on that agreement in its entirety in the third quarter of 2001. The Company subsequently determined that the revenue should instead be recognized ratably over the four-year life of the agreement, and announced on April 1, 2002 that it was restating its financial statements for the third quarter of 2001 to effect this change. The Company has been accounting for the revenue ratably in all periods since the third quarter of 2001.

"We are pleased that we were able to reach what we believe to be a fair and timely settlement of this matter," said Dr. Pehong Chen, Chairman and CEO of BroadVision.

About BroadVision

BroadVision is a global provider of personalized self-service web applications. Our integrated suite of process, commerce, portal, and content solutions helps customers rapidly increase revenues and reduce costs. Over 1,000 organizations -- including Cardinal Health, Circuit City, Hewlett-Packard, Japan Airlines Toyota, the U.S. Air Force and Vodafone -- serving nearly 60 million registered users, rely on BroadVision's open solutions to power and personalize their mission-critical web initiatives. For more information about BroadVision, Inc., call 650-542-5100, email info@broadvision.com or visit www.broadvision.com.

NOTE: BroadVision is a registered trademark of BroadVision, Inc. in the United States and other countries.


Source: BroadVision, Inc.

CONTACT: Bill Herrick of BroadVision Investor Relations,
+1-650-542-3865, or ir1@broadvision.com

Web site: http://www.broadvision.com/


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