BroadVision Profit Soars, to Buy Interleaf

BroadVision Inc. said that its fourth-quarter profit more than tripled, exceeding analyst expectations, and that it reached an agreement to buy Interleaf Inc., another maker of Internet e-commerce software. BroadVision said net income climbed to $8.1 million, or 9 cents a share, from $2.1 million, or 3 cents, a year ago. BroadVision was expected to earn 6 cents, the average estimate of analysts polled by First Call/Thomson Financial. Unofficial whisper estimates ran as high as 9 cents. Revenue surged 173% to $43.7 million.

The Los Altos, Calif.-based company said it will pay $877 million in stock for Waltham, Mass.-based Interleaf, which develops software for companies doing business on the Internet using XML, a fast-growing computer language that’s becoming the standard for Internet software.

BroadVision said the acquisition could increase its revenue by 20% this year and by 30% in 2001.

BroadVision’s products allow companies to manage customers online, providing customized products and services to users based on information gathered about them. Demand for its software, sold directly and through company partners, continues to be high as companies seek to use the Web to capture customer information and mold marketing to a customer’s interests.

BroadVision shares fell $4.50 to close at $152.06 on Nasdaq before earnings were announced. Interleaf jumped $4.31 to $43.13 before the acquisition was announced.