--------------------------------------------------------------------------------

                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                   FORM 10 - Q

(Mark One)

[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE
    ACT OF 1934

                       For the Quarter Ended June 30, 1998

                                       or

[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
    ACT OF 1934

                         Commission File Number 0-28252



                                BROADVISION, INC.
             ------------------------------------------------------
             (Exact name of registrant as specified in its charter)


              Delaware                                         94-3184303
--------------------------------------------------------------------------------
  (State or other jurisdiction of                           (I.R.S. Employer
   incorporation or organization)                         Identification Number)


 585 Broadway, Redwood City, California                            94063
--------------------------------------------------------------------------------
(Address of principal executive offices)                         (Zip code)


                                 (650) 261-5100
              ----------------------------------------------------
              (Registrant's telephone number, including area code)
              

     Indicate  by check mark  whether the  registrant  (1) has filed all reports
required to be filed by Section 13 or 15 (d) of the  Securities  Exchange Act of
1934  during  the  preceding  12 months  (or for such  shorter  period  that the
registrant was required to file such reports),  and (2) has been subject to such
filing requirements for the past 90 days. YES _X_ NO ___

         As of July 31, 1998 there were  24,240,320  shares of the  Registrant's
Common Stock issued and outstanding.



--------------------------------------------------------------------------------


<PAGE>




                       BROADVISION, INC. AND SUBSIDIARIES

                                    FORM 10-Q
                           QUARTER ENDED JUNE 30, 1998

                                TABLE OF CONTENTS


                                                                        Page No.
                                                                        --------

PART I   FINANCIAL INFORMATION

Item 1.       Financial Statements

                  Consolidated Statements of Operations -
                      Three and six months ended June 30, 1998 and 1997        3

                  Consolidated Balance Sheets -
                      June 30, 1998 and December 31, 1997                      4

                  Consolidated Statements of Cash Flows -
                      Six months ended June 30, 1998 and 1997                  5

                  Notes to Consolidated Financial Statements                   6

Item 2.       Management's Discussion and Analysis of
                  Financial Condition and Results of Operations                9

Item 3.       Quantitative and Qualitative Disclosure About Market Risk       15



PART II       OTHER INFORMATION

Item 1.       Legal Proceedings                                               15

Item 2.       Changes in Securities and Use of Proceeds                       15

Item 3.       Defaults upon Senior Securities                                 15

Item 4.       Submission of Matters to a Vote of Security Holders             15

Item 5.       Other Information                                               16

Item 6.       Exhibits and Reports on Form 8-K                                16



SIGNATURES                                                                    16


                                       2
<PAGE>


                                           PART I. FINANCIAL INFORMATION


ITEM 1.  FINANCIAL STATEMENTS

<TABLE>

                                        BROADVISION, INC. AND SUBSIDIARIES

                                       CONSOLIDATED STATEMENTS OF OPERATIONS
                                     (In thousands, except per share amounts)


<CAPTION>

                                                                Three Months Ended                    Six Months Ended
                                                                     June 30,                             June 30,
                                                               1998              1997              1998             1997
                                                             --------          --------          --------          --------
<S>                                                          <C>               <C>               <C>               <C>     
Revenues:
   Software licenses                                         $  8,018          $  4,098          $ 15,297          $  7,246
   Services                                                     3,367             1,929             6,167             4,072
                                                             --------          --------          --------          --------
   Total Revenues                                              11,385             6,027            21,464            11,318

Cost of revenues:
    Cost of software licenses                                     213               425               400               639
    Cost of services                                            2,092             1,001             3,711             2,144
                                                             --------          --------          --------          --------
       Total cost of revenues                                   2,305             1,426             4,111             2,783

          Gross profit                                          9,080             4,601            17,353             8,535

Operating expenses:
    Research and development                                    2,049             1,802             4,083             3,482
    Sales and marketing                                         6,243             4,257            12,104             8,461
    General and administrative                                    760               700             1,585             1,446
                                                             --------          --------          --------          --------
       Total operating expenses                                 9,052             6,759            17,772            13,389

          Operating income (loss)                                  28            (2,158)             (419)           (4,854)

    Interest and other income                                     797               187               915               408
    Interest and other expense                                   (132)             (138)             (302)             (150)
                                                             --------          --------          --------          --------

          Net income (loss)                                  $    693          $ (2,109)         $    194          $ (4,596)
                                                             ========          ========          ========          ========

Basic and diluted earnings (loss) per share                  $   0.03          $  (0.10)         $   0.01          $  (0.23)
                                                             ========          ========          ========          ========
Shares used in computing
   basic earnings (loss) per share                             24,011            20,219            22,244            20,111
                                                             ========          ========          ========          ========
Shares used in computing
   diluted earnings (loss) per share                           26,771            20,219            24,819            20,111
                                                             ========          ========          ========          ========


<FN>

                            See Accompanying Notes to Consolidated Financial Statements
</FN>
</TABLE>

                                                          3
<PAGE>


<TABLE>

                                             BROADVISION, INC. AND SUBSIDIARIES

                                                CONSOLIDATED BALANCE SHEETS
                                           (In thousands, except per share data)


<CAPTION>

                                                                                         June 30, 1998   December 31, 1997
                                                                                             --------        --------
<S>                                                                                          <C>             <C>     
ASSETS
   Cash and cash equivalents                                                                 $ 63,539        $  8,277
   Restricted cash                                                                               --             1,400
   Short-term investments, restricted                                                            --               796
   Accounts receivable, less allowance for doubtful accounts and returns
     of  $532 and $671, for 1998 and 1997, respectively                                         9,844           9,586
   Prepaids and other current assets                                                            1,487             566
                                                                                             --------        --------

         Total current assets                                                                  74,870          20,625

   Property and equipment, net                                                                  7,440           6,467
   Long-term investment, at cost                                                                1,500            --
   Other assets                                                                                 1,222             250
                                                                                             --------        --------

         Total assets                                                                        $ 85,032        $ 27,342
                                                                                             ========        ========


LIABILITIES AND STOCKHOLDERS' EQUITY

   Accounts payable and accrued expenses                                                     $  4,379        $  4,031
   Unearned revenue                                                                               826           1,335
   Deferred maintenance                                                                         3,699           2,552
   Current portion of capital lease obligations                                                   836             773
   Current portion of long-term debt                                                              548             449
                                                                                             --------        --------

         Total current liabilities                                                             10,288           9,140

   Long-term liabilities                                                                        3,794           3,081
                                                                                             --------        --------

         Total liabilities                                                                     14,082          12,221

   Commitments

   Stockholders' equity:
   Convertible preferred stock, $0.0001 par value; 5,000 shares
    authorized; none issued and outstanding                                                      --              --
   Common stock, $0.0001 par value; 50,000 shares authorized; 24,148 and
    20,343 shares issued and outstanding for 1998 and 1997, respectively
                                                                                               95,130          40,368
   Deferred compensation                                                                         (732)         (1,605)
   Accumulated deficit                                                                        (23,448)        (23,642)
                                                                                             --------        --------
         Total stockholders' equity                                                            70,950          15,121
                                                                                             --------        --------

         Total liabilities and stockholders' equity                                          $ 85,032        $ 27,342
                                                                                             ========        ========

<FN>

                            See Accompanying Notes to Consolidated Financial Statements
</FN>
</TABLE>

                                                           4
<PAGE>

<TABLE>

                                             BROADVISION, INC. AND SUBSIDIARIES
                                            CONSOLIDATED STATEMENTS OF CASH FLOWS
                                                        (In thousands)
<CAPTION>
                                                                                                 Six Months Ended June 30,
                                                                                                 1998              1997
                                                                                               --------          --------
<S>                                                                                            <C>               <C>      
Cash flows from operating activities:
Net income (loss)                                                                              $    194          $ (4,596)
Adjustments to reconcile net income (loss) to net cash
   provided by (used for) operating activities:
     Depreciation and amortization                                                                1,316               712
     Amortization of deferred compensation                                                          180               227
     Allowance for doubtful accounts and returns                                                    283               275
     Revenue recognized on noncash transaction                                                   (1,031)             --
     Changes in operating assets and liabilities:
       Accounts receivable                                                                         (541)           (1,856)
       Prepaids and other current assets                                                           (504)             (328)
       Accounts payable and accrued expenses                                                        348              (409)
       Unearned revenue and deferred maintenance                                                    419              (500)
       Other liabilities                                                                            (10)               (4)
                                                                                               --------          --------
         Net cash provided by (used for) operating activities                                       654            (6,479)

Cash flows from investing activities:
   Additions to property and equipment                                                           (2,074)           (1,073)
   Purchase of long-term investment                                                              (1,500)             --
   Other assets                                                                                    (139)              (67)
   Purchase of short-term investments                                                              --              (1,532)
   Maturity of short-term investments                                                               796             2,850
                                                                                               --------          --------
       Net cash provided by (used for) investing activities                                      (2,917)              178

Cash flows from financing activities:
   Net change in restricted cash                                                                  1,400              --
   Proceeds from issuance of common stock                                                        55,455               488
   Proceeds from borrowings, net                                                                  1,095              --
   Capital lease payments                                                                          (425)             (200)
                                                                                               --------          --------
       Net cash provided by financing activities                                                 57,525               288

Net increase (decrease) in cash and cash equivalents                                             55,262            (6,013)
Cash and cash equivalents at beginning of period                                                  8,277            17,608
                                                                                               ========          ========
Cash and cash equivalents at end of period                                                     $ 63,539          $ 11,595
                                                                                               ========          ========

Supplemental disclosures of cash flow information:
   Other current and noncurrent assets acquired in noncash revenue transaction                 $  1,250          $   --
                                                                                               ========          ========
   Unearned revenue and deferred maintenance - noncash revenue transaction                     $    219          $   --
                                                                                               ========          ========

Non-cash investing and financing activities:
   Acquisition of equipment under capital lease                                                $    215          $    178
                                                                                               ========          ========
   Deferred compensation forfeited due to voluntary terminations                               $    693          $   --
                                                                                               ========          ========
<FN>

                            See Accompanying Notes to Consolidated Financial Statements
</FN>
</TABLE>
                                                       5

<PAGE>




                       BROADVISION, INC. AND SUBSIDIARIES

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS



Note 1.  Organization and Summary of Significant Accounting Policies

Nature  of  Business  -  BroadVision,  Inc.  ("BroadVision"  or  the  "Company")
develops,  markets and supports fully integrated  application software solutions
exclusively  designed  to  manage  one-to-one  relationships  for  the  extended
enterprise.  These total end to end solutions enable a business to capitalize on
the  Internet  as a  unique  platform  to  enhance  commerce,  provide  critical
self-service   functions  or  deliver  targeted   personalized   information  to
customers, suppliers, distributors, employees, or any other constituent of their
extended enterprise on a real-time interactive basis.

Basis of  Presentation  - The  accompanying  consolidated  financial  statements
include the accounts of BroadVision and its wholly owned subsidiaries. They have
been  prepared  in  accordance  with  the  established  guidelines  for  interim
financial  information as provided by the  instructions to Form 10-Q and Article
10 of  Regulation  S-X.  All  significant  intercompany  transactions  have been
eliminated in consolidation.

      The financial results and related  information as of June 30, 1998 and for
the three and six months ended June 30, 1998 and 1997 are unaudited. The balance
sheet at  December  31,  1997  has  been  derived  from  the  audited  financial
statements  at that  date but does not  reflect  all  informational  disclosures
previously reported in accordance with Generally Accepted Accounting Principles.
In the Company's opinion,  the financial statements presented herein include all
necessaary  adjustments,  consisting of normal recurring adjustments,  to fairly
state the Company's  financial position,  results of operations,  and cash flows
for the periods indicated.  The accompanying financial statements should be read
in conjunction with the financial statements and notes thereto included with the
Company's  annual  report  on Form  10-K  and  other  documents  filed  with the
Securities and Exchange Commission.  The results of the Company's operations for
the interim  periods  presented  are not  necessarily  indicative  of  operating
results for the full fiscal year or any future interim periods.

Prepaid  Royalties  - Prepaid  royalties  relating to  purchased  software to be
incorporated  and sold with the Company's  software  products are amortized as a
cost of revenue either on a  straight-line  basis over the remaining term of the
royalty  agreement  or on the basis of  projected  product  revenues,  whichever
results in greater amortization.

Long-term Investment - The Company accounts for nonmarketable equity investments
(consisting of less than 20% of an investee's outstanding voting stock) based on
the cost method;  given the Company  does not have the ability to  significantly
influence the operating and financial  policies of the investee.  Any impairment
in the value of long-term investments,  which is other than a temporary decline,
is charged to the period in which such loss occurs.

Noncash  Transaction  - During the  quarter  ended June 30,  1998,  the  Company
recognized  software  product  revenue,  amounting to  $1,031,000 or 9% of total
revenues,  related to a noncash  transaction.  In this transaction,  the Company
delivered its software  products to a vendor and in return received a negotiated
lump sum settlement for internal  development rights and future royalty payments
to that  vendor  through  2001.  Prior to this  transaction,  the Company had an
existing  arrangement  with the vendor whereby the Company made royalty payments
to the vendor based on a percentage of current product revenues.

                                       6
<PAGE>

Comprehensive  Income -  Effective  January 1, 1998,  the  Company  adopted  the
provisions  of  Statement  of Financial  Accounting  Standard  ("SFAS") No. 130,
Reporting of Comprehensive Income.  Comprehensive income includes all changes in
equity  during a period  except those  resulting  from the issuance of shares of
stock and  distributions  to  stockholders.  There were no material  differences
between net income (loss) and  comprehensive  income (loss) during the three and
six month periods ended June 30, 1998 and 1997.

 Net Loss Per Share - The Financial  Accounting  Standards Board ("FASB") issued
SFAS No. 128,  Earnings Per Share,  which requires the presentation of basic and
diluted  earnings per share.  Earnings per share is  calculated  by dividing net
income applicable to common  stockholders by a weighted average number of shares
outstanding  for the period.  Basic  earnings per share is determined  solely on
common shares,  whereas,  diluted earnings per share includes common  equivalent
shares, as determined under the treasury stock method.

<TABLE>

         The following  table sets forth the basic and diluted  earnings  (loss)
per share computational data for the periods presented.
<CAPTION>

                                                                   Three Months Ended               Six Months Ended
                                                                          June 30,                       June 30,
                                                                 ------------------------       ------------------------
(In thousands, except per share amounts)                           1998           1997            1998           1997
                                                                 --------       --------        --------       -------- 
<S>                                                              <C>            <C>             <C>            <C>      
Net income (loss)                                                $    693       $ (2,109)       $    194       $ (4,596)
                                                                 ========       ========        ========       ========

Weighted average common shares outstanding
 utilized for basic earnings (loss) per share                      24,011         20,219          22,244         20,111

Weighted average common equivalent shares outstanding:
  Employee common stock options                                     2,700           --  [1]        2,502           --  [1]
  Common stock warrants                                                60           --  [1]           73           --  [1]
                                                                 --------       --------        --------       -------- 

     Total weighted average common and common
      equivalent shares outstanding utilized
      for diluted earnings (loss) per share                        26,771         20,219          24,819         20,111
                                                                 ========       ========        ========       ======== 

Basic earnings (loss) per share                                  $   0.03       $  (0.10)       $   0.01       $  (0.23)
                                                                 ========       ========        ========       ======== 

Diluted earnings (loss) per share                                $   0.03       $  (0.10)       $   0.01       $  (0.23)
                                                                 ========       ========        ========       ======== 
<FN>

[1]   The Company  incurred a net loss for the  indicated  period.  Accordingly,
      common  equivalent  shares are  excluded  from the diluted  loss per share
      calculation because they are antidilutive.
</FN>
</TABLE>


New  Accounting  Pronouncements  -  The  FASB  recently  issued  SFAS  No.  133,
Accounting  for  Derivative  Instruments  and Hedging  Activities.  SFAS No. 133
addresses  the  accounting  for  derivative   instruments,   including   certain
derivative instruments embedded in other contracts. Under SFAS No. 133, entities
are required to carry all  derivative  instruments  in the balance sheet at fair
value. The accounting for changes in the fair value (i.e., gains or losses) of a
derivative instrument depends on whether it has been designated and qualifies as
part of a hedging  relationship  and,  if so,  the reason  for  holding  it. The
Company  must  adopt  SFAS No. 133 by  January  1,  2000.  The  Company  has not
determined the impact that SFAS No. 133 will have on its financial statements.

         In March 1998, the American  Institute of Certified Public  Accountants
issued  Statement  of Position  ("SOP") No.  98-1,  Accounting  for the Costs of
Computer Software  Developed or Obtained for Internal Use. SOP No. 98-1 requires
that  certain  costs  related to the  development  or purchase  of  internal-use
software be  capitalized  and amortized  over the  estimated  useful life of the
software.  SOP No. 98-1 is effective for financial  statements issued for fiscal
years  beginning  after  December  15,  1998.  The  Company  does not expect the
adoption of SOP No. 98-1 to have a material impact on its results of operations.

                                       7
<PAGE>


Note 2.  Selective Balance Sheet Detail
<TABLE>

         Property and Equipment consisted of the following (in thousands):
<CAPTION>

                                                                            June 30,       December 31,
                                                                              1998             1997
                                                                         -----------        ---------
<S>                                                                      <C>                <C>      
              Furniture and fixtures                                     $       871        $     636
              Computers and software                                           6,874            5,458
              Leasehold improvements                                           3,418            2,780
                                                                         -----------        ---------
                                                                              11,163            8,874
              Less accumulated depreciation and amortization                  (3,723)          (2,407)
                                                                         -----------        ----------
                                                                         $     7,440        $   6,467
                                                                         ===========        =========
</TABLE>
<TABLE>

         Accrued expenses consisted of the following (in thousands):
<CAPTION>

                                                                            June 30,       December 31,
                                                                              1998             1997
                                                                         -----------         ----------
<S>                                                                      <C>                 <C>       
              Employee benefits                                          $       601         $      420
              Commissions and bonuses                                          1,309                833
              Directors and officers insurance premiums                         --                   57
              Taxes payable                                                      354                366
              Contractors fees                                                   169                162
              Other                                                              495                330
                                                                         -----------         ----------
                                                                         $     2,928         $    2,168
                                                                         ===========         ==========
</TABLE>


Note 3.  Commercial Credit Facilities

         The Company has a revolving line of credit (based on eligible  accounts
receivable)  and a term debt credit  facility  with its  commercial  lender that
provide  for  up  to  $2.3  million  and  $4.8  million  of  total   borrowings,
respectively.  As of June 30,  1998,  the Company had total  borrowings  of $3.7
million under its term debt credit facility and  outstanding  commitments in the
form of two standby  letters of credit totaling $2.2 million under its revolving
line of credit.

         The Company's credit facilities  include covenants which impose certain
restrictions on the payment of dividends and other distributions and require the
Company to maintain  monthly  financial  covenants,  including  a minimum  quick
ratio,  tangible  net worth ratio and minimum  cash  reserves.  The minimum cash
reserves  covenant is replaced with a minimum debt service  coverage  ratio upon
six consecutive  quarters of profitability.  Borrowings are  collateralized by a
security interest in substantially all of the Company's owned assets. As of June
30, 1998 the Company  was in  compliance  with its  commercial  credit  facility
covenants.


Note 4.  Common Stock

         During March 1998, the Company completed a successful  secondary public
stock offering and issued  3,000,000  shares of common stock for net proceeds of
approximately  $46.6  million.  During April 1998,  the  Company's  Underwriters
exercised  their  over-allotment  option and the  Company  issued an  additional
455,850 shares of common stock for net proceeds of approximately $7.1 million.

                                       8
<PAGE>




ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
         OF OPERATIONS

         EXCEPT FOR THE HISTORICAL  INFORMATION  CONTAINED HEREIN, THE FOLLOWING
DISCUSSION   CONTAINS   FORWARD-LOOKING   STATEMENTS   THAT  INVOLVE  RISKS  AND
UNCERTAINTIES.  THE COMPANY'S  ACTUAL  RESULTS COULD DIFFER  SIGNIFICANTLY  FROM
THOSE  DISCUSSED  HEREIN.  FACTORS  THAT  COULD  CAUSE  OR  CONTRIBUTE  TO  SUCH
DIFFERENCES  INCLUDE,  BUT ARE NOT LIMITED TO, THOSE DISCUSSED  HEREIN WITH THIS
QUARTERLY  REPORT ON FORM 10-Q,  THE COMPANY'S  ANNUAL REPORT ON FORM 10-K,  AND
OTHER  DOCUMENTS  FILED WITH THE  SECURITIES AND EXCHANGE  COMMISSION.  ANY SUCH
FORWARD-LOOKING STATEMENTS SPEAK ONLY AS OF THE DATE SUCH STATEMENTS ARE MADE.

                                    OVERVIEW

         BroadVision develops,  markets and supports real time interactive fully
integrated   application  software  solutions  exclusively  designed  to  manage
one-to-one  relationships  for the extended  enterprise.  These total end to end
solutions allow a business to capitalize on the Internet as a unique platform to
conduct commerce,  provide critical self-service functions, and deliver targeted
personalized information to their customers, suppliers, distributors, employees,
or any other constituent of their extended enterprise.

         BroadVision's   product  line  provides  a  competitive  advantage  for
businesses  by  allowing  them to  specifically  tailor Web site  content to the
personalized  needs  and  interests  of  individual   visitors  on  a  real-time
interactive basis. The BroadVision  One-To-One  applications  accomplish this by
capturing  Web  site  visitor  profiles,   dynamically   organizing   enterprise
information,  targeting  content  to each  individual  visitor  based on  easily
constructed  business  rules,  and by  providing  the  means to  facilitate  the
execution  of  secure   transactions.   The  Company  believes  the  competitive
advantages of these applications include, among other things,  enhanced customer
satisfaction and loyalty,  increased  business  volumes,  lower costs to service
customers and execute transactions,  as well as significantly  enhanced employee
productivity.

         The Company's  core product,  the  BroadVision  One-To-One  Application
System,  was first made  commercially  available in December 1995. The Company's
latest  commercially  available  version,  Version 3.0, was released  during the
fourth quarter of 1997 and supports five languages (English,  German,  Japanese,
Chinese,  and Korean) and four major  client/server  databases (Oracle,  Sybase,
Informix, and Microsoft SQL Server). During the quarter ended June 30, 1997, the
Company released a beta version of its next generation of software,  Version 4.0
of the BroadVision  One-To-One  Application  System,  which is anticipated to be
available  for general  release later in 1998. A  complementary  family of three
packaged  application products based on the BroadVision  One-To-One  Application
System-- One-To-One  Commerce,  One-To-One  Financial,  and One-To-One Knowledge
--were first made  commercial  available in 1997. The WebApp  products are built
upon and tightly  integrated  with the  Company's  core  technology  and provide
specifically  enhanced  functionality  for the  distinct  customer  requirements
involved in managing  one-to-one  relationships  within  product  merchandising,
financial services, and knowledge management.

         The Company sells its products and services  worldwide through a direct
sales  force,  independent  distributors,   value-added  resellers,  and  system
integrators.  It also has a global network of strategic  business  relationships
with key industry platform and Web developer  partners.  To date the Company has
achieved good market  acceptance  for its products.  However,  the Company has a
relatively  limited  operating  history,  and its prospects must be evaluated in
light of the risks and uncertainties  frequently encountered by a company within
its early stages of development.  Some of the risks and uncertainties associated
with the Company's stage of development  relate to the new and rapidly  evolving
markets in which it operates.  These related market risks  include,  among other
things,  the early stage of development for online  commerce,  the dependence of
online  commerce on the  continued  development  of the Internet and its related
infrastructure,  the  uncertainty of widespread  adoption of online commerce and
the risk of government regulation of the Internet. Other risks and uncertainties
facing the Company  relate to the Company's  ability to continue to, among other
things, successfully implement its marketing strategies,  respond to competitive
developments,  develop and upgrade its  products and  technologies  more rapidly
than  its  competitors,   and   commercialize   its  products  and  services  by
incorporating  these enhanced  technologies.  There can be no assurance that the
Company will succeed in  addressing  any or all of these risks.  A more complete
description of these and other risks  relating to the Company's  business is set
forth herein under the caption "Factors Affecting  Quarterly Operating Results";
and in the Company's annual report on Form 10-K under the caption "Risk Factors"
and  elsewhere  therein,  and other  documents  filed  with the  Securities  and
Exchange Commission.


                                       9
<PAGE>

                              RESULTS OF OPERATIONS
Revenues

         The Company's  revenues are derived from software license fees and fees
charged for its services.  The Company recognizes software license revenues when
a  non-cancelable  license  agreement has been signed,  the software product has
been shipped,  there are no uncertainties  surrounding product  acceptance,  the
fees are fixed and determinable, and collection is considered probable. Revenues
allocated to software license fees, in general, are recognized upon consummation
of the sale and the portion  allocated to maintenance  and support is recognized
over the contracted period, which is typically one year.  Professional  services
revenues, in general, are recognized as services are performed.

<TABLE>
         Total Company  revenues  increased 89% during the current quarter ended
June 30, 1998 to $11.4 million as compared to $6.0 million for the quarter ended
June 30, 1997.  For the six months ended June 30, 1998,  total Company  revenues
increased 90% to $21.5  million as compared to $11.3 million for the  comparable
period during 1997. A summary of the Company's  revenues by geographic region is
as follows:

<CAPTION>
(In thousands)                      Software        %           Services        %            Total         %
                                 -------------------------   --------------- ---------  ---------------- ------
<S>                                <C>            <C>         <C>             <C>        <C>            <C>
Quarter Ended:

June 30, 1998

   North America                   $     3,391     42 %       $     2,362      70 %      $     5,753     51 %
   Europe                                3,478     43                 547      16              4,025     35
   Asia/Pacific                          1,149     15                 458      14              1,607     14
----------------------------------------------------------------------------------------------------------------
         Total                     $     8,018    100 %       $     3,367     100 %      $    11,385    100 %
================================================================================================================

June 30, 1997

   North America                   $     1,147     28 %       $     1,060      55 %      $     2,207     37 %
   Europe                                2,395     58                 459      24              2,854     47
   Asia/Pacific                            556     14                 410      21                966     16
----------------------------------------------------------------------------------------------------------------
         Total                     $     4,098    100 %       $     1,929     100 %      $     6,027    100 %
================================================================================================================

Six Months Ended:

June 30, 1998

   North America                   $     7,501     49 %       $     4,314      70 %      $    11,815     55 %
   Europe                                5,731     37               1,073      17              6,804     32
   Asia/Pacific                          2,065     14                 780      13              2,845     13
----------------------------------------------------------------------------------------------------------------
         Total                     $    15,297    100 %       $     6,167     100 %      $    21,464    100 %
================================================================================================================

June 30, 1997

   North America                   $     2,593     36 %       $     1,988      49 %      $     4,581     41 %
   Europe                                3,654     50                 794      19              4,448     39
   Asia/Pacific                            999     14               1,290      32              2,289     20
----------------------------------------------------------------------------------------------------------------
         Total                     $     7,246    100 %       $     4,072     100 %      $    11,318    100 %
================================================================================================================
</TABLE>

         Software  product  license  revenues  increased  96% during the current
quarter  ended June 30, 1998 to $8.0 million as compared to $4.1 million for the
quarter  ended June 30, 1997.  For the six months  ended June 30, 1998,  license
revenues  increased  111% to $15.3  million as compared to $7.2  million for the
comparable  period during 1997. The increases in software  license  revenues are
principally  a result of continued  strong market  acceptance  for the Company's
core technology,  BroadVision  One-To-One,  and its three  complementary  WebApp
packaged solutions,  BroadVision  One-To-One  Commerce,  BroadVision  One-To-One
Financial,  and BroadVision One-To-One Knowledge.  WebApps were first introduced
in 1997 and have  become an  integral  part of the total  application  solutions
purchased by customers.  During the six months ended June 30, 1998,  the Company
licensed   approximately  56  new  customers  (including  system  integration  /
distributor  partners) which compares to  approximately 50 during the six months
ended  June  30,  1997 and  approximately  104 for the full  fiscal  year  ended
December 31, 1997.  During the quarter ended June 30, 1998, the company released
a beta version of its next generation of software,  BroadVision  One-To-One 4.0,
which is anticipated to be available for general release later in 1998.


                                       10
<PAGE>

         During the quarter ended June 30, 1998, the Company recognized software
product revenue,  amounting to $1,031,000 or 9% of total revenues,  related to a
noncash  transaction.  In this  transaction,  the Company delivered its software
products to a vendor and in return received a negotiated lump sum settlement for
internal  development  rights and future royalty payments to that vendor through
2001. Prior to this  transaction,  the Company had an existing  arrangement with
the vendor  whereby the Company made  royalty  payments to the vendor based on a
percentage of current product revenues.

         Total services revenues  increased 75% during the current quarter ended
June 30, 1998 to $3.4 million as compared to $1.9 million for the quarter  ended
June 30,  1997.  For the six  months  ended  June 30,  1998,  services  revenues
increased  51% to $6.2  million as compared to $4.1  million for the  comparable
period during 1997. Services revenues consist primarily of professional services
and maintenance.  The Company's professional services include application design
and implementation of BroadVision  One-To-One  technology,  project  management,
custom development of application  objects and templates,  and product education
and  training.  Professional  services  are  generally  offered  on a  time  and
materials basis.  Maintenance  revenue is generally  derived from annual service
agreements and is recognized ratably over the period of the agreement, typically
one year.  Maintenance  fees are  based on a  percentage  of list  price for the
related software.

         Professional services revenues increased 52% during the current quarter
ended June 30, 1998 to $2.3  million as compared to $1.5 million for the quarter
ended June 30,  1997.  For the six  months  ended  June 30,  1998,  professional
services revenues  increased 32% to $4.3 million as compared to $3.3 million for
the  comparable  period  during  1997.   Professional  services  revenues  as  a
percentage of total services revenues were 67% and 77% during the first quarters
of 1998 and 1997, respectively, and were 69% and 80% during the six months ended
June 30, 1998 and 1997,  respectively.  Professional services revenues increased
in absolute dollar terms as a result of higher business volumes evidenced by the
increase in license revenues. In relative terms,  professional services revenues
as a percentage of total services  revenues  declined as a result of the Company
leveraging  its  professional  services.  The  Company has pursued a strategy of
utilizing partners in order to maximize deployments.  This allows the Company to
achieve  higher  volumes  without   corresponding   increases  in  its  services
organization.  As the Company's  strategy of developing  business alliances with
third parties  continues to expand and the Company's  licensed  customer base of
maintenance  contracts grows,  professional services revenues as a percentage of
total services revenues may continue to decline.

         Maintenance  revenues  increased 152% during the current  quarter ended
June 30, 1998 to $1.1 million as compared to $400,000 for the quarter ended June
30, 1997. For the six months ended June 30, 1998, maintenance revenues increased
129% to $1.9 million as compared to $800,000 for the  comparable  period  during
1997.  Maintenance  revenues as a percentage of total services revenues were 33%
and 23% during the quarters ended June 30, 1998 and 1997,  respectively and were
31% and 20% during the six months  ended June 30,  1998 and 1997,  respectively.
The increases in maintenance  revenues are a result of expanding  software sales
and a larger  installed  base of software  licenses.  As of June 30,  1998,  the
Company had licensed its products to over 205 customers. This compares with over
150  customers  as of December  31,  1997,  and over 95 customers as of June 30,
1997. As the Company's installed license base grows, its maintenance revenues as
a percentage of total services revenues may continue to increase.

<TABLE>
Cost of Revenues
<CAPTION>
                                      Three Months Ended June 30,                 Six Months Ended June 30,
                              ------------------------------------------  -----------------------------------------
(in thousands)                   1998        %        1997        %          1998        %        1997        %
--------------                -------------------- ---------------------  -------------------- --------------------
<S>                            <C>          <C>     <C>         <C>        <C>          <C>     <C>         <C>
Cost of software licenses[1]   $     213     3%     $     425   10%        $     400     3%     $     639    9%
Cost of services[2]                2,092    62          1,001   52             3,711    60          2,144   53
                              ------------         ------------           ------------         ------------

Total cost of revenues[3]      $   2,305    20      $   1,426   24         $   4,111    19      $   2,783   25
                              ============         ============           ============         ============
<FN>
[1] - Percentage is calculated  based on total software  license  revenues for
      the period indicated
[2] - Percentage is calculated based on total services revenues for the period
      indicated
[3] - Percentage  is  calculated  based  on  total  revenues  for the  period
      indicated
</FN>
</TABLE>

         Cost of software licenses  includes  royalties payable to third parties
for software that is either embedded in, or bundled and sold with, the Company's
products; commissioned agent fees paid to distributors; and the costs of product
media, duplication, packaging and other associated manufacturing costs.

                                       11
<PAGE>

         Cost of software  licenses  decreased  50% during the  current  quarter
ended June 30, 1998 to $213,000  as compared to $425,000  for the quarter  ended
June 30, 1997. For the six months ended June 30, 1998, cost of software licenses
decreased  37% to $400,000 as compared  to $639,000  for the  comparable  period
during 1997.  Cost of software  licenses  decreased in both absolute  dollar and
relative  percentage  terms  during  1998  as  compared  to 1997  due to  lesser
commissioned agent sales and a higher Company generated sales during the current
period as compared to the comparable prior year period.

         Cost  of  services  consists  primarily  of   employee-related   costs,
third-party  consultant  fees  incurred on  consulting  projects,  post-contract
customer support, and instructional training services.

         Cost of services  increased 109% during the current  quarter ended June
30, 1998 to $2.1 million as compared to $1.0 million for the quarter  ended June
30, 1997. For the six months ended June 30, 1998, cost of services increased 73%
to $3.7 million as compared to $2.1  million for the  comparable  period  during
1997.  Cost of  services  increased  in  absolute  dollar  terms  during 1998 as
compared to 1997 as a result of  expanded  business  volumes,  as  evidenced  by
increased services revenues. Overall costs increased as a result of additions to
the  Company's  professional  services  staff  and  the  employment  of  outside
consultants to meet short-term consulting arrangements.  The increase in cost of
services as a percentage of services revenues is a result of higher  utilization
of outside  consultants in relation to the extent previously utilized during the
prior periods. The Company expects that services costs will continue to increase
in absolute dollars as the Company continues to expand its services organization
to support higher business volumes.

<TABLE>

Operating Expenses
<CAPTION>

                                      Three Months Ended June 30,                 Six Months Ended June 30,
                                ----------------------------------------    ---------------------------------------
(in thousands)                   1998      %[1]       1997      %[1]         1998      %[1]       1997      %[1]
--------------                -------------------- ---------------------  -------------------- --------------------
<S>                           <C>            <C>   <C>           <C>      <C>            <C>   <C>           <C>
Research and Development      $ 2,049        18%   $ 1,802        30%     $ 4,083        19%   $    3,482     31%
Sales and Marketing             6,243        55      4,257        71       12,104        56         8,461     75
General and Administrative        760         7        700        11        1,585         8         1,446     12
                              -------------------- ---------------------  -------------------- --------------------
Total Operating Expenses      $ 9,052        80%   $ 6,759       112%     $ 17,772       83%   $ 13,389      118%
                              ==================== =====================  ==================== ====================
<FN>
[1] - Expressed as a percent of total revenues for the period indicated
</FN>
</TABLE>

         Research  and  development  expenses  consist  primarily  of  salaries,
employee-related benefit costs, and consulting fees incurred in association with
the development of the Company's products.

         Research  and  development  expenses  increased  14% during the current
quarter  ended June 30, 1998 to $2.0 million as compared to $1.8 million for the
quarter  ended June 30, 1997.  For the six months ended June 30, 1998,  research
and development  expenses  increased 17% to $4.1 as compared to $3.5 million for
the  comparable  period  during  1997.  The  increases  in absolute  dollars are
primarily  attributable  to  personnel  costs for added  headcount  within those
operations  involved  in  the  enhancement  of  existing  applications  and  the
development  of  the  Company's  next  generation  of  products.   Research  and
development expenses, as a percent of total revenues, decreased because revenues
have  increased at a higher rate relative to expenses.  The Company  anticipates
that  research and  development  expenses  will continue to increase in absolute
dollars terms.  Development  costs incurred for the research and  development of
new software products are expensed as incurred until  technological  feasibility
in the form of a working  model has been  established,  at which time such costs
are  capitalized,  subject  to  recoverability.  As of June  30,  1998,  no such
software  development  costs had been  capitalized  because  the costs  incurred
between  the time a  working  model  is  established  and the time new  software
products are available for general release have been insignificant.

         Sales  and   marketing   expenses   consist   primarily   of  salaries,
employee-related  benefit costs,  commissions and other incentive  compensation,
travel and  entertainment,  and marketing  program related  expenditures such as
collateral materials, trade shows, public relations, and creative services.


                                       12
<PAGE>

         Sales and marketing  expenses  increased 47% during the current quarter
ended June 30, 1998 to $6.2  million as compared to $4.3 million for the quarter
ended June 30, 1997. For the six months ended June 30, 1998, sales and marketing
expenses  increased  43% to $12.1  million as compared  to $8.5  million for the
comparable  period  during 1997.  The overall  increases in absolute  dollars in
sales and marketing expenditures reflect the cost of hiring additional sales and
marketing personnel,  developing and expanding its sales distribution  channels,
and expanding promotional  activities and marketing related programs.  Sales and
marketing expenses,  as a percent of total revenues,  decreased because revenues
have  increased at a higher rate  relative to expenses.  The Company  intends to
continue to expand its direct sales and marketing efforts and expects that sales
and marketing expenses will continue to increase in absolute dollar terms.

         General and  administrative  expenses  consist  primarily  of salaries,
employee-related benefit costs, and professional service fees.

         General and  administrative  expenses  increased  9% during the current
quarter  ended June 30, 1998 to $760,000 as compared to $700,000 for the quarter
ended  June 30,  1997.  For the six  months  ended June 30,  1998,  general  and
administrative  expenses  increased  10% to $1.6  million  as  compared  to $1.4
million for the comparable period during 1997. The increases in absolute dollars
in  general  and   administrative   expenses  are   attributable  to  additional
administrative  and management  personnel,  higher  professional fees associated
with legal and accounting  matters on nonstandard  transactions,  and additional
infrastructure to support the expansion of the Company's operations. General and
administrative  expenses,  as a percent  of total  revenues,  decreased  because
revenues  have  increased  at a higher rate  relative to  expenses.  The Company
expects to continue to add administrative staff to support broadened operations.
As a result, the Company expects that general and  administrative  expenses will
continue to increase in absolute dollar terms.

         The Company recorded deferred  compensation  relating to the difference
between the  exercise  price and the deemed fair value of the  Company's  Common
Stock with regards to shares issueable upon exercise of options granted prior to
its  initial  public  stock  offering  in June of 1996.  As of June 30, 1998 the
Company had total deferred compensation of $732,000, which is being amortized to
cost of services,  research and development,  selling and marketing, and general
and administrative  expenses over the vesting periods of the respective options,
generally 60 months.  Deferred  compensation expense for the quarters ended June
30, 1998 and 1997 was $88,000 and $117,000, respectively; and for the six months
ended June 30, 1998 and 1997 it was $180,000 and $227,000, respectively.  During
the quarter ended June 30, 1998,  the Company  reversed  $693,000 of unamortized
deferred  compensation  through a debit to common stock  related to  unexercised
stock options forfeited by employees due to voluntary terminations.


                         LIQUIDITY AND CAPITAL RESOURCES

         As of June 30,  1998,  the Company  had $63.5  million of cash and cash
equivalents as compared to $10.4 million of cash, cash  equivalents,  restricted
cash and  short-term  investments as of December 31, 1997,  which  represents an
increase  of $53.1  million.  The  increase  in cash and  cash  equivalents  was
principally  attributable to proceeds from the issuance of common stock.  During
March 1998,  the Company issued  3,000,000  shares of common stock in connection
with a secondary public stock offering that netted the Company total proceeds of
approximately  $46.6  million.  During  April  1998,  the  Underwriters  for the
Company's secondary stock offering exercised their over-allotment option and the
Company issued an additional  455,850 shares of common stock for net proceeds of
approximately  $7.1  million.  During the six months  ended June 30,  1998,  the
Company used approximately $2.1 million for capital expenditures,  approximately
$1.5 million for the purchase of an equity  investment in a partner;  and raised
approximately  $55.5  million from the issuance of common  stock,  approximately
$3.1 million from  additional  borrowings,  maturity of investments or cash that
became  unrestricted,  and  approximately  $700,000  was  provided by  operating
activities.  The Company currently has no significant  capital commitments other
than its obligations under equipment and operating  leases,  commitments of $2.2
million  relating to standby letters of credit,  and $3.7 million of outstanding
term debt. The Company has a commercial  credit facility that provides for up to
total  borrowings of $7.1 million  ($1.2 million of available  credit as of June
30, 1998).

         The Company believes that its available cash resources,  cash generated
from  operations and amounts  available under its commercial  credit  facilities
will be sufficient to meet its expected working capital and capital  expenditure
requirements for more than the next 12 months.


                                       13
<PAGE>

                  FACTORS AFFECTING QUARTERLY OPERATING RESULTS

     The Company  expects to experience  significant  fluctuations  in quarterly
operating results that may be caused by many factors including,  but not limited
to, those discussed below and herein with this quarterly report on Form 10-Q, as
contained in the  Company's  annual  report on Form 10-K under the caption "Risk
Factors" and elsewhere  therein,  and as disclosed in other documents filed with
the Securities and Exchange Commission.

     Significant  fluctuations in future quarterly operating results that may be
caused by many factors  including,  among others, the timing of introductions or
enhancements  of products  and services by the Company or its  competitors,  the
length of the Company's sales cycle, market acceptance of new products, the pace
of  development  of the  market for online  commerce,  the mix of the  Company's
products  sold,  the size and  timing of  significant  orders  and the timing of
customer production or deployment, demand for the Company's products, changes in
pricing  policies by the Company or its  competitors,  changes in the  Company's
sales  incentive  plans,  budgeting  cycles  of its  customers,  customer  order
deferrals in  anticipation of new products or enhancements by the Company or its
competitors, nonrenewal of maintenance agreements, product life cycles, software
defects and other product quality problems,  changes in strategy, changes in key
personnel,  the extent of international  expansion,  seasonal trends, the mix of
distribution  channels through which the Company's products are sold, the mix of
international and domestic sales,  changes in the level of operating expenses to
support  projected  growth,  and  general  economic   conditions.   The  Company
anticipates  that a  significant  portion of its revenues will be derived from a
limited number of orders,  and the timing of receipt and fulfillment of any such
orders is expected to cause  material  fluctuations  in the Company's  operating
results, particularly on a quarterly basis. As with many software companies, the
Company  anticipates  that it will  make the  major  portion  of each  quarter's
deliveries  near the end of each  quarter  and,  as a  result,  short  delays in
delivery of products at the end of a quarter could  adversely  affect  operating
results for that quarter. In addition, the Company intends, in the near term, to
increase  significantly its personnel,  including its domestic and international
direct sales force. The timing of such expansion and the rate at which new sales
people become productive could also cause material fluctuations in the Company's
quarterly operating results.

     Due to the foregoing factors,  quarterly revenues and operating results are
difficult  to  forecast,   and  the  Company   believes  that   period-to-period
comparisons  of its operating  results will not  necessarily  be meaningful  and
should not be relied upon as any indication of future performance.  It is likely
that the Company's future quarterly operating results from time to time will not
meet the expectations of market analysts or investors, which may have an adverse
effect on the price of the Company's Common Stock. The Company  anticipates that
its  operating  expenses will  continue to be  substantial  in relation to total
revenues as it continues the development of its technology,  increases its sales
and marketing activities,  and creates and expands its distribution channels. In
addition, the Company's limited operating history makes the prediction of future
results of operations difficult and, accordingly, there can be no assurance that
the Company  will be able to sustain its revenue  growth or  profitability.  The
Company's  limited  operating  history  also  requires  that  its  prospects  be
evaluated in light of the risks and  uncertainties  frequently  encountered by a
company  in  its  early  stages  of   development.   Some  of  these  risks  and
uncertainties  relate to the new and rapidly  evolving  nature of the markets in
which the Company  operates.  These related  market risks  include,  among other
things, the early stage of the developing online commerce market, the dependence
of  online  commerce  on  the  development  of  the  Internet  and  its  related
infrastructure,  the  uncertainty  pertaining to  widespread  adoption of online
commerce, and the risk of government regulation of the Internet. Other risks and
uncertainties facing the Company relate to the Company's ability to, among other
things, successfully implement its marketing strategies,  respond to competitive
developments, continue to develop and upgrade its products and technologies more
rapidly than its  competitors,  and  commercialize  its products and services by
incorporating  these enhanced  technologies.  There can be no assurance that the
Company will succeed in  addressing  any or all of these risks.  A more complete
description of these and other risks  relating to the Company's  business is set
forth in the  Company's  annual  report on Form 10-K  under  the  caption  "Risk
Factors" and elsewhere therein and other documents filed with the Securities and
Exchange  Commission.  It is also likely  that the  Company's  future  quarterly
operating  results  from time to time will not meet the  expectations  of market
analysts  or  investors,  which may have an  adverse  effect on the price of the
Company's Common Stock.

                                       14
<PAGE>

Year 2000 Compliance - Many currently  installed  computer  systems and software
products  are coded to accept two digit  entries in the date code  field.  These
date code  fields  will need to accept four digit  entries to  distinguish  21st
century dates from 20th century dates.

         As a result, in less than two years, computer systems and software used
by many  companies  may need to be  upgraded  to comply  with such  "Year  2000"
requirements.  Although  the  Company's  products are Year 2000  compliant,  the
Company  believes  that the  purchasing  patterns  of  customers  and  potential
customers  may be affected by Year 2000 issues as companies  expend  significant
resources  to correct or patch  their  current  software  systems  for Year 2000
compliance. These expenditures may result in reduced funds available to purchase
software  products  such as those  offered by the  Company,  which  could have a
material  adverse effect on the Company's  business,  financial  condition,  and
operating  results.  In addition,  even if the Company's  products are Year 2000
compliant,  other systems or software used by the Company's customers may not be
Year 2000 compliant.  The failure of such noncompliant  third-party  software or
systems could affect the perceived performance of the Company's products,  which
could  have a  material  adverse  effect on the  Company's  business,  financial
condition, and operating results.

         The Company  utilizes  various  financial  and  managerial  information
systems within its  operations in the United  States,  Europe and Asia which the
Company believes to be Year 2000 compliant.  Presently, the Company is analyzing
its information system  requirements in relation to its business operating goals
and strategic objectives and, as part of its normal course of business,  expects
to implement new company-wide  systems in the foreseeable  future which would be
Year 2000 compliant. The Company is also analyzing its other systems to identify
any potential Year 2000 issues and will take appropriate corrective action based
on the results of such analysis.  Management has not yet determined the cost, if
any, related to achieving complete Year 2000 compliance.

ITEM 3.      QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

     Not applicable.

                           PART II. OTHER INFORMATION

ITEM 1.  LEGAL PROCEEDINGS

     Not applicable

ITEM 2.  CHANGES IN SECURITIES AND USE OF PROCEEDS

     Not applicable

ITEM 3.  DEFAULTS UPON SENIOR SECURITIES

         Not applicable

ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

(a)      The Annual Meeting of  Stockholders  of the Company was held on May 11,
         1998.

(b)      Pehong Chen,  David L. Anderson,  Yogen K Dalal, Koh Boon Hwee and Carl
         Pascarella were elected as directors.

(c)      The matters voted upon and the voting of the stockholders  with respect
         thereto are as follows:

         (i)      The election of Pehong Chen, David L. Anderson, Yogen K Dalal,
                  Koh Boon Hwee and Carl Pascarella as directors:
                  For:         18,039,411                Withheld:         3,376

         (ii)     To approve the Company's Equity Incentive Plan, as amended, to
                  increase  the  aggregate  number of  shares  of  Common  Stock
                  authorized for issuance under such plan by 975,000:

                  For:         15,225,994                Against:      2,814,243
                  Abstain:          2,500                Broker Non-Vote:     50

         (iii)    To approve the  Company's  Employee  Stock  Purchase  Plan, as
                  amended,  to increase the aggregate number of shares of Common
                  Stock authorized for issuance under such plan by 200,000:

                  For:         17,959,674                Against:         36,380
                  Abstain:          1,789                Broker Non-Vote: 44,944

         (iv)     To  ratify  the   selection   of  KPMG  Peat  Marwick  LLP  as
                  independent auditors of the Company for the fiscal year ending
                  December 31, 1998:

                  For:         18,040,737                Against:          2,050

                                       15
<PAGE>

ITEM 5.  OTHER INFORMATION

         Pursuant  to the  Company's  bylaws,  stockholders  who  wish to  bring
matters or propose nominees for director at the Company's 1999 annual meeting of
stockholders must provide specified  information to the Company between 60 to 90
days prior to the first  anniversary  of the 1998 annual  meeting  (unless  such
matters are included in the  Company's  proxy  statement  pursuant to Rule 14a-8
under the Securities Exchange Act of 1934, as amended).


ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K

(a)      Exhibits

              Item             Description
              ----             -----------
              27               Financial Data Schedule




<TABLE>
                                   SIGNATURES

         Pursuant to the  requirements  of the Securities  Exchange Act of 1934,
the  registrant  has duly  caused  this report to be signed on its behalf by the
undersigned, thereunto duly authorized.

<CAPTION>
<S>                                             <C>
                                                          BROADVISION, INC


Date:   August 13, 1998                          /s/  Pehong Chen
      -----------------------------              -------------------------------------------------------
                                                 Pehong Chen
                                                 President and Chief Executive Officer
                                                 (Principal Executive Officer)


Date:   August 13, 1998                          /s/  Randall C. Bolten
      -----------------------------              -------------------------------------------------------
                                                 Randall C. Bolten
                                                 Vice President, Operations and Chief Financial Officer
                                                 (Principal Financial and Accounting Officer)

</TABLE>



                                       16
<PAGE>




                                INDEX TO EXHIBITS



Exhibit
  No.         Description
  ---         -----------
27            Financial Data Schedule





                                       17