PLEASANTON, CA January 23, 2002 Once the e-procurement kings of the hill, Ariba and Commerce One have been struggling over the past year to redefine themselves in this shifting e-commerce market and reposition themselves according to changing customer demands. For Commerce One, that has meant expanding capabilities and preparing to launch its new procurement and sourcing suite 5.0. For Ariba, it has meant a bigger shift, repositioning itself as an enterprise spend management solution provider.
Neither company can claim powerhouse status anymore, but both have survived through the tough economic times of 2001, which is more than many e-commerce companies can say. Both announced their earnings yesterday; here's how they fared:
Commerce One (Nasdaq:CMRC)
For the quarter and fiscal year ending December 31, 2001, revenues totaled $56 million as compared with $191.4 million for the corresponding quarter in 2000 and $81.1 million for the quarter ended September 30, 2001. Revenues for the full year 2001 were $408.6 million as compared with 2000 full year revenues of $401.8 million.
Pro forma net loss for the current quarter was $66.5 million, or $0.23 per share, as compared with $13.3 million, or $0.07 per share, for the corresponding quarter in 2000 and $64.1 million, or $0.24 per share, for the quarter ended September 30, 2001. Pro forma operating results exclude expenses related to the amortization of goodwill and other intangible assets, stock based compensation, acquisition related costs, impairment of intangible assets and equity investments, and restructuring costs; all of which are included under generally accepted accounting principle (GAAP) results.
The net loss on a GAAP basis for the current quarter was $168.3 million, or $0.59 per share, as compared with a net loss of $197.5 million, or $0.99 per share, for the corresponding quarter ended December 31, 2000, and $119 million, or $0.45 per share, for the quarter ended September 30, 2001.
"We believe that Commerce One is taking the right steps to compete effectively as the economy improves," said Mark Hoffman, chairman and chief executive officer of Commerce One. "Our new Commerce One 5.0 suite, which ships this quarter, is engineered to deliver the short-cycle ROI solutions customers are demanding for procurement and sourcing, providing a strong competitive foundation for Commerce One."
Ariba Inc., (Nasdaq: ARBA)
For its first fiscal quarter ending December 31, 2001, Ariba reported revenues of $55.3 million. Pro forma net loss for the quarter excluding certain non-cash and special charges was $6.9 million or a loss of $0.03 per share, beating the First Call consensus estimate of a loss of $0.05 per share. Ariba's pro forma operating results exclude expenses related to the amortization of goodwill and other intangible assets, business partner warrants and stock-based compensation, all of which are included for GAAP reporting purposes. During the corresponding quarter in fiscal 2001, pro forma net income was $14.0 million, or $0.05 per share, excluding certain non-cash and special charges. Net loss on a GAAP basis for the first quarter of fiscal 2002 was $161.3 million, or a loss of $0.63 per share. During the corresponding quarter in fiscal 2001 the net loss on a GAAP basis was $347.6 million, or a loss of $1.48 per share.
"In light of the continued soft global economic environment, I am pleased with the solid results for the quarter," said Bob Calderoni, president and CEO of Ariba. "The Ariba® Spend Management" suite, especially Ariba® Enterprise Sourcing", gained traction in our existing installed base as well as with new customers. As I look out to the second half of this calendar year, I expect further reach from our new products. I feel this positions us well for pro forma profitability and believe we could achieve pro forma break-even as early as June."
"Our spend management strategy and product suite is resonating with new and existing customers as a proven way to clearly understand and manage their company-wide spending, enabling them to significantly reduce costs, improve efficiencies, and grow top-line revenue through faster time to market," continued Calderoni. "Both mid-to-large-sized companies across industries worldwide are using Ariba to manage their entire spend lifecycle and improve their bottom line."
New Ariba deals signed during the quarter included AirProducts and Chemicals Inc., a leading gas and chemical company; AstraZeneca, a leading global pharmaceutical firm; Cegetel, a French telecommunications company; General Dynamics, a global leader in the aerospace and defense industries; NS Group of Holland; Omron Corporation Japan; POSEC, an affiliate of POSCO Engineering and Construction Co. Ltd in Korea; and The Toro Company, a leading provider of outdoor maintenance and beautification products and irrigation systems.
Existing customers that renewed their commitment to Ariba in the past quarter include Charles Schwab; U.S. General Services Administration, a Federal government agency providing auctioning services; and Visa USA, among many others.