Ariba First Internet B2B to Break-Even
Ariba Reports Record Revenues; Beats Analyst Expectations
MOUNTAIN VIEW, Calif., Oct. 18 /PRNewswire/ -- Ariba, Inc. (Nasdaq: ARBA), the leading business-to-business (B2B) eCommerce platform and network services provider, today announced record results for the fourth quarter and fiscal year ended September 30, 2000.
Ariba's results marked the company as the first Internet B2B to report a break-even quarter. Revenues for the fourth quarter of fiscal 2000 were the largest quarter in Ariba's history at 134.9 million, up 67 percent from the previous quarter and up 687 percent from the same period last year. Net loss for the quarter excluding non-operating charges was 1.1 million or 0.00 per share, beating the First Call consensus estimate of a loss of 0.05 per share. During the corresponding quarter in fiscal 1999, the net loss was 4.6 million or a loss of 0.03 per share, excluding non-operating charges.
Fiscal year 2000 revenues were 279.0 million, up 515 percent versus 45.4 million in the same period last year. Net loss for the fiscal year excluding non-operating charges was 29.5 million or a loss of 0.15 per share.
"Ariba once again demonstrated leadership through execution this quarter. Our break-even earnings and record revenue validate that our strategy as a platform and network services company has been the correct one," said Keith Krach, Ariba's chairman and chief executive officer. "During the year we increased our customer base 500 percent and deployed more B2B customers than any competitor. Demand for the Ariba eCommerce Platform continues to be strong as customers -- across several industries -- are realizing tangible and immediate benefits from our services."
"Ariba's success for the quarter and year once again reflects the strength of our B2B business model," said Edward P. Kinsey, Ariba's executive vice president and chief financial officer. "Our balanced model with multiple revenue sources offers us flexibility, which is a strategic advantage in the market."
Increasing Customers Base
Ariba's customer portfolio includes some of the world's leading companies across a wide range of industries including financial services, healthcare, consumer packaged goods, automotive, oil and gas, computer hardware, computer software and many more. This quarter, Ariba added 114 customers including: Allied Worldwide, Pfizer, Target Corp., American International Group, Inc., Bear Stearns & Co. Inc., Commonwealth Bank of Australia, First Data Corporation, Hallmark, Honeywell, ING Group, Kmart, NEC and others.
During the fiscal year, Ariba grew its customer base to 435. Customers include: Dell, Dupont, Cargill, Unilever, American Express, Bank of America, Sabre, Arthur Anderson, BMW, Volkswagon, ETrade, Merrill Lynch, Bethlehem Steel and others.
Ariba also announced relationships with several new large marketplaces: -- e2Open, an independent, global business-to-business eMarketplace for
the computer, electronics, and telecommunications industries including
founding companies Hitachi, IBM, LG Electronics, Matsushita Electric
(Panasonic), Nortel Networks, Seagate Technology, Solectron, and
Toshiba;
-- World Wide Retail Exchange, the world's leading retail exchange
bringing together more than 20 retailers including Albertson's,
Best Buy, CVS, Gap Inc. and more;
-- Transplace.com, a new Internet-based global logistics alliance formed
by six of the largest United States-based transportation companies;
-- Transora, the global B2B eMarketplace for the consumer food products
and services industry;
-- Procuron, a newly created marketplace in Canada bringing together
three of the largest banks in Canada, including CIBC, Bank of
Nova Scotia, and Bank of Montreal as well as Bell Canada and Dejardine;
-- Deere & Co. a private marketplace for John Deere dealers. Ariba continued to demonstrate execution through customer deployment this
quarter as well. Ariba now has more than 150 customers up and running. Almost half of Ariba's marketplace customers are already conducting live transactions.
"Ariba has always measured its success based on the success of our customers. This quarter we have deployed a record number of customers on the Ariba(R) B2B Commerce Platform(TM)," said Keith Krach. "We know that customers want a smooth, simple and fast implementation, and Ariba, with the assistance of our partners, provides this. When marketplaces and exchanges are quickly deployed everyone in the ecosystem benefits including market makers, buyers and suppliers."
Ramping Network Platform
Ariba released version 7.0 of Ariba(R) Buyer this quarter, with significant language, currency and localization features to help make international B2B eCommerce a reality. Ariba Buyer 7.0 has enhanced interoperability and usability to provide faster and easier deployment and use, resulting in a more rapid and higher return on investment. The new version also provides a on-ramp to marketplaces, exchanges and the Ariba(R) Commerce Services Network(TM) (Ariba CSN), enabling companies to conduct business with any trading partner worldwide.
This quarter Ariba announced in conjunction with Microsoft and IBM the UDDI initiative, Universal Description Discovery and Integration. UDDI helps users find buyers and suppliers on the network. Thirty-six other eCommerce players also joined this initiative to develop B2B standards that will enable eCommerce to attain more rapid acceptance in the marketplace.
Ariba announced relationships with a number of global financial leaders to create and integrate advanced commercial services offerings for B2B eCommerce. These include: ABN AMRO and Bank of America, two of the premier global corporate banks American Express, the leading global provider of commercial cards and expense management solutions U.S. Bancorp, the largest provider of purchasing cards in the world and Visa International, the largest payment system and one of the preeminent global payments brands. Through these alliances, Ariba's goal is to be one of the first to deliver integrated financial services through a single, global platform.
Ariba partnered with IBM and Cisco to offer the Ariba(R) SupplierLive(TM) program -- a complete, integrated solution to suppliers, giving suppliers hardware, software, implementation services, and integration to the Ariba platform to take advantage of B2B eCommerce.
An alliance with webMethods and EDS introduced "webMethods Ariba Supplier Solutions" a software and services solution designed to accelerate and simplify supplier integration with the Ariba Commerce Services Network(TM) (Ariba CSN), expanding the value and reach of the Ariba platform.
Ariba closed the acquisition of SupplierMarket.com this quarter and introduced Ariba Sourcing. This new service is available for both corporations and marketplaces, and provides online collaborative sourcing technologies that allow buyers and suppliers of direct and indirect goods, specifications-based raw materials, capital assets, and business services to locate ideal trading partners, negotiate purchases, and strengthen supply chains on the Internet.
ABOUT ARIBA
Ariba, Inc. is the leading business-to-business (B2B) eCommerce platform and network services provider. Through the Ariba B2B Commerce platform -- an open, end-to-end infrastructure of interoperable software solutions and hosted Web-based commerce services -- the company enables efficient online trade, integration and collaboration between B2B marketplaces, buyers, suppliers and commerce service providers. The reach and functionality of the Ariba B2B Commerce platform is designed to create Internet-driven economies of scale and process efficiencies for leading companies around the world. Ariba can be contacted in the U.S. at 650-930-6200 or at www.ariba.com.
"Safe Harbor" Statement Under the Private Securities Litigation Reform Act
1995:
Information and announcements in this release involve Ariba's
expectations, beliefs, hopes, plans, intentions or strategies regarding the future and are forward-looking statements that involve risks and uncertainties. All forward-looking statements included in this release are based upon information available to Ariba as of the date of the release, and we assume no obligation to update any such forward-looking statements. These statements are not guarantees of future performance and actual results could differ materially from our current expectations. Factors that could cause or contribute to such differences include, but are not limited to, delays in development or shipment of new versions of our Ariba B2B Commerce Platform lack of market acceptance of the Ariba B2B Commerce Platform or other new products or services inability to continue to develop competitive new products and services on a timely basis introduction of new products or services by major competitors our ability to attract and retain qualified employees difficulties in assimilating companies recently acquired, including Tradex, Trading Dynamics, and SupplierMarket.com and significant fluctuations in our stock price. These and other factors and risks associated with our business are discussed in the Company's Form 10-K filed December 23, 1999 and the Company's Form 10-Q filed August 14, 2000.
NOTE: Ariba and the Ariba logo are registered trademarks and Ariba B2B Commerce Platform are trademarks of Ariba, Inc. All other products or company names mentioned are used for identification purposes only, and may be trademarks of their respective owners.
ARIBA, INC. INCOME STATEMENTS
(in thousands, except per share data)
(unaudited) Three Months Ended Year Ended
September 30, September 30,
2000 1999 2000 1999 Revenues:
License $103,244 $9,829 $198,790 $26,768
Maintenance and
service 31,609 7,312 80,249 18,604
Total revenues 134,853 17,141 279,039 45,372
Cost of revenues 23,636 3,610 47,519 8,813
Gross profit 111,217 13,531 231,520 36,559
Operating Expenses:
Sales and marketing 85,613 12,761 207,234 33,859
Research and
development 16,679 4,309 39,017 11,620
General and
administrative 15,209 2,823 29,172 7,917
Total operating
expenses 117,501 19,893 275,423 53,396
Loss before
amortization,
other income and
taxes (6,284) (6,362) (43,903) (16,837)
Goodwill and other
intangibles 299,909 -- 688,588 --
In-process research
and development 14,600 -- 27,350 --
Business partner
warrants 15,676 -- 29,251 --
Stock-based
compensation 8,093 5,254 18,051 14,584
Loss before other
income and taxes (344,562) (11,616) (807,143) (31,421)
Other income, net 6,314 1,835 16,331 2,219
Provision for
income taxes (1,088) (98) (1,963) (98)
Net loss ($339,336) ($9,879) ($792,775) ($29,300) Basic and diluted
net loss per share ($1.50) ($0.07) ($4.10) ($0.42) Shares used in computing
basic and diluted
net loss per share 225,491 150,073 193,417 70,064 EPS - Excluding non-operating charges & payroll tax on stock option
exercises: Net income (loss) $3,147 ($4,625) ($20,765) ($14,716) Net loss per share
- basic and diluted ($0.03) ($0.11) ($0.21)
Net income per share
- basic $0.01
Net income per share
- diluted $0.01 Shares used in computing
diluted net income
per share 276,054 EPS - Excluding non-operating charges: Net loss ($1,058) ($4,625) ($29,535) ($14,716) Net loss per share
- basic and diluted ($0.00) ($0.03) ($0.15) ($0.21)
ARIBA, INC. BALANCE SHEETS
(in thousands)
(unaudited) September 30,
2000 1999
ASSETS Current assets:
Cash, cash equivalents and
short-term investments $280,210 $98,152
Restricted cash 32,037 800
Accounts receivable, net 61,892 5,157
Prepaid expenses and other current assets 13,067 1,936
Total current assets 387,206 106,045
Property and equipment, net 56,049 9,402
Long-term investments 84,476 54,288
Other assets 1,004 286
Goodwill and other intangibles, net 3,287,138 --
Total assets $3,815,873 $170,021 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities:
Accounts payable $11,235 $3,846
Accrued compensation and related liabilities 54,439 6,959
Accrued liabilities 51,372 4,834
Deferred revenue 199,702 30,733
Current portion of long-term debt 536 685
Total current liabilities 317,284 47,057
Long-term debt, net of current portion 402 781
Total liabilities 317,686 47,838
Stockholders' equity
Common stock 495 364
Additional paid-in capital 4,466,325 191,150
Deferred stock-based compensation (130,003) (24,178)
Accumulated other comprehensive loss (918) (221)
Accumulated deficit (837,712) (44,932)
Total stockholders' equity 3,498,187 122,183
Total liabilities and
stockholders' equity $3,815,873 $170,021
SOURCE Ariba, Inc.
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Contact:
Stefanie Elkins of Ariba, Inc., 650-930-6200, or
aribainvestor@ariba.com
Grüsse Auhof
