Ariba First Internet B2B to Report ProfitEarnings $0.05 and Revenues of $170.2 Million, up 625% Exceeds Expectations
MOUNTAIN VIEW, Calif., Jan 11, 2001 /PRNewswire via COMTEX/ -- Ariba, Inc.
(Nasdaq: ARBA), the leading business-to-business (B2B) eCommerce platform and
network services provider, today announced record results for the first quarter
of fiscal 2001, ended December 31, 2000.
Revenues for the first quarter of fiscal 2001, are the largest for any quarter
in Ariba's history at $170.2 million, up 625 percent from the same period last
year. Net income for the quarter excluding certain non-cash charges was $14.0
million, or $0.05 per share, beating the First Call consensus estimate of $0.02
per share. During the corresponding quarter in fiscal 2000, the comparable net
loss was $5.6 million, or a loss of $0.04 per share, excluding non-cash charges.
"Demand for Ariba eCommerce products and services continues to be strong as
customers -- around the world -- are closely watching the bottom line and
looking to realize immediate benefits," said Keith Krach, Ariba's chairman and
chief executive officer. "Our revenue growth and profitability are the ultimate
validation of a well-balanced strategy and Ariba's best-of-breed eCommerce
applications."
"Ariba continued to build market share and extend its leadership position
globally this quarter," said Larry Mueller, Ariba's president and chief
operating officer. "Looking forward, Ariba is positioning itself to lead the
next wave of e-commerce: extending and validating the strength of our eCommerce
platform."
Building Market Share
Ariba expanded its market share globally this quarter and signed a number of new
contracts around the world including: American Airlines, American Cancer
Society, Best Buy, PNC Bank N.A., Sara Lee and USAA in North America; Dutch
Railways, EuroBank of Greece, TI Group in Europe; Cable & Wireless HKT IMS,
India Markets, and Sony in Asia, and many others.
Delivering Results Worldwide
Additionally, the power of Ariba's eCommerce platform was experienced around the
globe in the first quarter of fiscal 2001. Customers going live on Ariba
included FiNetrics, Rohm & Haas, Sprint PCS, Sunoco, Texaco and Union Bank of
California in North America, as well as Volkswagen, Cemex in Latin America, and
ORICA (a major chemicals company) in Australia among many others.
Extending Global e-Commerce with Leveraged Partnerships
In Japan, Ariba made significant strides to become the leading B2B eCommerce
provider for the world's second largest economy including a joint venture with
SOFTBANK CORP. and SOFTBANK E-COMMERCE CORP., a wholly owned subsidiary of
SOFTBANK CORP., the appointment of Mr. Kuniaki Watanabe as the president of the
combined Ariba-Softbank effort and the addition of 20 proposed partners
including major Japanese electronic manufacturers, system integrators, banks,
brokers and trading houses.
Global B2B e-commerce was further enabled this quarter as the UDDI Project
(Universal Description, Discovery and Integration) was rolled out to the public.
The UDDI Business Registry - initially introduced by Ariba, IBM and Microsoft -
is a Web service designed to accelerate the adoption of B2B integration and
commerce on the Internet. The UDDI Project also announced that 94 new members
have joined since the launch in June of 2000, bringing the total number of
participants to 130.
Additionally technology alliances were struck with Rapt Inc., a leading provider
of solutions for Dynamic Commerce Management (DCM), to help Ariba customers take
the next step in Internet procurement -- intelligent, informed purchasing
decisions across multiple locations, lines of business and purchasing scenarios;
and with diCarta, Inc., the leader of Internet-based, contract and revenue
management solutions, to help its customers reduce process complexity and costs
involved in negotiating and developing contracts.
Launching New Products and Services
A number of new programs to ease the integration to Ariba's eCommerce platform
as well as product enhancements to conduct commerce were introduced in the first
quarter of the fiscal year including:
-- the creation of Ariba Ready(TM), a new Ariba program for helping to ensure
smooth business integration and seamless interoperability between buyers, market
makers, and suppliers accessing the Ariba Commerce Services Network(TM);
-- general availability of AribaLive(TM), a new implementation methodology and
knowledge resource for partners and customers designed to increase deployment
speed and efficiency of Ariba solutions;
-- the latest version of Ariba Sourcing(TM), featuring intuitive graphical user
interface with comprehensive field instructions; expanded criteria for supplier
capability matching; expanded set of product/service RFQ templates for a
wide-ranging variety of areas and expanded registration capability allowing
users to register simultaneously as both a buyer and supplier organization
thereby increasing the reach of the middle tiers throughout the supply chain.
Financial Guidance
In Q2 fiscal year 2001 we expect revenues in the range of $180-$185 million in
revenue and EPS in Q2 in the range of $0.06 per share.
For FY2001, our revenue forecast is $780-$790 million. Our outlook for earnings
growth is $0.25 - $0.26 per share for the year.
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;
inability to expand our operations to support increased growth; the recognition
of an increasing portion of revenues at the end of the quarter; declining
economic conditions, including a slowdown or recession; inability to control
costs; changes in our pricing or compensation policies; 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 29,
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.
BALANCE SHEETS
(in thousands)
(unaudited)
December 31, September 30,
2000 2000
ASSETS
Cash, cash equivalents and
investments $407,983 $364,691
Restricted cash 44,000 32,037
Accounts receivable, net 119,929 61,892
Prepaid expenses and other assets 21,970 14,071
Property and equipment, net 72,909 56,049
Goodwill and other intangible
assets, net 2,992,438 3,287,138
Total assets $3,659,229 $3,815,878
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable $18,578 $11,235
Accrued compensation and related
liabilities 64,769 54,439
Other accrued liabilities 66,466 51,372
Deferred revenue 235,008 199,702
Capital leases and other
obligations 16,576 938
Total liabilities 401,397 317,686
Stockholders' equity
Common stock 500 495
Additional paid-in capital 4,552,127 4,466,325
Deferred stock-based compensation (108,175) (130,003)
Accumulated other comprehensive
loss (1,289) (918)
Accumulated deficit (1,185,331) (837,707)
Total stockholders' equity 3,257,832 3,498,192
Total liabilities and
stockholders' equity $3,659,229 $3,815,878
ARIBA, INC.
STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(unaudited)
Three Months Ended
December 31,
2000 1999
Revenues:
License $128,911 $15,784
Maintenance and service 41,322 7,695
Total revenues 170,233 23,479
Cost of revenues 31,331 3,442
Gross profit 138,902 20,037
Operating expenses:
Sales and marketing 83,688 19,774
Research and development 20,789 4,443
General and administrative 16,395 3,421
Total operating expenses 120,872 27,638
Income (loss) before amortization,
other income and taxes 18,030 (7,601)
Amortization of goodwill and
other intangible assets 328,528 --
Business partner warrants 12,783 --
Amortization of stock-based
compensation 20,331 4,719
Loss before other income and taxes (343,612) (12,320)
Other income, net 4,580 2,059
Pre tax loss (339,032) (10,261)
Provision for income taxes (8,592) (73)
Net loss $(347,624) $(10,334)
Net loss per share - basic and
diluted $(1.48) $(0.07)
Shares used in computing net loss
per share - basic and diluted 235,285 155,980
PRO FORMA STATEMENTS OF OPERATIONS
(in thousands, except per share
amounts)
(unaudited)
Three Months Ended
December 31,
2000 1999
Revenues:
License $128,911 $15,784
Maintenance and service 41,322 7,695
Total revenues 170,233 23,479
Cost of revenues 31,331 3,442
Gross profit 138,902 20,037
Operating expenses:
Sales and marketing 83,688 19,774
Research and development 20,789 4,443
General and administrative 16,395 3,421
Total operating expenses 120,872 27,638
Income (loss) from operating
activities 18,030 (7,601)
Other income, net 4,580 2,059
Pre tax income (loss) 22,610 (5,542)
Provision for income taxes (8,592) (73)
Net income (loss) $14,018 $(5,615)
Pro forma net loss per share -
basic -- $(0.04)
Pro forma net income per share -
diluted $0.05 --
Shares used in computing net loss
per share -- basic -- 155,980
Shares used in computing net
income per share -- diluted 276,712 --
SOURCE Ariba, Inc.
CONTACT: investors, Stefanie Elkins of Ariba, Inc., 650-930-6200, or
aribainvestor@ariba.com
URL: www.ariba.com
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