RealTime IT News

Commerce One Enjoys Solid Revenues

Commerce One Inc. Thursday announced financial results for the third fiscal quarter, coming in several million under revenues reported by chief rival Ariba Inc., which claimed it broke even a day earlier.

Even still, Commerce One's revenues for the current quarter totaled $112.7 million as compared with $10.4 million for the corresponding quarter in 1999 and $62.7 million for the quarter ended June 30, 2000.

This represents a one-year increase of 987 percent, soundly trouncing Ariba's 687 percent revenue increase from the previous year. However, Commerce One's net loss for the quarter was $14.7 million, or 9 cents per share, as compared to $10.3 million, or 7 cents per share, for the corresponding quarter in 1999.

Including all charges, the net loss for the current quarter was $60.6 million, or 37 cents per share, as compared with a net loss of $10.4 million, or 7 cents per share, for the corresponding quarter ended September 30, 1999.

Mark Hoffman, chairman and chief executive officer of Commerce One, attributed his firm's success to its acquisition of AppNet in June and newly-formed alliances with Microsoft, a relationship in which Commerce One developed and delivered e-marketplace infrastructure technologies optimized for the Microsoft.NET Platform.

"We continue to make good progress on our path to profitability," said Hoffman. "In July 2000, we moved our profitability target date from the fourth quarter of 2001, to the third quarter of 2001. Based upon my assessment of our performance, today I am moving our profitability target date up to the second quarter of 2001."

The e-commerce software maker snatched up 96 new clients, which was 18 less than what Ariba recorded.

Still, while Commerce One beat Wall Street's forecast for a third-quarter loss of 12 cents per share, this a tad behind Ariba's push to profit.

IdeaAdvisor.com analyst Seth Martin had said earlier this week that Commerce One must show superior sequential revenue growth and that it would have to report it least $100 million in revenues for investors to get excited enough for the stock to rise. The outfit trumped that number, but the stock only rose 7.69 percent to 63.88 percent by the market's close.

Ariba fared much better by Thursday's close , rising $2.69 to $130.48, recovering from a morning sell-off that had shaved $7 off its share price.

Morningstar.com advisor Joe Beaulieu said Ariba's stock price is too high right now and could see some drop-offs in the future. Beaulieu also said Ariba and Commerce One could be neck-and-neck by this time next quarter in terms of profitability.