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Author: Smire Two stars, 250 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 3069  
Subject: Q2: ProForma NetProfit Date: 4/24/2002 10:17 AM
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as far as I see it (with just a short glance) they still have operating losses and burn cash - so no news for me but another sign of being on the right way but having not arrived yet...

http://biz.yahoo.com/prnews/020424/sfw023_1.html
Wednesday April 24, 8:54 am Eastern Time

Press Release
SOURCE: Ariba, Inc.

Ariba Reports Results for Second Quarter Fiscal 2002

Quarterly Revenues Grow to $57.2 Million

SUNNYVALE, Calif., April 24 /PRNewswire-FirstCall/ -- Ariba®, Inc. (Nasdaq: ARBA - news), the leading Enterprise Spend Management (ESM) solutions provider, today announced results for the second fiscal quarter ended March 31, 2002.

Revenues for the second quarter of fiscal 2002 were $57.2 million. Pro forma net income for the quarter excluding certain non-cash and special charges was $1.1 million, or $0.00 per share, beating the First Call consensus estimate of a loss of $0.01 per share. Ariba's pro forma operating results exclude expenses related to the amortization of goodwill and other intangible assets, business partner warrants, restructuring and lease abandonment costs and stock-based compensation, all of which are included for GAAP reporting purposes. For the second quarter of fiscal 2001, pro forma net loss was $48.3 million, or a loss of $0.20 per share. Net loss on a GAAP basis for the second quarter of fiscal 2002 was $154 million, or a loss of $0.60 per share. During the corresponding quarter in fiscal 2001 the net loss on a GAAP basis was $1.8 billion, or a loss of $7.60 per share.

``Despite a challenging market environment, I am pleased with Ariba's performance during the March quarter. Ariba beat expectations once again, strengthened revenues, improved pro forma earnings per share, and demonstrated stability across the income statement and balance sheet,' said Bob Calderoni, president and CEO of Ariba. ``Ariba is building a reputation as a company that executes even in tough market conditions. We are well positioned for any acceleration in top line revenue to directly result in pro forma profitability and earnings growth. We have successfully hit pro forma breakeven before schedule and expect pro forma earnings per share to increase when the market for IT spending expands.'

Customers Embrace Ariba® Spend Management(TM) Suite

``Ariba's execution during the quarter went beyond our financial performance,' said Calderoni. ``We demonstrated our ability to deliver Ariba Spend Management solutions successfully and on time. Over the past six months the number of Ariba products which can be used by customers today more than doubled.'

In February, Ariba officially launched the Ariba® Spend Management(TM) Suite, the first integrated solution for analysis, sourcing and procurement that allows companies to manage their full spend lifecycle from planning to payment. The new product suite included three new products: Ariba® Analysis(TM), Ariba® Contracts(TM) and Ariba® Invoice(TM), all of which became generally available during the quarter. In addition, Ariba released new versions of Ariba® Buyer(TM), Ariba® Enterprise Sourcing(TM) and Ariba® Workforce(TM).

Ariba's new products are showing early signs of success, with a number of Ariba customers purchasing the new applications to expand their spend management initiatives. CVS Pharmacy has selected Ariba Invoice to reduce costs associated with the payment process. Royal Bank of Canada has added Ariba Contracts and Ariba Invoice to its Ariba Buyer implementation. KeyCorp has selected Ariba Workforce to manage its consulting, contract and temporary labor spend.

Significant customers around the world continued to select Ariba's flagship products, Ariba Buyer and Ariba Enterprise Sourcing, during the quarter. Northrop Grumman, the second largest supplier of information technology to the federal government, is a new Ariba customer who has purchased Ariba Buyer. Adquira, the leading e-business platform in Spain has selected Ariba Enterprise Sourcing to provide sourcing services across Spain and Latin America. Cesky Mobil, a Czech-based mobile phone company and Ariba's first customer in Eastern Europe, has licensed Ariba Buyer. Nestle Mexico has purchased Ariba Buyer to automate its procurement process. Ariba also signed new deals this quarter with 3M Europe, Honeywell Federal Manufacturing and Technologies, Rochester Gas & Electric, and Towers Perrin among others.

LIVE 2002 Anaheim User Conference

During the quarter Ariba also finalized preparations for its LIVE 2002 Anaheim users conference, scheduled for April 28-29 at the Anaheim Marriott hotel.

``I strongly encourage companies who want to learn more about Enterprise Spend Management to attend this conference,' said Calderoni. ``We have an impressive lineup of speakers from leading companies around the world, who will share how they are implementing the Ariba Spend Management Suite in their organizations to achieve substantial cost savings and improved spend management efficiencies.'

Companies scheduled to present at the conference include: 3M, Air Products, American Express, Amtrak, AstraZeneca, Best Buy, ChevronTexaco, FedEx, First Data Corp., Home Depot, Honeywell Federal Manufacturing and Technologies, KeyCorp, Lucent, Merrill Lynch, Motorola, NS Group (Dutch Railways), National Gypsum, Newark Electronics, Sony Pictures, Unilever, and Verizon.

More information about the conference, including registration details, is available at www.aribalive2002.com.

Conference Call Information

Ariba will hold a conference call today at 8:00 a.m. Pacific Time. To join the earnings call, please dial 913-981-5512. There will be a live web broadcast available on the Ariba investor relations website at www.ariba.com. A replay of this call will be available today by dialing (888) 203-1112 or 719-457-0820 from 1:00 p.m. Pacific Time today through 9:59 p.m. Pacific Time on May 1, 2002.

About Ariba, Inc.

Ariba, Inc. is the leading Enterprise Spend Management (ESM) solutions provider. Ariba solutions are designed to specifically address the needs of the chief financial officer and procurement professionals. The Ariba Spend Management Suite provides a single point of visibility and control allowing companies to engage, manage, and leverage the entire spend lifecycle from analysis, through sourcing, to procurement across the enterprise, while providing systematic measurement, tracking and reporting of best practices. Ariba can be contacted in the U.S. at 1.650.390.1000 or at www.ariba.com.

NOTE: Ariba and the Ariba logo are registered trademarks of Ariba, Inc. in the United States and in other countries. Ariba Spend Management, Ariba Buyer, Ariba Enterprise Sourcing, Ariba Analysis, Ariba Contracts, Ariba Invoice, Ariba Workforce, Ariba Supplier Network, Ariba Travel & Expense, Ariba eForms, AribaLive, BPM Services, Power Sourcing, Total Spend Capture and PO-Flip are trademarks or service marks of Ariba, Inc. All other trademarks are the property of their respective owners.

Ariba Safe Harbor

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 Ariba's products and services; lack of market acceptance of Ariba's existing or future 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 acquired companies; the impact of recent workforce reductions on Ariba's operations; lengthening sales cycles and the deferrals of anticipated orders; declining economic conditions, including a recession; inability to control costs; changes in our pricing or compensation policies; inability to successfully manage a reduction in the company's workforce; 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/A filed December 31, 2001 and in its Form 10-Q filed February 14, 2002.

ARIBA, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited)

March 31, September 30,
2002 2001

ASSETS

Cash, cash equivalents and
investments $238,041 $261,011
Restricted cash 30,574 32,571
Accounts receivable, net 4,464 27,336
Prepaid expenses and other assets 30,921 38,970
Property and equipment, net 38,483 50,353
Goodwill and other intangible
assets, net 587,605 877,806
Total assets $930,088 $1,288,047


LIABILITIES AND STOCKHOLDERS' EQUITY

Accounts payable $15,528 $28,395
Accrued compensation and related
liabilities 39,366 53,285
Accrued liabilities 49,493 56,072
Restructuring costs 18,546 31,194
Deferred revenue 165,995 177,061
Capital leases 257 402
Total liabilities 289,185 346,409

Minority interests 13,536 15,720

Stockholders' equity:
Common stock 530 520
Additional paid-in capital 4,477,312 4,477,971
Deferred stock-based compensation (10,482) (33,023)
Accumulated other comprehensive
loss (6,371) (1,172)
Accumulated deficit (3,833,622) (3,518,378)
Total stockholders' equity 627,367 925,918
Total liabilities and
stockholders' equity $930,088 $1,288,047


ARIBA, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(unaudited)

Three Months Ended Six Months Ended
March 31, March 31,
2002 2001 (A) 2002 2001 (A)

Revenues:
License $24,976 $57,983 $48,636 $181,431
Maintenance and
service 32,216 32,048 63,806 73,370
Total revenues 57,192 90,031 112,442 254,801
Cost of revenues: 12,070 26,791 22,157 58,122
Gross profit 45,122 63,240 90,285 196,679
Operating expenses:
Sales and
marketing 18,956 79,954 47,090 163,642
Research and
development 16,192 25,579 31,800 46,368
General and
administrative 9,732 18,772 20,213 35,167
Operating expenses
before certain
non-cash and
special charges 44,880 124,305 99,103 245,177
Amortization of
goodwill and
other intangible
assets 144,774 327,571 290,188 656,099
Business partner
warrants 5,562 538 5,562 7,858
Stock-based
compensation 4,860 15,697 8,228 36,028
Restructuring and
lease abandonment
costs (158) -- 5,484 --
Impairment of
goodwill, other
intangible assets
and equity
investments -- 1,433,292 -- 1,433,292
Merger related
expenses -- 9,185 -- 9,185
Total operating
expenses 199,918 1,910,588 408,565 2,387,639
Loss before other
income and taxes (154,796) (1,847,348) (318,280) (2,190,960)
Other income, net 1,735 6,132 5,031 10,712
Net loss before
income taxes (153,061) (1,841,216) (313,249) (2,180,248)
Provision for income
taxes 904 (6,040) 1,995 2,552
Net loss $(153,965) $(1,835,176) $(315,244) $(2,182,800)


Net loss per share -
basic and diluted $(0.60) $(7.60) $(1.23) $(9.16)

Shares used in
computing net loss
per share - basic
and diluted 258,748 241,417 257,187 238,351


PRO FORMA CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(unaudited)

Three Months Ended Six Months Ended
March 31, March 31,
2002 2001 (A) 2002 2001 (A)

Revenues:
License $24,976 $58,605 $48,636 $187,516
Maintenance and
service 32,216 32,048 63,806 73,370
Total revenues 57,192 90,653 112,442 260,886
Cost of revenues: 12,070 26,791 22,157 58,122
Gross profit 45,122 63,862 90,285 202,764
Operating expenses:
Sales and
marketing 18,956 79,954 47,090 163,642
Research and
development 16,192 25,579 31,800 46,368
General and
administrative 9,732 18,772 20,213 35,167
Operating
expenses
excluding
certain non-cash
and special
charges 44,880 124,305 99,103 245,177
Income (loss) from
operating activities 242 (60,443) (8,818) (42,413)
Other income, net 1,735 6,132 5,031 10,712
Income (loss) before
income taxes 1,977 (54,311) (3,787) (31,701)
Provision for
income taxes 904 (6,040) 1,995 2,552
Net income (loss) $1,073 $(48,271) $(5,782) $(34,253)


Pro forma net income
(loss) per share -
basic $0.00 $(0.20) $(0.02) $(0.14)

Pro forma net income
(loss) per share -
diluted $0.00 $(0.20) $(0.02) $(0.14)

Shares used in
computing net income
(loss) per share -
basic 258,748 241,417 257,187 238,351

Shares used in
computing net income
(loss) per share -
diluted 276,354 241,417 257,187 238,351


Reconciliation of Pro Forma Net Income (Loss)
(in thousands, except
per share amounts)
(unaudited)

Three Months Ended Six Months Ended
March 31, March 31,
2002 2001 (A) 2002 2001 (A)
Net loss $(153,965) $(1,835,176) $(315,244) $(2,182,800)
Amortization of
goodwill and
other intangible
assets 144,774 327,571 290,188 656,099
Business partner
warrants 5,562 538 5,562 7,858
Business partner
warrants expense
reclassed as a
reduction of
revenue -- 622 -- 6,085
Stock-based
compensation 4,860 15,697 8,228 36,028
Restructuring and
lease abandonment
costs (158) -- 5,484 --
Impairment of
goodwill, other
intangible assets
and equity
investments -- 1,433,292 -- 1,433,292
Merger related
expenses -- 9,185 -- 9,185
Total non-cash
and special
charges 155,038 1,786,905 309,462 2,148,547
Net income (loss) -
pro forma $1,073 $(48,271) $(5,782) $(34,253)

Pro forma net income
(loss) per share -
basic $0.00 $(0.20) $(0.02) $(0.14)

Pro forma net income
(loss) per share -
diluted $0.00 $(0.20) $(0.02) $(0.14)

Shares used in
computing net income
(loss) per share -
basic 258,748 241,417 257,187 238,351

Shares used in
computing net income
(loss) per share -
diluted 276,354 241,417 257,187 238,351



(A) GAAP basis revenues for the three and six months ended
March 31, 2001 exclude the effects of certain business partner
warrant expenses which have been reclassified as a reduction of
revenues due to the adoption of new accounting guidance contained in
EITF No. 01-9, Accounting for Consideration Given by a Vendor to a
Customer or a Reseller of the Vendor's Products. These
reclassifications, which have no effect on net operating results
or earnings per share, do not affect GAAP basis financial statements
for any period after September 30, 2001 and have not been applied to
previously reported pro forma revenues in order to maintain
comparability.
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