Ariba Reports First Quarter Results; Company Continues to Progress as New and Existing Customers Deploy Comprehensive Spend Management Solutions.SUNNYVALE Sunnyvale, city (1990 pop. 117,229), Santa Clara co., W Calif., near San Francisco; settled 1849, inc. 1912. A city in Silicon Valley, its many manufactures include semiconductors; machinery and instruments; electrical, electronic, and aerospace products; , Calif. -- Ariba(R), Inc. (Nasdaq: ARBA), the leading spend management solutions provider, today announced results for the first quarter of fiscal year 2005 ended December December: see month. 31, 2004. Total revenues for the quarter were $86.9 million, as compared to $52.7 million for the first quarter of fiscal year 2004. Software license revenues for the quarter were $17.1 million, as compared to $18.7 million for the first quarter of fiscal year 2004. Subscription and maintenance revenues were $31.4 million, as compared to $22.1 million for the first quarter of fiscal year 2004. Services and other revenues for the quarter were $38.4 million, as compared to $12.0 million for the first quarter of fiscal year 2004. Net loss for the quarter was $9.8 million, or a loss of $0.16 per share, as compared to net income for the first quarter of 2004 of $6.1 million, or $0.13 per share. The net loss for the quarter included charges of $4.9 million for amortization of intangible assets Intangible Asset An asset that is not physical in nature. Notes: Examples are things like copyrights, patents, intellectual property, and goodwill. These are the opposite of tangible assets. , $4.4 million for stock-based compensation and $1.8 million for restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). and integration costs. Excluding these items,non-GAAP net income was $1.3 million, or $0.02 per share. The results for the first quarter include the results from FreeMarkets, Inc., with which Ariba merged on July July: see month. 1, 2004. Results for the quarter include certain expenses associated with Ariba's recent settlement of its dispute with Softbank (Softbank Corporation, Tokyo, www.softbank.com) A computer conglomerate founded in 1981 by Masayoshi Son. The company has backed Yahoo! and more than 50 hardware, software, communications and Internet companies both in the U.S. and Japan. , but exclude any potential increase in net income for the quarter that may be associated with the settlement. "We continued to make progress in the marketplace during the first quarter, as leading companies around the globe deployed and advanced spend management initiatives using Ariba solutions," said Bob Calderoni, CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , Ariba. "We signed a number of deals with new and existing customers, as companies leveraged both our software and services to drive lower costs, increase margins and accelerate bottom line results." Continued Momentum and Global Execution Seeking innovative and proven ways to achieve their spend management goals, a number of companies in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. , Europe Europe (y  r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). and
Asia selected Ariba's comprehensive portfolio of solutions as the
platform to drive their initiatives. During the quarter, Ariba signed
agreements with 19 new customers, including leading global companies
such as a large insurance company and a leading financial services The examples and perspective in this article or section may not represent a worldwide view of the subject.Please [ improve this article] or discuss the issue on the talk page. company. In addition, the company renewed re·new v. re·newed, re·new·ing, re·news v.tr. 1. To make new or as if new again; restore: renewed the antique chair. 2. or expanded agreements with a number of existing customers, including Unilever Unilever Either of two linked companies, Unilever PLC (based in London) and Unilever NV (based in Rotterdam). They are the holding companies for more than 500 firms worldwide that manufacture and sell soaps, foods, and other products. , ABN AMRO ABN AMRO Algemene Bank Nederland-Amsterdam Roterdam Bank (Dutch bank) , Merck Merck may refer to:
Market-Leading Spend Management Technology As companies expanded their spend management initiatives, they selected offerings from Ariba that could not only meet their immediate needs, but scale to accommodate future growth. During the quarter, customers adopted the recently released Ariba Sourcing Solution, which provides robust sourcing expertise, broad category experience, full closed-loop process coverage and deep penetration The successful unauthorized breach of a security perimeter. See penetration test. in global markets to deliver sustainable sourcing results. In addition, customers from Covisint Covisint is a global enabler of interoperability solutions and services for organizations of any size, connecting people and systems across industries. Covisint supports over 275,000 users, representing more than 30,000 organizations in over 96 countries in the global automotive and , which FreeMarkets acquired in January January: see month. 2004, successfully transitioned to the Ariba Spend Management platform, gaining access to greater features and functionality they can leverage to enhance their sourcing activities. Conference Call Information Ariba will hold a conference call today at 1:30 p.m. PDT/4:30 p.m. EDT EDT abbr. Eastern Daylight Time EDT Eastern Daylight Time EDT n abbr (US) (= Eastern Daylight Time) → hora de verano de Nueva York EDT to discuss the quarterly and year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. results. To join the call, please dial (877) 375-2162 in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. and Canada Canada (kăn`ədə), independent nation (2001 pop. 30,007,094), 3,851,787 sq mi (9,976,128 sq km), N North America. Canada occupies all of North America N of the United States (and E of Alaska) except for Greenland and the French islands of , or (973) 582-2734 if calling internationally. There will also be a live web broadcast available on the investor relations Investor relations The process by which the corporation communicates with its investors. section of the company's website at www.ariba.com or at www.vcall.com. A replay of this call will be available approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 3:00 p.m. PDT/6:00 p.m. EDT today through Monday Monday: see week. , February February: see month. 7, 2005 by dialing (877) 519-4471 in the United States and Canada or (973) 341-3080 internationally and entering ID #: 5574264. About Ariba, Inc. Ariba, Inc. is the leading provider of Spend Management solutions. Ariba helps companies realize rapid and sustainable bottom-line bot·tom-line adj. 1. Concerned exclusively with costs and profits: bottom-line issues. 2. Ruthlessly realistic; pragmatic: a bottom-line political strategy. results. Successful companies around the world in every industry use Ariba Spend Management software and services. Ariba can be contacted in the U.S. at 1.650.390.1000 or at www.ariba.com. Copyright (C) 1996 - 2005 Ariba, Inc. Ariba and the Ariba logo are registered trademarks of Ariba, Inc. Ariba Spend Management, Ariba Spend Management. Find it. Get it. Keep it., Ariba. This is Spend Management, Ariba Solutions Delivery, Ariba Analysis, Ariba Buyer, Ariba Category Management, Ariba Category Procurement The fancy word for "purchasing." The procurement department within an organization manages all the major purchases. , Ariba Contract Compliance, Ariba Contracts, Ariba Contract Management, Ariba Contract Workbench, Ariba Data Enrichment enrichment Food industry The addition of vitamins or minerals to a food–eg, wheat, which may have been lost during processing. See White flour; Cf Whole grains. , Ariba eForms, Ariba Sourcing, Ariba Invoice An itemized statement or written account of goods sent to a purchaser or consignee by a vendor that indicates the quantity and price of each piece of merchandise shipped. A consular invoice is one used in foreign trade. , Ariba Travel & Expense, Ariba Workforce, Ariba Supplier Network, Ariba Supplier Performance Management, Ariba PunchOut, Ariba QuickSource, PO-Flip, Ariba Settlement and Ariba Spend Management Knowledge Base are trademarks or service marks of Ariba, Inc. Ariba Proprietary and Confidential confidential, adj pertaining to information that is only shared with those directly responsible for patient care. . All rights reserved. Patents pending. All other trademarks are property of their respective owners. Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. Statement under the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and 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 forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. 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 Ariba's operating and financial results to differ materially from its current expectations 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 COMPETITORS, French law. Persons who compete or aspire to the same office, rank or employment. As an English word in common use, it has a much wider application. Ferriere, Dict. de Dr. h.t. ; the ability to attract and retain qualified employees; difficulties in assimilating as·sim·i·late v. as·sim·i·lat·ed, as·sim·i·lat·ing, as·sim·i·lates v.tr. 1. Physiology a. To consume and incorporate (nutrients) into the body after digestion. b. acquired companies; long and unpredictable sales cycles and the deferrals of anticipated orders; declining economic conditions; inability to control costs; changes in the company's pricing or compensation policies; significant fluctuations in our stock price; the outcome of and costs associated with pending or potential future regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. or legal proceedings All actions that are authorized or sanctioned by law and instituted in a court or a tribunal for the acquisition of rights or the enforcement of remedies. ; the impact of our acquisitions, including the disruption disruption /dis·rup·tion/ (dis-rup´shun) a morphologic defect resulting from the extrinsic breakdown of, or interference with, a developmental process. or loss of customer, business partner, supplier or employee relationships; and the level of costs and expenses incurred by Ariba as a result of such transactions. Factors and risks associated with its business, including a number of the factors and risks described above, are discussed in Ariba's Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. filed December 14, 2004.
Ariba, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(Unaudited; in thousands)
Dec. 31, Sept. 30,
2004 2004
----------- -----------
ASSETS
Current assets:
Cash and cash equivalents $82,466 $74,031
Short-term investments 47,219 37,227
Restricted cash 1,248 45,623
Accounts receivable, net 54,929 48,071
Prepaid expenses and other current assets 7,303 10,795
----------- -----------
Total current assets 193,165 215,747
Property and equipment, net 21,791 21,909
Long-term investments 29,439 29,676
Restricted cash, less current portion 32,692 26,862
Goodwill 575,820 574,679
Other intangible assets, net 56,795 62,249
Other assets 2,557 2,767
----------- -----------
Total assets $912,259 $933,889
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $16,675 $15,433
Accrued compensation and related
liabilities 28,928 31,171
Accrued liabilities 81,397 87,522
Restructuring obligations 18,468 16,825
Deferred revenue 45,317 49,664
----------- -----------
Total current liabilities 190,785 200,615
Accrued liabilities, less current portion 3,023 3,454
Restructuring obligations, less current
portion 45,812 41,042
Deferred revenue, less current portion 21,707 22,858
----------- -----------
Total liabilities 261,327 267,969
----------- -----------
Minority interests 874 19,547
Stockholders' equity:
Common stock 131 125
Additional paid-in capital 4,989,610 4,963,002
Deferred stock-based compensation (23,166) (5,959)
Accumulated other comprehensive income 5,664 1,634
Accumulated deficit (4,322,181) (4,312,429)
----------- -----------
Total stockholders' equity 650,058 646,373
----------- -----------
Total liabilities and stockholders'
equity $912,259 $933,889
=========== ===========
Ariba, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
(Unaudited; in thousands, except per share data)
Three Months
Ended
December 31,
2004 2003
--------- --------
Revenues:
License $17,122 $18,676
Subscription and maintenance 31,428 22,067
Services and other 38,379 11,988
--------- --------
Total revenues 86,929 52,731
--------- --------
Cost of revenues (1) 37,057 16,912
Amortization of acquired technology and customer
intangible assets 4,700 -
--------- --------
Total cost of revenues 41,757 16,912
--------- --------
Gross profit 45,172 35,819
--------- --------
Operating expenses:
Sales and marketing (1) 24,673 13,555
Research and development (1) 13,043 12,277
General and administrative 8,614 4,543
Amortization of other intangible assets 185 -
Stock-based compensation 4,378 30
Restructuring and integration costs 1,817 -
--------- --------
Total operating expenses 52,710 30,405
--------- --------
(Loss) income from operations (7,538) 5,414
Interest and other income, net 2,615 818
--------- --------
Net (loss) income before income taxes and minority
interests (4,923) 6,232
Provision (benefit) for income taxes 4,813 (272)
Minority interests in net income
of consolidated subsidiaries 16 413
--------- --------
Net (loss) income $(9,752) $6,091
========= ========
Net (loss) income per share - basic (2) $(0.16) $0.14
Weighted average shares - basic (2) 62,707 45,000
Net (loss) income per share - diluted (2) $(0.16) $0.13
Weighted average shares - diluted (2) 62,707 46,280
(1) Certain reclassifications, none of which affected net income
or net income per share, have been made to prior period amounts to
conform to the current period presentation. Specifically, the
company reclassified $4.0 million of certain operating expenses to
cost of revenues for the three months ended December 31, 2003.
(2) Reflects the one-for-six reverse split of the company's
outstanding common stock effected July 1, 2004.
Ariba, Inc. and Subsidiaries
Reconciliation of GAAP Operating Results to
Non-GAAP Operating Results
(Unaudited; in thousands, except per share data)
The following tables reconcile the specific items excluded from GAAP
in the calculation of non-GAAP operating results for the period
indicated below:
Three Months
Ended
December 31,
2004
--------------
Expense reconciliation:
GAAP revenue $86,929
GAAP net loss 9,752
--------------
Total GAAP expenses 96,681
Interest and other income, net and minority interests 2,599
Provision for income taxes (4,813)
--------------
Total GAAP operating expenses 94,467
Amortization of acquired technology, customer and
other intangible assets (4,885)
Stock-based compensation (4,378)
Restructuring and integration costs (1,817)
--------------
Total non-GAAP operating expenses $83,387
==============
Three Months
Ended
December 31,
2004
--------------
Net income (loss) reconciliation:
GAAP net loss $(9,752)
Amortization of acquired technology, customer and
other intangible assets 4,885
Stock-based compensation 4,378
Restructuring and integration costs 1,817
--------------
Non-GAAP net income $1,328
==============
Three Months
Ended
December 31,
2004
--------------
Net income (loss) per share reconciliation:
GAAP net loss per share - basic and diluted $(0.16)
Amortization of acquired technology, customer and
other intangible assets 0.08
Stock-based compensation 0.07
Restructuring and integration costs 0.03
--------------
Non-GAAP net income per share - basic and diluted $0.02
==============
Weighted average shares - basic 62,707
Weighted average shares - diluted 65,954
Ariba provides quarterly and annual financial statements that are
prepared in accordance with generally accepted accounting principles
("GAAP"). In addition, this press release contains non-GAAP financial
information. This non-GAAP financial information excludes the
following types of costs and expenses that are included in GAAP:
amortization of intangible assets, stock-based compensation, and
restructuring and integration costs. Management reviews this non-GAAP
financial information in evaluating Ariba's historical and projected
financial performance and believes that it may assist investors in
assessing its ongoing operations. The presentation of this additional
information is not meant to be considered in isolation or as a
substitute for, or superior to, measures of financial performance
prepared in accordance with GAAP. We have provided a reconciliation of
the non-GAAP financial information provided in this press release with
the comparable financial information reported in accordance with GAAP
for the given period.
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