Ariba Reports Preliminary Results for the Second Quarter of Fiscal Year 2006; Company Continues Transition to On-Demand; Grows Subscription Software Revenue to $12.8M.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. -- Fifth graph graph, figure that shows relationships between quantities. The graph of a function y=f (x) is the set of points with coordinates [x, f (x)] in the xy-plane, when x and y are numbers. , last sentence of release should read: ... Toshiba Toshiba Corporation (株式会社東芝 Kabushiki-gaisha Tōshiba , University of Miami This article is about the university in Coral Gables, Florida. For the university in Oxford, Ohio, see Miami University. The University of Miami (also known as Miami of Florida,[2] UM,[3] or just The U and V&M Star among others. (sted Toshiba America America [for Amerigo Vespucci], the lands of the Western Hemisphere—North America, Central (or Middle) America, and South America. The world map published in 1507 by Martin Waldseemüller is the first known cartographic use of the name. , University of Miami and V&M Star among others.) The corrected release reads: ARIBA ARIBA (Brit) n abbr (= Associate of the Royal Institute of British Architects) → Qualifikationsnachweis in Architektur REPORTS PRELIMINARY RESULTS FOR THE SECOND QUARTER OF FISCAL YEAR 2006; COMPANY CONTINUES TRANSITION TO ON-DEMAND On-Demand refers to a service or feature which addresses the user's need for instant gratification and immediacy of use. In most cases the value proposition for an on-demand service is wrapped up in the fact that the user or consumer of the service avoids a significant up-front ; GROWS SUBSCRIPTION SOFTWARE REVENUE TO $12.8M Ariba(R), Inc. (Nasdaq:ARBA), the leading spend management solutions provider, today announced preliminary results for the second quarter of fiscal year 2006 ended March 31, 2006. Financial Results Total revenues for the second quarter of fiscal year 2006 were $73.7 million, as compared to $81.3 million for the second quarter of fiscal year 2005. Software license revenues for the quarter were $6.1 million, as compared to $12.6 million for the second quarter of fiscal year 2005. Subscription and maintenance revenues for the quarter were $30.6 million, as compared to $31.2 million for the second quarter of fiscal year 2005. Within subscription and maintenance revenues, subscription software revenue was $12.8 million for the quarter, as compared to $11.8 million for the second quarter of fiscal year 2005. Services and other revenues for the quarter were $37.0 million, as compared to $37.4 million for the second quarter of fiscal year 2005. Net loss for the second quarter of fiscal year 2006 was $4.4 million, or $0.07 per share, as compared to a net loss for the second quarter of fiscal year 2005 of $6.9 million, or $0.11 per share. The net loss for the second quarter of fiscal year 2006 included charges of $3.9 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. , and $9.4 million for stock-based compensation, and $730,000 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). costs. Excluding these items, non-GAAP net income was $9.7 million, or $0.13 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share. "The investments we are making to transition our company to an on-demand model continue to pay off," 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. "During the quarter, demand for our spend management solutions remained strong among both large enterprises and mid-market companies, and we saw growth in our subscription software revenue. We will continue to focus on completing this transition in the months ahead to further strengthen our business and enhance our prospects for future growth." Companies Continue to Invest in Ariba Spend Management Ariba added 23 new customers during the second quarter of fiscal year 2006, as companies of all sizes seek access to solutions that enable them to build spend management as a core competency A core competency is something that a firm can do well and that meets the following three conditions specified by Hamel and Prahalad (1990):
AXA Alpha Chi Alpha AXA Animal Crossing Ahead (online forum community/guide to the game Animal Crossing) AXA Auxiliary Artery , Bongrain SA, Five Star Quality Care, Inc., Kohlberg Kohlberg is the name of three municipalities
Nisan Hebrew calendar, Jewish calendar - (Judaism) the calendar used by the Jews; dates from 3761 BC (the assumed date of the Creation of the Motor, Orkla Orkla may refer to the following:
Ariba On-Demand is In Demand Ariba continued to gain traction Traction Definition Traction is the use of a pulling force to treat muscle and skeleton disorders. Purpose Traction is usually applied to the arms and legs, the neck, the backbone, or the pelvis. with its on-demand offerings during the second quarter, as more companies are demanding flexible, scalable solutions to drive their spend management initiatives. Ariba's on-demand solutions combine technology, commodity expertise and services in a single package to help companies gain control of their spend and deliver results. Innovation and Leadership Recognized Ariba created spend management and continues to lead the market with its robust technology, deep commodity expertise and comprehensive spend management services. During the quarter, the company was ranked as a leader in contract management solutions in a report by Forrester Research Forrester Research is an independent technology and market research company that provides its clients with advice about technology's impact on business and consumers. Corporate facts
Setting the Stage for the Future Next month, Ariba will host AribaLIVE, the premier spend management conference, at the Mandalay Mandalay (măn'dəlā`, măn`dəlā'), city (1983 pop. 532,895), capital of Mandalay div., central Myanmar, on the Ayeyarwady River. Bay Resort & Casino casino or cassino (both: kəsē`nō). 1 Card game played with a full deck by two to four players. Its origins are obscure though it probably traces back to the Italian game of Scopa. in Las Vegas Las Vegas (läs vā`gəs), city (1990 pop. 258,295), seat of Clark co., S Nev.; inc. 1911. It is the largest city in Nevada and the center of one of the fastest-growing urban areas in the United States. . From May 9-11, executives and procurement The fancy word for "purchasing." The procurement department within an organization manages all the major purchases. professionals from some of the world's leading and largest organizations will gather to share their thoughts on the future of spend management and the solutions and capabilities that will be required for success. For more information on the event, or to register, visit www.aribalive.com. Conference Call Information Ariba will hold a conference call today at 2:00 p.m. PDT PDT abbr. Pacific Daylight Time PDT Pacific Daylight Time PDT n abbr (US) (= Pacific Daylight Time) → hora de verano del Pacífico PDT / 5:00 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 second quarter of fiscal year 2006 results. To join the call, please dial (877) 407-8031 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 (201) 689-8031 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 at approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 5:00 p.m. PDT / 8:00 p.m. EDT today through Wednesday Wednesday: see week. , May 3, 2006 by calling (877) 660-6853 in the United States and Canada or (201) 612-7415 internationally and entering account number: 286 and conference ID number: 199287. Copyright (C) 1996 - 2006 Ariba, Inc. Ariba, the Ariba logo, AribaLIVE and SupplyWatch 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, 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 Connectivity A generic term for connecting devices to each other in order to transfer data back and forth. It often refers to network connections, which embraces bridges, routers, switches and gateways as well as backbone networks. , Ariba Supplier Performance Management, Ariba PunchOut, Ariba QuickSource, PO-Flip, Ariba Settlement and Ariba Spend Management Knowledge Base, Ariba Ready, Ariba Supply Lines, Ariba Supply Manager, and It's Time It's Time was a successful political campaign run by the Australian Labor Party (ALP) under Gough Whitlam at the 1972 election in Australia. Campaigning on the perceived need for change after 23 years of conservative (Liberal Party of Australia) government, Labor put forward a for Spend Management are trademarks or service marks of Ariba, Inc. Ariba Proprietary and Confidential. All rights reserved. Patents pending. All other trademarks are property of their respective owners. Ariba 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. Safe Harbor 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 December: see month. 7, 2005 and in its Form 10-Q Form 10-Q See 10-Q. filed February February: see month. 8, 2006.
Ariba, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(Unaudited; in thousands)
March 31, September 30,
2006 2005
----------- -------------
ASSETS
Current assets:
Cash and cash equivalents $74,403 $60,909
Short-term investments 56,549 50,520
Restricted cash 1,568 1,381
Accounts receivable, net 37,116 41,890
Prepaid expenses and other current
assets 11,483 10,080
----------- -------------
Total current assets 181,119 164,780
Property and equipment, net 16,750 17,999
Long-term investments -- 2,731
Restricted cash, less current portion 30,496 31,894
Goodwill 326,101 328,692
Other intangible assets, net 32,853 41,562
Other assets 3,091 2,986
----------- -------------
Total assets $590,410 $590,644
=========== =============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $12,721 $11,031
Accrued compensation and related
liabilities 26,395 30,046
Accrued liabilities 22,142 23,461
Restructuring obligations 14,689 18,144
Deferred revenue 45,496 39,548
Deferred income - Softbank 13,569 13,368
----------- -------------
Total current liabilities 135,012 135,598
Deferred rent obligations 22,747 22,184
Restructuring obligations, less current
portion 63,085 68,356
Deferred revenue, less current portion 21,670 21,056
Deferred income - Softbank, less
current portion 7,351 13,925
----------- -------------
Total liabilities 249,865 261,119
----------- -------------
Minority interests -- --
Stockholders' equity:
Common stock 149 143
Additional paid-in capital 5,007,546 5,023,965
Deferred stock-based compensation -- (35,537)
Accumulated other comprehensive income 2,946 3,011
Accumulated deficit (4,670,096) (4,662,057)
----------- -------------
Total stockholders' equity 340,545 329,525
----------- -------------
Total liabilities and
stockholders' equity $590,410 $590,644
=========== =============
Ariba, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
(Unaudited; in thousands, except per share data)
Three Months Ended Six Months Ended
March 31, March 31,
2006 2005 2006 2005
--------- --------- -------- ---------
Revenues:
License $ 6,135 $12,615 $12,757 $ 29,737
Subscription and maintenance 30,588 31,224 62,389 62,652
Services and other 37,018 37,429 74,827 75,808
--------- --------- -------- ---------
Total revenues 73,741 81,268 149,973 168,197
--------- --------- -------- ---------
Cost of revenues:
License 499 1,054 1,067 1,748
Subscription and maintenance 7,785 7,361 15,409 14,828
Services and other 32,921 32,732 64,295 63,422
Amortization of acquired
technology and
customer intangible assets 3,696 5,281 8,309 9,981
--------- --------- -------- ---------
Total cost of revenues 44,901 46,428 89,080 89,979
--------- --------- -------- ---------
Gross profit 28,840 34,840 60,893 78,218
--------- --------- -------- ---------
Operating expenses:
Sales and marketing 16,379 21,080 34,989 47,866
Research and development 12,794 12,735 24,747 25,582
General and administrative 8,280 8,649 17,098 18,104
Other income - Softbank (3,393) (2,795) (6,794) (2,795)
Amortization of other
intangible assets 200 213 400 398
Restructuring and integration
costs 730 2,282 1,003 4,099
Litigation provision -- -- -- 37,000
--------- --------- -------- ---------
Total operating expenses 34,990 42,164 71,443 130,254
--------- --------- -------- ---------
Loss from operations (6,150) (7,324) (10,550) (52,036)
Interest and other income,
net 1,947 640 2,836 3,255
--------- --------- -------- ---------
Net loss before income taxes
and minority interests (4,203) (6,684) (7,714) (48,781)
Provision for income taxes 171 205 325 4,844
Minority interests in net
income of consolidated
subsidiaries -- 2 -- 18
--------- --------- -------- ---------
Net loss $(4,374) $(6,891) $(8,039) $(53,643)
========= ========= ======== =========
Net loss per share - basic
and diluted $ (0.07) $ (0.11) $ (0.12) $ (0.85)
Weighted average shares -
basic and diluted 65,298 63,518 65,310 63,113
Ariba, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations (1)
(Unaudited; in thousands, except per share data)
Three Months Ended
March 31,
2006 2006 Non-
Reported Adj GAAP
--------- -------- ---------
Revenues:
License $ 6,135 $ -- $6,135
Subscription and maintenance 30,588 -- 30,588
Services and other 37,018 -- 37,018
--------- -------- ---------
Total revenues 73,741 -- 73,741
--------- -------- ---------
Cost of revenues:
License 499 -- 499
Subscription and maintenance (2) 7,785 (495) 7,290
Services and other (2) 32,921 (2,095) 30,826
Amortization of acquired technology
and customer intangible assets (3) 3,696 (3,696) --
--------- -------- ---------
Total cost of revenues 44,901 (6,286) 38,615
--------- -------- ---------
Gross profit 28,840 6,286 35,126
--------- -------- ---------
Operating expenses:
Sales and marketing (2) 16,379 (3,140) 13,239
Research and development (2) 12,794 (1,579) 11,215
General and administrative (2) 8,280 (2,110) 6,170
Other income - Softbank (3,393) -- (3,393)
Amortization of other intangible
assets (3) 200 (200) --
Restructuring and integration costs (4) 730 (730) --
--------- -------- ---------
Total operating expenses 34,990 (7,759) 27,231
--------- -------- ---------
(Loss) income from operations (6,150) 14,045 7,895
Interest and other income, net 1,947 -- 1,947
--------- -------- ---------
(Loss) income before income taxes and
minority interests (4,203) 14,045 9,842
Provision for income taxes 171 -- 171
Minority interests in net income of
consolidated subsidiaries -- -- --
--------- -------- ---------
Net (loss) income $(4,374) $14,045 $9,671
========= ======== =========
Net (loss) income per share
Basic $ (0.07) $ 0.15
Diluted $ (0.07) $ 0.13
Weighted average shares
Basic 65,298 65,298
Diluted 65,298 73,868
Three Months Ended
March 31,
2005 2005 Non-
Reported Adj GAAP
--------- -------- ---------
Revenues:
License $12,615 $ -- $12,615
Subscription and maintenance 31,224 -- 31,224
Services and other 37,429 -- 37,429
--------- -------- ---------
Total revenues 81,268 -- 81,268
--------- -------- ---------
Cost of revenues:
License 1,054 -- 1,054
Subscription and maintenance (2) 7,361 (245) 7,116
Services and other (2) 32,732 (1,115) 31,617
Amortization of acquired technology
and customer intangible assets (3) 5,281 (5,281) --
--------- -------- ---------
Total cost of revenues 46,428 (6,641) 39,787
--------- -------- ---------
Gross profit 34,840 6,641 41,481
--------- -------- ---------
Operating expenses:
Sales and marketing (2) 21,080 (1,731) 19,349
Research and development (2) 12,735 (475) 12,260
General and administrative (2) 8,649 (712) 7,937
Other income - Softbank (2,795) -- (2,795)
Amortization of other intangible
assets (3) 213 (213) --
Restructuring and integration costs (4) 2,282 (2,282) --
--------- -------- ---------
Total operating expenses 42,164 (5,413) 36,751
--------- -------- ---------
(Loss) income from operations (7,324) 12,054 4,730
Interest and other income, net 640 -- 640
--------- -------- ---------
(Loss) income before income taxes and
minority interests (6,684) 12,054 5,370
Provision for income taxes 205 -- 205
Minority interests in net income of
consolidated subsidiaries 2 -- 2
--------- -------- ---------
Net (loss) income $(6,891) $12,054 $ 5,163
========= ======== =========
Net (loss) income per share
Basic $ (0.11) $ 0.08
Diluted $ (0.11) $ 0.08
Weighted average shares
Basic 63,518 63,518
Diluted 63,518 65,908
(1) To supplement our financial results presented on a GAAP basis,
we use non-GAAP measures of net income and earnings per share,
which exclude expenses that we believe are helpful in
understanding our past financial performance and prospects for
the future. Management uses the non-GAAP financial results as
one factor in its planning and forecasting of future periods.
The non-GAAP financial results are presented here with the intent
of providing additional information about our operating results
and trends. We believe the non-GAAP measures are useful in that
they enable investors to compare our results to our performance
in periods prior to our acquisitions. The presentation of
non-GAAP financial results is not meant to be considered in
isolation or as a substitute for net income or earnings per share
prepared in accordance with GAAP. Investors should be aware that
non-GAAP measures have inherent limitations and should be read
only on conjunction with our consolidated financial statements
prepared in accordance with GAAP.
(2) Non-GAAP adjustment represents stock-based compensation
associated with stock options and restricted shares issued
to employees.
(3) Non-GAAP adjustment represents the amortization of intangible
assets in connection with our acquisitions.
(4) Non-GAAP adjustment primarily reflects adjustments to lease
abandonments and severance and related benefits.
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