Ariba Reports Results for the Second Quarter of Fiscal Year 2007.Spend Management Leader Posts Subscription Software Revenue Growth of 15% SUNNYVALE, Calif. -- Ariba, Inc. (Nasdaq:ARBA), the leading spend management solutions provider, today announced results for the second quarter of fiscal year 2007 ended March 31, 2007. Financial Results Total revenues for the second quarter of fiscal year 2007 were $73.4 million, as compared to $73.7 million for the second quarter of fiscal year 2006. Subscription and maintenance revenues for the quarter were $34.2 million, as compared to $31.4 million for the second quarter of fiscal year 2006. Within subscription and maintenance revenues, subscription software revenue was $15.7 million for the quarter, as compared to $13.6 million for the second quarter of fiscal year 2006. Services and other revenues for the quarter were $39.2 million, as compared to $42.4 million for the second quarter of fiscal year 2006. Net loss for the second quarter of fiscal year 2007 was $5.1 million, or $0.07 per share, as compared to a net loss for the second quarter of fiscal year 2006 of $2.6 million, or $0.04 per share. The net loss for the second quarter of fiscal year 2007 included charges of $3.9 million for amortization of intangible assets and $8.4 million for stock-based compensation. Excluding these items, non-GAAP net income was $7.1 million, or $0.10 per diluted share. "During the quarter, we continued to gain traction with our on-demand solutions, as evidenced by the 15% increase in our subscription software revenue and strong growth of our business backlog. Subscription software backlog surpassed the $100 million mark and grew 48% from a year ago since we embarked on our growth strategies and business transformation," 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. "Our focus on delivering value for customers coupled with our industry-leading solutions positions us well to continue this growth and further strengthen our market leadership." Leading Innovation Successful spend management requires a unique combination of market-defining technology, deep category expertise and industry best-practices. Only Ariba delivers all three in a single, integrated platform that can be quickly and cost-effectively deployed. Ariba continued to drive innovation across its solutions during the quarter, releasing Ariba([R]) Supplier Network([TM]) 44, the latest version of its industry-leading on-demand business collaboration platform An emerging category of computer software, collaboration platforms are unified electronic platforms that support synchronous and asynchronous communication through a variety of devices and channels. which features advanced discount management and RFX RFX Receiver/Fixture Interface RFX Royal Foreign Exchange (Royal Bank of Canada) RFx Request for Information, Proposal or Quotation RFX Tactical Experimental Reconnaissance Aircraft RFX Record Field Exchange functionality that enables buyers and suppliers to enhance their business by better managing trading relationships and working capital. With buyers and suppliers in over 115 countries leveraging Ariba Supplier Network to drive transactions worth more than $100 billion a year and processing one purchase order every two seconds, the network is the world's leading online trading Online Trading Making trades via the Internet. Notes: The use of online trading increased dramatically in the mid to late 1990's with the advent of high-speed computers and Internet connections. Stocks, bonds, options, futures, and currencies can all be traded online. platform. Many companies, including those with ERP (Enterprise Resource Planning) An integrated information system that serves all departments within an enterprise. Evolving out of the manufacturing industry, ERP implies the use of packaged software rather than proprietary software written by or for one customer. systems in place, rely on the network to move beyond transaction processing Updating the appropriate database records as soon as a transaction (order, payment, etc.) is entered into the computer. It may also imply that confirmations are sent at the same time. Transaction processing systems are the backbone of an organization because they update constantly. and facilitate the collaboration that is necessary to achieve spend management success. Guiding the Journey Spend management is about more than automating procurement and routine transactional processes to deliver quick savings. It is about gaining access to timely and accurate information on what and how companies are spending that can be used to drive on-going cost control. Ariba provides companies with comprehensive solutions that combine market-defining technology with deep category expertise and industry best-practices to help them better understand their spending patterns, identify opportunities to realize savings, and drive improved decision making that can positively impact the bottom line. During the second quarter, nearly 200 companies around the world purchased Ariba's solutions to drive their spend management initiatives, including: Alaska Air Group, Assicurazoni Generali, BHP Billiton BHP Billiton is the world's largest mining company.[1] Its origin is in the 2001 merger of Australia's Broken Hill Proprietary Company (BHP) and the UK's Billiton, which has a South African background. The result is a dual-listed company. Limited, BNSF Railway
It offers canned goods in Del Monte, S&W and Contadina brands, pet foods under Kibbles n' Bits, 9Lives, Pounce, Milk-Bone and several premium brands, , EN Electronic Network AG, ETA Sons - Middle East, Hertz, Horizon Blue Cross Blue Shield Blue Shield A US not-for-profit health care insurer that is a reimbursement intermediary for physicians. Cf Blue Cross. of New Jersey, Johnson & Johnson, Nestle, Pfizer, Inc., Postecom S.p.A., Prestolite Electric, Inc., Schering-Plough Corporation, Severn Trent Severn Trent plc (LSE: SVT) is a British utility. It is traded on the London Stock Exchange and is a constituent of the FTSE 100 Index. Severn Trent is a group of companies employing more than 15,000 people across the UK, US and mainland Europe. Water, Tata Motors Tata Motors Limited, formerly known as TELCO (TATA Engineering and Locomotive Company), is India's largest passenger automobile and commercial vehicle manufacturing company. It is also the world's 5th largest commercial vehicle manufacturer. Limited, Target Corporation, The Black & Decker Corporation, RBS RBS Royal Bank of Scotland RBS Role Based Security RBS Rollback Segment RBS Rare Book School (University of Virginia) RBS Rural Business Cooperative Service RBS Ribosome Binding Site (genetics) - The Royal Bank of Scotland Group The Royal Bank of Scotland Group plc (LSE: RBS) is a British banking and insurance holding company based in Edinburgh, Scotland, UK.[1] It includes The Royal Bank of Scotland plc [2]) founded in 1727 by a Royal Charter of King George I. , Siam Cement The Siam Cement Public Company Ltd. is a large cement company in Thailand. It is listed on the Stock Exchange of Thailand (trading symbol: SCC). It was founded under the Royal Decree of King Vajiravudh in 1913. , Verizon Communications
Verizon Communications, Inc. and Zurich American Insurance Company. Fueling Thought Leadership Spend management is indeed a journey. And to be successful, companies need access to fresh insights and best practices that will help them deliver results. On May 21, Ariba will make the final stop in its Ariba LIVE 2007 global conference series in Boca Raton, Florida Boca Raton ("bōkə rə-tōn") is a city in Palm Beach County, Florida incorporated in May 1925. As of the 2000 census, the city had a total population of 74,764; the 2006 population recorded by the U.S. Census Bureau was 86,396. . A unique three-day event three-day event a competition in the pleasure horse sport comprising usually one day each for dressage, cross country and show jumping. designed for executives and professionals committed to driving organizational change and business excellence through spend management, Ariba LIVE Boca Raton Boca Raton (bō`kə rətōn`), city (1990 pop. 61,492), Palm Beach co., SE Fla., on the Atlantic; inc. 1925. Boca Raton is a popular resort and retirement community that experienced significant industrial development in the 1970s and 80s. will feature keynote speeches and interactive breakout sessions loaded with practical, actionable information that participants can use to immediately accelerate their spend management initiatives and the results that they deliver. Conference Call Information Ariba will hold a conference call today at 2:00 p.m. PT / 5:00 p.m. ET to discuss its results for the second quarter of fiscal year 2007. To join the call, please dial (877) 407-8031 in the United States and Canada, 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 Ariba's website at www.ariba.com or logging in A colloquial term for the process of making the initial record of the names of individuals who have been brought to the police station upon their arrest. The process of logging in is also called booking. at www.vcall.com. A replay of the conference will be available at approximately 5:00 p.m. PT / 8:00 p.m. ET today through Wednesday, May 2, 2007 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: 237416. About Ariba, Inc. Ariba, Inc. is the leading provider of spend management solutions to help companies realize rapid and sustainable bottom line results. Companies around the world in every industry use Ariba Spend Management[TM] software and services. Ariba can be contacted in the U.S. at 1.650.390.1000 or at www.ariba.com. Copyright [c] 1996 - 2007 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, Ariba eForms, Ariba Electronic Invoice Presentment and Payment, Ariba Invoice, Ariba Sourcing, Ariba Spend Visibility, Ariba Travel and Expense, Ariba Procure-to-Pay, Ariba Workforce, Ariba Supplier Network, Ariba Supplier Connectivity, Ariba Supplier Performance Management, Ariba PunchOut, Ariba QuickSource, PO-Flip, Ariba Settlement, Ariba Spend Management Knowledge Base, Ariba Ready, Ariba Supply Lines, Ariba Supply Manager, Ariba LIVE and It's Time 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 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; the ability to attract and retain qualified employees; difficulties in assimilating 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 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 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-Q Form 10-Q See 10-Q. filed February 7, 2007. [TABLE OMITTED] [TABLE OMITTED] Non-GAAP Financial Measures The accompanying press release dated April 25, 2007 contains non-GAAP financial measures. The following table reconciles the non-GAAP financial measures in the press release to the most directly comparable financial measures prepared in accordance with Generally Accepted Accounting Principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting (GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). ). These non-GAAP measures include non-GAAP cost of revenues, gross profit, operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. , (loss) income from operations, net (loss) income and net (loss) income per share amounts. Non-GAAP financial measures should not be considered as a substitute for, or superior to, GAAP financial measures, which should be considered as the primarily financial metrics for evaluating our financial performance. Significantly, non-GAAP financial measures are not based on a comprehensive set of accounting rules or principles. Instead, they are based on subjective determinations by management designed to supplement our GAAP financial measures. They are subject to a number of important limitations and should be considered only in conjunction with our consolidated financial statements Consolidated Financial Statements The combined financial statements of a parent company and its subsidiaries. Notes: Because consolidated financial statements present an aggregated look at the financial position of a parent and its subsidiaries, they enable you to gauge prepared in accordance with GAAP. For example, our non-GAAP financial measures have the effect of excluding costs and expenses from our operating results that should be properly considered under a system of accrual accounting Accrual Accounting An accounting method that measures the performance and position of a company by recognizing economic events regardless of when cash transactions happen. Notes: . In addition, our non-GAAP financial measures differ from GAAP measures with the same names, may vary over time and may differ from non-GAAP financial measures with the same or similar names used by other companies. Accordingly, investors should exercise caution when evaluating our non-GAAP financial measures. Despite these limitations, we believe our non-GAAP financial measures provide meaningful supplemental information about our operating results, primarily because they exclude costs and expenses that we do not believe are indicative of the ongoing operating performance of our business and our senior management. Although these costs should properly be considered in our GAAP financial measures, we believe they should be excluded when evaluating our current operating performance. The non-GAAP financial measures disclosed in the accompanying press release are used by our Board of Directors and senior management to evaluate our current operating performance, are used in evaluating the performance of our senior management, and are used in our budget and planning processes. We believe that our non-GAAP financial measures are helpful to investors by facilitating comparisons of our current and prior operating results and by facilitating comparisons of our operating results with those of other software companies. [TABLE OMITTED] Discussion of Specific Items Excluded From Non-GAAP Financial Measures Our non-GAAP financial measures generally exclude costs and expenses for (i) amortization of intangible assets related to acquisitions, (ii) stock-based compensation and (iii) restructuring and integration charges. We exclude these costs and expenses because we believe they are not closely related to the ongoing operating performance of our businesses and the performance of our senior management and are generally excluded from our budget and planning process. In addition to these reasons, we believe our non-GAAP financial measures are also helpful to investors by facilitating comparisons of our operating results over different time periods and by facilitating comparisons of our financial performance with that of other companies. In addition, except for restructuring and integration costs, these costs and expenses are non-cash items that do not affect cash flows. [TABLE OMITTED] |
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