Commerce One Reports Final First Quarter 2004 Results.Business Editors SAN FRANCISCO--(BUSINESS WIRE)--May 6, 2004 Commerce One, Inc. (Nasdaq:CMRC CMRC Canadian Motosport Racing Club CMRC Commerce One Inc. (stock symbol) CMRC Caribbean Marine Research Center CMRC Crime Mapping Research Center CMRC Credit Management Research Centre (UK) ) today announced financial results for the quarter ended March 31, 2004. Revenues for the current quarter totaled $2.7 million as compared with $13.1 million for the corresponding quarter in 2003 and $9.1 million for the quarter ended December December: see month. 31, 2003. The net loss on a GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). basis for the current quarter was $8.4 million, or $0.28 per share, as compared to a net loss of $29.3 million, or $1.00 per share, for the corresponding quarter ended March 31, 2003, and $2.9 million, or $0.09 per share, for the quarter ended December 31, 2003. As of March 31, 2004, total cash and cash equivalents were $10 million of which approximately $1.2 million was encumbered Encumbered A property owned by one party on which a second party reserves the right to make a valid claim, e.g., a bank's holding of a home mortgage encumbers property. . Quarterly Highlights: The following milestones were completed or announced during the first quarter of 2004: -- The Company previously announced that it was considering the sale of its Supplier Relationship Management (SRM (1) (Storage Resource Management) The management of the storage resources in an organization in order to avoid duplication of files and to determine space utilization across all servers. ) applications assets. The Company today announced that it is no longer actively pursuing the sale of these applications. The Company believes that there are promising synergies between the SRM applications and the Conductor conductor Any of various substances that allow the flow of electric current or thermal energy. A conductor is a poor insulator because it has a low resistance to such flow. technology, including the ability to enable customers to create composite SRM applications. The Company plans to focus its sales efforts on both Conductor and SRM opportunities. Mark Pecoraro, General Manager and Senior Vice President, SRM Division, will lead the Company's SRM sales and development opportunities. Mark Pecoraro brings more than 17 years of leadership experience in enterprise applications, infrastructure software, technical services and global business operations Business operations are those activities involved in the running of a business for the purpose of producing value for the stakeholders. Compare business processes. The outcome of business operations is the harvesting of value from assets . -- The Company added two seasoned industry veterans to the executive team to focus on growing revenue opportunities for the Conductor platform and leveraging the assets and domain expertise of the SRM business. -- Wain Beard beard, hair on the lower portion of the face. The term mustache refers to hair worn above the upper lip. Attitudes toward facial hair have varied in different cultures. , senior vice president of worldwide sales, brings more than 25 years experience in the technology field. His responsibilities include sales, professional services, and channel teams. -- Edward Edward killed his father at his mother’s instigation. [Br. Balladry: Edward in Benét, 302] See : Patricide Mueller
Mueller may refer to:
marketing business-to-business computer software solutions. As senior vice president of marketing of Commerce One, Mueller is responsible for driving marketing strategy, product marketing, product management, and marketing communications Marketing communications (or marcom) are messages and related media used to communicate with a market. Those who practice advertising, branding, direct marketing, graphic design, marketing, packaging, promotion, publicity, sponsorship, public relations, sales, sales programs. -- The Company also announced that, during the second quarter, Ruesch, a leading financial institution specializing in international B2B (Business to Business) Refers to one business communicating with or selling to another. See B2B e-commerce, B2C and B2G. B2B - business to business payment solutions, purchased Commerce One Conductor to help automate To turn a set of manual steps into an operation that goes by itself. See automation. several business processes. Also during the second quarter, the Company established a relationship with GridNode who will act as a partner to provide Conductor as a gateway to customers who work with the RosettaNet standard in the high tech industry. -- During the fourth quarter of 2003, the Company executed an agreement with ComVest for $5.0 million in financing which was received in full on or before January 2, 2004. "We feel optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op about our prospects going forward. We believe that retaining the SRM business will create value for the company and for its customers and believe that there is promising synergy The enhanced result of two or more people, groups or organizations working together. In other words, one and one equals three! It comes from the Greek "synergia," which means joint work and cooperative action. between the SRM applications and the Conductor platform," said Commerce One Chairman and 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. Mark Hoffman. "We made key additions to our executive team and have begun to expand our sales and marketing teams to help take advantage of the opportunities we are seeing for both Conductor and SRM." Detailed financial results for the current quarter are provided in the attached tables and are available at the company's web site at www.commerceone.com/investors/. Commerce One will conduct a live webcast to discuss its first quarter 2004 results at 2 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 on Thursday, May 6, 2004. The webcast is accessible on www.commerceone.com/investors. The call will be archived and available for replay at this same URL URL in full Uniform Resource Locator Address of a resource on the Internet. The resource can be any type of file stored on a server, such as a Web page, a text file, a graphics file, or an application program. .
Alternatively, you can participate by phone:
U.S. and Canada dial-in: 1-800-289-0485
International dial-in: 1-913-981-5518
The call will be archived and available for replay from 8:00 PM ET
through midnight Wednesday, May 12th:
U.S. and Canada: 1-888-203-1112
International: 1-719-457-0820
Passcode: 476483
About Commerce One From its initial roots in Internet-based software applications, Commerce One has consistently been at the forefront of delivering advanced technologies that help global businesses collaborate with their partners, customers and suppliers over the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the . Commerce One has defined many of the open standards Specifications for hardware and software that are developed by a standards organization or a consortium involved in supporting a standard. Available to the public for developing compliant products, open standards imply "open systems;" that an existing component in a system can be replaced and protocols established for business networks today and our global customer base includes leaders in a wide range of industries. The Commerce One Conductor platform and industry-specific Process Accelerators represent the next generation of business process management solutions that enable enterprises to optimize optimize - optimisation their existing technology investments and enhance functionality of existing applications and processes. For more information, go to www.commerceone.com. Forward Looking Statements This press release includes 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. within the meaning of the securities laws. These forward-looking statements include statements concerning expectations regarding the revenue and growth opportunities for our SRM applications, the benefits to the Company of retaining these assets and the potential synergies between the SRM applications and our Conductor platform; expectations regarding the contributions of our two new executive team members; our financial prospects and our ability to execute our strategy to grow our Commerce One Conductor and SRM revenues and operate successfully in 2004. These statements reflect the current views and assumptions of Commerce One, and are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. These factors include, but are not limited to, the following: final review of our financial results and any resulting accounting adjustments; the impact of accounting adjustments associated with accounting treatment of the warrant liability for the BayStar and ComVest financings; the delay or failure of customers to purchase the Conductor platform or our SRM solutions or related services as expected; the risk that the composite process management market does not develop further or gain further importance; the risk that the expected synergies between our SRM applications and the Conductor platform fail to materialize ma·te·ri·al·ize v. ma·te·ri·al·ized, ma·te·ri·al·iz·ing, ma·te·ri·al·iz·es v.tr. 1. To cause to become real or actual: By building the house, we materialized a dream. ; factors affecting our ability to realize significant savings from our cost-cutting measures; the inability to collect accounts receivable accounts receivable n. the amounts of money due or owed to a business or professional by customers or clients. Generally, accounts receivable refers to the total amount due and is considered in calculating the value of a business or the business' problems in paying ; constraints CONSTRAINTS - A language for solving constraints using value inference. ["CONSTRAINTS: A Language for Expressing Almost-Hierarchical Descriptions", G.J. Sussman et al, Artif Intell 14(1):1-39 (Aug 1980)]. imposed by our limited capital; the potential for future defaults under the agreements for the debt financing Debt Financing When a firm raises money for working capital or capital expenditures by selling bonds, bills, or notes to individual and/or institutional investors. In return for lending the money, the individuals or institutions become creditors and receive a promise to repay ; the depressed market Depressed market Market in which supply overwhelms demand, leading to weak and lower prices. for new technology investments; various external factors, including economic, political and other global conditions; and various other risks including, without limitation, those discussed in Commerce One's filings with the Securities and Exchange Commission, including its annual report on 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. for the year ended December 31, 2003. The information provided in this press release is current as of the date of its publication. Commerce One expressly disclaims any obligation to release publicly any updates or revisions to any forward-looking statements to reflect any changes in expectations, or any change in events or circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or on which those statements are based, unless otherwise required by law.
Commerce One, Inc.
Condensed Consolidated Statements of Operations
(In thousands, except per share amounts)
Three Months
Ended
March 31,
-----------------
2004 2003
------- --------
Revenues:
License fees $ 272 $ 2,248
Services 2,435 10,861
------- --------
Total revenues 2,707 13,109
Costs and expenses:
Cost of license fees 293 305
Cost of services 1,384 8,858
Sales and marketing 1,222 7,911
Product development 1,932 11,394
General and administrative 2,833 2,382
Restructuring charges (250) 10,941
Amortization of deferred stock compensation - 1,047
Amortization of intangible assets 199 149
------- --------
Total costs and expenses 7,613 42,987
------- --------
Loss from operations (4,906) (29,878)
Interest income and other, net (2,377) 788
Provision for income taxes - (238)
------- --------
Net loss (7,283) (29,328)
Common shares and cash issued to BayStar 1,152 -
------- --------
Net loss attributable to common stockholders $(8,435) $(29,328)
======= ========
Basic and diluted net loss per share
attributable to common stockholders $ (0.28) $ (1.00)
======= ========
Weighted average shares - basic and diluted 30,431 29,263
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Commerce One, Inc.
Condensed Consolidated Balance Sheets
(In thousands)
March 31, December 31,
2004 2003
--------- ------------
ASSETS
Current assets:
Cash and cash equivalents $ 8,993 $ 6,943
Note receivable, short-term investments and
restricted cash 125 5,632
Accounts receivable, net 1,092 4,984
Prepaid expenses and other current assets 5,290 2,991
--------- ------------
Total current assets 15,500 20,550
Restricted cash, cash equivalents, and short-
term investments 1,108 1,569
Property and equipment, net 345 511
Intangible assets, net 2,063 2,262
Investments and other assets 2,198 4,356
--------- ------------
Total assets $ 21,214 $ 29,248
========= ============
LIABILITIES, REDEEMABLE CONVERTIBLE PREFERRED
STOCK AND STOCKHOLDERS' DEFICIT
Current liabilities:
Accounts payable $ 961 $ 1,064
Accrued compensation and related expenses 539 1,041
Deferred revenue 2,758 4,098
Notes payable 3,321 -
Other current liabilities 3,931 5,199
--------- ------------
Total current liabilities 11,510 11,402
Notes payable - 2,777
Accrued restructuring charges 82 388
Warrant liability 2,682 5,229
Redeemable convertible preferred stock 12,480 12,480
Total stockholders' deficit (5,540) (3,028)
--------- ------------
Total liabilities, redeemable
convertible preferred
stock and stockholders' deficit $ 21,214 $ 29,248
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