Commerce One Reports First Quarter 2001 Results; Revenues Increase 386% Year over Year to $170.3 million; Net Operating Loss Per Share of $.11.Business/Technology Editors PLEASANTON Pleasanton, city (1990 pop. 50,553), Alameda co., W Calif., a suburb of the San Francisco–Oakland area, in a vineyard and dairy region; inc. 1894. Wine and cheese are produced, and there are publishing and stone-quarrying industries. , Calif.--(BUSINESS WIRE)--April 19, 2001 Company Adopts Stockholder Rights Plan; Commerce One Now Powers 157 E-Marketplaces and 567 Total Customers 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) ), the e-marketplace An eMarketplace, or electronic marketplace, is a community of buyers and suppliers. More specifically, it’s an electronic community that integrates the procurement systems of buyers with the fulfillment systems of suppliers, creating a single standard process for transacting company, today announced financial results for the quarter ended March 31, 2001. Revenues for the current quarter totaled $170.3 million, an increase of 386 percent over revenues of $35.0 million for the quarter ended March 31, 2000. Operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. for the first quarter of 2001, excluding acquisition related costs, interest, taxes and other non-cash charges Non-Cash Charge A charge off, made by a company against earnings, that does not require an initial outlay of cash. Notes: Non-cash charges are typically against the depreciation, amortization, and depletion accounts on a company's balance sheet. , was $25.5 million, or $0.11 per share, as compared to $14.0 million, or $0.09 per share, for the corresponding quarter in 2000. Including amortization of goodwill and other charges, the net loss for the current quarter was $228.5 million, or $1.02 per share, as compared with a net loss of $43.6 million, or $0.29 per share, for the corresponding quarter in 2000. "We believe the current pressure to improve productivity and profits plays directly into our value proposition as the e-marketplace company," said Mark Hoffman, chairman and chief executive officer of Commerce One. "This is what is driving the demand for public and private e-marketplaces, and we believe Commerce One is in the sweet spot to fulfill ful·fill also ful·fil tr.v. ful·filled, ful·fill·ing, ful·fills also ful·fils 1. To bring into actuality; effect: fulfilled their promises. 2. this demand." Quarterly Highlights Commerce One achieved the following milestones during the first quarter of 2001: -- Commerce One added 63 new customers for the quarter, bringing the total customer count to 567 (excluding SAP customers who have received shipments of Enterprise Buyer, the joint procurement The fancy word for "purchasing." The procurement department within an organization manages all the major purchases. solution). -- Commerce One's Global Trading Web, the world's largest 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 trading community, continued its rapid expansion and today includes 157 e-marketplaces, 80 of which are currently operational. -- Commerce One extended its global leadership position with a number of new e-marketplaces including ChinaEB, Japan e-Market and Westdeutsche Landesbank (WestLB WestLB Westdeutsche Landesbank Girozentrale (Germany) ) in Germany. Also, Commerce One and SAPMarkets announced several new joint customers including Eutilia (pan-European), IBS IBS Irritable bowel syndrome, see there (Russia), IWayTrade (Portugal), Swisscom (Switzerland) and TPSA An earlier rating from the now obsolete TPC-A benchmark, which measures overall transaction processing performance. See TPC. (Poland). -- Commerce One and SAPMarkets delivered their joint solutions, MarketSet(TM) and Enterprise Buyer(TM). The joint solutions combine the Commerce One MarketSite operating environment In computing, an operating environment is the environment in which users run programs, whether in a command line interface, such as in MS-DOS or the Unix shell, or in a graphical user interface, such as in the Macintosh operating system. with e-procurement, supply chain, product planning Product Planning is the ongoing process of identifying and articulating market requirements that define a product’s feature set. See also
-- Commerce One announced the fourth generation of MarketSite, the e-marketplace operating environment. MarketSite supports interoperability The capability of two or more hardware devices or two or more software routines to work harmoniously together. For example, in an Ethernet network, display adapters, hubs, switches and routers from different vendors must conform to the Ethernet standard and interoperate with each other. between e-marketplaces, making possible the Global Trading Web. -- Commerce One announced a definitive agreement to acquire Exterprise, whose technology is expected to accelerate the creation and integration of custom marketplace applications based on MarketSite. These applications will support cross-business-unit and multi-enterprise process automation, a key facet facet /fac·et/ (fas´it) a small plane surface on a hard body, as on a bone. fac·et n. 1. A small smooth area on a bone or other firm structure. 2. of industrial, regional and especially enterprise e-marketplaces. The Exterprise acquisition is subject to customary closing conditions and is expected to close in the second quarter of 2001. -- Commerce One announced the formal launch of Commerce One Global Services, which offers strategic consulting, software and services to facilitate the rapid adoption, deployment and implementation of global e-marketplaces. In addition, Commerce One today announced that its Board of Directors adopted a Stockholders' Rights Plan. The plan is designed to assure stockholders fair value in the event of a future unsolicited un·so·lic·it·ed adj. Not looked for or requested; unsought: an unsolicited manuscript; unsolicited opinions. unsolicited Adjective business combination or similar transaction involving the company. The plan was not adopted in response to any attempts to acquire the company, and the company is not aware of any such efforts. Under the plan, Commerce One will issue a dividend of one right for each share of common stock of the company held by stockholders of record as of the close of business on April 30, 2001. The rights will initially trade with Commerce One's common stock. Each right will entitle en·ti·tle tr.v. en·ti·tled, en·ti·tling, en·ti·tles 1. To give a name or title to. 2. To furnish with a right or claim to something: stockholders to purchase a fractional share Fractional share Stocks amounting to less than one full share, usually resulting from splits, acquisitions, exchanges, or dividend reinvestment programs. fractional share Less than one share of stock, that is, one-third or one-half a share. of Commerce One's preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. for an exercise price of $70. However, the rights are not immediately exercisable and will generally become exercisable if a person or group acquires beneficial ownership of 15 percent or more of Commerce One's common stock or commences a tender or exchange offer upon consummation CONSUMMATION. The completion of a thing; as the consummation of marriage; (q.v.) the consummation of a contract, and the like. 2. A contract is said to be consummated, when everything to be done in relation to it, has been accomplished. of which such person or group would beneficially own 15 percent or more of Commerce One's common stock. The rights will become exercisable by holders, other than the unsolicited third party acquirer, for shares of Commerce One or of the third party acquirer having a value of twice the right's then-current exercise price. The rights are redeemable Redeemable Eligible for redemption under the terms of an indenture. by Commerce One and will expire expire /ex·pire/ (ek-spi´er) 1. to exhale. 2. to die. ex·pire v. 1. To breathe one's last breath; die. 2. To exhale. on April 18, 2011. Further details of the plan will be described in filings with the Securities and Exchange Commission and in a letter that will be mailed to stockholders as of the record date. About Commerce One Commerce One is the e-marketplace company. Through its software, services and Global Trading Web of interconnected business communities, Commerce One enables worldwide commerce on 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 . With headquarters in Pleasanton, California Pleasanton, nicknamed "P-town"<ref name="">Ptown (Pleasanton) Bike Advocates Meeting, East Bay Bicycle Coalition website, August 14, 2007, retrieved August 17, 2007, is a city in Alameda County, California and was incorporated in 1894. and offices around the world, Commerce One can be reached by phone at (800) 308-3838 or (925) 520-6000 or via the Internet at www.commerceone.com. Forward Looking Statements The foregoing paragraphs include 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 Section 27A of the Securities Act of 1933, as amended a·mend v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. , and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements include statements concerning the market leadership of Commerce One as the provider of e-commerce e-commerce, commerce conducted over the Internet, most often via the World Wide Web. E-commerce can apply to purchases made through the Web or to business-to-business activities such as inventory transfers. solutions, the continuing demand for e-marketplace solutions and Commerce One's position to provide e-marketplace solutions that allow its customers and affiliates to realize cost savings and gain opportunities. The words "believe," "expect," "intend," "plan," "project," "will" and similar phrases as they relate to Commerce One are intended to identify such forward-looking statements. Such 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 risks include, but are not limited to, potential volatility of quarterly operating results, reduction in demand for software products and services, pricing pressures, unexpected expenses, the ability of Commerce One to successfully implement its expansion plans, delays in developing or shipping new versions of our e-marketplace solutions, the possibility that e-marketplace solutions offered may not meet user expectations, the extent of customer adoption and utilization of the solutions provided, unexpected delays or difficulties in completing acquisitions, operational difficulties including unexpected delays integrating acquired companies, risks related to the World Wide Web, general economic conditions, intense and increasing competition in the market and volatility of the stock market. For a discussion of these and other risk factors that could affect Commerce One's business, see "Risk Factors" 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, 2000. Note to Editors: Commerce One, Many Markets. One Source. Global Trading Web, BuySite, MarketSite, Global Trading Platform, Common Business Library, XML XML in full Extensible Markup Language. Markup language developed to be a simplified and more structural version of SGML. It incorporates features of HTML (e.g., hypertext linking), but is designed to overcome some of HTML's limitations. Development Kit, XML Commerce Connector, MarketSite Builder, and SupplyOrder are either trademarks or registered trademarks of Commerce One, Inc. Enterprise Buyer and MarketSet are trademarks of Commerce One, Inc. and SAPMarkets, Inc. All other company, product, and brand names are trademarks of their respective owners.
Commerce One, Inc.
Consolidated Balance Sheets
(In thousands)
ASSETS
March 31, December 31,
2001 2000
------------ ------------
Current assets:
Cash and cash equivalents $ 249,373 $ 341,440
Accounts receivable, net 167,869 154,858
Prepaid expenses and other
current assets 20,739 16,470
------------ ------------
Total current assets 437,981 512,768
Property and equipment, net 114,566 95,143
Intangible assets, net 2,251,444 2,416,230
Investments and other assets 38,213 46,414
------------ ------------
Total assets $ 2,842,204 $ 3,070,555
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 42,144 $ 26,408
Accrued compensation and related
expenses 34,893 44,825
Deferred revenue 51,684 112,308
Other current liabilities 89,891 83,264
------------ ------------
Total current liabilities 218,612 266,805
Notes payable 19,000 4,339
Total stockholders' equity 2,604,592 2,799,411
------------ ------------
Total liabilities and
stockholders' equity $ 2,842,204 $ 3,070,555
============ ============
Commerce One, Inc.
Consolidated Statements of Operations
(In thousands, except per share data)
Three Months Ended
March 31,
------------------------
2001 2000
--------- ---------
Revenues:
License fees $ 69,414 $ 27,121
Services 100,859 7,888
--------- ---------
Total revenues 170,273 35,009
--------- ---------
Costs and expenses:
Cost of license fees 1,869 1,099
Cost of services 81,008 10,816
Sales and marketing 59,205 19,204
Product development 29,712 14,154
General and administrative 23,951 3,686
--------- ---------
Total costs and expenses 195,745 48,959
Loss before acquisition
related costs, interest,
taxes and other non-cash --------- ---------
charges (25,472) (13,950)
--------- ---------
Purchased in-process research
and development -- 5,142
Acquisition-related costs 14,099 --
Amortization of cost of
technology agreement 22,065 --
Amortization of deferred
stock compensation 24,348 4,199
Amortization of goodwill and
other intangible assets 142,755 21,895
--------- ---------
203,267 31,236
--------- ---------
Loss before interest and
income tax (228,739) (45,186)
--------- ---------
Interest and other income, net 2,805 1,541
Provision for income taxes 2,600 --
--------- ---------
Net loss $(228,534) $ (43,645)
========= =========
Basic and diluted net loss
per share $ (1.02) $ (0.29)
Shares used in calculation
of net loss per share 223,820 151,420
Net loss per share before
acquisition related costs,
interest, taxes and other
non-cash charges $ (0.11) $ (0.09)
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