Commerce One Reports Third Quarter 2002 Results.Business Editors/High-Tech Writers 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)--Oct. 23, 2002 Commerce One (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 September September: see month. 30, 2002. Revenues for the current quarter totaled $26.4 million as compared with $81.1 million for the corresponding quarter in 2001 and $27.8 million for the quarter ended June June: see month. 30, 2002. Pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma net loss for the current quarter was $31.0 million, or $1.07 per share, as compared with $63.6 million, or $2.41 per share (adjusted for the one-for-ten reverse stock split that became effective on September 16, 2002), for the corresponding quarter in 2001 and $38.4 million, or $1.33 per share (also adjusted for the reverse stock split), for the quarter ended June 30, 2002. Pro forma results exclude expenses related to the amortization and impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. 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. , stock-based compensation, 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 and other non-recurring charges, all of which are included under generally accepted accounting principle (GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). ) results. The net loss on a GAAP basis for the current quarter was $46.9 million, or $1.61 per share, as compared with a net loss of $119.0 million, or $4.51 per share (adjusted for the reverse stock split), for the corresponding quarter in 2001, and $71.1 million, or $2.46 per share (adjusted for the reverse stock split), for the quarter ended June 30, 2002. "We continue to tightly manage our financials so we can focus on our customers and Commerce One 6.0, our new product suite," said Mark Hoffman, chairman and chief executive officer of Commerce One. "We have met our engineering milestones with 6.0 and will remain focused on delivering the products and services our customers need to be successful. We are seeing encouraging signs in our pipeline and our goal is to translate (1) To change one language into another; for example, assemblers, compilers and interpreters translate source language into machine language. (2) In computer graphics, to move an image on screen without rotating it. the pipeline into more meaningful revenue with the release of our new products at the start of 2003." Commerce One will conduct a live Web cast to discuss its third quarter 2002 results 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 on Wednesday Wednesday: see week. , October October: see month. 23, 2002. The Web cast is accessible on www.commerceone.com/investors. Quarterly Highlights The following milestones were completed or announced during the third quarter of 2002: -- Commerce One added 28 customers for the quarter, and continued its momentum in the Consumer Packaged Goods Noun 1. packaged goods - groceries that are packaged for sale foodstuff, grocery - (usually plural) consumer goods sold by a grocer plural, plural form - the form of a word that is used to denote more than one (CPG CPG central pattern generators. ) industry, signing customers including Kellogg, Land O' Lakes and Perfetti. -- Commerce One announced Commerce One 6.0, its new suite of web services (1) Loosely, any online service delivered over the Web. Such usage appears in articles from non-technical sources, but not in IT-oriented publications, because definition #2 below describes the correct use of the term. based supplier relationship management applications and collaborative col·lab·o·rate intr.v. col·lab·o·rat·ed, col·lab·o·rat·ing, col·lab·o·rates 1. To work together, especially in a joint intellectual effort. 2. web services platform called 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. , which will be going into beta this quarter and generally available in Q1 2003. 6.0 will serve as a powerful vehicle for integrating applications within and between enterprises into a flexible supply network. -- Commerce One delivered new enhancements to its existing suite, Commerce One 5.0, providing a lower cost of entry and enabling customers to focus on key areas such as sourcing, procurement The fancy word for "purchasing." The procurement department within an organization manages all the major purchases. and auctions to help achieve fast return on investment. -- Commerce One Xpress See QuarkXPress. , Commerce One's solution for the CPG industry, addresses the manufacturer's challenge of meeting UCCnet's requirements to integrate product information with the UCCnet GLOBALregistry. Kellogg, for example, successfully implemented nearly 80 percent of its Morning Foods volume into the UCCnet GLOBALregistry and synchronized syn·chro·nize v. syn·chro·nized, syn·chro·niz·ing, syn·chro·niz·es v.intr. 1. To occur at the same time; be simultaneous. 2. To operate in unison. v.tr. 1. item information with Wal-Mart  Editing of this page by unregistered or newly registered users is currently disabled due to vandalism. and
Wegmans using Commerce One Xpress.
-- Commerce One launched its Early Adopter Program this quarter, providing a solid link between the 6.0 vision and execution. This program allows the company to leverage customer feedback to fine tune the solution and enable early adopters to solve real business critical issues within their organizations. About Commerce One Commerce One (Nasdaq:CMRC) is a software company dedicated to helping customers connect and optimize optimize - optimisation applications and business processes throughout and between enterprises to improve business productivity. Initially focusing on the supply chain, where customer demand is greatest, Commerce One solutions utilize Web services technology to streamline streamline, path of a fluid flowing steadily and without appreciable turbulence. A body is said to be streamlined if its shape offers the least possible resistance to a current of air, water, or other fluid. the sourcing and procurement process, and make the supply chain more flexible. For more information go to 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 company's expectations regarding the schedule for release of its new products, the expected impact of the release of those products on our revenue growth and success, and the Company's expectations regarding the success of its efforts to maintain and balance its cost structure. The words "believe," "expect," "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, the failure of the web services market 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. as anticipated; delays in developing or shipping new versions of our software solutions; a lack of or delay in customer adoption and utilization utilization, n 1. the extent to which a given group uses a particular service in a specified period. Although usually expressed as the number of services used per year per 100 or per 1000 persons eligible for the service, utilization rates may be of our future solutions, particularly our web services solutions; unexpected expenses; the failure of any our solutions to meet user expectations; risks related to general economic conditions; and intense and increasing competition in the market for procurement, sourcing, web services and related enterprise solutions. 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 ReVisions is a 2004 anthology of alternate history short-stories. It is edited by Julie E. Czerneda and Isaac Szpindel. Contents Title Author The Resonance of Light James Alan Gardner Out of China Julie E. 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. 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 Quarterly Report on Form 10-Q Form 10-Q See 10-Q. for the quarter ended June 30, 2002.
Commerce One, Inc.
Condensed Consolidated Balance Sheets
(In thousands)
September 30, December 31,
2002 2001
--------- ---------
ASSETS
------
Current assets:
Cash and short term investments $110,746 $273,893
Restricted cash and short term investments 37,231 14,260
Accounts receivable, net 7,388 43,598
Prepaid expenses and other current assets 10,163 9,762
--------- ---------
Total current assets 165,528 341,513
Property and equipment, net 39,696 64,908
Goodwill and other intangible assets, net 246,053 409,534
Investments and other assets 10,100 10,707
--------- ---------
Total assets $461,377 $826,662
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
-------------------------------------
Current liabilities:
Accounts payable $11,213 $23,773
Accrued compensation and related expenses 10,784 17,960
Current portion of notes payable and capital
lease obligations 22,725 -
Deferred revenue 28,056 55,088
Other current liabilities 35,954 50,021
--------- ---------
Total current liabilities 108,732 146,842
Notes payable and capital lease obligations 204 19,000
Accrued restructuring costs 27,231 37,005
Total stockholders' equity 325,210 623,815
--------- ---------
Total liabilities and
stockholders' equity $461,377 $826,662
========= =========
Commerce One, Inc.
Condensed Consolidated Statements of Operations
(In thousands, except per share amounts)
Three Months Ended September 30,
Pro Forma GAAP
2002 2001 2002 2001
--------- --------- --------- ----------
Revenues:
License fees $8,498 $16,679 $8,498 $16,679
Services 17,925 64,407 17,925 64,407
--------- --------- --------- ----------
Total revenues 26,423 81,086 26,423 81,086
--------- --------- --------- ----------
Costs and expenses:
Cost of license fees 685 4,251 2,251 10,014
Cost of services 15,086 47,928 15,086 47,928
Sales and marketing 19,172 38,114 19,172 38,114
Product development 18,038 30,759 18,038 30,759
General and administrative 4,575 24,410 4,575 24,410
Purchased in-process
research and development - - - -
Restructuring costs and
other - - - -
Amortization of deferred
stock compensation - - 11,632 25,520
Amortization of goodwill and
other intangible assets - - 2,851 23,612
Impairment of intangible
assets and equity
investments - - - -
--------- --------- --------- ----------
Total cost and expenses 57,556 145,462 73,605 200,357
--------- --------- --------- ----------
Loss from operations (31,133) (64,376) (47,182) (119,271)
Interest income and
other, net 393 2,737 543 2,251
Provision for income taxes 299 2,000 299 2,000
--------- --------- --------- ----------
Net loss $(31,039) $(63,639) $(46,938) $(119,020)
========= ========= ========= ==========
Basic and diluted net loss
per share $(1.07) $(2.41) $(1.61) $(4.51)
========= ========= ========= ==========
Shares used in calculation of
net loss per share 29,130 26,389 29,130 26,389
========= ========= ========= ==========
Commerce One, Inc.
Condensed Consolidated Statements of Operations
(In thousands, except per share amounts)
Nine Months Ended September 30,
Pro Forma GAAP
2002 2001 2002 2001
---------- ---------- ---------- ------------
Revenues:
License fees $24,079 $115,878 $24,079 $115,878
Services 61,936 236,732 61,936 236,732
---------- ---------- ---------- ------------
Total revenues 86,015 352,610 86,015 352,610
---------- ---------- ---------- ------------
Costs and expenses:
Cost of license fees 2,193 8,575 156,871 650,341
Cost of services 56,563 191,482 56,563 191,482
Sales and marketing 68,255 151,853 68,255 151,853
Product development 62,349 89,392 62,349 89,392
General and
administrative 22,674 97,173 22,674 97,173
Purchased in-process
research and
development - - - 4,548
Restructuring costs
and other - - 15,865 76,147
Amortization of
deferred stock
compensation - - 35,521 74,585
Amortization of
goodwill and other
intangible assets - - 8,989 310,901
Impairment of
intangible assets and
equity investments - - - 1,120,464
---------- ---------- ---------- ------------
Total cost and expenses 212,034 538,475 427,087 2,766,886
---------- ---------- ---------- ------------
Loss from operations (126,019) (185,865) (341,072) (2,414,276)
Interest income and
other, net 2,855 8,417 4,084 5,464
Provision for income
taxes 1,678 7,000 1,678 7,000
---------- ---------- ---------- ------------
Net loss $(124,842) $(184,448) $(338,666) $(2,415,812)
========== ========== ========== ============
Basic and diluted net
loss per share $(4.31) $(7.71) $(11.70) $(101.04)
========== ========== ========== ============
Shares used in
calculation of net loss
per share 28,947 23,910 28,947 23,910
========== ========== ========== ============
Commerce One, Inc.
Reconciliation of GAAP to Pro Forma Net Loss
(In thousands)
Three Months Ended Nine Months Ended
September 30, September 30,
2002 2001 2002 2001
--------- ---------- ---------- ------------
Net Loss - GAAP $(46,938) $(119,020) $(338,666) $(2,415,812)
Cost of license fees -
amortization of
technology agreement 1,566 5,763 8,863 49,432
Cost of license -
Impairment of the
Technology Agreement
with Covisint - - 145,815 592,334
Purchased in process
research and
development - - - 4,548
Restructuring costs
and other - - 15,865 76,147
Amortization of
deferred stock
compensation 11,632 25,520 35,521 74,585
Amortization of
goodwill and other
intangible assets 2,851 23,612 8,989 310,901
Impairment of
intangible assets
and equity
investments - - - 1,120,464
(Gain)/loss on
investments,
insurance proceeds
and other (150) 486 (1,229) 2,953
--------- ---------- ---------- ------------
Net Loss - Pro Forma $(31,039) $(63,639) $(124,842) $(184,448)
========= ========== ========== ============
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