COMMMERCE ONE rises after strong quarter
cbs.marketwatch.com
By Mike Tarsala, CBS MarketWatch
Last Update: 10:24 AM ET Apr 20, 2000 NewsWatch
PLEASANTON, Calif. (CBS.MW) -- Shares of B2B software firm Commerce One rose 23 percent in early trading Thursday, after reporting stronger-than-expected first quarter results Wednesday.
The company's shares were up 10 25/32 to 58 1/2, after adjusting for a two-for-one split effective Thursday morning.
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Updated:
04/22/2000 5:47:38 PM ET
The exchange software maker boosted sales 1,564 percent to $35 million from $2.1 million in the year-ago period. The company had $16.9 million in sales in its December quarter, so the March quarter represented a 107 percent sequential sales gain.
Software license fees for the just-ended quarter were $27.1 million, or 77 percent of total revenue. The company had a more than twofold jump in service revenue -- to $7.9 million from $3.8 million in the previous quarter.
"Our revenue more than doubled over the previous quarter, driven by strong demand in all sectors," said Mark Hoffman, Commerce One's (CMRC: news, msgs) chairman and chief executive, in a prepared statement. "Not only are we winning business with leading companies around the world, but we are the market leader in powering the new breed of major industry exchanges."
The net loss for the current quarter, excluding nonoperating charges, was $14 million, or 9 cents a diluted share, compared with $7.8 million, or 9 cents, in the year-ago period. Analysts had expected a loss of 12 cents.
Including all charges, the net loss for the current quarter was $43.6 million, or 29 cents a share, compared with a net loss of $12.3 million, or 14 cents, after adjusting for a 2-for-1 stock split.
Highlights in the quarter include the announcement that Ford (F: news, msgs), General Motors (GM: news, msgs) and DaimlerChrysler (DCX: news, msgs) will join with Commerce One to form what the companies are calling the world's largest automotive exchange.
Royal Dutch/Shell also announced a joint venture with Commerce One to build an exchange for the energy industry. It eventually is expected to include 13 other companies, including BP Amoco (BPA: news, msgs).
Boeing (BA: news, msgs), Lockheed Martin (LMT: news, msgs), Raytheon (RTNB: news, msgs) and BAE Systems (BAE: news, msgs) said that they would join Commerce One to build an exchange for aerospace and defense.
Other new customers include Citigroup (C: news, msgs), Boeing and Eli Lilly (LLY: news, msgs), bringing the total customer count to 135. |
