Ariba's Ugly Sister Getting Glass Slipper?
All WCAP,
With WCAP now trading at 1/2 of their asset value.....and about 45% of that in CMRC stock........This might be of interest.....
Robertson Stephens PR on CMRC for 8/25/00
COMMERCE ONE, SAP ANNOUNCE JOINT OFFERINGS, CUSTOMER WINS
The Commerce One/SAP (SAP $60-1/2) alliance formed in June
appears to be tracking ahead of plan, with the companies
unveiling their first joint offerings and two key customer wins.
The procurement application for both direct and indirect goods is
called EnterpriseBuyer and MarketSet is an integrated suite of
software for B2B marketplaces. We believe the latter product will
become increasingly important as online marketplaces become
important venues for coordinating the commercial activities of an
extended network of trading partners spanning the B2B transaction
life cycle.
On the contract front, the pair entered into a preliminary memo
of understanding with Enporion, an energy and utilities
marketplace founded by Allegheny, Northern States Power, New
Century Energies, Minnesota Power and PPL Corp. The marketplace
expects to begin processing transactions in the fourth quarter --
a potential boon to Commerce One, which has revenue-sharing
agreements with its marketplace customers. Other technology
providers such as Ariba and Oracle had aggressively competed for
this deal. Also this month, a mining, metals and minerals
marketplace (whose participants include Alcan, Alcoa, Morgan
Stanley and Phelps Dodge) made the Commerce One-SAP venture its
preferred technology provider.
Given these developments and keeping the pending AppNet (APNT
$39) acquisition in mind, we anticipate updating our financial
model for Commerce One in September. We expect the SAP
partnership to begin contributing revenue to our estimates in Q4
and AppNet to significantly increase Commerce One's service
revenue but lower gross margins for several quarters. We believe
Commerce One's pipeline, closure rates and business momentum are
in excellent shape and anticipate possible upside to our current
estimates.
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