Commerce One Reports Second Quarter 2001 Results; Revenues Increase 61% Year over Year to $101 million; Net Operating Loss Per Share of $.31
PLEASANTON, Calif.--(BUSINESS WIRE)--July 19, 2001-- Commerce One Now Powers 164 E-Marketplaces and Has 600 Total Customers
Commerce One, Inc. (Nasdaq:CMRC), the e-marketplace company, today announced financial results for the quarter ended June 30, 2001.
Revenues for the current quarter totaled $101.3 million, an increase of 61 percent over revenues of $62.7 million for the quarter ended June 30, 2000.
Operating loss for the second quarter of 2001, excluding acquisition-related costs, interest, taxes, amortization of technology agreement, stock compensation and intangible assets, and other non-recurring charges, was $70.2 million, or $0.31 per share, as compared to $16.2 million, or $0.10 per share, for the corresponding quarter in 2000.
The net loss for the current quarter was $2,068.3 million, or $9.02 per share, as compared with a net loss of $43.1 million, or $0.28 per share, for the corresponding quarter in 2000. The second quarter net loss includes acquisition-related costs, interest, amortization of technology agreement, stock compensation and intangible assets, and certain one-time charges. These one-time charges include a non-cash charge of $1,712.8 million resulting from the impairment of intangible assets and equity investments, and a restructuring charge of $62.0 million.
"In spite of the short term pressures, we remain confident in our vision for both public and private e-marketplaces," said Mark Hoffman, chairman and chief executive officer of Commerce One. "We are committed to driving the company to profitability by both rationalizing the company with current market conditions and staying focused on making our customers successful, delivering ROI and developing the products and services our customers need long-term."
QUARTERLY HIGHLIGHTS
-- Commerce One added 33 new customers for the quarter, bringing
the total customer count to 600.
-- The Commerce One Global Trading Web(TM), the world's largest
B2B trading community, continued its rapid expansion and today
includes 164 e-marketplaces, 77 of which are currently
operational. Nearly 20 e-marketplaces on the Global Trading
Web are interoperating, linking Fortune 1000 companies in
e-marketplace-to-e-marketplace transactions to complete
purchase orders.
-- Commerce One extended its global leadership position with a
number of new customers including Johns Manville, TRW, and
medibuy in the healthcare industry, Gate2biz.net, India's
first B2B e-marketplace, and eAECglobal, an e-marketplace
serving the architectural, engineering and construction
industry, a joint win with SAPMarkets. Other wins with SAP
include Shell, Volvo, Kodak, Cadbury and Telecom Italia
Mobile.
-- Commerce One and SAPMarkets delivered the next release of
their leading joint solutions, MarketSet 2.0 and Enterprise
Buyer 2.0. The solutions combine SAP's leading collaborative
supply chain applications with Commerce One's e-marketplace
environment designed for enterprise, industry and regional
e-marketplaces.
-- Commerce One introduced MarketWise(TM), a suite of packaged
consulting services to assist e-marketplace operators in
optimizing the performance of their organization from initial
business strategy through deployment and expansion.
-- Commerce One and Citibank announced the first offering of
their strategic alliance to provide a comprehensive financial
services solution for e-marketplaces.
-- Commerce One completed the acquisition of Exterprise, a
leading provider of software solutions for building and
managing collaborative business networks. Exterprise brings
Commerce One key technologies for quickly developing and
deploying e-marketplace applications.
-- Commerce One named former FedEX CIO, Dennis H. Jones, its
President.
-- Commerce One and SAP AG extended their alliance with SAP
investing approximately $222 million in Commerce One.
About Commerce One
Commerce One (Nasdaq:CMRC) is the e-marketplace company. Through its software, services and Global Trading Web(TM) of interconnected business communities, Commerce One enables worldwide commerce on the Internet. With headquarters in Pleasanton, California and offices around the world, Commerce One can be reached by phone at 800 308 3838 (US only) or +1 925 520 6000 or via the Internet at www.commerceone.com.
Forward Looking Statements
The foregoing paragraphs include forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements include statements concerning management's confidence in public and private e-marketplaces, the Company's commitment to profitability and its focus on providing customer satisfaction. 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, potential volatility of quarterly operating results, accounting entries and adjustments at the closing of the quarter, reduction in demand for software products and services, 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, 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 for the year ended December 31, 2000 as well as its Quarterly Report on Form 10-Q for the quarter ended March 31, 2001.
Note to Editors: Commerce One, Many Markets. One Source. Global Trading Web, Commerce One.net, BuySite, MarketSite Operating Environment, Global Trading Platform, Common Business Library, XML 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. All other company, product, and brand names are trademarks of their respective owners.
Commerce One, Inc.
Condensed Consolidated Statements of Operations
(In thousands, except per share data)
Three Months Ended Six Months Ended
June 30, June 30,
------------------------- ------------------------
2001 2000 2001 2000
----------- ----------- ----------- -----------
Revenues:
License fees $29,785 $40,953 $99,199 $68,074
Services 71,466 21,751 172,325 29,639
----------- ----------- ----------- -----------
Total revenues 101,251 62,704 271,524 97,713
----------- ----------- ----------- -----------
Costs and
expenses:
License fees
(1) 616,393 973 640,327 2,072
Services 66,561 20,327 147,569 31,143
Sales and
marketing 52,173 31,230 111,378 50,434
Product
development 27,030 20,769 56,742 34,923
General and
administrative 49,049 5,628 73,000 9,314
Purchased
in-process
research and
development 4,548 -- 4,548 5,142
Stock
compensation 24,717 4,127 49,065 8,326
Amortization of
goodwill
and other
intangible
assets 144,534 22,509 287,289 44,404
Restructuring
costs 62,048 -- 76,147 --
Impairment of
intangible
assets and
equity
investments 1,120,464 -- 1,120,464 --
----------- ----------- ----------- -----------
Total costs and
expenses 2,167,517 105,563 2,566,529 185,758
----------- ----------- ----------- -----------
Loss from
operations (2,066,266) (42,859) (2,295,005) (88,045)
Interest income
and other, net 408 1,182 3,213 2,723
----------- ----------- ----------- -----------
Net loss before
income taxes (2,065,858) (41,677) (2,291,792) (85,322)
Provision for
income taxes 2,400 1,470 5,000 1,470
----------- ----------- ----------- -----------
Net loss $(2,068,258) $(43,147) $(2,296,792) $(86,792)
=========== =========== =========== ===========
Basic and diluted
net loss per
share $(9.02) $(0.28) $(10.14) $(0.57)
=========== =========== =========== ===========
Shares used in
calculation
of basic and
diluted net
loss per share 229,184 155,064 226,515 153,250
=========== =========== =========== ===========
(1) 2001 results include impairment of technology agreement of
$592,334.
Commerce One, Inc.
Pro Forma Condensed Consolidated Statements of Operations
(In thousands, except per share data)
Three Months Ended Six Months Ended
June 30, June 30,
------------------------- -------------------------
2001 2000 2001 2000
----------- ----------- ----------- -----------
Revenues:
License fees $29,785 $40,953 $99,199 $68,074
Services 71,466 21,751 172,325 29,639
----------- ----------- ----------- -----------
Total revenues 101,251 62,704 271,524 97,713
----------- ----------- ----------- -----------
Costs and
expenses:
License fees 2,455 973 4,324 2,073
Services 66,561 20,327 147,569 31,142
Sales and
marketing 52,173 31,230 111,378 50,433
Product
development 27,030 20,769 56,742 34,924
General and
administrative 23,231 5,628 47,182 9,314
----------- ----------- ----------- -----------
Total costs and
expenses 171,450 78,927 367,195 127,886
Loss before
acquisition-
related costs,
interest, taxes
and other ----------- ----------- ----------- -----------
non-cash charges (70,199) (16,223) (95,671) (30,173)
----------- ----------- ----------- -----------
Purchased
in-process
research and
development 4,548 -- 4,548 5,142
Stock
compensation 24,717 4,127 49,065 8,326
Amortization of
goodwill and
other
intangible
assets 166,138 22,509 330,958 44,405
Restructuring
costs and
write-down of
accounts
receivable 87,866 -- 101,965 --
Impairment of
intangible
assets and
equity
investments 1,712,798 -- 1,712,798 --
----------- ----------- ----------- -----------
1,996,067 26,636 2,199,334 57,873
----------- ----------- ----------- -----------
Loss before
interest and
income tax (2,066,266) (42,859) (2,295,005) (88,046)
Interest income
and other, net 408 1,182 3,213 2,723
Provision for
income taxes 2,400 1,470 5,000 1,470
----------- ----------- ----------- -----------
Net loss $(2,068,258) $(43,147) $(2,296,792) $ (86,793)
=========== =========== =========== ===========
Net loss per
share before
acquisition
related costs,
interest, taxes,
impairment of
assets and other
non-cash charges $(0.31) $(0.10) $(0.42) $(0.20)
=========== =========== =========== ===========
Basic and diluted
net loss per
share $(9.02) $(0.28) $(10.14) $(0.57)
=========== =========== =========== ===========
Shares used in
calculation of
net loss per
share 229,184 155,064 226,515 153,250
=========== =========== =========== ===========
Commerce One, Inc.
Condensed Consolidated Balance Sheets
(In thousands)
ASSETS
June 30, December 31,
2001 2000
---------- ----------
Current assets:
Cash and cash equivalents $219,268 $341,440
Accounts receivable, net 123,421 154,858
Prepaid expenses and
other current assets 14,296 16,470
---------- ----------
Total current assets 356,985 512,768
Property and equipment, net 110,783 95,143
Intangible assets, net 466,143 2,416,230
Investments and other
assets 15,403 46,414
---------- ----------
Total assets $949,314 $3,070,555
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $31,529 $26,408
Accrued compensation and
related expenses 27,779 44,825
Deferred revenue 104,728 112,308
Other current liabilities 131,341 83,264
---------- ----------
Total current
liabilities 295,377 266,805
Notes payable 19,302 4,339
Total stockholders' equity 634,635 2,799,411
---------- ----------
Total liabilities and
stockholders' equity $949,314 $3,070,555
========== ==========
CONTACT:
Commerce One
John Biestman, 925/520-5440 (Investors)
john.biestman@commerceone.com
Katie O'Connell, 925/520-6094 (Media)
katie.oconnell@commerceone.com
or
The Horn Group
Caroline Hacker, 415/905-4016
chacker@horngroup.com
KEYWORD: CALIFORNIA
BW2483 JUL 19,2001
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