Commerce One, Inc. Reports Financial Results for the Quarter Ended June 30, 1999
WALNUT CREEK, Calif.--(BUSINESS WIRE)--July 28, 1999--
Company Achieves Record Sales and Strong Momentum with New Business-to-Business Electronic Commerce Customers, Partnerships and Solutions
Commerce One, Inc. (Nasdaq:CMRC), a leading provider of business-to-business electronic commerce solutions, today announced financial results for the quarter ended June 30, 1999.
Revenues for the quarter totaled $4.2 million as compared with $698,000 for the corresponding quarter in 1998; an increase of 502% and an increase of $2.1 million over revenues for the quarter ended March 31, 1999.
Net loss for the quarter was $11.8 million, or a pro forma net loss of $0.69 per share as compared with a net loss of $5.9 million, or a pro forma net loss of $0.77 per share for the corresponding quarter ended June 30, 1998. Pro forma net loss per share gives effect to the conversion of preferred shares to common shares upon completion of the company's initial public offering in early July 1999.
Revenues from license fees for the quarter ended June 30, 1999 were $2.3 million, or 54% of total revenues. Revenues from services for the quarter were $1.9 million.
"Our revenue growth for the second quarter, combined with funding from our IPO and strategic investment partners, effectively places Commerce One in a strong position to extend our global leadership in business-to-business electronic commerce," said Mark Hoffman, president and chief executive officer of Commerce One.
Quarterly Highlights
The following milestones were completed or announced during the second quarter of 1999:
-- Commerce One held its initial public offering on July 1, 1999,
and closed concurrent private placements with three strategic
partners: PeopleSoft, Nippon Telegraph and Telephone, and
Singapore Telecommunications.
-- Commerce One entered into agreements with eight new customers,
including Bass PLC; Cable & Wireless Optus; Computer Solutions &
Finance (CSF); Singapore Telecommunications; Warner Lambert;
Wells Fargo Bank; and Weyerhaeuser Company.
-- PeopleSoft, Inc. and Commerce One announced a strategic alliance
that leverages the companies' respective strengths in enterprise
applications and electronic commerce to create a powerful
e-commerce solution with the potential to link thousands of
buyers and suppliers worldwide. As part of the agreement,
PeopleSoft announced immediate availability of the initial
release of PeopleSoft eProcurement, which is based on Commerce
One's Commerce Chain Solution, including Commerce One BuySite and
Commerce One's MarketSite.net, as well as its partner MarketSite
marketplaces.
-- Singapore Telecommunications and Commerce One announced a
partnership to offer businesses in Asia the opportunity to reach
a large community of global suppliers while giving the region's
suppliers access to a global trading web of regional
business-to-business marketplaces built on the Commerce One
MarketSite platform.
-- Commerce One announced two new versions of Commerce One
BuySite(TM) 5.0, Desktop Commerce Application: Commerce One
BuySite 5.0 Enterprise Edition, a complete, high-performance,
aggressively priced e-commerce solution that enables large
enterprise organizations to measure the success of their
e-commerce initiatives; and Commerce One BuySite 5.0 Hosted
Edition, a hosted version of BuySite targeted at small and
mid-sized companies and vertical industries through partnerships
with leading market makers.
-- Executive appointments during the quarter included Lloyd Oki as
vice president of Asia-Pacific operations; Robert Tarkoff as
general counsel and vice president of corporate development;
Susan Dwyer as vice president of corporate marketing; Scott
Walecka as vice president of MarketSite engineering; Dawn Block
as vice president of human resources; and Carl Falk as vice
president of the Global Trading Web.
The statements contained in this release which are not historical facts may be deemed to contain forward-looking statements that involve risks and uncertainties, including but not limited to statements regarding the company's competitive position and business model and expected growth in the business-to-business electronic commerce market. All forward-looking statements included in this press release are based upon information available to Commerce One as of the date of the release, and the company assumes no obligation to update any such forward-looking statement. Actual results may differ materially from those anticipated in any forward-looking statements as a result of certain risks and uncertainties, including, without limitation, the competitive nature of the market in which the company competes, the early stage of development of the company's products, and the lack of market acceptance of the company's Commerce Chain Solution. These and the other risks and uncertainties associated with the company's business are detailed in the company's registration statement Form S-1 declared effective on July 1, 1999 by the Securities and Exchange Commission.
About Commerce One
Commerce One (Nasdaq:CMRC) is a leading provider of electronic commerce solutions that dynamically link buying and supplying organizations into real-time trading communities.
The Commerce Chain Solution by Commerce One, comprising Commerce One BuySite and Commerce One MarketSite, enables companies to significantly reduce operational costs and increase efficiency by automating the entire indirect goods and services supply chain. As a result, enterprise organizations are able to realize a strategic competitive advantage as well as a rapid return on investment.
Commerce One is located in Walnut Creek, Calif., and can be reached by phone at 800/308-3838 or 925/941-6000 or via the Internet at commerceone.com or marketsite.net.
Note to Editors: Commerce One, Commerce Chain, BuySite, MarketSite.net, are either trademarks or registered trademarks of Commerce One.
Commerce One, Inc.
Consolidated Statements of Operations
(In thousands except share data)
(unaudited)
Three months ended Six months ended
----------------------------------------------------
June 30, March 31, June 30, June 30, June 30,
1998 1999 1999 1998 1999
----------- -------------- -------- ------
Revenues:
License fees $ 500 $ 1,456 $ 2,270 $ 505 $ 3,726
Services 198 648 1,932 318 2,580
-------- -------- -------- -------- --------
Total revenues 698 2,104 4,202 823 6,306
-------- -------- -------- -------- --------
Cost of revenues 961 1,668 3,096 1,635 4,764
-------- -------- -------- -------- --------
Gross profit (loss) (263) 436 1,106 (812) 1,542
-------- -------- -------- -------- --------
Operating expenses:
Sales and marketing 3,373 4,078 6,319 5,884 10,397
Product development 1,494 3,362 3,609 2,651 6,971
General and
administrative 461 827 923 792 1,750
Purchased in-process
research
and development -- 3,037 -- -- 3,037
Amortization of
deferred stock
compensation 226 584 663 325 1,247
Amortization of
goodwill and
other intangible
assets -- 875 1,049 -- 1,924
-------- -------- -------- -------- --------
Total operating
expenses 5,554 12,763 12,563 9,652 25,326
-------- -------- -------- -------- --------
Loss from operations (5,817) (12,327) (11,457) (10,464) (23,784)
Interest income
(expense), net (76) 16 217 (61) 233
-------- -------- -------- -------- --------
Net loss before
taxes (5,893) (12,311) (11,240) (10,525) (23,551)
Provision for income
taxes -- -- 586 -- 586
======== ======== ======== ======== ========
Net loss $ (5,893) $(12,311) $(11,826) $(10,525) $(24,137)
======== ======== ======== ======== ========
Net loss per share:
Basic and diluted $ (1.99) $ (2.64) $ (2.22) $ (3.58) $ (4.82)
======== ======== ======== ======== ========
Pro forma basic
and diluted $ (0.77) $ (0.87) $ (0.69) $ (1.37) $ (1.54)
======== ======== ======== ======== ========
Shares used in
calculation of net
loss per share:
Basic and diluted 2,997 4,723 5,458 2,974 5,100
======== ======== ======== ======== ========
Pro forma basic
and diluted 7,679 14,175 17,235 7,655 15,719
======== ======== ======== ======== ========
Commerce One, Inc.
Consolidated Balance Sheets
(In thousands)
ASSETS
December 31, June 30,
1998 1999
----------------------
(unaudited)
Current assets:
Cash and cash equivalents $ 15,138 $ 42,346
Accounts receivable, net 1,200 2,835
Prepaid expenses and other current assets 629 2,827
-------- --------
Total current assets 16,967 48,008
Property and equipment, net 2,590 4,206
Note receivable from Veo Systems, Inc. 950 --
Intangible assets, net -- 17,073
======== ========
Total assets $ 20,507 $ 69,287
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 709 $ 2,542
Accrued compensation and related expenses 352 1,263
Current portion of capital lease obligations 448 326
Current portion of notes payable 876 886
Deferred revenue 1,168 14,987
Other current liabilities 1,637 2,389
-------- --------
Total current liabilities 5,190 22,393
Advances for purchase of common stock -- 5,000
Capital lease obligations 309 170
Notes payable 1,587 1,172
Redeemable convertible preferred stock 50,432 81,468
Stockholders' equity (deficit) (37,011) (40,916)
======== ========
Total liabilities and stockholders'
equity $ 20,507 $ 69,287
======== ========
CONTACT: Commerce One
Kit Robinson, 925/941-4591 (Company Contact)
kit.robinson@commerceone.com
or
The Horn Group
Carolyn McCusker, 415/905-4024 (Media Contact)
cmccusker@horngroup.com
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