Commerce One, Inc. Reports Record Fourth Quarter
1999 Results
Revenues Increase 63% Over Previous Quarter Driven by New Customers and Growth of the
Commerce One Global Trading Web for Business-to-Business E-Commerce
WALNUT CREEK, Calif.--(BUSINESS WIRE)--Jan. 25, 2000-- Commerce One, Inc. (Nasdaq: CMRC - news), the
leading provider of business-to-business electronic commerce solutions, today announced financial results for the quarter ended
December 31, 1999.
Revenues for the quarter totaled $16.9 million as compared with $1.0 million for the corresponding quarter in 1998 and $10.4
million for the quarter ended September 30, 1999. This represents an increase of 63% over revenues for the quarter ended
September 30, 1999. Net loss for the quarter was $28.8 million, or $0.40 per share, as compared with a net loss of $7.6
million, or $0.21 per share, for the corresponding quarter ended December 31, 1998 and $10.4 million, or $0.15 per share,
for the quarter ended September 30, 1999. Revenues for the year ended December 31, 1999 were $33.6 million as compared
with $2.6 million for the year ended December 31, 1998. Net loss for the year ended December 31, 1999 was $63.3 million,
or $1.06 per share, as compared to $24.6 million for the year ended December 31, 1998, or $0.87 per share. Net loss per
share is computed on a pro forma basis, giving 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 December 31, 1999 were $13.1 million, or 77% of total revenues. Revenues
from services for the quarter were $3.8 million.
''Our revenue growth for the fourth quarter reflects the rapid expansion of the Commerce One Global Trading Web to new
customers, new suppliers, new partners and new geographies,'' said Mark Hoffman, president and chief executive officer of
Commerce One. ''As new members continue to join our global trading community, the potential value to each participant
increases exponentially.''
Quarterly Highlights
The following milestones were completed or announced during the fourth quarter of 1999
-- Commerce One added 23 new customers, including TD Bank, Banacci,
Swisscom, Deutsche Telekom, eEmediate, Guess?, H.B. Fuller,
empactHealth, Modis, Moore Corporation, and Wellpoint.
-- Commerce One has significantly expanded the Commerce One Global
Trading Web with the addition of five new regional portals and
five new industry- or community-specific portals. In contrast to
enterprise software sales, each of these new trading communities
promises to establish a leveraged opportunity for Commerce One
and its partners. Each trading community presents a channel for
the acquisition of multiple trading partners (buying, selling and
service organizations), both extending the value of the Commerce
One solution to every trading community member and increasing the
network effect of the Global Trading Web.
-- Commerce One shipped two major product releases: Commerce One
BuySite(TM) 6.0, an e-procurement application designed for
complex, multinational organizations, and Commerce One MarketSite
Portal Solution 3.0, a comprehensive technology infrastructure
for building e-marketplaces, including hosted trading
applications and an XML-based transactional platform.
-- Commerce One acquired privately held CommerceBid.com, a leading
developer of business-to-business auction and reverse auction
service solutions. CommerceBid.com's technology enables buyers
and sellers to participate in auctions and reverse auctions
through Commerce One MarketSite, the e-commerce portal for North
America, as well as through other MarketSite portals on the
Commerce One Global Trading Web.
-- Commerce One acquired privately held Mergent Systems, Inc., a
leading developer of distributed product information management
systems. Mergent's technology addresses one of the most
challenging problems in e-commerce - creating and searching
multi-vendor catalogs that integrate product information in real
time from diverse sources, including manufacturers, distributors,
vendors, and content aggregators, as well as Internet market
makers.
-- The first two live auctions using Commerce One Auction Services
were successfully conducted. General Motors held a live forward
auction on GM TradeXchange, and Schlumberger Oilfield Services
conducted a reverse auction on Commerce One MarketSite.
-- Commerce One signed an agreement with Corio, an Application
Service Provider (ASP), by which Corio will sell, implement,
remotely host and manage the Commerce One Solution, enabling
Corio customers to enjoy the full benefits of B2B e-commerce on
an outsourced basis.
-- Cisco Systems selected Commerce One as an application partner
within the Cisco Hosted Applications Initiative. Through this
initiative, Commerce One will deliver its BuySite Portal Edition
as part of an optimized Cisco network solution through
participating ASPs.
-- Commerce One signed an agreement with New Era Of Networks (NEON)
to enable customers to easily integrate the Commerce One Solution
with legacy and ERP applications by using NEON's e-Business
Integration products.
-- Commerce One established partnerships with a broad range of
procurement software vendors whose products integrate with
Commerce One MarketSite, including Extensity, PeopleSoft,
Peregrine Systems, Remedy, Rightworks, Solix Internet and Walker.
These partnerships demonstrate Commerce One's commitment to open
standards, enabling multiple buying applications to interact with
the XML-based Commerce One MarketSite Portal Solution.
-- Commerce One announced that the industry's leading conference on
global e-commerce, eLink 2000 Europe, will be held on February 22
- 23, 2000, at the Royal Lancaster Hotel in London. The two-day
event is being sponsored by Commerce One, BT, Andersen
Consulting, Compaq, Microsoft, PeopleSoft and
PricewaterhouseCoopers.
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, continued development of the company's products, and the
extent of market acceptance of the company's Commerce One Solution. Additional risks and uncertainties associated with the
company's business are detailed in the company's registration statement on Form S-1 declared effective on July 1, 1999 by the
Securities and Exchange Commission and the company's quarterly report on Form 10-Q for the third quarter of 1999.
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