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Technology Stocks : Ariba Technologies (Nasdaq-ARBA) -- Ignore unavailable to you. Want to Upgrade?

To: qawoman who wrote (1557)	1/5/2001 6:15:38 PM
From: John Carragher	Respond to of 2110

Dow Jones Newswires -- January 5, 2001 Dow Jones Newswires Ariba Dn 20% Amid Concerns About Reserves For Bad Debt Dow Jones Newswires By Marcelo Prince Of DOW JONES NEWSWIRES NEW YORK -- In the midst of a nasty session for technology stocks, shares of Ariba Inc. (ARBA) sank 20% in heavy trading Friday to their lowest price since September 1999 after an analyst raised concerns about a sharp increase in the Internet software firm's reserves for bad debt. In a recently filed 10-K for its fiscal year ended in September, Ariba disclosed that its allowance for doubtful accounts was $13.8 million, up from just $20,000 in 1999. It now represents 18% of total accounts receivables. Company officials weren't immediately available to comment. In a research note Friday, Salomon Smith Barney analyst Gretchen Teagarden said "this sudden and significant increase calls into question Ariba's potential exposure to dot-com customers." Dot-com clients account for 8% of total sales, she estimates, within Ariba's targeted range of 5% to 10%. In a worst-case scenario, if the company failed to collect any of this revenue - about $58.5 million of the $770 million forecast for 2001 - Teagarden estimates it would trim her year 2001 earnings estimate of 20 cents a share by 1 cent. She also warned that since rival Commerce One Inc. (CRMC) gets 6.5% of its revenue from dot-coms, it could reveal a similar phenomenon when it releases its 10-K form. Teagarden rates both stocks at neutral. Despite support from other brokerages, Ariba shares, which traded as high as $183 in March, ended Friday's session at $34.19, down $8.69, or 20%, on volume of 21 million shares, nearly double average volume. Earlier it hit $33.88, a 17-month low. Meanwhile, Commerce One shares, which hit a high of nearly $138 in March, closed at $18.56, down $3.38, or 15%, on average volume of 9.8 million shares. -By Marcelo Prince, Dow Jones Newswires; 201-938-5244; marcelo.prince@dowjones.com