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To: Logain Ablar who wrote (2469)	8/20/2001 10:48:56 AM
From: John Pitera	Read Replies (1) \| Respond to of 2850

Hi Tim, did you notice that Covisant expanded transactions from 1 billion to 35 billion between Q 1 and Q2 of this year. what is interesting is that the 35 billion run through the exchange is 80% of the 2002 target that some analysts had been targeting. that's one of the more upbeat data points, I've seen this summer in tech. But it's also very, very early. I did listen to a very interesting presentation that CMRC gave last week, it's kind of like are we gonna drink the coolaid in terms of the projections for these exchanges going out into 2003 or 2005? anyway there will be absolutely nothing coming out until after the options are repriced in the Oct-Dec time window........ John ----------- WSJ: Covisint CEO: Auction Volume Rose To $35B In 2Q By JOSEPH B. WHITE August 10, 2001 Of THE WALL STREET JOURNAL DETROIT -- Covisint Inc., the big automotive industry business-to-business exchange, saw a substantial increase in the value put through its online auction function during the second quarter, and is pushing to be cash flow positive before 2003, Chief Executive Kevin English told Dow Jones. Covisint handled auctions for $35 billion worth of goods and services in the second quarter, up from $1 billion in the first quarter, English said in an interview. "We'll see a steady ramp" from the second quarter level, he said. Previously, some analysts had estimated that Covisint would handle online procurement events for $45 billion of value a year by the end of 2002, English noted. English, who took over as Covisint's CEO in May, said he has spent the first three months on the job meeting with customers, evaluating management and cutting costs at the big online exchange formed by General Motors Corp. (GM), Ford Motor Co. (F), DaimlerChrysler AG (DCX), Renault SA, Nissan Motor Co. (NSANY) and technology companies Commerce One Inc. (CMRC) and Oracle Corp. (ORCL). Covisint earlier Friday announced a reorganization of top management, creating a holding company, Covisint Inc. The holding company is a piece of a longer-term strategy English has outlined for using Covisint to serve not just the auto industry, but other heavy-industry sectors as well. In an interview, conducted prior to Friday's announcements, English stressed that getting Covisint's auto-industry offerings running smoothly is his first priority. In its first year of operation, Covisint struggled to win acceptance from auto-industry suppliers, as it wrestled to build its online auction and supply chain management systems. But now English said suppliers are showing more interest, as Covisint has 1,700 companies registered compared to 1,000 earlier in the year. Covisint's monthly cash burn rate "has narrowed dramatically,' ' English said. "By more than 2X or 3X." Covisint is expanding its sales force, adding 14 to 20 people including representatives in Asia and Europe, English said. And the company is speeding up work to expand its offerings in core areas like supply-chain management and engineering collaboration tools. Covisint also plans to build its capability to construct online portals for big suppliers such as Delphi Automotive Systems Corp. (DPH). English said an IPO for Covisint isn't a top priority right now. "We don't feel we are ready, and there's no capital market right now for companies like ours," he said. Perhaps by 2003 or 2004 an IPO will be appropriate, he said. "We'll be cash flow positive before then." Covisint has "lots of potential to access capital" without a stock offering, he said. -Joseph B. White, The Wall Street Journal; 313-510-5820