Ariba beats analysts’ Q4 estimates

By : |October 19, 2000 0

PALO ALTO: E-business software maker Ariba Inc. on Wednesday said improved
revenues helped it beat Wall Street’s fourth-quarter expectations.

Mountain View, Calif.-based Ariba posted a loss of $1.1 million, or nil per
share, excluding non-operating charges, compared with a loss of $4.6 million, or
3 cents a share in the year-ago period, excluding non-operating charges.

Ariba’s fourth-quarter net loss grew to $339.3 million or $1.50 per diluted
share, compared with a net loss of $9.9 million or 7 cents per diluted share
during the same quarter in 1999. The company’s net losses included acquisition
costs and charges related to exercised stock options.

A consensus of analysts’ forecasts predicted a fourth-quarter loss of 5 cents
per share, excluding items, according to First Call/Thomson Financial.

Ariba shares fell about $6 in after hours trading. Prior to the announcement,
the stock had closed up 1/16 at $127-1/16.

Dain Rauscher Wessels Analyst Stephen Sigmond called the company’s earning
report "fantastic" and said Ariba hit the per share break-even four
quarters earlier than analysts had expected. He speculated that so-called
whisper numbers may have raised some investors’ expectations and contributed to
the sell-off.

"Welcome to the world of Internet stocks. This is how they trade. It’s a
giant guessing game," Sigmond said.

The company said fourth-quarter revenues hit record levels, growing 687
percent to $134.9 million from $17.1 million in the year-ago quarter as the
company added 114 customers. Those customers included Bear Stearns & Co.
Inc., Target Corp., and American International Group Inc.

"During the year we increased our customer base 500 per cent and
deployed more B2B customers than any competitor," Keith Krach, Ariba’s
chief executive officer, said in a statement.

Ariba’s fourth-quarter net loss grew to $339.3 million or $1.50 per diluted
share, compared with a net loss of $9.9 million or 7 cents per diluted share
during the same quarter in 1999. The company’s net losses included acquisition
costs and charges related to exercised stock options.

Fiscal 2000 net losses widened to $792.8 million or $4.10 per diluted share
from $29.3 million or 42 cents per diluted share during the previous year.

Ariba provides Internet platforms and network services that enable companies
to do business with each other.

(C) Reuters Limited 2000.

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