October 27, 2005

B2B spend management solutions provider Ariba reported increased revenues for fiscal 2005 by 31.4 percent, after it merged with FreeMarkets in July of last year. Total revenues for the fiscal year ended Sep. 30 were $323.0 million, compared to $245.8 million for last year's fiscal year. Net loss for 2005 was $349.6 million, or $5.49 per share, as compared to a net loss for 2004 of $25.2 million, or $0.51 per share.

“This was an important year for Ariba, as we completed the integration with FreeMarkets and established ourselves as a true solutions provider and the clear leader in spend management,” said Bob Calderoni, CEO, Ariba.

“During the fourth quarter, we continued to make good progress on the strategic initiatives we established earlier this year, including the transition of our license revenue to a subscription software model, the monetization of the Ariba Supplier Network, and the development of an organization to address the growing enterprise market.”

Software license revenues were $47.8 million, as compared to $65.7 million for fiscal year 2004. Subscription and maintenance revenues were $123.4 million, as compared to $95.7 million for fiscal year 2004. Services and other revenues for the year were $151.8 million, as compared to $84.5 million for fiscal year 2004.

The net loss for fiscal 2005 included charges of $20.3 million for amortization of intangible assets, $19.6 million for stock-based compensation, $247.8 million for goodwill impairment, $37.0 million for litigation provision, and $41.2 million for restructuring and integration costs.

Excluding these items, total non-GAAP expenses for fiscal year 2005 were $306.7 million, resulting in non-GAAP net income of $16.4 million, or $0.24 per share.

Ariba added 74 new customers during fiscal year 2005. During the fourth quarter of fiscal year 2005, more than 150 customers in all regions renewed or expanded their investment in Ariba Spend Management solutions, including: Emerson Electric; Kohl’s; Schering-Plough, Inc.; Tyco International; PPG Industries; Dutch Railways; Nestle; and Ranbaxy Laboratories.

“This was a good quarter for Ariba, as we continue to see solid demand for spend management solutions,” said Mr. Calderoni. “Companies are realizing that Ariba is focused on a critical business strategy that has a sustainable impact on the bottom line, and we continue to play a major role in helping our customers accelerate their results.”

Source: Top Consultant.com