Ariba Announces Preliminary Second Quarter Results

Revenues to Be Significantly Below Expectations



Apr 02, 2001, 01:00 ET from Ariba, Inc.

    MOUNTAIN VIEW, Calif., April 2 /PRNewswire/ -- Ariba, Inc. (Nasdaq: ARBA)
 today announced that results for its fiscal second quarter ended
 March 31, 2001 are expected to be significantly lower than the Company's
 previous expectations.  Total revenues are now expected to be approximately
 $90 million, which would represent approximately 125 percent growth over the
 same period last year.  As a result of the revenue shortfall, the Company
 expects a significant loss from operations of approximately ($0.20) per share
 excluding certain non-cash charges for the quarter.
     "As many others are also realizing, the slowdown in both the economy and
 technology spending has been much more dramatic than we had previously
 expected.  At the end of the quarter, we experienced a large unexpected
 drop-off in our sales closure," said Keith Krach, Ariba's chairman and CEO.
 "While many customers selected Ariba's technology, spending decisions at the
 executive level were postponed as customers evaluated their budgets in light
 of the prevailing economic uncertainty.  This impact was primarily in
 North America, but is beginning to be felt in Europe as well."
     As a result of the economic conditions, the Company also announced a plan
 to reduce spending across all major areas, including a reduction in workforce
 by approximately 700 employees, which represents about one-third of the total
 current employee base.  "We are taking immediate and decisive action to ensure
 our business plans reflect today's economic realities," continued Mr. Krach.
 "We have some of the best people in the industry at Ariba and this is
 certainly a difficult step to take.  Unfortunately, like many other companies,
 we find ourselves having to make similar, painful moves."
     "Under current market conditions, the predictability of our business going
 forward is very limited, so it's important to realign our own expense
 structure immediately," said Bob Calderoni, executive vice president and
 chief financial officer.  "We believe that the actions we are initiating today
 will help to protect our financial position during this current economic
 downturn and should position us well as the economy recovers."
     As a result of the difficult economic conditions and other factors, Ariba
 expects to incur significant one-time write-offs relating to, among other
 things, investments and real estate commitments.  The Company also expects to
 incur a significant write down of goodwill related to recent acquisitions.
     In addition, as further described in a joint press release issued today by
 Ariba and the Agile Software Corporation, given the challenging economic and
 market conditions, Ariba and Agile have decided not to continue their proposed
 merger.
     The company will be holding a conference call today at 2:00 pm PT.  The
 dial-in number is 719-457-2654.  There will be a live web broadcast available
 on the investor relations web site at www.ariba.com.  A replay of this call
 will be available at 4:00 PT by dialing 719-457-0820, passcode 462-927.
 Ariba's final results will be announced on April 20, 2001.
 
     About Ariba
     Ariba, Inc. is the leading business-to-business (B2B) eCommerce platform,
 provider.  Through the Ariba B2B Commerce Platform -- an open, end-to-end
 infrastructure of interoperable software solutions and hosted Web-based
 commerce services -- the company enables efficient online trade, integration
 and collaboration between B2B marketplaces, buyers, suppliers and commerce
 service providers.  The global reach and best-of-breed functionality of the
 Ariba B2B Commerce Platform creates Internet-driven economies of scale and
 process efficiencies for leading companies around the world.  Ariba can be
 contacted in the U.S. at 650-930-6200 or at www.ariba.com.
 
     Ariba Safe Harbor
     Safe Harbor Statement Under the Private Securities Litigation Reform Act
 1995:  Information and announcements in this release involve Ariba's
 expectations, beliefs, hopes, plans, intentions or strategies regarding the
 future and are forward-looking statements that involve risks and
 uncertainties.  All forward-looking statements included in this release are
 based upon information available to Ariba as of the date of the release, and
 we assume no obligation to update any such forward-looking statements.  These
 statements are not guarantees of future performance and actual results could
 differ materially from our current expectations.  Factors that could cause or
 contribute to such differences include, but are not limited to:  delays in
 development or shipment of new versions of our Ariba B2B Commerce Platform;
 lack of market acceptance of the Ariba B2B Commerce Platform or other new
 products or services; inability to continue to develop competitive new
 products and services on a timely basis; introduction of new products or
 services by major competitors; our ability to attract and retain qualified
 employees; difficulties in assimilating companies previously acquired,
 including Tradex, Trading Dynamics, and SupplierMarket.com; inability to
 expand our operations to support increased growth; the recognition of an
 increasing portion of revenues at the end of the quarter; declining economic
 conditions, including a recession; inability to control costs; changes in our
 pricing or compensation policies; inability to successfully manage a reduction
 in the company's workforce; and significant fluctuations in our stock price.
 These and other factors and risks associated with our business are discussed
 in the Company's Form 10-K filed December 29, 2000 and Form 10-Q filed
 February 14, 2001.
     NOTE:  Ariba and the Ariba logo are registered trademarks and Ariba B2B
 Commerce Platform is a trademark of Ariba, Inc.  All other products or company
 names mentioned are used for identification purposes only, and may be
 trademarks of their respective owners.
 
 

SOURCE Ariba, Inc.
    MOUNTAIN VIEW, Calif., April 2 /PRNewswire/ -- Ariba, Inc. (Nasdaq: ARBA)
 today announced that results for its fiscal second quarter ended
 March 31, 2001 are expected to be significantly lower than the Company's
 previous expectations.  Total revenues are now expected to be approximately
 $90 million, which would represent approximately 125 percent growth over the
 same period last year.  As a result of the revenue shortfall, the Company
 expects a significant loss from operations of approximately ($0.20) per share
 excluding certain non-cash charges for the quarter.
     "As many others are also realizing, the slowdown in both the economy and
 technology spending has been much more dramatic than we had previously
 expected.  At the end of the quarter, we experienced a large unexpected
 drop-off in our sales closure," said Keith Krach, Ariba's chairman and CEO.
 "While many customers selected Ariba's technology, spending decisions at the
 executive level were postponed as customers evaluated their budgets in light
 of the prevailing economic uncertainty.  This impact was primarily in
 North America, but is beginning to be felt in Europe as well."
     As a result of the economic conditions, the Company also announced a plan
 to reduce spending across all major areas, including a reduction in workforce
 by approximately 700 employees, which represents about one-third of the total
 current employee base.  "We are taking immediate and decisive action to ensure
 our business plans reflect today's economic realities," continued Mr. Krach.
 "We have some of the best people in the industry at Ariba and this is
 certainly a difficult step to take.  Unfortunately, like many other companies,
 we find ourselves having to make similar, painful moves."
     "Under current market conditions, the predictability of our business going
 forward is very limited, so it's important to realign our own expense
 structure immediately," said Bob Calderoni, executive vice president and
 chief financial officer.  "We believe that the actions we are initiating today
 will help to protect our financial position during this current economic
 downturn and should position us well as the economy recovers."
     As a result of the difficult economic conditions and other factors, Ariba
 expects to incur significant one-time write-offs relating to, among other
 things, investments and real estate commitments.  The Company also expects to
 incur a significant write down of goodwill related to recent acquisitions.
     In addition, as further described in a joint press release issued today by
 Ariba and the Agile Software Corporation, given the challenging economic and
 market conditions, Ariba and Agile have decided not to continue their proposed
 merger.
     The company will be holding a conference call today at 2:00 pm PT.  The
 dial-in number is 719-457-2654.  There will be a live web broadcast available
 on the investor relations web site at www.ariba.com.  A replay of this call
 will be available at 4:00 PT by dialing 719-457-0820, passcode 462-927.
 Ariba's final results will be announced on April 20, 2001.
 
     About Ariba
     Ariba, Inc. is the leading business-to-business (B2B) eCommerce platform,
 provider.  Through the Ariba B2B Commerce Platform -- an open, end-to-end
 infrastructure of interoperable software solutions and hosted Web-based
 commerce services -- the company enables efficient online trade, integration
 and collaboration between B2B marketplaces, buyers, suppliers and commerce
 service providers.  The global reach and best-of-breed functionality of the
 Ariba B2B Commerce Platform creates Internet-driven economies of scale and
 process efficiencies for leading companies around the world.  Ariba can be
 contacted in the U.S. at 650-930-6200 or at www.ariba.com.
 
     Ariba Safe Harbor
     Safe Harbor Statement Under the Private Securities Litigation Reform Act
 1995:  Information and announcements in this release involve Ariba's
 expectations, beliefs, hopes, plans, intentions or strategies regarding the
 future and are forward-looking statements that involve risks and
 uncertainties.  All forward-looking statements included in this release are
 based upon information available to Ariba as of the date of the release, and
 we assume no obligation to update any such forward-looking statements.  These
 statements are not guarantees of future performance and actual results could
 differ materially from our current expectations.  Factors that could cause or
 contribute to such differences include, but are not limited to:  delays in
 development or shipment of new versions of our Ariba B2B Commerce Platform;
 lack of market acceptance of the Ariba B2B Commerce Platform or other new
 products or services; inability to continue to develop competitive new
 products and services on a timely basis; introduction of new products or
 services by major competitors; our ability to attract and retain qualified
 employees; difficulties in assimilating companies previously acquired,
 including Tradex, Trading Dynamics, and SupplierMarket.com; inability to
 expand our operations to support increased growth; the recognition of an
 increasing portion of revenues at the end of the quarter; declining economic
 conditions, including a recession; inability to control costs; changes in our
 pricing or compensation policies; inability to successfully manage a reduction
 in the company's workforce; and significant fluctuations in our stock price.
 These and other factors and risks associated with our business are discussed
 in the Company's Form 10-K filed December 29, 2000 and Form 10-Q filed
 February 14, 2001.
     NOTE:  Ariba and the Ariba logo are registered trademarks and Ariba B2B
 Commerce Platform is a trademark of Ariba, Inc.  All other products or company
 names mentioned are used for identification purposes only, and may be
 trademarks of their respective owners.
 
 SOURCE  Ariba, Inc.