Ariba's losses grow

NEWS Ariba has reported widened losses and a drop in revenue for the fourth quarter, but said it remained confident of breaking even within the next fiscal year. Pro forma net loss, excluding costs and charges, for the quarter ending 30 September was $27.7m or 11 cents per share, down from $1.1m or zero cents per share in the same quarter a year ago. Analysts forecasted a pro forma loss of 13 cents per share. Revenue for the quarter was $62.2m compared with revenue of $134m in the same quarter last year. In a conference call, Ariba's new CEO, Bob Calderoni, said the company had offset the revenue decline with a reduction in operating expenses during the quarter, which fell to $92m from $150m in the year ago period. Despite forecasting a break even or profit point within the next fiscal year, Calderoni offered a cautious outlook for the next quarter. Calderoni said revenue will decrease further in the first quarter to between $50m to $55m, and operating expenses will be further reduced to $65m. "It is prudent to assume further softness in revenue in the next quarter. But we will find stability at these levels," he said. For the fiscal year 2001 revenue stood at $408.8m, up 47 per cent on revenue of $279m in the previous year. Pro forma net loss, excluding costs and charges, for the year was $88.1m or 36 cents per share. During the fiscal year 2000, net loss was $29.5m, or a loss of 15 cents per share. Calderoni, who took over as CEO last week, also said he did not expect any further changes in top management. Calderoni, Ariba's former CFO, is the company's third CEO in a year.