By Sonya Rabbitte, 24 April 2002 16:45
NEWS
Ariba has broken even in its last quarter but warned it might not hit its June profit target.
In second quarter results released today, the company reported a pro-forma profit of $1.1m, or zero cents per share, on revenues of $57.2m, beating analysts' forecasts of a one cent per share loss.
In Q2 2001, the company was on a downhill slope, reporting a pro-forma loss of $48.3m, or 20 cents per share, on revenue of $54m.
Net loss on a GAAP (generally accepted accounting practice) basis for Q2 2002 was $154m, down from $1.8bn in the same quarter last year.
But Ariba CEO Bob Calderoni offered a cautious outlook for the third quarter, saying he expected revenue to remain flat and pro-forma profits to hover around the breakeven level.
In January, at the global launch of Ariba's Spend Management Enterprise range, Calderoni was touting a more positive forecast, predicting pro-forma profitability for Ariba by June.
But in a conference call today he said stagnant IT spending continued to make it difficult to forecast revenue growth.
He said Ariba was pleased with this quarter's performance: "Six months ago pro forma break even was a pipedream. Now we're making significant progress. We realise there's more to do, but I remain confident we can get the job done."
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