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Commerce One warns
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April 4, 2001: 11:56 a.m. ET
B2B e-commerce provider sees wider 1Q loss, but stock still rebounds
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NEW YORK (CNNfn) - E-commerce software provider Commerce One Inc. warned Wednesday that its first-quarter loss will be wider than expected as customers delay information technology purchases and lengthen the sales cycle.
Commerce One said it expects to post a loss of 11 cents a share, excluding special items, on revenue of $170 million in the quarter. Analysts surveyed by research firm First Call forecast revenue of $198.9 million and a loss of 6 cents a share. The company posted a loss of 9 cents a share and revenue of $35 million in the prior-year period.
 Despite the warning, Commerce One shares gained in Wednesday morning trading, gaining $1.05 to $6.66. The gain was a rebound following a 29 percent plunge in the value of Commerce One (CMRC: Research, Estimates) shares Tuesday following a warning from competitor Ariba Inc. (ARBA: Research, Estimates) for its recently completed fiscal second quarter.
The companies specializes in business-to-business e-commerce. Commerce One has contracts to be a technology partner in a number of high-profile efforts to link numerous companies within the same industry to their suppliers, such as Covisint, the joint effort of the leading automakers, and eHITEX, a high-tech industry procurement exchange.
Mark Hoffman, Commerce One's CEO, told analysts that despite missing expectations in the recent period the company remains confident of its growth prospects, although its statement gave no financial guidance on future periods, though he said it would be given when first-quarter results are released April 19.
Hoffman said Commerce One's greater focus on B2B marketplaces allowed it to miss forecasts by less than some competitors in the difficult period.
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"Ariba has been out there focused as an enterprise software company selling purchasing applications. That is a competitive environment today," he told analysts. "The e-marketplace side, where we have dominated, has stood us very well."
The company said its headcount is about the same as it was at the end of the last quarter, but it will continue to look for opportunities to maximize efficiency.
Commerce One did not announce any job cuts Wednesday, although it said it will continue to examine staffing levels. The company has about the same staff it did at the end of 2000, said Peter Pervere, its chief financial officer.
Ariba's warning included the announcement that it plans to cut a third of its work force and terminate its expected merger with Agile Software (AGIL: Research, Estimates) due to the recent decline in Ariba's stock price.
 Agile issued its own financial results warning Tuesday evening, and announced a take-over protection measurers.
Agile said it now expects revenue of $26 million-to-$27 million in its fiscal fourth quarter ending April 30, while it now sees a loss excluding special items of between 3 and 6 cents a share. Analysts surveyed by First Call had forecast a 2 cent a share profit in the quarter on revenue of $28.1 million. The company lost 2 cents a share on revenue of $10.8 million in the fourth quarter a year ago.
The company also warned that its current guidance could be lowered again if some major contracts now being negotiated are delayed.
Those projected results do not include an expected $5 million charge for the termination of the Ariba deal. Agile said it also will take a "significant" charge in the period to deal with the value of its investments and possible write down of goodwill related to its 1999 acquisition of Digital Market Inc.
The company's takeover defense plan would give shareholders the right to buy one share of a new series of preferred stock for each 1,000 shares of common stock held as of April 26. Agile said it is not aware of any efforts to take over the company at this time.
Shares Agile gained 6 cents to $10.38 in trading Wednesday. 
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