Exhibit 99.1
Commerce One Reports Second Quarter 2003 Results
PLEASANTON, Calif. - July 23, 2003 - Commerce One (Nasdaq: (CMRC) today announced financial results for the quarter ended June 30, 2003.
Revenues for the current quarter totaled $8.3 million as compared with $27.8 million for the corresponding quarter in 2002 and $13.1 million for the quarter ended March 31, 2003.
The net loss for the current quarter was $6.1 million, or $.20 per share, as compared with a net loss of $62.3 million, or $2.15 per share, for the corresponding quarter ended June 30, 2002, and $29.3 million, or $1.00 per share, for the quarter ended March 31, 2003.
In Q3, the Company announced that it received a $10 million investment from BayStar Capital Management LLC, a private equity fund that invests in leading edge companies in the technology and life sciences industries and successfully renegotiated long-term real estate obligations in six US locations to save approximately $42 million over a period of eight years.
Quarterly Highlights
Commerce One reached the following milestones during the second quarter of 2003:
"We are pleased with the progress we have made in bringing our new composite process management solutions to market in a challenging IT environment, and in further reducing our operating expenses by settling major real estate obligations and continuing our ongoing cost control efforts," said Mark Hoffman, chairman and CEO of Commerce One. "I am encouraged by the fact that our technology is appealing not only to our installed base who is starting to migrate to our new solution, but also to new customers. In Q2, a majority of our Commerce One Conductor transactions were with new customers who saw unique value in our composite process management solution. Our goals are simple - continue to build our customer base for our composite process management solutions through direct and indirect channels and continue to aggressively monitor expenses and cash flow."
Commerce One will conduct a live webcast to discuss its second quarter 2003 results at 2:00 p.m. PST on Wednesday, July 23, 2003. The webcast is accessible onwww.commerceone.com/investors.
About Commerce One
From its initial roots in Internet-based software applications to its establishment of the world's largest e-commerce trading network, Commerce One has consistently been at the forefront of delivering advanced technologies that help global businesses collaborate with their partners, customers and suppliers over the Internet. Commerce One has defined many of the open standards and protocols established for business networks today and our global customer base represent leaders in a wide range of industries. The Commerce One Conductor platform and planned industry-specific Process Accelerators represent the leading Composite Process Management solution that enable enterprises to combine and connect features, functionality, data and/or business context from existing applications to create new business functionality.
For more information, go to www.commerceone.com.
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Forward Looking Statements
The foregoing paragraphs include forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements include statements concerning the expected growth of sales of the Commerce One Conductor technology and composite process management solutions with existing and new customers, the expected benefits of our cost control measures, and the expected benefits of our technology. The words "believe," "expect," "will" and similar phrases as they relate to Commerce One are also intended to identify such forward-looking statements. Such statements reflect the current views and assumptions of Commerce One, and are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. These risks include, but are not limited to, the extent of customer adoption and utilization of our Commerce One Conductor solution, the nature and extent of the market for composite process management solutions, competition in the composite process management market, unexpected expenses, and risks related to general economic global conditions. The information provided in this press release is current as of the date of its publication. Commerce One expressly disclaims any obligation to release publicly any updates or revisions to any forward-looking statements to reflect any changes in expectations, or any change in events or circumstances on which those statements are based, unless otherwise required by law. For a discussion of these and other risk factors that could affect Commerce One's business, see "Risk Factors" in Commerce One's filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended December 31, 2002 and Quarterly Report on Form 10-Q for the quarter ended March 31, 2003.
Contact Information:
Annie Vinje
Commerce One Investor Relations
925-520-4075
annie.vinje@commerceone.com
Erin Flanigan
The Horn Group (for Commerce One)
415-905-4005
eflanigan@horngroup.com
Commerce One, Inc.
Condensed Consolidated Statements of Operations
(In thousands, except per share amounts)
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
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2003 2002 2003 2002
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(as restated) (as restated)
Revenues:
License fees $ 1,742 $ 7,228 $ 3,990 $ 15,581
Services 6,559 20,609 17,420 44,011
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Total revenues 8,301 27,837 21,410 59,592
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Costs and expenses:
Cost of license fees 571 2,327 876 154,621
Cost of services 5,833 19,377 14,691 41,477
Sales and marketing 5,322 20,556 13,234 49,082
Product development 6,577 18,459 17,971 44,311
General and administrative 3,402 7,193 5,784 18,098
Restructuring charges (6,352) 15,865 4,589 15,865
Amortization of deferred stock compensation 783 3,745 1,831 6,176
Amortization of intangible assets 150 3,008 299 6,138
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Total costs and expenses 16,286 90,530 59,275 335,768
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Loss from operations (7,985) (62,693) (37,865) (276,176)
Interest income and other, net 1,282 963 2,070 3,542
Provision for income taxes (640) 600 (402) 1,379
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Net loss $ (6,063) $ (62,330) $ (35,393) $ (274,013)
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Basic and diluted net loss per share $ (0.20) $ (2.15) $ (1.19) $ (9.49)
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Shares used in calculation of net loss per share 30,076 28,963 29,665 28,860
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Commerce One, Inc.
Condensed Consolidated Balance Sheets
(In thousands)
June 30, December 31,
2003 2002
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(unaudited)
ASSETS
Current assets:
Cash and cash equivalents $ 13,981 $ 73,753
Short-term investments -- 3,510
Accounts receivable, net 5,138 7,373
Prepaid expenses and other current assets 7,134 4,923
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Total current assets 26,253 89,559
Restricted cash, cash equivalents, and short-term investments 28,970 35,630
Property and equipment, net 5,307 9,761
Other intangible assets, net 17,381 18,449
Investments and other assets 7,554 6,023
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Total assets $ 85,465 $ 159,422
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 3,051 $ 3,104
Accrued compensation and related expenses 2,924 8,338
Deferred revenue 17,205 23,546
Other current liabilities 13,816 29,997
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Total current liabilities 36,996 64,985
Notes payable 25,000 25,000
Accrued restructuring charges 3,128 21,947
Total stockholders' equity 20,341 47,490
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Total liabilities and stockholders' equity $ 85,465 $ 159,422
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