Ariba Reports Results for Second Quarter of Fiscal Year 2008
Thursday April 24, 4:05 pm ET
Company Posts Record Subscription Software and Backlog Growth for Second Consecutive Quarter
SUNNYVALE, Calif.--(BUSINESS WIRE)--Ariba, Inc. (Nasdaq: ARBA), the leading spend management solutions provider, today announced results for the second quarter of fiscal year 2008 ended March 31.
Quarterly Financial and Operational Highlights:
Total Non-GAAP revenues of $82.8 million and Non-GAAP EPS of $0.09
Non-GAAP subscription software revenue of $31 million, up 97% year-over-year
Total subscription software backlog of $202 million, up 98% year-over-year
12-month subscription software backlog of $101 million, up 89% year-over-year
Release of Ariba 9s5, the first enterprise-class on-demand spend management suite
"Despite a slowing global economy, Ariba executed well,” said Bob Calderoni, Chairman and CEO, Ariba. "For the second consecutive quarter, we posted record year-over-year growth in both subscription software revenue and backlog, a testament to the strength of our on-demand strategy,” Calderoni continued. “With the release of Ariba 9s5, we have raised the bar for on-demand spend management solutions, providing similar enterprise-class functionality as our CD-based products, and positioned ourselves well to maintain our market position.”
Results for the Second Quarter of Fiscal Year 2008
Revenue:
Total GAAP revenues for the second quarter of fiscal year 2008 were $80.5 million, as compared to $73.4 million for the second quarter of fiscal year 2007. Subscription and maintenance revenues for the quarter were $46.8 million, as compared to $34.2 million for the second quarter of fiscal year 2007. Within subscription and maintenance revenues, subscription software revenue was $28.6 million for the quarter, as compared to $15.7 million for the second quarter of fiscal year 2007. Services and other revenues for the quarter were $33.7 million, as compared to $39.2 million for the second quarter of fiscal year 2007. On a Non-GAAP basis, total revenues for the second quarter of fiscal year 2008 were $82.8 million with subscription software revenue at $30.8 million. The difference between GAAP and Non-GAAP is $2.3 million of revenue that was not recognized due to the impact of purchase accounting on contracts acquired through the acquisition of Procuri, Inc.
Earnings Per Share:
Net loss for the second quarter of fiscal year 2008 was $12.4 million, or $0.16 per share, as compared to a net loss for the second quarter of fiscal year 2007 of $5.1 million, or $0.07 per share. In addition to the revenue that was not recognized due to the impact of purchase accounting on contracts acquired through the acquisition of Procuri, Inc., the net loss for the first quarter of fiscal year 2008 included charges of $4.9 million for amortization of intangible assets, $690,000 for restructuring related to the Procuri integration, and $11.5 million for stock-based compensation. Excluding these items, non-GAAP net income for the second quarter of fiscal 2008 was $6.9 million, or $0.09 per diluted share, compared to non-GAAP net income for the second quarter of fiscal 2007 of $7.1 million or $0.10 per share.
Balance Sheet and Cash:
Total cash, cash equivalents, marketable securities and investments were $125 million at March 31, 2008, down $58 million from September 30, 2007. The primary reason for the decrease in cash was due to the cash paid in conjunction with the acquisition of Procuri, which was completed in the quarter ended December 31, 2007. Positive net cash flow from operations for the three months ended March 31, 2008 was $1.5 million, as compared to $2.5 million for the three months ended March 31, 2007. Accounts receivable, on a days-sales-outstanding basis, were 33 days for the second quarter of fiscal year 2008, as compared to 43 days for the second quarter of fiscal year 2007, and down from 34 days from the previous quarter. Total deferred revenues were $95.1 million at March 31, 2008, up $8 million from December 31, 2007.
Customer Acquisition and Transactions for the Quarter:
During the quarter, 226 companies of all sizes across geographies purchased Ariba solutions to drive their spend management strategies, including: BNP Paribas, The Kroger Co., National City Corporation, Nissan Motor Co. LTD, Sodexho, and The Thomson Corporation. The company also added 22 new customers, and closed 20 transactions over $1 million, including 13 software deals over $1 million, and 135 on-demand product deals.
Conference Call Information
Ariba will hold a conference call today at 2:00 p.m. PT / 5:00 p.m. ET to discuss its results for the second quarter of fiscal year 2008. To join the call, please dial (877) 407-8031 in the United States and Canada, or (201) 689-8031 if calling internationally. The conference call also will be webcast live, and can be accessed on the investor relations section of the company’s website at
www.ariba.com or by logging in at
www.vcall.com.
A replay of the conference will be available at approximately 5:00 p.m. PT / 8:00 p.m. ET today through Thursday, May 1, 2008 by calling (877) 660-6853 in the United States and Canada or (201) 612-7415 internationally and entering account number: 286 and conference ID number: 279522.
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