Ariba Reports Results for the First Quarter of Fiscal Year 2009
Thursday , January 29, 2009 16:05ET
SUNNYVALE, Calif., Jan 29, 2009 (BUSINESS WIRE) -- Ariba, Inc. (Nasdaq:ARBA), the leading spend management solutions provider, today announced results for the first quarter of fiscal year 2009 ended December 31, 2008.
Quarterly Financial and Operational Highlights:
-- Total Non-GAAP revenues of $86.4 million and EPS of $0.21
-- Non-GAAP subscription software revenue of $36.2 million, up 71% year-over-year
-- 12-month subscription software backlog of $127 million, up 59% year-over-year
"I am pleased with our performance this quarter," said Bob Calderoni, Chairman and CEO, Ariba. "We increased our subscription software revenues over 70% and significantly increased our non-GAAP net income year-over-year in the face of a very challenging macro-economic environment. This reflects how customers are increasingly using Ariba's spend management solutions to reduce their operating costs and better manage their working capital."
Results for the First Quarter of Fiscal Year 2009
Revenue:
Total GAAP revenues for the first quarter of fiscal year 2009 were $86.1 million, as compared to $77.0 million for the first quarter of fiscal year 2008. Subscription and maintenance revenues for the current quarter were $54.1 million, as compared to $40.0 million for the first quarter of fiscal year 2008. Within subscription and maintenance revenues, subscription software revenue was $35.8 million for the current quarter, as compared to $20.8 million for the first quarter of fiscal year 2008. Services and other revenues for the current quarter were $32.0 million, as compared to $36.9 million for the first quarter of fiscal year 2008. On a Non-GAAP basis, total revenues for the first quarter of fiscal year 2008 were $86.4 million with subscription software revenue at $36.2 million. The difference between GAAP and Non-GAAP revenue is approximately $0.3 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 income for the first quarter of fiscal year 2009 was $3.4 million, or $0.04 per share, as compared to a net loss for the first quarter of fiscal year 2008 of $18.3 million, or $0.25 per share. Included in the net income for this quarter is a $7.5 million benefit related to an insurance reimbursement of prior period legal expenses. In addition to the revenue that was not recognized due to the impact of purchase accounting on contracts acquired through the acquisition of Procuri, the net income for the first quarter of fiscal year 2009 included charges of $1.6 million for amortization of intangible assets, $9.5 million for stock-based compensation, $1.7 million for a restructuring charge related to severance and termination benefit costs and $1.4 million for an investment write down. Excluding these items, Non-GAAP net income for the current quarter was $18.0 million, or $0.21 per diluted share.
Balance Sheet and Cash:
Total cash, cash equivalents, long-term investments and restricted cash were $143 million at December 31, 2008, up $6 million from September 30, 2008. Net cash flow from operations for the three months ended December 31, 2008 was $10.8 million, as compared to $1.2 million for the three months ended December 31, 2007. Accounts receivable, on a days-sales-outstanding basis, were 29 days for the first quarter of fiscal year 2009, as compared to 34 days for the first quarter of fiscal year 2008, and down one day from the previous quarter. Total deferred revenues were $104.5 million at December 31, 2008, up $2.6 million from September 30, 2008.
Customer Acquisition and Transactions for the Quarter:
During the quarter, 218 companies of all sizes purchased Ariba solutions to drive their spend management strategies, including: Aquanima S.A., AstraZeneca US, Automatic Data Processing, Inc., Bon Ton Stores, Inc., Children's Medical Center of Dallas, Citigroup, Inc., Diebold Incorporated, Husky Injection Molding Systems Ltd., The Neiman Marcus Group, Inc., Royal Philips Electronics N.V., Telefonica, S.A., and Zurich Financial Services. Ariba also added 27 new customers and closed 15 transactions over $1 million, including 6 software deals. On demand product deals totalled 109.
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 first quarter of fiscal year 2009. 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 call will be available for two weeks 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: 308500.
About Ariba, Inc.
Ariba, Inc. is the leading provider of on-demand spend management solutions. Our mission is to transform the way companies of all sizes, across all industries, and geographies operate by delivering software, service, and network solutions that enable them to holistically source, contract, procure, pay, manage, and analyze their spend and supplier relationships. Delivered on demand, our enterprise-class offerings empower companies to achieve greater control of their spend and drive continuous improvements in financial and supply chain performance. More than 1,000 companies, including more than half of the companies on the Fortune 500, use Ariba solutions to manage their spend from sourcing and orders through invoicing and payment. For more information, visit www.ariba.com
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