Setting off a warning bell for what could be another series of tough announcements of recession for the business-to-business market, Commerce One yesterday announced that its third-quarter revenue will likely take a US$20 million tumble from the second quarter.
Peter Pervere, chief financial officer at the Pleasanton, Calif.-based business-to-business software vendor, said the company expects to report revenue of $80 million to $83 million on Oct. 17. That's down from $101.3 million for last quarter and from $112.7 in the third quarter of 2000.
Overall, it marks the third straight down quarter for the company, which saw explosive growth in the first six quarters after its initial public offering in April 1999. The company's slump has reflected the overall business-to-business market this year, with other vendors like Ariba Inc. and i2 Technologies Inc. suffering similar losses.
With software sales typically end-loaded each quarter, Pervere said, the terrorist attacks of Sept. 11 had little to do with the company's lower sales.
"I attribute it to continued weakness in the market," he said.
He estimated that the company will lose 24 cents and 25 cents per share for the quarter, excluding nonoperating charges -- a slight improvement from the previous quarter's loss of 31 cents per share.
In earlier quarters, Commerce One reduced the size of its workforce in response to the sluggish economy. Pervere did not indicate whether another round of layoffs are in the offing.