Business-to-business commerce vendor Commerce One announced quarterly results on Thursday, posting revenues of US$101.3 million for the quarter ended June 30, 2001.
Although the revenue marked an increase of 61 percent over revenues for the corresponding quarter last year, the Pleasanton, California-based company revealed a net operating loss of $0.31 per share.
Commerce One's net loss for the current quarter was more than $2 billion, or $9.02 per share, as compared with a net loss of $43.1 million, or $0.28 per share, for the same quarter in 2000. This one-time loss included acquisition-related costs such as loss in market value of professional services and consulting company AppNet Inc., purchased by Commerce One last year, a company spokesperson said.
In a conference call with investors and reporters, Mark Hoffman, Commerce One chairman and chief executive officer (CEO), said the company experienced a shortfall on software licenses and professional services income, which he blamed on the sour economic climate plaguing the technology industry as a whole.
Hoffman also pointed to the B-to-B marketplace shift from public to private exchanges, which he said is causing a period of transition for the company.
"Commerce One is in a transition. The public e-marketplaces are alive and well and are definitely gaining traction. [But] today the opportunity for software license sales is shifting to companies creating enterprise emarketplaces, or private exchanges," Hoffman said. "In this shifting market we expect the bulk of our revenues will now come from the enterprise customer. That means different clients, sales cycles, and deal sizes."
Going forward, Commerce One officials said the company plans to divest non-profitable services, implement cost reduction programs, and refocus sales efforts on the enterprise.