The third quarter marked the completion of the integration of Ventro’s operations with those of NexPrise, Inc. Ventro acquired NexPrise on August 8 and the combined entity now focuses exclusively on providing collaborative software solutions for program management and quote management.

Since the NexPrise acquisition, Ventro has signed customer contracts with an expected value of more than $1 million. Bookings, which represent the contracted revenue for the next twelve months, were approximately $850,000. Revenues, which are the value of customer contracts recognized evenly over the length of the contracts, were $350,000. Ventro recognized only NexPrise-related revenues that were effective after the NexPrise acquisition closed, or 53 of the 92 days of the third quarter.

Ventro continues to reduce its ongoing operating expenses to preserve cash. The company’s operating expenses for the quarter were $15 million. Included in the operating expenses were $5.3 million of restructuring charges, $2.3 million of charges related to NexPrise in-process research and development, and $1.7 million of non-cash charges for depreciation and amortization. Ventro expects operating expenses in the fourth quarter to be approximately half the total incurred in the third quarter. Net cash used by operations, excluding restructuring and one-time expenses, was approximately $7 million in the third quarter and is expected to be approximately $2 million lower in the fourth quarter.

As of September 30, 2001, Ventro’s cash, cash equivalents, and short-term investments totaled $32 million. Over the last nine months, Ventro greatly reduced its liabilities by repurchasing over 95% of its convertible debentures and creating $160 million in extraordinary gains.

Our accomplishments in the third quarter, including the acquisition of NexPrise and the restructuring of our operations, set a clear direction and solid foundation for our future, says David Zechnich, Chief Financial Officer of Ventro. Our objective is to grow our top-line revenues while controlling our expenses so we meet our plan to become cash flow positive on our existing cash.

SOURCE: COMPANY PRESS RELEASE