Revenues for the third quarter of fiscal 2001 were $85.3 million, up 6 percent from the same period last year. Pro forma net loss for the quarter, excluding certain special and non-cash charges, was $26.1 million, or a loss of $0.10 per share, beating the First Call consensus estimate of $0.12 per share. During the corresponding quarter in fiscal 2000, the comparable pro forma net loss was $11.3 million, or a loss of $0.05 per share, excluding certain special and non-cash charges.

Net loss on a GAAP basis for the third quarter of fiscal 2001 was $273.5 million, or a loss of $1.10 per share. During the corresponding quarter in fiscal 2000 the net loss on a GAAP basis was $317.1 million, or a loss of $1.45 per share.

Despite the challenging environment, we reported better than expected revenue and earnings results this quarter, said Bob Calderoni, executive vice president and chief financial officer. Major corporations continue to turn to Ariba substantiating our value proposition of saving companies money.

During the quarter, Ariba signed deals with 3M, Amtrak, U.S. Department of Defense, Wesfarmers, Nestle Brazil and others. A number of existing customers including FedEx, Royal Bank of Canada, Sara Lee, and the U.S. Navy, also extended their relationship with Ariba by buying additional products, further validating the strength of Ariba’s best-of-breed applications.

While our pipeline has increased, market conditions remain difficult. Therefore, we will continue to reduce costs throughout the organization, positioning the company to benefit when IT spending opens up, said Calderoni.

In a separate release today, Ariba also announced the departure of Larry Mueller, Ariba’s president and chief executive officer. Keith Krach, chairman of the board, will act as interim chief executive officer. Now, more than ever, I still believe in the opportunity of this company and feel confident we have the assets for long-term success, said Keith Krach. Ariba has an incredibly strong management team to help navigate through these times.

In the third quarter, Ariba wrote-off approximately $70 million in special charges for the restructuring of its worldwide operations including a reduction in workforce.

Delivering Results Worldwide

Ariba LIVE 2001 events in Las Vegas and Monaco attracted over 3,500 registered attendees, indicating the ongoing interest and support of B2B eCommerce in North America and Europe.

In the Europe, Middle East and Africa (EMEA) region, Ariba signed a number of major companies across the energy, communications, and industrial sectors. Companies such as Sara Lee Europe, and Italian-based companies PosteCom, Omnitel and ENEL all chose to support their eCommerce strategies with Ariba solutions. Dutch Railways, an existing Ariba Buyer customer, expanded its capability by adding Ariba® Sourcing Additionally, EMEA customers including Iberia Airlines and South African Airways went live this quarter.

Across Asia Pacific, Ariba signed a number of major companies across the energy, communications, and industrial sectors. Maxis Communications Bhd, a leading Malaysian communications group, chose the Ariba Buyer solution for their internal eProcurement system, and Wesfarmers Limited, one of Australia’s largest public companies, also selected Ariba Buyer. Wesfarmers needed a solution that would integrate with over twelve different existing ERP systems.