Ariba Completes Sale of Sourcing Services and Business Process Outsourcing Services Assets to Accenture
16 November 2010 - 2:30PM
Business Wire
Ariba, Inc. (Nasdaq: ARBA), the leading provider of
collaborative business commerce solutions, today announced that it
has completed the sale of its sourcing services and business
process outsourcing (BPO) services assets to Accenture (NYSE:
ACN).
“The divestment of our sourcing services and BPO services assets
is a very positive step in the evolution of Ariba that puts us one
step closer to our goal of becoming a network company with
on-demand solutions,” said Kevin Costello, President, Ariba.
Originally announced on October 6, the acquisition gives
Accenture ownership of Ariba’s category expertise, sourcing process
expertise and strategic sourcing execution resources. Ariba has
retained its sourcing technology and the resources within its
Global Services organization that are dedicated to software
implementation, enablement and adoption. Ariba will continue to
provide customers with services that help them maximize their use
of Ariba’s solutions and the results that they deliver.
Updated Financial Outlook for the Divestment
Ariba had previously estimated the contribution to fiscal year
2011 of the divested business to be approximately $40M and $0.07 in
Non-GAAP revenue and EPS respectively. Based on these numbers, the
Company is updating its previously provided guidance to reflect the
close of the divested business.
For fiscal year 2011, Ariba now expects total revenues to be
approximately $347 million +/- $5 million. The subscription
software and maintenance revenue outlook remains unchanged at
$266.5 million to $270.5 million. The services revenue outlook is
now expected to be $78.5 million +/- $5 million. Accordingly,
Non-GAAP EPS is now expected to be in the range of $0.77 to $0.81,
and cash flow from operations before lease loss and restructuring
charges at $84 million +/- $5 million.
For the first quarter of fiscal year 2011, Ariba now expects
total revenues to be approximately $86 million +/- $1
million. The subscription software and maintenance revenue
outlook remains unchanged at approximately $64.5 million. The
services revenue outlook is now expected to be $21.5 million +/- $1
million. Accordingly, Non-GAAP EPS is now expected to be $0.16 to
$0.18.
About Ariba, Inc.Ariba, Inc. is the leading provider of
collaborative business commerce solutions. Ariba combines
industry-leading technology to optimize the complete commerce
lifecycle with the world's largest web-based community to discover,
connect and collaborate with a global network of trading partners,
delivering everything needed to control costs, minimize risk,
improve profits and enhance cash flow and operations – all in a
cloud-based environment. Whether you’re buying, selling or managing
cash, you can do it more efficiently and effectively in the Ariba®
Commerce Cloud. Over 325,000 companies, including more than 90
percent of the Fortune 100, use Ariba’s solutions to drive more
efficient inter-enterprise commerce. Why not join them? For more
information on Ariba commerce solutions and the results they
deliver, visit www.ariba.com.
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Automation, Ariba PO Automation, Ariba Express Content, Ariba
Ready, and Ariba LIVE are trademarks or service marks of Ariba,
Inc. All other brand or product names may be trademarks or
registered trademarks of their respective companies or
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Ariba Safe HarborSafe Harbor Statement under the Private
Securities Litigation Reform Act 1995: Information and
announcements in this release involve Ariba's expectations,
beliefs, hopes, plans, intentions or strategies regarding the
future and are forward-looking statements that involve risks and
uncertainties. All forward-looking statements included in this
release are based upon information available to Ariba as of the
date of the release, and we assume no obligation to update any such
forward-looking statements. These statements are not guarantees of
future performance and actual results could differ materially from
our current expectations. Factors that could cause or contribute to
Ariba's operating and financial results to differ materially from
current expectations include, but are not limited to: the impact of
the credit crises on Ariba’s results of operations and financial
condition; delays in development or shipment of new versions of
Ariba's products and services; lack of market acceptance of Ariba's
existing or future products or services; inability to continue to
develop competitive new products and services on a timely basis;
introduction of new products or services by major competitors; the
impact of any acquisitions, including risks and uncertainties
arising from the possibility that a closing may be delayed or may
not occur and difficulties with the integration process or the
realization of benefits of a transaction; the impact of our
disposition, including the potential disruption of our ongoing
business; the ability to attract and retain qualified employees;
difficulties in assimilating acquired companies, long and
unpredictable sales cycles and the deferrals of anticipated orders;
declining economic conditions, including the impact of a recession;
inability to control costs; changes in the company's pricing or
compensation policies; significant fluctuations in our stock price;
the outcome of and costs associated with pending or potential
future regulatory or legal proceedings; the impact of our
acquisitions and dispositions, including the disruption or loss of
customer, business partner, supplier or employee relationships; and
the level of costs and expenses incurred by Ariba as a result of
such transactions. Factors and risks associated with its business,
including a number of the factors and risks described above, are
discussed in Ariba's Form 10-Q filed with the SEC on August 5,
2010.
This press release references certain forward-looking non-GAAP
financial information including fiscal year 2011 revenues and
earnings per share (EPS). We are unable to reconcile this
forward-looking non-GAAP financial information to corresponding
forward-looking GAAP measures because we are unable to estimate
without unreasonable efforts certain forward-looking GAAP revenue,
expense and other income items.
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