ARBA: Ariba Reports Results for the First Quarter of Fiscal Year 2007

Ariba, Inc. (Nasdaq: ARBA), the leading spend management solutions provider, today announced results for the first quarter of fiscal year 2007 ended December 31, 2006.

Financial Results
Total revenues for the first quarter of fiscal year 2007 were $77.2 million, as compared to $76.2 million for the first quarter of fiscal year 2006. Subscription and maintenance revenues for the quarter were $34.0 million, as compared to $33.1 million for the first quarter of fiscal year 2006. Within subscription and maintenance revenues, subscription software revenue was $15.2 million for the quarter, as compared to $12.9 million for the first quarter of fiscal year 2006. Services and other revenues for the quarter were $43.2 million, as compared to $43.1 million for the first quarter of fiscal year 2006.

Net loss for the first quarter of fiscal year 2007 was $4.1 million, or $0.06 per share, as compared to a net loss for the first quarter of fiscal year 2006 of $3.7 million, or $0.06 per share. The net loss for the first quarter of fiscal year 2007 included charges of $3.9 million for amortization of intangible assets and $9.7 million for stock-based compensation. Excluding these items, non-GAAP net income was $9.5 million, or $0.13 per diluted share.

"Spend management is becoming a strategic function and Ariba is consistently recognized by the market and industry analysts as the provider of choice," said Bob Calderoni, CEO, Ariba. "During the quarter, we saw demand for our solutions from enterprises expanding their spend management and operational excellence initiatives to accelerate the results they achieve. With our comprehensive range of offerings that support companies of all sizes and our ongoing commitment to innovation, we remain solidly positioned for growth as spend management continues to evolve."

Paving the Way to Excellence
Spend management is among the fastest, most efficient ways to reduce costs and improve profits and companies of all types and sizes rely on Ariba to help them do this. But spend management isn't just about savings. During the first quarter, an increasing number of companies expanded their portfolio of Ariba® Spend Management™ solutions and extended their use to strategic activities outside traditional procurement to help drive additional value across their operations.

"Spend management is a critical piece of the process we use to evaluate acquisitions and enhance the value of our portfolio companies," said Shant Mardirossian, Principal and Chief Financial Officer of Kohlberg & Company, L.L.C., one of the leading middle-market private equity firms in the United States. "With Ariba, we have access to a global services organization that helps us identify opportunities for savings as part of our diligence efforts as well as technology and commodity expertise we can leverage to drive them to the bottom line."

Driving Strategic Spend Management
Companies around the world continue to invest in spend management solutions to drive consistent global procurement processes and standards through technology, category expertise and services. During the first quarter of fiscal year 2007, more than 180 companies purchased Ariba solutions to power their spend management programs, including: Adidas AG, Accenture LLP, Altran Group, AstraZeneca, Booz Allen Hamilton, ConocoPhillips, Fairfield Manufacturing Company, Inc., Ingram Micro Inc., Kohlberg & Company, LLC, Onex Corporation, MeadWestvaco Corporation, Nova Southeastern University, Pfizer, Inc., Singer SVP Worldwide and RTE, among others.

"When we launched our strategic sourcing program, we knew we needed a sophisticated tool that could be quickly implemented to improve our cost structure and enhance the value we deliver to customers," said Peter Nguyen, Sourcing Operations Manager, Ingram Micro Inc., a Fortune 500 company that is the world's largest technology distributor. "With Ariba Sourcing™ On-Demand, we not only have access to leading technology that's easy to roll out, but category expertise and services we can leverage to drive savings and efficiencies that translate into bottom-line results."

Charting a Course for the Future
As the creator and leader of spend management, Ariba continues to focus on identifying and addressing emerging issues that companies are facing as they transform procurement and sourcing functions to help them achieve strategic goals. During the first quarter, Ariba released the results of a global survey of more than 550 of its customers which found that delivering measurable results and accessing and analyzing spend data remain the greatest priorities and challenges among procurement executives and professionals worldwide (http://www.ariba.com/go/priorities).

During the first quarter, Ariba released its latest on-demand offerings, which combine technology, category expertise, best practices and supporting services to help companies focus on their priorities and establish effective global procurement processes that deliver fast, measurable results.