PurchasePro rose US$1.19 to $11.44 inmorning trading Wednesday, after the e-commerce company said it is”on track” to meet its financial targets for the year.
PurchasePro said it was “responding to numerous investor and mediainquiries” after its announcement of the acquisition of BayBuilder, atechnology services company, for $15 million in stock and cash.
First-quarter revenue is on track to top $42 million, with cash earnings ofmore than 10 cents per share, PurchasePro said. For the full year, cashearnings will be in excess of 65 cents, as revenue rises to $225 millionfrom $65 million in 2000.
PurchasePro chairman and chief executiveofficer Charles E. Johnson, Jr. said that the BayBuilder acquisition puts the company in a good position and will enable it to “continue its growth in the upper market.”
BayBuilder has helped companies including Lennox, Lexmark and Owens Corningcut costs by negotiating purchases online, PurchasePro said.
PurchasePro recently announced an expanded alliance with AOL Time Warner (NYSE: AOL) that includes a print and television advertising campaign.
PurchasePro, which makes business-to-business (B2B) e-commerce software,said it will promote its products “across a broad array of AOL Time Warnertelevision and print brands.” The company’s ads will appear in such AOL TimeWarner publications as Fortune, as well as on TV stations including CNN.
PurchasePro and AOL formed an e-commerce alliance last year, creating the Netbusinessmarketplace for companies to buy and sell products and services over theAOL, Netscape and Compuserve properties.
PurchasePro, headquartered in Las Vegas, Nevada, operates an onlinemarketplace that serves more than 30,000 businesses. The company’s softwarealso powers some 240 private marketplaces.