Stock Watch: Commerce One Soars on Strong Q3

Commerce One, Inc. (Nasdaq: CMRC) climbed 4 3/16 to 68 1/16 in the first few minutes of trading Friday after the company reported a smaller-than-expected loss for the third quarter and said it expects to turn a profit sooner than previously thought.

Revenue for the quarter soared to $112.7 million from $10.4 million in the same period last year, the Pleasanton, California-based e-commerce company said.

The net loss before charges totaled $14.7 million, or 9 cents per share, compared with $10.3 million, or 7 cents, in the year-earlier quarter, and against analysts’ forecasts for a loss of 12 cents. The net loss came to $60.6 million, or 37 cents per share, against $10.4 million, or 7 cents, a year earlier.

“We have outpaced the competition by gaining the highest share of e-marketplace participation in strategic industries and global markets,” said chairman and chief executive officer Mark Hoffman. “With our acquisition of AppNet and alliances with SAP and others, we have also laid the foundation for the future.”

Hoffman said the company’s progress toward profitability is continuing, and he expects Commerce One to be in the black by the second quarter of 2001, one quarter earlier than predicted in July.

Commerce One added 96 new customers during the quarter, bringing the total to 316. That figure excludes customers acquired through the company’s recent merger with AppNet, SAP customers buying products through a joint venture, and business service providers participating in the CommerceOne.net marketplace.

The company also continued to expand its global web of e-marketplaces, with 107 sites participating and 47 currently operational. Alliances with Microsoft, Intershop, GE Global eXchange Services, Computer Sciences Corp. and Sterling Commerce also “greatly increased the potential number of on-ramps” to the company’s sites during the quarter, Commerce One said.

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