B2B e-commerce software developer Ariba reported a massive $US1.84 billion net loss ($7.60 per share) for its fiscal quarter ending March 31, despite new customer sales doubling.
The results include a $33.6 million charge related to equity investments and costs stemming from its scrapped purchase of Agile Software. The company also wrote down $1.4 billion of goodwill related to its acquisition of online software developer Tradex Technologies.
The company said it lost $48.3 million or 20 cents a diluted share compared with last year's loss of $125.9 million or 70 cents a share. These results are in line with earlier warnings that "special charges" would cut into the software maker's bottom line.
Annual revenue more than doubled to $90.7 million from $40 million, in line with Ariba's earlier downscaling but short of the $109.9 million analysts were expecting.
Bob Calderoni, Ariba's CFO, was guarded when discussing the company's near-term outlook with US press last week, suggesting that third-quarter revenue would "either be flat or down" from the second quarter.
"The slowdown in both the economy and technology spending impacted our business more dramatically than we had expected," he said.
Ariba posted its first ever operating profit in January this year.