Sprint Contract Powers Ariba

Ariba, Inc. (Nasdaq: ARBA) rose 1/2 to 61 7/16 Monday after the company said Sprint PCS (NYSE: PCS) has begun using its business-to-business (B2B) e-commerce platform for buying supplies and services.

Sprint PCS, a Kansas City, Missouri-based provider of digital telephone services, is using the Ariba Buyer to speed purchases for its network operations, sales and marketing offices, distribution centers, and corporate offices worldwide, Ariba said.

Sprint has been using Ariba B2B services since May, and has placed more than US$500,000 worth of orders to its suppliers over the system. In coming months, the company plans to "roll out the solution to thousands more users," said Ariba vice president John Magner.

According to Ariba, the Buyer software gives customers access to more than 30,000 suppliers worldwide through the Ariba Commerce Network.

The company, based in Mountain View, California, last week named a new chief financial officer, Robert M. Calderoni. A former CFO of Avery Dennison Corp., Calderoni will succeed the retiring Edward P. Kinsey.

Ariba recorded revenue of $134.9 million for the fourth quarter ended September 30th, and posted a loss before non-operating charges of $1.1 million, or breakeven per share. The company claimed the distinction of being the first B2B provider to break even -- albeit before charges -- in a fiscal quarter.

After all charges, however, the company posted a net loss of $339.34 million, or $1.50 per share, compared with a loss of $9.88 million, or 7 cents, a year earlier.

Ariba said it added 114 customers during the quarter, with Allied Worldwide, Pfizer, Target Corp., American International Group, Inc., Kmart, and Honeywell joining a roster of clients that also includes American Express, Bank of America and E*Trade.

Company shares have nevertheless been on a slide in recent weeks. In September, the stock traded above 160.