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Commerce One (Nasdaq: CMRC) fell US$1.90 to $11.81 in morning trading Friday, after posting a wider first-quarter loss than a year earlier.
Reports said that company officials warned of a loss for the second quarter as well. Analysts at CIBC World Markets, UBS Warburg and SG Cowen were all said to have downgraded Commerce One shares following the news.
The Pleasanton, California, business-to-business (B2B) marketplace company posted an operating loss for the quarter ended March 31st, excluding acquisition costs, interest and other charges, of $25.5 million, or 11 cents per share, compared with a loss of $14.0 million, or 9 cents, in the same quarter last year.
The net loss widened to $228.5 million, or $1.02 per share, from $43.6 million, or 29 cents. Revenue, however, rose to $170.3 million from $35 million.
Commerce One said it picked up 63 new customers during the quarter, for a total of 567. Commerce One opened online marketplaces in China, Japan and Germany, while the company's joint venture with Germany's SAP (NYSE: SAP) AG signed new customers in Russia, Portugal, Switzerland and Poland.
"We believe the current pressure to improve productivity and profits plays directly into our value proposition as the e-marketplace company," said Commerce One chairman and chief executive officer Mark Hoffman. "This is what is driving the demand for public and private e-marketplaces, and we believe Commerce One is in the sweet spot to fulfill this demand."
Separately, Commerce One said it adopted a shareholder rights plan designed to ensure fair value in the event of a sale of the company. The plan is not a response to a specific takeover attempt, the company said.
Commerce One shares are down from a 52-week high of $84.13.
