Commerce One revises revenue figures

Commerce One shares closed at $1.48 (£1.03) in after-hours trading on Tuesday, following a revised outlook for first-quarter...

Commerce One shares closed at $1.48 (£1.03) in after-hours trading on Tuesday, following a revised outlook for first-quarter performance.

Peter Pervere, chief financial officer at Commerce One, said revenues for the quarter are now expected to be between $29m (£20m) and $32m (£23m) while operating expenses are projected at $88m (£61m) to $90m (£63m) for the quarter.

Although the operating expenses were revised downward from the original $90m to $95m (£66m) forecast, so was the earnings forecast.

Thomson Financial/First Call had projected revenues of about $40.3m (£28m), according to a Commerce One spokesperson.

The revised outlook for the first quarter is because of a continued weakness in IT spending and the extended sales cycles which is now in the range of a four- to six-month delay in making a purchasing decision, Pervere said.

But the CFO said he was encouraged by the level of interest in the company's version 5.0 of its applications released in January and by the belief that an improvement in the economy will encourage companies to reconsider their enterprise solutions.

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