Ariba Reports Results for Second Quarter of Fiscal Year 2010

Ariba, Inc. (Nasdaq: ARBA), the leading spend management solutions provider, announced results for the second quarter of fiscal year 2010 ended March 31. Quarterly Financial and Operational Highlights: Total revenues of $87.1 million

GAAP EPS of $0.06 and non-GAAP EPS of $0.19 per fully-diluted share

Subscription software revenue of $42.3 million, up 16% year-over-year

12-month subscription software backlog of $140 million, up 9% year-over-year

Cash flow from operations of $26.4 million, ending cash and investments of $222.9 million

Number of on-demand deals up 38% year-over-year

"Cost reduction remains a top priority for all companies, and increasingly they recognize the need to collaborate with their suppliers across the value chain. The Ariba Supplier Network is enabling this collaboration and we continue to see strong growth in network volumes," said Bob Calderoni, Chairman and CEO, Ariba. "The network growth, coupled with the strong financial performance we delivered in the second quarter puts us in a position to deliver revenue, cash flow and EPS towards the high end of our previously issued guidance for Fiscal 2010, while also building momentum for accelerated growth in Fiscal 2011." Results for the Second Quarter of Fiscal Year 2010 Revenue: Total revenues for the second quarter of fiscal year 2010 were $87.1 million, as compared to $84.7 million for the second quarter of fiscal year 2009. Subscription and maintenance revenues for the current quarter were $58.8 million, as compared to $54.9 million for the second quarter of fiscal year 2009. Within subscription and maintenance revenues, subscription software revenue was $42.3 million for the current quarter, as compared to $36.4 million for the second quarter of fiscal year 2009. Services and other revenues for the current quarter were $28.4 million, as compared to $29.8 million for the second quarter of fiscal year 2009. Earnings Per Share: Net income for the second quarter of fiscal year 2010 was $5.8 million, or $0.06 per fully-diluted share as compared to a net loss for the second quarter of fiscal year 2009 of $4.7 million, or $0.06 per fully-diluted share. Net income for the second quarter of fiscal year 2010 included charges of $1.0 million for amortization of intangible assets, $11.2 million for stock-based compensation, $8.6 million for restructuring related to the Company's Sunnyvale campus, and benefits of $3.1 million from the reversal of a tax accrual, and $7 million from the receipt of a litigation judgment. Excluding these items, non-GAAP net income for the quarter was $16.5 million, or $0.19 per diluted share. Balance Sheet and Cash: Total cash, investments and restricted cash were $222.9 million at March 31, 2010, up $23.4 million from December 31, 2009. Net cash flow from operations for the three months ended March 31, 2010 was $26.4 million, as compared to $16.3 million for the three months ended March 31, 2009. Accounts receivable, on an average days-sales-outstanding basis, were 21 days for the second quarter of fiscal year 2010, as compared to 26 days for the second quarter of fiscal year 2009, and flat with the previous quarter. Total deferred revenues were $125.4 million at March 31, 2010, up $5.9 million from December 31, 2009. Customer Acquisition and Transactions for the Quarter: During the quarter, 211 companies of all sizes purchased Ariba solutions to drive their spend management strategies, including: BNP Paribas, Fomento de Construcciones y Contratas, S. A., Howard Hughes Medical Center, Masco Corporation, Tomkins Industries Inc., Union Bank and Zurich Financial Services. Ariba added 35 new customers in the second quarter of fiscal year 2010 and closed 13 transactions over $1 million, including 7 deals with a software component of greater than $1 million. On-demand product deals totalled 194. Conference Call Information Ariba will hold a conference call today at 5:00 p.m. ET / 2:00 p.m. PT to discuss its results for the second quarter of fiscal year 2010. To join the call, please dial (877) 407-8031 in the United States and Canada, or (201) 689-8031 if calling internationally. The conference call also will be webcast live, and can be accessed on the investor relations section of the company's website at www.ariba.com.

A replay of the conference call will be available for two weeks by calling (877) 660-6853 in the United States and Canada or (201) 612-7415 internationally and entering account number: 286 and conference ID number: 348632. About Ariba, Inc. Ariba, Inc. is the leading provider of on-demand spend management solutions. Our mission is to transform the way companies of all sizes, across all industries, and geographies operate by delivering software, service, and network solutions that enable them to holistically source, contract, procure, pay, manage, and analyze their spend and supplier relationships. Delivered on demand, our enterprise-class offerings empower companies to achieve greater control of their spend and drive continuous improvements in financial and supply chain performance. More than 1,000 companies, including more than half of the companies on the Fortune 500, use Ariba solutions to manage their spend from sourcing and orders through invoicing and payment. For more information, visit www.ariba.com Copyright © 1996 - 2010 Ariba, Inc.

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