Commerce One runs out of cash
The software maker laid off most of its staff this week
IDG News Service - After spending several years in a protracted death spiral, Commerce One Inc. is finally on the verge of ending its misery by running out of cash. The San Francisco software maker laid off most of its staff this week and said in a regulatory filing today that it is down to its last $300,000 in operating cash.
Commerce One has become a poster child for dot-com collapses. The 9-year-old company went public in 1999 with a history of losses and a grand plan to become the eBay of the business world thorough a portfolio of online business-to-business supplier networks. While the company's revenue grew to $400 million at its height in 2001, Commerce One never turned a profit, and as the dot-com bubble popped, so did its business model. SAP AG, which owned 20% of Commerce One, eventually wrote off the investment.
Commerce One retooled its business model and tried to reposition itself as a developer of business process integration software. But it struggled to make that business viable: In 2003, it lost $65 million on revenue of $36 million, and last quarter, its revenue slipped to $2 million, with a loss of $5 million.
Commerce One said this week that its attempts to find additional investment or debt financing have been unsuccessful and that it expects to file for bankruptcy. The company said it's trying to sell its supplier relationship management software business, but it doesn't expect the sale to generate enough cash to cover its debts or to return anything to stockholders.
Ailing companies often fire their management, but Commerce One has stuck with CEO Mark Hoffman, who previously co-founded database company Sybase Inc., throughout its rise and fall. The company announced the layoff of 56 employees, leaving it with 36.
- Best iPhone, iPad Business Apps for 2014
- 14 Tech Conventions You Should Attend in 2014
- 10 Desktop Apps to Power Your Windows PC
- How to Add New Job Skills Without Going Back to School
- Slideshow: 7 security mistakes people make with their mobile device
- iOS vs. Android: Which is more secure?
- 11 sure signs you've been hacked
- Cybersecurity Imperatives Reinvent Your Network Security With Palo Alto Networks The Rise of CyberSecurity
Red Hat Enterprise Linux - The Original Cloud Operating System
Linux adoption is growing against a number of measures, such as the
number of supercomputers that run Linux and the size of the contributing...
- OpenStack Hype vs. Reality: CIO Quick Pulse Open-source architecture can enable IT departments to build infrastructure-as-a-service (IaaS) clouds running on standard hardware.
- Live Webcast Best Practices for the Hyperconverged Enterprise Network To the Age of Constant Connectivity and Information overload
- Live Webcast Unmasking the Differences between Consumer and Enterprise File Sync & Share The consumerization of IT combined with the rapid pace of the modern mobile workplace is forcing enterprise IT teams to evaluate file sync...
- Live Webcast Government Agency Webifies Outdated COBOL Applications Let this CTO tell you how his agency converted 1980s-era green screens into an e-filing portal for the 100,000 cases handled each year...
- The New Way to Work Knowledge Vault This Knowledge Vault focuses on how, in today's increasingly virtual world, it's more important than ever to engage deeply with employees, suppliers, partners,... All Applications White Papers | Webcasts