LAS VEGAS, Sept. 4, 2001 (PRIMEZONE) -- PurchasePro (Nasdaq:PPRO), today reported that 130 reverse auctions were held using e-Source, the company's strategic sourcing product, in the month ended August 31, 2001, compared with the 139 reverse auctions held in the prior month.
PurchasePro also reported that the number of buying organizations in August rose to 10, from eight in July. The company said August reverse auctions attracted 2,173 bids from 726 suppliers, compared with the 2,965 bids posted in July from 1,254 suppliers.
Low bids in August auctions totaled $49,044,596, compared with $92,454,099 in July, with opening, or high bids totaling $55,527,358, compared with $102,998,888. The market spread, or implied savings, between total low and high bids was $6,482,762 compared with $10,544,790 in the prior month, or approximately 13 percent compared with roughly 11 percent in July.
While the number of buyers participating in reverse auctions increased, an indication of the efficacy of the e-Source product and strategic sourcing in general, total auction spend in the month of August decreased, as anticipated, and is a function of the summer season. PurchasePro pointed out that the efficiency of the reverse auction process was further evidenced in August by an increase in implied savings, which the company believes will increase to 15 percent over time.
According to PurchasePro, there is a clear seasonality to the purchasing cycle comprising the late summer months as well as the holiday season late in the year. Among the products and services bid in August were high speed diesel oil, marine gas oil, computer rental and maintenance services, industrial electric supplies, shafts, platinum wire, stretch film, fasteners, machine tool parts and spiral wound paper tubes.
PurchasePro also announced today that 32,216 purchase orders, valued at $35,184,947 crossed its commerce network of more than 250,000 businesses in August, compared with 26,713, valued at $27,814,540 in July. In the second quarter ended June 30, 2001, PurchasePro reported more than 60,000 purchase orders totaling more than $61 million had crossed the network.
PurchasePro's e-Source reverse auction product allows qualified suppliers to bid for a buyer's business in real-time over the Internet. e-Source enables buyers to create and send electronic requests for information (RFI) and requests for quotes (RFQ), enhance supplier collaboration, determine auction times, resolve logistics, source from their existing suppliers as well as the PurchasePro commerce network of more than 250,000 businesses, and conduct real-time auctions from their desktops. Other features of the product include support for closed bidding, sealed bids and absentee bidding.
About PurchasePro
PurchasePro(r), www.purchasepro.com, is a B2B e-commerce leader with the stated goal of providing software to enable enterprises of all sizes to gain universal access to the world's largest commerce network. The PurchasePro commerce network comprises more than 250,000 businesses, authorized to buy and sell, and powers hundreds of private-label marketplaces. PurchasePro provides the following B2B e-commerce solutions: e-Procurement for enterprise-wide procurement; e-Source for strategic sourcing; v-Distributor for online distributors; and e-MarketMaker for Internet market makers.
This news release may include forward-looking statements, which are subject to the `Safe Harbor' created by Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements involve certain risks and uncertainties that can cause actual results to differ materially from those in the forward-looking statements. These forward-looking statements represent only the views of certain members of management and are based on limited information available to us now, which is subject to change. We have no current plan to update these statements. Actual results may differ substantially from what we say today and no one should assume at a later date that the forward-looking statements provided herein are still valid. They speak only as of today.
For more information about these risks and uncertainties, see the SEC filings of PurchasePro.com, Inc., including the section titled "Factors That May Affect Results" in its 10-K filing for the period ended December 31, 2000, and its 10-Q for the quarter ended June 30, 2001, which are available from the company on request and on the Internet at the SEC's Website, www.sec.gov. Note: PurchasePro is a service mark of PurchasePro.com Inc. All other trademarks or registered trademarks are the property of their respective owners.