LAS VEGAS, Feb. 1, 2002 (PRIMEZONE) -- PurchasePro (Nasdaq:PPRO), today reported that 144 reverse auctions were held using e-Source, the company's strategic sourcing solution, in the month ended January 31, 2002, compared with 150 auctions held in December, 2001.
Low bids in the January auctions totaled $58 million, compared with $45 million in December, with opening or high bids totaling $78 million, compared with $72 million in the prior month. The market spread or implied savings in January, between total low and high bids was $19 million or 24 percent, compared with $27 million or 38 percent in December.
PurchasePro also reported today that the number of buying organizations in January was 10, compared with 13 in December. The company said January reverse auctions attracted 1,959 bids from 1,681 suppliers, compared with the 2,535 bids posted in December from 1,407 suppliers. PurchasePro attributed the decline in raw auction numbers to seasonal issues related to the procurement process. PurchasePro also announced that 30,000 purchase orders, valued at $30 million crossed its commerce network in January, compared with 25,000, valued at $31 million in December.
Among the products purchased through e-Source in January, from companies including Honeywell, TRW Automotive, Timken, Dal-Tile and ArvinMeritor, were straight shaft eccentric bearings, zinc plating, brake parts, uniforms and marine gas oil. Since PurchasePro began reporting monthly e-Source results in July 2001, 1,205 auctions have been conducted, totaling $691 million in high bids and $501 million in low bids, generating an implied savings of $189 million for companies worldwide.
PurchasePro's sourcing process has been proven repeatedly throughout organizations worldwide, generating procurement efficiencies and price reductions that have resulted in hundreds of millions of dollars of savings. e-Source goes beyond reverse auctions and provides customers with a complete sourcing solution and automated procurement process, enabling buyers to quantify spend analysis, qualify additional suppliers, enhance RFI and RFQ management, cultivate competitive bidding and negotiations and manage supplier relationships more effectively than before.
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 300,000 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 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 March 31, 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.