Ariba Reports 3Q Loss, CEO ResignsAriba Reports 3Q Loss, CEO Resigns

In the face of continued losses, Larry Mueller, who served as CEO of Ariba Inc. for one quarter, resigned Wednesday at a meeting of the board of directors held prior to Thursday's release of the company's third-quarter results. Board chairman and former CEO Keith Krach took over immediately as interim CEO.

Mueller, who was Ariba's president and chief operating officer prior to taking over the reigns of the company from Krach in May, following the collapse of Ariba's purchase of Agile Software and its alliance with i2 Technologies Inc., said he would leave the company to pursue other interests, Krach says.

Excluding special and non-cash charges, Ariba lost $26.1 million in the third quarter, or 10 cents per share, beating the First Call consensus estimate of 12 cents per share. In the same quarter last year, Ariba lost $11.3 million, or 5 cents per share, excluding charges. Including charges, Ariba's loss was $273.5 million, or $1.10 per share, compared with $317.1 million, or $1.45 per share, in the same quarter a year ago.

Krach blamed the slowing economy and resulting smaller deals for Ariba's continued problems. The average deal size during the quarter was $1.3 million compared with $1.8 million last year. He says losses were reduced by cost-cutting measures taken last quarter, including eliminating 700 jobs, or one-third of its workforce.