<PAGE>
Exhibit 99.3
COMMERCE ONE, INC.
UNAUDITED PRO FORMA CONDENSED COMBINED BALANCE SHEET
MARCH 31, 2000
(IN THOUSANDS)
<TABLE>
<CAPTION>
PRO FORMA
HISTORICAL ------------------------------
--------------------- BUSINESS
COMMERCE COMBINATION
ONE APPNET COMBINED ADJUSTMENTS COMBINED
--------- --------- --------- ----------- ----------
<S> <C> <C> <C> <C> <C>
ASSETS
CURRENT ASSETS:
Cash and cash equivalents..... $ 23,991 $ 55,105 $ 79,096 $ -- $ 79,096
Short-term investments........ 73,048 -- 73,048 -- 73,048
Accounts receivable, net...... 26,520 36,010 62,530 -- 62,530
Prepaid expenses and other
current assets.............. 7,003 3,255 10,258 -- 10,258
--------- --------- --------- ---------- ----------
Total current assets............ 130,562 94,370 224,932 -- 224,932
Property and equipment, net..... 20,261 10,585 30,846 -- 30,846
Other assets.................... 2,750 2,636 5,386 -- 5,386
Goodwill and other intangible
assets, net................... 347,613 83,517 431,130 1,407,495(2) 1,838,625
--------- --------- --------- ---------- ----------
Total assets.................... $ 501,186 $ 191,108 $ 692,294 $1,407,495 $2,099,789
========= ========= ========= ========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable.............. $ 8,205 $ 4,331 $ 12,536 $ -- $ 12,536
Accrued compensation and
related expenses............ 7,950 5,600 13,550 -- 13,550
Current portion of capital
lease obligation............ 86 21 107 -- 107
Current portion of notes
payable..................... 446 817 1,263 -- 1,263
Deferred revenue.............. 46,050 1,674 47,724 -- 47,724
Other current liabilities..... 19,390 23,666 43,056 15,000(1) 58,056
--------- --------- --------- ---------- ----------
Total current liabilities....... 82,127 36,109 118,236 15,000 133,236
Notes payable................... 129 3,516 3,645 -- 3,645
Long-term liabilities........... -- 1,406 1,406 -- 1,406
STOCKHOLDERS' EQUITY:
Common stock.................. 584,918 262,100 847,018 1,371,414(1)(3) 2,218,432
Deferred stock compensation... (19,231) (351) (19,582) (90,591)(1)(3) (110,173)
Note receivable from
stockholders................ -- (503) (503) 503(3) --
Accumulated deficit........... (146,201) (111,169) (257,370) 111,169(3) (146,201)
Accumulated other
comprehensive loss.......... (556) -- (556) -- (556)
--------- --------- --------- ---------- ----------
Total stockholders' equity...... 418,930 150,077 569,007 1,392,495 1,961,502
--------- --------- --------- ---------- ----------
Total liabilities and
stockholders' equity.......... $ 501,186 $ 191,108 $ 692,294 $1,407,495 $2,099,789
========= ========= ========= ========== ==========
</TABLE>
See accompanying notes to unaudited pro forma condensed combined financial
information.
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<PAGE>
COMMERCE ONE, INC.
UNAUDITED PRO FORMA CONDENSED COMBINED STATEMENTS OF OPERATIONS
THREE MONTHS ENDED MARCH 31, 2000
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
<TABLE>
<CAPTION>
PRO FORMA
-----------------------------
HISTORICAL BUSINESS
----------------------- COMBINATION
COMMERCE ONE APPNET COMBINED ADJUSTMENTS COMBINED
------------ -------- -------- ----------- ---------
<S> <C> <C> <C> <C> <C>
REVENUES:
License fees.................. $ 27,121 $ -- $ 27,121 $ -- $ 27,121
Services...................... 7,888 44,731 52,619 -- 52,619
-------- -------- -------- --------- ---------
Total revenues................ 35,009 44,731 79,740 -- 79,740
COSTS AND OPERATING EXPENSES:
Cost of license fees.......... 1,099 -- 1,099 -- 1,099
Cost of services.............. 10,816 24,762 35,578 714(6) 36,292
Sales and marketing........... 19,204 3,536 22,740 68(6) 22,808
Product development........... 14,154 -- 14,154 -- 14,154
General and administrative.... 3,686 16,297 19,983 318(6) 20,301
Purchased in-process research
and development............. 5,142 -- 5,142 -- 5,142
Amortization of deferred stock
compensation................ 4,199 5,115 9,314 9,496(4) 18,810
Amortization of goodwill and
other intangible assets..... 21,895 14,847 36,742 128,189 (4)(6) 164,931
-------- -------- -------- --------- ---------
Total costs and operating
expenses.................... 80,195 64,557 144,752 138,785 283,537
-------- -------- -------- --------- ---------
Loss from operations............ (45,186) (19,826) (65,012) (138,785) (203,797)
Interest and other income
(expense), net................ 1,541 706 2,247 -- 2,247
Provision for income taxes...... -- 270 270 -- 270
-------- -------- -------- --------- ---------
Net loss........................ $(43,645) $(19,390) $(63,035) $(138,785) $(201,820)
======== ======== ======== ========= =========
Basic and diluted net loss per
share......................... $ (0.29) $ (0.57) $ (1.13)
======== ======== =========
Number of shares used in
calculation of basis and
diluted net loss per
share(5)...................... 151,420 33,842 178,618
======== ======== =========
</TABLE>
See accompanying notes to unaudited pro forma condensed combined financial
information.
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<PAGE>
COMMERCE ONE, INC.
UNAUDITED PRO FORMA CONDENSED COMBINED STATEMENTS OF OPERATIONS
YEAR ENDED DECEMBER 31, 1999
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
<TABLE>
<CAPTION>
PRO FORMA
HISTORICAL -----------------------------
------------------- BUSINESS
COMMERCE COMBINATION
ONE APPNET COMBINED ADJUSTMENTS COMBINED
-------- -------- --------- ----------- ---------
<S> <C> <C> <C> <C> <C>
REVENUES:
License fees...................... $24,571 $ -- $ 24,571 $ -- $ 24,571
Services.......................... 8,986 109,707 118,693 -- 118,693
-------- -------- --------- --------- ---------
Total revenues.................... 33,557 109,707 143,264 -- 143,264
COSTS AND OPERATING EXPENSES:
Cost of license fees.............. 484 -- 484 -- 484
Cost of services.................. 15,586 61,604 77,190 1,700(6) 78,890
Sales and marketing............... 31,546 8,797 40,343 214(6) 40,557
Product development............... 20,496 -- 20,496 -- 20,496
General and administrative........ 5,050 33,918 38,968 788(6) 39,756
Purchased in-process research and
development..................... 9,374 -- 9,374 -- 9,374
Amortization of deferred stock
compensation.................... 2,324 19,651 21,975 37,984(4) 59,959
Amortization of goodwill and other
intangible assets............... 11,133 58,024 69,157 502,454 (4)(6) 571,611
-------- -------- --------- --------- ---------
Total costs and operating
expenses........................ 95,993 181,994 277,987 543,140 821,127
-------- -------- --------- --------- ---------
Loss from operations................ (62,436) (72,287) (134,723) (543,140) (677,863)
Interest and other income (expense),
net............................... 3,302 (4,287) (985) -- (985)
Provision for income taxes.......... 4,188 827 5,015 -- 5,015
-------- -------- --------- --------- ---------
Net loss............................ (63,322) (77,401) (140,723) $(543,140) $(683,863)
Dividends on and accretion of
preferred stock................... -- (2,139) (2,139)
-------- -------- ---------
Net loss attributable to common
stockholders...................... $(63,322) $(79,540) $(142,862)
======== ======== =========
Basic and diluted net loss per share
attributable to common
stockholders...................... $ (0.74) $ (3.03) $ (6.04)
======== ======== =========
Number of shares used in calculation
of basis and diluted net loss per
share(5).......................... 86,054 26,234 113,252
======== ======== =========
</TABLE>
See accompanying notes to unaudited pro forma condensed combined financial
information.
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<PAGE>
NOTES TO THE UNAUDITED PRO FORMA CONDENSED
COMBINED FINANCIAL INFORMATION
The total purchase cost of the merger has been allocated on a preliminary
basis to assets and liabilities based on management's determination of their
fair values. The excess of the purchase cost over the fair value of the net
assets acquired has been allocated to goodwill. This allocation is subject to
change pending completion of the final analysis of the fair value of the assets
acquired and liabilities assumed. The impact of these changes could be material.
The adjustments to the unaudited pro forma condensed combined balance sheet
as of March 31, 2000 and statements of operations for the three months ended
March 31, 2000 and for the year ended December 31, 1999 are as follows:
(1) To reflect the acquisition of all of the outstanding capital stock of AppNet
for a total estimated purchase cost of approximately $1.648 billion. The
purchase consideration consists of the following:
a) Issuance of approximately 27,198,000 shares of Commerce One common stock
with a fair value of approximately $1.266 billion. The fair value per
share of common stock issued is based on an average of the closing prices
on June 19, June 21 and June 20, 2000 (the date of the merger agreement
and announcement). Commerce One may be required to issue an additional
274,000 shares in connection with contingent consideration obligations
from previous acquisitions by AppNet, which issuance has not been
reflected in the pro forma adjustments.
b) Assumption of options and warrant to purchase approximately 7,300,000
shares of Commerce One common stock with a fair value of approximately
$367.1 million, including approximately 900,000 unvested options to be
issued prior to closing at a per share exercise price equal to the fair
market value of AppNet common stock on the date of grant. For purposes of
this calculation, options subject to accelerated vesting were treated as
vested options. The fair value of the options and warrant assumed is
based on the Black-Scholes model using the following assumptions: fair
market value of the underlying shares is based on a 3-day average of the
closing price on June 20, 2000; expected life of 1.5 to 4.5 years;
expected volatility of 1.35; risk-free interest rate of 5.75%; and
expected dividend rate of 0%. A portion of the intrinsic value of the
unvested options amounting to $90.9 million has been allocated to
deferred stock compensation and will be amortized over the remaining
vesting periods of the related unvested options to amortization of
deferred stock compensation.
c) Merger related costs of approximately $15.0 million consisting primarily
of fees for investment bankers, attorneys, accountants, filing and
financial printing. No pro forma adjustments have been made to reflect
costs associated with combining the operations of the two companies and
severance benefits and costs associated with discontinuing some redundant
business activities as the nature and amount of these costs have not been
determined.
(2) Recognition of the excess purchase costs of $1.491 billion over the fair
value of net tangible assets acquired have been recorded as goodwill and
other intangible assets as follows (in thousands):
<TABLE>
<S> <C>
Assembled workforce......................................... $ 28,000
Customer contracts and backlog.............................. 11,900
Internal proprietary software............................... 3,500
Covenant not-to-compete..................................... 2,300
Goodwill.................................................... 1,445,300
----------
$1,491,000
==========
</TABLE>
(3) To reflect the elimination of the historical stockholders' equity accounts
of AppNet.
(4) To reflect the amortization of goodwill and other intangible assets and the
amortization of deferred stock compensation resulting from the merger. The
goodwill and other intangible assets are being amortized over the following
periods: assembled workforce--3 years; customer contracts and
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<PAGE>
backlog--9 months; internal proprietary software--3 years; covenant
not-to-compete--28 months; and goodwill--3 years. The deferred stock
compensation is being amortized over the remaining vesting periods of up to
four years.
(5) Basic and diluted pro forma net loss per share has been adjusted to reflect
the issuance of approximately 27,198,000 shares of Commerce One common
stock, as if the shares had been outstanding for the entire period
presented. The effect of stock options and warrants assumed in the merger
have not been included as their inclusion would be anti-dilutive.
(6) Pro forma reclassifications have been made to conform the AppNet
presentation to the Commerce One presentation.
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