Shares of

Ariba

(ARBA)

climbed as much as 11% Monday on news that

Gateway

TheStreet Recommends

(GTW)

will use its software to cut costs.

Gateway, the beleaguered San Diego-based computer maker, will use Ariba's spend-management software as part of its $400 million cost-cutting program. Gateway will use the software to negotiate better supply contracts, improve contract management and streamline payment processes.

Gateway has suffered a sharp decline in sales in recent years, and its efforts to sell computers and other products in its own stores have come under fire. Earlier this year, the company said it would trim spending by slashing overhead by $200 million and reducing the cost of goods sold by about the same amount. Shares of Gateway rose 3 cents to $4.97 in recent trading. They are trading at a fraction of their all-time high of $84 in 1999.

Ariba, another dot-com-era flameout, has had its own troubles. It has tried to reinvent itself from a business-to-business company that created online auctions to a software maker that helps companies structure their procurement processes. From an all-time high of $183.34 in March 2000, shares of Ariba have plummeted into the single digits, trading up a quarter at $2.57 Monday.