Siebel reports Q4 loss
Sharp sales fall
CRM giant Siebel Systems Inc turned in a fourth quarter loss yesterday on the back of a sharp fall in software revenues.
The San Mateo, California-based vendor reported revenues of $394.7m for the quarter ending December 31, down 19.1% on the year. While services, maintenance and other revenues were static, software revenues were off 37.1% at $157.4m.
Operating loss was $67.2m, compared to a profit the previous year of $94.6m. Net loss was $38m, compared to the previous year’s $65.9m profit. On a proforma basis, excluding a $95.9m restructuring charge, the company reported net income of $23.4m, down 64.5% on the year.
For the full year, revenues were down 21.6% to $1.6bn. Operating loss was $94.3m compared to the previous year’s $357.9m profit, while net loss was $35.7m compared to a profit of $254.6m the previous year. On a proforma basis, full year net profit was $130.8m, down 48.6% on the year.
The company also announced that COO Paul Wahl will retire at the end of the first quarter, 2003. His direct reports will now report directly to chairman and CEO Tom Siebel.
Earlier in the day, the company announced it had realigned its stock compensation program in the light of the recent decline in the IT industry. In an SEC filing, the firm said 28 million shares underlying employee stock options had been canceled. The company said this equated to 5% of net potential dilution to stockholders.
The filing also said that Tom Siebel had asked the board to cancel all stock options granted to him during the last four years. This equated to just under 26 million shares, with a fair value of $56.1m. As a result, Siebel’s beneficial ownership of the company was reduced from around 13.5% to around 10.7%.