Feeds

Siebel earnings rise as revenue slips

Cost cutting pays dividends

  • alert
  • submit to reddit

Gartner critical capabilities for enterprise endpoint backup

Siebel's earnings were up 9 per cent even as sales fell 7 per cent for the quarter ending 31 December.

The company, one of the biggest makers of software used to manage business functions, said that net income in its fourth quarter came to $41.5 million, or $0.08 per share, compared with a net loss of $38 million, or $0.08 per share, a year earlier. Revenue slipped to $366.7 million from $394.7 million a year ago, the California-based company said.

Software licence sales, considered an important metric to gauge the firm's future growth, came to $150.3 million, down from last year's $157.4 million.

The latest figures were broadly in line with raised guidance issued by the company earlier in January. At the time, the firm said it expected to earn $0.08 a share in the quarter, with revenue of about $365 million.

The company said that the expectation-meeting results reflected a rise in corporate spending on information technology. Cost cuts over the last year also helped to boost profits, commented CFO Ken Goldman in a conference call. He said that restructuring helped save more than $100 million between 2002 and 2003. Many of these cost cuts related to compensation, travel and other expenses.

Still, in after hours trading, the company's shares dipped on the back of a conservative forecast for the current and upcoming quarters. Siebel said that in the first quarter it expects earnings per share of $0.04 to $0.05 on total revenue of $315 million to $335 million. Licence revenue in the first three months of 2004 should be between $110 million and $125 million. For the April to June 2004 period, Siebel predicted earnings per share of $0.06 to USD0.08 on total revenue of $340 million- USD365 million and licence revenue of $120 million to $140 million.

In other commentary released with its results, the firm said it did not believe that it had violated US Securities and Exchange Commission (SEC) rules after certain company officials took a group of equity analysts to dinner at a financial conference. The SEC is still investigating the matter.

Earlier this week, Siebel said it would acquire Ineto Services, a customer relationship management (CRM) hosting company, in an effort to compete with rivals like Oracle, PeopleSoft and Web-based CRM specialist Salesforce.com, which is set to go public later this year.

© ENN

Secure remote control for conventional and virtual desktops

More from The Register

next story
The Return of BSOD: Does ANYONE trust Microsoft patches?
Sysadmins, you're either fighting fires or seen as incompetents now
Microsoft: Azure isn't ready for biz-critical apps … yet
Microsoft will move its own IT to the cloud to avoid $200m server bill
Oracle reveals 32-core, 10 BEEELLION-transistor SPARC M7
New chip scales to 1024 cores, 8192 threads 64 TB RAM, at speeds over 3.6GHz
US regulators OK sale of IBM's x86 server biz to Lenovo
Now all that remains is for gov't offices to ban the boxes
Object storage bods Exablox: RAID is dead, baby. RAID is dead
Bring your own disks to its object appliances
Nimble's latest mutants GORGE themselves on unlucky forerunners
Crossing Sandy Bridges without stopping for breath
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 10 endpoint backup mistakes
Avoid the ten endpoint backup mistakes to ensure that your critical corporate data is protected and end user productivity is improved.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Rethinking backup and recovery in the modern data center
Combining intelligence, operational analytics, and automation to enable efficient, data-driven IT organizations using the HP ABR approach.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.