Siebel beats Q4 forecasts

5 Jan 2004

CRM software vendor Siebel Systems has dashed its own expectations by reporting a solid fourth quarter that surpassed earlier predictions.

Last October the company, which employs around 60 people in Galway, forecast revenues in the range of US$335m to US$355m, license revenues in the range of US$120m to US$140m and earnings per share of between five and six cents. However, in today’s fourth quarter results, the company saw revenues reach approximately US$365m, license revenues reach US$150m and earning per share at approximately eight cents per share.

The company’s estimated cash, cash equivalents and short-term investments are worth approximately US$2bn, the net result of over US$40m in cash generated from operations during the quarter offset by a reduction for acquisitions and other investments, including the acquisitions of software players UpShot and Motiva.

The results will come as good news to Siebel’s beleaguered staff in Galway, who two years ago had to shed up to 40 jobs on the back of disappointing quarterly results.

Siebel today said that it had completed its 2003 reorganisation and restructuring activities with the realignment of its worldwide sales organisation into three geographic operating units – the Americas, EMEA and Asia-Pacific. It is understood that each unit will be headed by a veteran Siebel sales executive with broadened operational responsibilities who will report directly to the CEO.

By John Kennedy