Siebel Systems Reports Preliminary Financial Results for the Third Quarter Ended September 30, 2004
Monday October 4, 8:31 am ET
License Revenues Up 10% and Operating Income Up 500% Sequentially
SAN MATEO, Calif.--(BUSINESS WIRE)--Oct. 4, 2004--Siebel Systems, Inc. (Nasdaq:SEBL - News), a leading provider of business applications software, today announced preliminary financial results for the quarter ended September 30, 2004 that were above financial analyst consensus expectations.
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The Company expects total revenues for the third quarter of 2004 to be approximately $315 million to $317 million, which exceeds consensus analyst expectations of $306 million and represents a 5% increase over the second quarter of 2004. The Company expects license revenues for the quarter to be approximately $104 million to $105 million, which exceeds consensus analyst expectations of $96 million and represents a 10% increase over the second quarter of 2004. Maintenance revenues are expected to be approximately $118 million, which exceeds consensus analyst expectations of $115 million and represents a 3% increase over the second quarter of 2004. Services and other revenues are expected to be approximately $93 to $94 million, which meets consensus analyst expectations of $94 million and represents a 1% increase over the second quarter of 2004. In addition, OnDemand total contract value for the third quarter of 2004 is expected to increase by more than 30% over the second quarter of 2004.
Operating margin and operating income for the third quarter of 2004 are expected to be approximately 7.5% to 8.5% and $24 million to $26 million, respectively, which exceed consensus analyst estimates of 6.7% and $20 million and represent a five-fold increase over the second quarter of 2004. Pre-tax income is expected to be approximately $36 million to $38 million, which represents a 165% increase over the second quarter of 2004. The preceding operating margin, operating income and pre-tax income expectations include the negative impact of approximately $11 million in restructuring and other non operating charges incurred in the third quarter of 2004 and $6 million of purchased in process product development charges incurred in the second quarter of 2004.
The Company's cash, cash equivalents and short term investments are expected to be approximately $2.15 billion as of September 30, 2004, reflecting cash generated during the third quarter of 2004 of approximately $30 million.
At this time, the Company is comfortable with current financial analyst consensus expectations for the fourth quarter of 2004 and will provide formal guidance for the fourth quarter of 2004 when it announces its final financial results for the third quarter of 2004 on October 20, 2004 at 2:00pm PST. The live Webcast and replay of the October 20th call can be accessed at www.siebel.com/investor.
