Siebel sounds downbeat note
Published: 16 Apr 2004 12:05 BST
Software maker Siebel Systems posted a six-fold increase in first-quarter profits on Thursday, reporting higher software sales and lower expenses in the wake of a restructuring.
Overall revenue for the quarter, which ended 31 March, dropped slightly as maintenance and service revenue waned.
Despite the improvement in the financial picture of the company -- which Siebel had preannounced last week -- Siebel chief executive Tom Siebel sounded a sober note about the state of the information technology industry during a conference call.
"We feel cautiously optimistic," Siebel said. "It's very clear that this IT recovery we're seeing is fragile. There is still geopolitical dislocation; there is quite a bit of uncertainty out there."
The company has said the war in Iraq disrupted its business last year.
Siebel's first-quarter net income was $31.7m (£17.7m), up from $4.6m in the same quarter last year. Earnings per share were 6 cents, compared to a penny a year ago.
Licence revenue was $126.8m, up 13 percent from the first quarter of 2003, while service and maintenance revenue dropped 8 percent to $202.5m. Overall revenue was $329.3m, down about 1 percent from the same quarter last year.
Generally, Siebel hit the high end of its financial guidance for the quarter and met analysts' expectations.
Siebel also reiterated its second-quarter financial targets: licence revenue of $120m to $140m, maintenance revenue of $112m to $118m, service revenue of $95m and $107m. Siebel expects its total revenue to be $340m to $365m, with earnings per share between 6 and 8 cents. The quarter ends 30 June.
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