SEBL ($40-$32) P/E 77 Beats by 2 Cents..
"It looks tough for the rest of the year," company chief executive Tom Siebel said during the conference call.
Thursday July 19 01:15 PM EDT
Siebel Beats Street in Q2 But Sounds Storm Warning
By Larry Seben, www.CRMDaily.com
When it comes to earnings these days, it has become a case of lowering expectations -- then hoping for better days down the road.
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Such is the case at e-business applications provider Siebel Systems (Nasdaq: SEBL - news), which saw second-quarter revenue grow 38 percent over year-ago levels, from US$397.5 million in 2000 to $549.7 million this year. Net income for the quarter totaled $76.6 million, or 15 cents per share, versus pro forma net income of $49.1 million, or 10 cents per share, in the second quarter of 2000.
Although Siebel's earnings slightly exceeded expectations, which had been lowered following company warnings, there was no cause for celebration as company officials said they see tough times ahead.
Slowing Signs Abound
While net per share earnings exceeded consensus analyst estimates by 2 cents per share, software sales -- which are seen as Siebel's bread and butter -- were slightly lower than expected.
Conversely, the company reported stronger than expected revenue from maintenance, services and consulting. Revenue from these areas rose from $152.2 million in the year-ago quarter to $262.9 million, an increase of 72.6 percent.
For the six months ended April 30th, total revenue rose 56.6 percent from $717.2 million to $1.1 billion. This upsurge was led by an 86.8 percent increase in revenue from professional services and maintenance.
Cloudy Forecast
While those are certainly not numbers to sneeze at, company officials' comments during a conference call with analysts put many on edge.
"It looks tough for the rest of the year," company chief executive Tom Siebel said during the conference call.
That statement, coupled with the company's forecast that fourth-quarter earnings will be 4 cents per share lower than a year ago, took the bloom off any good feelings about second-quarter earnings and prompted late selling of Siebel shares in after-hours trading. By midday Thursday, Siebel's stock was down $1.48 to $36.16.
The gloomy outlook from a CRM industry leader is almost certain to cast a pall over smaller, more vulnerable companies as they move forward and try to survive the slowdown. |
