Siebel Systems Reports Revenue and Earnings for the Quarter Ended March 31, 2002
SAN MATEO, Calif., Apr 17, 2002 (BUSINESS WIRE) -- Siebel Systems, Inc. (Nasdaq: SEBL chart, msgs), the world's leading provider of eBusiness applications software, today announced results for the quarter ended March 31, 2002.
Revenues for the first quarter of 2002 were $477.8 million, compared to $487.8 million for the fourth quarter of 2001. Net income was $64.6 million, or $0.12 per share, compared with net income of $65.9 million, or $0.13 per share, for the fourth quarter of 2001.
Revenues from license fees for the first quarter of 2002 were $246.0 million, compared to $250.2 million for the fourth quarter of 2001. Revenues from maintenance, consulting, and other services were $231.8 million, compared to $237.6 million for the fourth quarter of 2001.
The Company's cash, cash equivalents, and short-term investments were $1.9 billion at March 31, 2002, an increase of $221 million from December 31, 2001.
Quarterly Highlights
The following highlights were announced or occurred since Siebel Systems' last earnings statement:
New Customer Engagements: The company concluded new engagements with more than 200 new customers including:
The American National Red Cross
The American National Red Cross (ARC) chapters of Greater New York and Metropolitan Atlanta will deploy Siebel eBusiness Applications as the foundation for a series of critical systems that enhance the chapters' ability to respond to disasters, provide lifesaving skills training, and deliver health services. In a joint project, the ARC chapters will use Siebel Call Center, Siebel Service, and Siebel Field Service for a First Responder system that automates the process of gathering victim information and managing disaster services. Siebel eEvents will be used to create a Safety Education Registration and Management System that streamlines the process of class scheduling, staffing, and student enrollment.
Sentry Insurance
Sentry Insurance, one of the largest mutual insurance companies in the United States, selected Siebel eInsurance, a comprehensive relationship management solution for the insurance industry, to provide more than 20,000 independent insurance agents with Web-based access to customer and policy information. Sentry's new Internet agent portal will support real-time insurance quotes, customer service requests, and policy updates, allowing Sentry's Consumer Products Division to acquire new customers; provide convenient, accessible customer service; and significantly reduce call traffic and associated costs. Sentry will also implement Siebel Call Center, which will assist Sentry in integrating its call centers with the agent portal, providing insurance agents and customers seamless access to policy information and continuous service.
Samsung SDS
Based on Siebel Systems' proven CRM domain expertise, Samsung has selected Siebel Call Center, Siebel Sales, and Siebel Marketing to run across three of its financial services operations to create a customer-focused and multichannel strategy. Siebel eBusiness Applications will allow each operation to coordinate customer interactions at all touchpoints and to unify its sales, marketing, and service information and allow more than 6,000 representatives across these business operations to acquire, serve, and retain loyal customers. Samsung will also deploy Siebel Analytics to deliver real-time business and customer intelligence from a variety of data warehouse and operational sources to all its customer-facing representatives.
Hong Kong and China Gas Company Limited (Towngas)
Towngas, one of Hong Kong's major public utilities, will deploy Siebel eEnergy to improve its ability to market, sell, and service its portfolio of gas products and services to more than 1.4 million customers. Siebel eEnergy, a version of Siebel eBusiness Applications tailored to the unique needs of the energy industry, will enable Towngas to more effectively manage customer relationships across multiple channels, including the Internet, in person at its customer centers, and via dealers. According to Towngas, the utility selected Siebel eEnergy due to its out-of-the-box industry functionality, which minimizes the need for customization and results in a significantly lower total cost of ownership.
Siebel Systems Secures New Customers: In addition to those listed above, select new customers standardizing on Siebel eBusiness Applications in Q1 included AdvanceRX.com LP; Banco Espanol de Credito S.A.; Banco Electronico Servico Total, S.A. (BEST); Bank of the Philippine Islands; Call-Net Technology Services, Inc.; DAB Bank AG; Ducati Motor Holding Spa; Echostar Communications Corporation; First American Real Estate Solutions LLC; Lexicon Marketing Corporation; Lexmark International, Inc.; Morningstar Foods, Inc.; Nationale Nederlanden Schadeverzekering NV; Network Appliance Inc.; Optimus Telecomunicacoes, S.A.; Pharmacia Corporation; South African Revenue Services; Telesp Celular S/A; U.S. Department of Education; and U.S. Immigration and Naturalization Service.
Existing Customers Expand Their Siebel eBusiness Applications Deployments: The company expanded engagements at more than 300 customers including:
General Motors (GM)
GM, the world's largest vehicle manufacturer, standardized on Siebel eAutomotive, a suite of Siebel eBusiness Applications designed to meet the unique requirements of the automotive industry. Making a major investment in its eBusiness infrastructure, GM will deploy Siebel eAutomotive across multiple GM automotive and financial divisions around the world. The Siebel eAutomotive deployment will improve collaboration throughout the company to enhance customer satisfaction and maximize organizational efficiencies.
TELUS Corporation
TELUS Corporation, one of Canada's leading telecommunications companies, standardized on Siebel eCommunications to support its growing sales operations and to maximize customer satisfaction and retention. Approximately 3,400 sales and customer service representatives across Canada will use the rich industry-specific functionality of Siebel eCommunications, Siebel Systems' applications tailored specifically for local, long distance, broadband, cable, satellite, wireless, Internet, and media content providers, to capture accurate service orders, efficiently manage large contact volumes, and increase sales. The deployment will integrate TELUS call centers and its customer self-service Web site into a complete solution, offering its customers unparalleled simplicity and convenience.
La Poste
La Poste, a leading French postal and financial services company, added 1,300 users as part of a multiphased project designed to bring 4,500 customer-facing employees online with Siebel eBusiness Applications. By selecting Siebel Sales and Siebel Analytics to significantly increase customer knowledge and sales productivity, La Poste builds on an existing Siebel Sales implementation currently serving 1,500 sales representatives responsible for large and strategic professional accounts. La Poste will extend Siebel Analytics to all users, providing up-to-the-moment, actionable customer intelligence.
The American Cancer Society
The American Cancer Society, the leading U.S. community-based health organization, is building on its initial implementation of Siebel Call Center and will deploy Siebel eBusiness Applications nationwide. Siebel Call Center and Siebel eEvents will allow the American Cancer Society to consolidate all data required to facilitate successful fundraising events, enhance constituent service over the phone and on the Web, and, ultimately, increase donations of time and money for use in the fight against cancer.
Siebel Systems Secures Repeat Orders: During the first quarter, there were additional orders from existing customers, including American Express Corporation; Banco Lombarda; Barclays Bank plc; BEA Systems, Inc.; Berlex Laboratories, Inc.; Bouygues Telecom; British Telecommunications plc; Caterpillar, Inc.; Credit Lyonnais Asset Management; Dr. Pepper/Seven Up, Inc.; Eli Lilly and Co., Ltd.; Guinness UDV; ICICI Limited; Ingersoll-Rand Company; Interpolis N.V.; Manugistics, Inc.; Mercedes-Benz Customer Assistance Center NV; Mexx International BV; Neopost SA; Rational Software Corporation; Reuters Ltd.; Ricoh Corporation; RSA Security, Inc.; Staples, Inc.; Telecom Italia; Toshiba Corporation; and Wind Telecomunicazioni Spa.
Siebel Systems Hosts Its Annual Siebel European User Week 2002: More than 2,100 Siebel Systems customers and partners attended a distinguished gathering of leading executives, project managers, developers, and other IT professionals, from April 7-10 in Barcelona, Spain. The event provided a unique opportunity for Siebel customers to learn how to maximize the business impact of their Siebel eBusiness implementations. Dedicated conference tracks shared best practices for implementing and upgrading to Siebel 7, and other Siebel eBusiness customers revealed how they are deploying Siebel 7 to maximize their return on investment for major eBusiness projects.
Siebel Systems Announces the Industry's First Standards-Based Vendor-Independent Application Integration Solution with the Launch of Universal Application Network: At Siebel User Week in Barcelona, Siebel Systems launched The Universal Application Network, a solution designed to integrate the hundreds or thousands of applications deployed in large enterprises. Universal Application Network dramatically reduces the need for custom integration, minimizing complexity, speeding deployment and delivering a low total cost of ownership (TCO). Leading system integrators such as Cap Gemini Ernst & Young, Accenture, IBM Global Services and KPMG Consulting, and integration server vendors including IBM, SeeBeyond, TIBCO Software, Vitria, and webMethods, all committed technology and expertise to deliver the Universal Application Network. Siebel Systems is uniquely positioned to deliver Universal Application Network through its open architecture, industry specific domain expertise and extensive partner ecosystem. Universal Application Network takes a standards-based, customer-centric approach to the design and development of end-to-end business processes, which are executed by market-leading integration servers.
Siebel Systems Receives Four Mobile CRM Patent Awards: The United States Patent Office issued four additional patents to Siebel Systems for its unique remote synchronization technology, allowing mobile clients to intermittently and securely connect with distributed database servers. The patents extend Siebel Systems' comprehensive intellectual property protection on Siebel Remote and Siebel Replication Manager, Siebel Systems' database replication and synchronization methods that provide consistent up-to-date information across the largest global enterprises.
Siebel Systems Strengthens Global IT Infrastructure: To ensure continuity of business operations in the event of disaster and guarantee its customers the highest-quality support twenty four hours a day, seven days a week, Siebel Systems plans to reinforce its global data communications and customer service infrastructure in 2002. The company will establish four facilities around the world to provide uninterrupted systems availability, including a new 30,000 square foot Enterprise Data Center in Utah that augments the company's existing IT and customer care infrastructure. The Enterprise Data Center will also consolidate engineering computer and storage equipment to support 12 software development locations across North America and Europe from a central location, delivering significant improvements in both technology asset utilization and engineering productivity.
Siebel Systems Expands Its Global Alliance Programs with Industry Leaders
PwC and KPMG Consulting Launch Practices to Focus on Siebel Employee Relationship Management (ERM): Siebel Systems' consulting partners continue to dedicate significant resources and expand their practices in support of Siebel ERM, a suite of Web-based applications that drives organizational and employee performance. In the first quarter of 2002, PwC Consulting added Siebel ERM to its Business to Extended Enterprise (B2E) solution set, a collection of applications and services that enables global enterprises to unleash the potential of their business, employees, and assets. KPMG Consulting, Inc. now offers Siebel ERM 7 consulting services as part of KPMG Consulting's Workforce Solution Family, a suite of Web-enabled applications designed to reduce operational costs, increase employee productivity, and maximize revenue and profit.
Siebel Systems Receives Industry Accolades
Siebel Systems was broadly recognized as one of the world's leading technology companies in the first quarter of 2002:
-- IndustryWeek Named Thomas M. Siebel as CEO of the Year: In its
February cover story, the magazine credited Mr. Siebel with
building one of the world's leading information technology
companies and pioneering the customer relationship management
industry. Recognizing that customer success is at the core of
Siebel Systems' corporate culture, the magazine cited Mr.
Siebel's focus on customer satisfaction as a key driver behind
Siebel Systems' market leadership.
-- Gartner Listed Siebel eBusiness Applications as a Leader in
Its CRM and PRM Magic Quadrant Reports: A series of seven
research reports issued in February and March 2002 by
independent analyst firm Gartner, Inc. on Customer Service and
Support, PRM, B2B CRM Suites, B2C CRM Suites, CRM Sales
Suites, Field Service, and E-Service placed Siebel Systems in
the "Leader" quadrant.*
-- Siebel Systems Honored with British Telecom's Innovation and
Responsiveness Award: Giving special recognition to suppliers
that contribute significantly to enhancing its efficiency and
profitability, British Telecommunications plc (BT) awarded
Siebel Systems its annual "Innovation and Responsiveness"
award. The award acknowledged the visionary thinking,
innovative attitude, and business agility that Siebel Systems
displayed during the course of BT Retail's deployment of
Siebel eBusiness Applications.
*The Magic Quadrant is copyrighted February and March 2002 by Gartner, Inc. and is reused with permission. Gartner's permission to print or reference its Magic Quadrant should not be deemed to be an endorsement of any company or product depicted in the quadrant. The Magic Quadrant is Gartner's opinion and is an analytical representation of a marketplace at and for a specific time period. It measures vendors against Gartner-defined criteria for a marketplace. The positioning of vendors within a Magic Quadrant is based on the complex interplay of many factors. Gartner does not advise enterprises to select only those firms in the Leaders segment. In some situations, firms in the Visionary, Challenger, or Niche Player segments may be the right match for an enterprise's requirements. Well-informed vendor selection decisions should rely on more than a Magic Quadrant. Gartner research is intended to be one of many information sources including other published information and direct analyst interaction. Gartner expressly disclaims all warranties, express or implied of fitness of this research for a particular purpose.
Siebel is a trademark of Siebel Systems, Inc. and may be registered in certain jurisdictions. All other product and company names mentioned are the property of their respective owners and are mentioned for identification purposes only.
Except for the historical information contained herein, this press release contains forward-looking statements that involve risks and uncertainties. The success of the agreements, relationships and products described above and the future operating results of Siebel Systems, Inc. may differ from the results discussed or forecasted in the forward-looking statements due to factors that include, but are not limited to, risks associated with the eBusiness software applications market, dependence on the Internet, risks associated with new versions and new products and risks associated with rapid technological change. Further information on potential factors that could affect the financial results of Siebel Systems, Inc. are included in its Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and its other filings with the Securities and Exchange Commission, which are available at www.sec.gov. Siebel Systems assumes no obligation to update the information in this press release.
SIEBEL SYSTEMS, INC.
Consolidated Balance Sheets
(In thousands, except per share data)
March 31, December 31,
2002 2001
Assets
Current assets:
Cash, cash equivalents and
short-term investments $ 1,877,855 $ 1,656,655
Marketable equity securities 8,827 8,254
Accounts receivable, net 369,161 396,297
Deferred income taxes 61,241 58,131
Prepaids and other 54,425 70,766
------------- -------------
Total current assets 2,371,509 2,190,103
Property and equipment, net 346,551 353,242
Goodwill 78,824 72,869
Intangible assets, net 16,772 19,000
Other assets 56,112 56,905
Deferred income taxes 52,725 52,725
------------- -------------
Total assets $ 2,922,493 $ 2,744,844
============= =============
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $ 19,391 $ 14,395
Accrued expenses 356,269 350,282
Deferred revenue 273,046 241,017
------------- -------------
Total current liabilities 648,706 605,694
Capital lease obligations 20,222 3,048
Convertible subordinated
debentures 300,000 300,000
------------- -------------
Total liabilities 968,928 908,742
------------- -------------
Stockholders' equity:
Common stock; $0.001 par value;
2,000,000 shares authorized;
473,229 and 466,950 shares
issued and outstanding,
respectively 473 467
Additional paid-in capital 1,416,452 1,357,422
Notes receivable from
stockholders (422) (422)
Deferred compensation (6,873) (8,362)
Accumulated other comprehensive
income (1,509) 6,174
Retained earnings 545,444 480,823
------------- -------------
Total stockholders' equity 1,953,565 1,836,102
------------- -------------
Total liabilities and
stockholders' equity $ 2,922,493 $ 2,744,844
============= =============
SIEBEL SYSTEMS, INC.
Consolidated Statements of Operations
(In thousands, except per share data)
Three Months Ended
March 31,
2002 2001
-----------------------------
Revenues:
Software $ 246,047 $ 335,101
Professional services, maintenance
and other 231,800 263,649
---------- ----------
Total revenues 477,847 598,750
---------- ----------
Cost of revenues:
Software 5,295 4,361
Professional services, maintenance
and other 126,014 172,675
---------- ----------
Total cost of revenues 131,309 177,036
---------- ----------
Gross margin 346,538 421,714
---------- ----------
Operating expenses:
Product development 49,064 48,133
Sales and marketing 165,345 211,959
General and administrative 41,751 54,226
---------- ----------
Total operating expenses 256,160 314,318
---------- ----------
Operating income 90,378 107,396
Other income, net 10,593 14,699
---------- ----------
Income before income taxes 100,971 122,095
Income taxes 36,350 45,174
---------- ----------
Net income $ 64,621 $ 76,921
========== ==========
Diluted net income per share $ 0.12 $ 0.15
========== ==========
Shares used in diluted net income
per share computation 542,990 519,873
========== ==========
Basic net income per share $ 0.14 $ 0.17
========== ==========
Shares used in basic net income
per share computation 470,489 448,025<pre/>
========== ==========
Note: Effective January 1, 2002, the Company adopted the provisions of Statement of Financial Accounting Standards No. 142 "Goodwill and Other Intangible Assets" (SFAS 142). Under SFAS 142, goodwill is no longer amortized, beginning January 1, 2002. If the non-amortization provisions of SFAS 142 had been effective in 2001, net income, diluted net income per share, and basic net income per share for the three months ended March 31, 2001, would have been $80,428, $0.15, and $0.18, respectively.
Effective January 1, 2002, the Company adopted the provisions of Financial Accounting Standards Board Topic D-103 regarding income statement presentation of rebillable out-of-pocket expenses (Topic D-103). Topic D-103 requires that certain out-of-pocket expenses rebilled to customers be recorded as revenue versus an offset to the related expense. Prior period financial statements have been reclassified to conform to this presentation, as required by Topic D-103.
Contact:
Siebel Systems, Inc.
Kenneth A. Goldman, 650/295-5656
Investor.relations@siebel.com
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