Siebel Systems (SEBL) - strong buy? Message Board

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Technology Stocks : Siebel Systems (SEBL) - strong buy?

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To: Trader Dave who wrote (1238)	3/12/1998 5:30:00 PM
From: Clam Clam	Read Replies (1) of 6974

Dave, I know we had this discussion before but I thought the seat price was $1,750 to $5,500 based on the modules you add. In general, large "multi-national" companies pay big money per seat where the mid-market pays mid-prices. $3k/seat confirms the fact that they are recognizing revenue on contracted seats (or at least a very large % of contracted seats), not on "users in production." This isn't out of line in the software industry and the income statement and cash flow statement reconcile so this is HUGELY different than a PEGA. The accounting looks fine. I thought our previous conclusion was that they needed to sign HUGE new customers in order to keep the "contracted seats" growing. In Q4, license revenues were up 26% (sequentially) while contracted seats were up 18%, despite stating they are going more after the mid-market, go figure. Maybe they have another Nationwide up their sleeve. Maybe their customers are a little upset they paid $3k per seat and their support software stinks. You won't hear it from Compaq or Montgomery however, they have other interests. Sell more servers and advise Siebel on more mergers (fees).

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