SEBL--Siebel Systems Reports Revenue and Earnings for the Quarter Ended September 30, 2000
Q3 2000 Revenue Increases 131 Percent over Q3 1999
SAN MATEO, Calif.--(BUSINESS WIRE)--Oct. 24, 2000--Siebel Systems, Inc. (Nasdaq: SEBL - news), the world's leading supplier of eBusiness applications software, today announced results for the quarter ended September 30, 2000.
Revenues for the third quarter of 2000 were $480.9 million, compared to $208.5 million for the same period in 1999, an increase of 131 percent. Net income was $71.0 million, or $0.14 per diluted share, compared with pro-forma(a) net income of $27.3 million, or $0.06 per diluted share for the third quarter of 1999, representing increases of 161 percent and 133 percent, respectively. Revenues from license fees for the third quarter of 2000 were $300.4 million, compared to $127.7 million for the same period in 1999, an increase of 135 percent. Revenues from maintenance, consulting, and other services were $180.6 million, compared to $80.8 million for the same period in 1999, an increase of 123 percent.
Revenues, net income, and net income per diluted share for the nine months ended September 30, 2000 on a pro-forma(a) basis were $1.2 billion, $167.4 million, and $0.34, respectively. This compares with revenue, net income, and net income per diluted share on a pro-forma(a) basis of $527.7 million, $72.5 million, and $0.16, respectively, recorded during the corresponding period in 1999.
Revenues from license fees for the nine-month period ended September 30, 2000 were $735.8 million, compared to $333.4 million for the same period in 1999, an increase of 121 percent. Revenues from maintenance, consulting, and other services were $445.1 million, compared to $194.3 million for the same period in 1999, an increase of 129 percent.
Including non-recurring merger costs and accretion of mandatorily redeemable preferred stock of OpenSite Technologies, Inc. (acquired on May 17, 2000 in a transaction accounted for as a pooling of interests), actual net income available to common stockholders for the nine-month period ended September 30, 2000 was $59.2 million. Actual net income per diluted share for the nine-month period ended September 30, 2000 was $0.12.
The Company's cash, cash equivalents and short-term investments were $1.1 billion at September 30, 2000, an increase of $179.9 million and $457.2 million from June 30, 2000 and December 31, 1999, respectively. The Company's days sales outstanding in accounts receivable was 66 at September 30, 2000, as compared to 74 and 98 as of June 30, 2000 and December 31, 1999, respectively.
New Customer Engagements
FleetBoston Financial Corporation: The eighth largest financial-holding company in the U.S. will deploy Siebel eBusiness Applications to help standardize its customer-centered, relationship management strategy for all its lines of business. Business units including Fleet Securities--Quick & Reilly have selected Siebel eBusiness Applications as the foundation for sales, marketing and service solutions across all distribution channels, including the Internet, email response centers, call centers and branch offices. Over the next several months, Fleet expects to roll out Siebel eBusiness Applications to thousands of users worldwide.
The British Post Office: The leading global distribution company, delivering 80.5 million items a day to 239 countries, is embarking on an extensive enterprise-wide business change program utilizing Siebel eBusiness Applications. Called SPICE--Securing the Post Office's Integrated Commercial Environment--the project will initially give more than 1,200 Post Office sales and account managers support through re-engineered automated processes and a single view of their customers. Siebel eBusiness Applications will enable both business and consumer customers to communicate with The Post Office through whichever channel they choose--by post, face-to-face, the phone, the Internet, mobile device or fax--allowing The Post Office to continue a seamless, uninterrupted dialogue with them.
Postbank NV: One of the leading retail banks in the Netherlands with 35 percent of the Dutch retail payments market and seven million customers, will deploy Siebel eBusiness Applications to more than 2,200 of Postbank's personal banking agents and customer care representatives. Delivering unified, multichannel and real-time views of all its domestic customer interactions across all product lines, Postbank is standardizing its customer relationship management systems on the Siebel Systems platform in order to make the switch from a financial product-focused business to a customer-focused business.
Healthcare Service Corporation (HCSC): One of the largest U.S. Blue Cross/Blue Shield insurers covering over 10 million members throughout Illinois, Texas, and New Mexico has selected Siebel eHealthcare applications to continue to provide superior service and assure customer satisfaction. With the help of IBM Global Services, HCSC will roll out Siebel eBusiness Applications in several states to thousands of users in its customer service and provider organizations.
Axtel SA de C.V.: An emerging leader in the fixed wireless communications market in Latin America has selected Siebel eCommunications to automate and integrate all customer touchpoints across multiple communication channels, including sales, the call center, and field service. Axtel will deploy Siebel eCommunications to more than 850 personnel in Mexico, enabling them to match services to customer needs, respond to customer questions more effectively, and increase customer satisfaction.
Siebel Systems Secured New Customers: Selected new customers standardizing on Siebel eBusiness Applications in the third quarter include: ATX Technologies, Inc.; Banca Mediolanum SpA; Broadband Solutions Private Ltd; Case Corporation; Cbeyond Communications LLC; Cesky Telecom A.S.; DirecTV-GLA, Inc.; Finmatic S.R.L.; G&K Services, Inc.; Horizon Healthcare Services, Inc.; ING Bank, N.V.; Knight Frank; Massachusetts Mutual Life Insurance Company; PartMiner, Inc.; Reed Elsevier, Inc.; Relera, Inc.; Societe Generale; Sprint North Supply Company; Sprint PCS; and WINFirst, Inc.
Existing Customers Continue to Invest in Siebel eBusiness Applications: Additional orders from existing customers continued at a rapid pace during the quarter. The company realized significant reorders from: 21st Century Insurance Company; America One Communications, Inc.; BASF; BellSouth Telecommunications, Inc.; BISYS, Inc.; BMC Software, Inc.; Caja de Ahorros y Pensiones de Barcelona; Cigna Healthcare; EDS Ltd.; Encyclosoft Co. Ltd.; Ernst & Young LLP; Exodus Communications, Inc.; Extreme Networks, Inc.; Fujitsu Siemens Computers GmbH; GIE/AXA; IBM; JD Edwards & Company; John H. Harland Company; Leeds City Council; National Power Ltd.; NextLink Communications, Inc.; Peregrine Systems, Inc.; Portugal Telecom Group; Rhythms NetConnections, Inc.; Sumitomo Real Estate Sales Co. Ltd.; Toshiba UK Information Systems Ltd.; and TXU Communications Ventures Company.
About Siebel Systems
Siebel Systems, Inc. (Nasdaq: SEBL - news) is the world's leading supplier of eBusiness applications software. Siebel Systems provides an integrated family of eBusiness applications software enabling multichannel sales, marketing, and customer service systems to be deployed over the Web, call centers, field, reseller channels, retail, and dealer networks. Siebel Systems' sales and service facilities are located in more than 28 countries. For more information, please visit the Siebel Systems Web site at www.Siebel.com.
Note (a):Pro-forma net income excludes the after-tax effect of direct merger costs. It also excludes the accretion of OpenSite's mandatorily redeemable preferred stock. The accounting for mandatorily redeemable preferred stock requires non-cash accretion to the then current fair value of the common stock into which the preferred stock is convertible. This resulted in a non-cash charge to accretion expense and an offsetting credit to mandatorily redeemable preferred stock. The amount of the accretion for any income statement period was dependent upon how much the fair value of OpenSite common stock fluctuated during that period. The mandatorily redeemable preferred stock was converted to common stock at the close of the merger; hence, there will be no accretion expense subsequent to May 17, 2000.
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 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 most recent Annual Report on Form 10-K and quarterly reports on Form 10-Q and its other filings with the Securities and Exchange Commission. |
