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Strategies & Market Trends : VOLTAIRE'S PORCH-MODERATED -- Ignore unavailable to you. Want to Upgrade?

To: lurqer who wrote (29756)	1/24/2001 7:02:38 AM
From: Dealer	Read Replies (1) \| Respond to of 65232

SEBL -- Siebel Systems 4Q Earnings Double By MICHAEL LIEDTKE, AP Business Writer SAN FRANCISCO (AP) - Breaking through the gloom shrouding the technology industry, fast-growing business software maker Siebel Systems Inc. Tuesday reported that its fourth-quarter profit more than doubled and said its business outlook has never been brighter. The San Mateo-based company earned $79.5 million, or 15 cents per share, in the fourth quarter, up from $31.1 million, or 6 cents per share, in the prior year. Revenues also more than doubled to $581.6 million from $275.9 million a year ago. Excluding the costs of recent acquisitions, Siebel earned $106 million, or 20 cents per share, easily beating the consensus estimate of 15 cents per share of analysts polled by First Call/Thomson Financial. Siebel's pleasant surprise was in sharp contrast to the recent disappointments and sober warnings of an economic slowdown coming from both large and small high-tech companies over the past few weeks. ``This is a real bright spot and a relief for technology investors,'' said industry analyst Rick Sherlund of Goldman Sachs in New York. Siebel delivered even more heartening news by informing analysts that it should start 2001 by beating Wall Street's current first-quarter earnings estimate of 14 cents per share. ``We have never been more optimistic about our business, and we have never been more optimistic about the market for our products,'' Siebel Vice Chairman Pat House said during a conference call Tuesday. The robust results and bullish outlook triggered a rally in Siebel's stock in the after-hours market, where shares surged $7.33,or 9 percent, to $85.81. The stock closed Tuesday at $78.48, up 86 cents during regular trading on the Nasdaq Stock Market. Siebel announced its earnings after regular trading ended. Siebel has emerged as one of the country's hottest businesses since former Oracle Corp. executive Tom Siebel founded the company eight years ago. The company specializes in customer relationship management, or CRM, software designed to help businesses do a better job marketing and servicing their products without increasing their expenses. The niche has boomed in recent years, enabling Siebel to grow at rate that has amazed even its most ardent admirers. In 2000, for instance, the company's payroll swelled from 3,200 employees at the year's outset to 7,400 workers at year-end while its customers rose from 1,600 companies to 3,000. For all of 2000, Siebel's revenues totaled $1.8 billion, up from $813.5 million in 1999. ``For a company of this size to continue growing this fast is really unprecedented. They are in uncharted waters now,'' said analyst Bob Austrian of Banc of America Securities in San Francisco. Siebel expects to emerge largely untouched by the spending slowdown that is hurting other tech companies because businesses are starting to view CRM software as an essential ingredient. ``When budgets get tight like they are now, you start to limit your spending to your top priorities and customer management is right at the top,'' Austrian said. Enticed by the lucrative market, software giants like Oracle and SAP are also pushing their own CRM products. Despite the increased competition, ``Siebel absolutely is the Cadillac of this space,'' said industry analyst Liz Shahnam of Meta Group.