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Technology Stocks : Earnings: Small Cap Tech/ Software -- Ignore unavailable to you. Want to Upgrade?

To: 2MAR$ who wrote (193)	7/17/2002 8:05:56 PM
From: 2MAR$	Read Replies (1) \| Respond to of 238

SEBL ($12-$10) Cap=5.5Bil PE=24 Posts 61% Drop in 2nd-Quarter Profits, Plans to Cut Jobs Dow Jones Newswires SAN MATEO, Calif. -- Siebel Systems (NasdaqNM: SEBL - News) Inc.'s second-quarter net income plunged 61% as revenue fell 28% amid slack demand. The company also announced plans to dismiss about 16% of its 7,100 employees. ADVERTISEMENT The company, which makes software to manage sales people and call centers, late Wednesday reported net income of $29.8 million, or six cents a share, compared with net income of $76.6 million, or 15 cents a share, a year earlier. The mean estimate of analysts surveyed by Thomson First Call was for earnings of nine cents a share. Revenue fell to $405.6 million from $560.2 million a year earlier. Executives said the company encountered a technology spending climate that was much more difficult than anticipated in the June quarter, as customers continue to pare spending and postpone orders. They predicted business would remain depressed for the balance of the year and sharply lowered earnings and revenue targets for the next two quarters. "The market did not turn and it does not look like it's turning up" in the third and fourth quarters, Thomas Siebel, the company's founder and chief executive, said on a teleconference. "The market is tough, people are not spending." Siebel said Wednesday its revenue from license fees fell to $170.1 million from $246 million in the first quarter. Revenue from maintenance, consulting, and other services rose to $235.5 million from $231.8 million in the first quarter. The company added that it had cash, cash equivalents and short-term investments of $2 billion on June 30 , an increase of $128 million, or 7%, from March 31 . Siebel executives also unveiled a broad restructuring plan to close offices and lay off employees. The company, which ended June with about 7,164 workers, plans to reduce its work force to about 6,000 people. Siebel fired about 10% of its 8,300 and cut executive salaries in April 2001 . A few analysts, including Patrick Mason of Pacific Growth Equities, had warned sweeping layoffs were likely given the deterioration in its once-fast growing business. Ken Goldman, Siebel's chief financial officer, estimated the company will take a restructuring charge for severance and office closings of $225 million to $250 million in the current quarter. The company reported its results after the close of trading Wednesday. As of 4 p.m. EDT , shares of Siebel were at $11.74, up 36 cents, or 3.2% on the Nasdaq Stock Market. -Marcelo Prince, Dow Jones Newswires; 201-938-5244; marcelo.prince@ dowjones.com -Mike Lucas; Dow Jones Newswires; 609-520-5829