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

To: 2MAR$ who wrote (194)	7/17/2002 8:07:36 PM
From: 2MAR$	Read Replies (1) \| Respond to of 238

SEBL Siebel Systems (11.74 -$10.20) On call, company notes that it will slash headcount by more than 1100 jobs... Goal is to bring total headcount down to 6000... In line with many estimates... Also plans to consolidate excess facilities... Will take charge in Q3 of about $225 mln. On call, a deflated CEO, Tom Siebel, notes that conditions remain very difficult and that company sees no pick-up in short term... Sees growth constrained by soft economy. Finally, getting to guidance... Sees Q3 sales of $355 - $400 mln, with license revenue in range of $145-180 mln... EPS of $0.05 to $0.08.. Multex consensus estimates for Q3 are/were $0.10 and $437.35 mln... Notes that Q4 will probably be like Q3, though tone suggests that management has little confidence in that forecast... Would optimistically put FY02 earnings at $0.34 v. consensus estimate of $0.43... Using middle of range, closer to $0.31. More bad news from report: Gross margins slipped to 69.2% from 72.5% last quarter and 72.4% in year-ago period... License revenue of $170.1 mln was way below street view... General view was that market would react negatively to anything under $200 mln... Fact that license revenue now only 42% of total revenues (down from 51.5% last quarter) one reason why margins fell so much... Trend needs to be reversed or company in trouble longer-term... Conference call about to begin.