Consolidated Balance Sheets
(In thousands, except per share data)
September 30, December 31,
2002 2001
Assets
Current assets:
Cash and cash equivalents $ 773,126 $ 799,090
Short-term investments 1,294,139 857,565
------------ ------------
Total cash, cash equivalents
and short-term investments 2,067,265 1,656,655
Marketable equity securities 3,935 8,254
Accounts receivable, net 287,151 396,297
Deferred income taxes 56,590 58,131
Prepaids and other 62,532 70,766
------------ ------------
Total current assets 2,477,473 2,190,103
Property and equipment, net 299,456 353,242
Goodwill 78,824 72,869
Intangible assets, net 12,313 19,000
Other assets 40,936 56,905
Deferred income taxes 52,725 52,725
------------ ------------
Total assets $ 2,961,727 $ 2,744,844
============ ============
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $ 22,646 $ 14,395
Accrued expenses 287,475 350,282
Option settlement obligations 23,408 --
Restructuring obligations 26,529 --
Deferred revenue 250,657 241,017
------------ ------------
Total current liabilities 610,715 605,694
Capital lease obligations,
less current portion 18,352 3,048
Restructuring obligations,
less current portion 50,171 --
Convertible subordinated debentures 300,000 300,000
------------ ------------
Total liabilities 979,238 908,742
------------ ------------
Stockholders' equity:
Common stock; $0.001 par value;
2,000,000 shares authorized;
478,218 and 466,950 shares issued
and outstanding, respectively 478 467
Additional paid-in capital 1,451,842 1,357,422
Option settlement shares issuable 31,471 --
Notes receivable from stockholders -- (422)
Deferred compensation (3,427) (8,362)
Accumulated other comprehensive income 18,984 6,174
Retained earnings 483,141 480,823
------------ ------------
Total stockholders' equity 1,982,489 1,836,102
------------ ------------
Total liabilities and
stockholders' equity $ 2,961,727 $ 2,744,844
============ ============
SIEBEL SYSTEMS, INC.
Consolidated Statements of Operations
(In thousands, except per share data)
Three Months Ended Nine Months Ended
September 30, September 30,
2002 2001 2002 2001
Revenues:
Software $ 126,834 $ 193,473 $ 542,990 $ 815,413
Professional
services,
maintenance
and other 230,328 244,417 697,581 781,379
---------- ---------- ---------- ----------
Total revenues 357,162 437,890 1,240,571 1,596,792
---------- ---------- ---------- ----------
Cost of revenues:
Software 6,011 3,405 16,588 12,228
Professional
services,
maintenance
and other 135,912 144,875 381,245 477,083
---------- ---------- ---------- ----------
Total cost
of revenues 141,923 148,280 397,833 489,311
---------- ---------- ---------- ----------
Gross margin 215,239 289,610 842,738 1,107,481
---------- ---------- ---------- ----------
Operating expenses:
Product
development 59,102 52,422 158,469 150,030
Sales and
marketing 148,454 155,298 464,447 560,635
General and
administrative 53,002 36,943 137,547 133,551
Restructuring-
related expenses 109,383 -- 109,383 --
---------- ---------- ---------- ----------
Total operating
expenses 369,941 244,663 869,846 844,216
---------- ---------- ---------- ----------
Operating
income (loss) (154,702) 44,947 (27,108) 263,265
Other income, net 10,831 10,921 30,731 36,216
---------- ---------- ---------- ----------
Income (loss)
before income
taxes (143,871) 55,868 3,623 299,481
Income taxes
(benefit) (51,793) 20,671 1,305 110,806
---------- ---------- ---------- ----------
Net income
(loss) $ (92,078) $ 35,197 $ 2,318 $ 188,675
========== ========== ========== ==========
Diluted net income
(loss) per share $ (0.19) $ 0.07 $ 0.00 $ 0.36
========== ========== ========== ==========
Shares used in
diluted share
computation 477,660 516,282 523,580 520,402
========== ========== ========== ==========
Basic net income
(loss) per share $ (0.19) $ 0.08 $ 0.00 $ 0.41
========== ========== ========== ==========
Shares used in
basic share
computation 477,660 460,756 473,565 454,762
========== ========== ========== ==========
SIEBEL SYSTEMS, INC.
Proforma Consolidated Statements of Operations (1)
(In thousands, except per share data)
Three Months Ended Nine Months Ended
September 30, September 30,
2002 2001 2002 2001
Revenues:
Software $ 126,834 $ 193,473 $ 542,990 $ 815,413
Professional
services,
maintenance
and other 230,328 244,417 697,581 781,379
---------- ---------- ---------- ----------
Total revenues 357,162 437,890 1,240,571 1,596,792
---------- ---------- ---------- ----------
Cost of revenues:
Software 6,011 3,405 16,588 12,228
Professional
services,
maintenance
and other 121,793 144,875 367,126 477,083
---------- ---------- ---------- ----------
Total cost of
revenues 127,804 148,280 383,714 489,311
---------- ---------- ---------- ----------
Gross margin 229,358 289,610 856,857 1,107,481
---------- ---------- ---------- ----------
Operating expenses:
Product
development 47,208 52,422 146,575 150,030
Sales and
marketing 129,383 155,298 445,376 560,635
General and
administrative 43,207 36,943 127,752 133,551
---------- ---------- ---------- ----------
Total operating
expenses 219,798 244,663 719,703 844,216
---------- ---------- ---------- ----------
Operating
income 9,560 44,947 137,154 263,265
Other income, net 10,831 10,921 30,731 36,216
---------- ---------- ---------- ----------
Income before
income taxes 20,391 55,868 167,885 299,481
Income taxes 7,341 20,671 60,439 110,806
---------- ---------- ---------- ----------
Net income $ 13,050 $ 35,197 $ 107,446 $ 188,675
========== ========== ========== ==========
Diluted net income
per share $ 0.03 $ 0.07 $ 0.21 $ 0.36
========== ========== ========== ==========
Shares used in
diluted share
computation 505,507 516,282 523,580 520,402
========== ========== ========== ==========
Basic net income
per share $ 0.03 $ 0.08 $ 0.23 $ 0.41
========== ========== ========== ==========
Shares used in
basic share
computation 477,660 460,756 473,565 454,762
========== ========== ========== ==========
(1) Proforma consolidated statements of operations do not include
special charges of $109.4 million and $54.9 million for
restructuring costs and repurchase (settlement) of certain out of
the money employee stock options. See "Reconciliation of Actual to
Proforma Consolidated Statements of Operations."
SIEBEL SYSTEMS, INC.
Reconciliation of Actual to Proforma Consolidated
Statements of Operations
Three Months Ended September 30, 2002
(In thousands, except per share data)
Actual Adjustments(1) Proforma
Revenues:
Software $ 126,834 $ -- $ 126,834
Professional services,
maintenance and other 230,328 -- 230,328
----------- ----------- -----------
Total revenues 357,162 -- 357,162
----------- ----------- -----------
Cost of revenues:
Software 6,011 -- 6,011
Professional services,
maintenance and other 135,912 (14,119) 121,793
----------- ----------- -----------
Total cost of revenues 141,923 (14,119) 127,804
----------- ----------- -----------
Gross margin 215,239 14,119 229,358
----------- ----------- -----------
Operating expenses:
Product development 59,102 (11,894) 47,208
Sales and marketing 148,454 (19,071) 129,383
General and administrative 53,002 (9,795) 43,207
Restructuring-related
expenses 109,383 (109,383) --
----------- ----------- -----------
Total operating expenses 369,941 (150,143) 219,798
----------- ----------- -----------
Operating income (loss) (154,702) 164,262 9,560
Other income, net 10,831 -- 10,831
----------- ----------- -----------
Income (loss) before
income taxes (143,871) 164,262 20,391
Income taxes (benefit) (51,793) 59,134 7,341
----------- ----------- -----------
Net income (loss) $ (92,078) $ 105,128 $ 13,050
=========== =========== ===========
Diluted net income (loss)
per share $ (0.19) $ 0.03
=========== ===========
Shares used in diluted
share computation 477,660 505,507
=========== ===========
Basic net income (loss)
per share $ (0.19) $ 0.03
=========== ===========
Shares used in basic
share computation 477,660 477,660
=========== ===========
(1) Adjustments to actual for the third quarter of 2002 include
special charges of $109.4 million related to the company's
restructuring of its operations and an associated workforce
reduction and $54.9 million related to the company's repurchase
(settlement) of certain out of the money stock options.
SIEBEL SYSTEMS, INC.
Reconciliation of Actual to Proforma Consolidated
Statements of Operations
Nine Months Ended September 30, 2002
(In thousands, except per share data)
Actual Adjustments(1) Proforma
Revenues:
Software $ 542,990 $ -- $ 542,990
Professional services,
maintenance and other 697,581 -- 697,581
----------- ----------- -----------
Total revenues 1,240,571 -- 1,240,571
----------- ----------- -----------
Cost of revenues:
Software 16,588 -- 16,588
Professional services,
maintenance and other 381,245 (14,119) 367,126
----------- ----------- -----------
Total cost of revenues 397,833 (14,119) 383,714
----------- ----------- -----------
Gross margin 842,738 14,119 856,857
----------- ----------- -----------
Operating expenses:
Product development 158,469 (11,894) 146,575
Sales and marketing 464,447 (19,071) 445,376
General and administrative 137,547 (9,795) 127,752
Restructuring-related
expenses 109,383 (109,383) --
----------- ----------- -----------
Total operating expenses 869,846 (150,143) 719,703
----------- ----------- -----------
Operating income (loss) (27,108) 164,262 137,154
Other income, net 30,731 -- 30,731
----------- ----------- -----------
Income before income
taxes 3,623 164,262 167,885
Income taxes 1,305 59,134 60,439
----------- ----------- -----------
Net income $ 2,318 $ 105,128 $ 107,446
=========== =========== ===========
Diluted net income per share $ 0.00 $ 0.21
=========== ===========
Shares used in diluted
share computation 523,580 523,580
=========== ===========
Basic net income per share $ 0.00 $ 0.23
=========== ===========
Shares used in basic share
computation 473,565 473,565
=========== ===========
(1) Adjustments to actual for the third quarter of 2002 include
special charges of $109.4 million related to the company's
restructuring of its operations and an associated workforce
reduction and $54.9 million related to the company's repurchase
(settlement) of certain out of the money stock options.
SIEBEL SYSTEMS, INC.
Condensed Consolidated Statements of Cash Flows
(In thousands)
Nine Months Ended
September 30,
2002 2001
Cash flows from operating activities:
Net income $ 2,318 $ 188,675
Adjustments to reconcile net income
to net cash provided by operating
activities:
Write-off of property and equipment
abandoned in restructuring 18,962 --
Compensation expense related to
option settlement shares issuable 31,471 --
Depreciation and amortization 115,406 85,896
Tax benefit from exercise of
stock options 10,000 53,800
Provision for doubtful accounts
and returns 17,531 23,404
Other, net (2,594) (1,172)
Changes in operating assets
and liabilities
Accounts receivable 91,615 78,798
Prepaids and other 8,234 21,514
Accounts payable and accrued expenses (62,866) (17,084)
Option settlement obligations 23,408 --
Restructuring obligations 76,700 --
Deferred revenue 9,640 28,166
---------- -----------
Net cash provided by operating
activities 339,825 461,997
---------- -----------
Cash flows from investing activities:
Purchases of property and equipment (55,324) (218,691)
Purchases of short-term investments,
net of sales (427,912) (354,090)
Other, net 7,774 3,419
---------- -----------
Net cash used in investing
activities (475,462) (569,362)
---------- -----------
Cash flows from financing activities:
Proceeds from issuance of common stock,
net of repurchases 80,268 129,742
Proceeds from equipment financing 24,873 --
Repayments of capital lease obligations (6,051) --
Repayments of stockholder notes 422 1,201
---------- -----------
Net cash provided by financing
activities 99,512 130,943
---------- -----------
Effect of exchange rate fluctuations
on cash and cash equivalents 10,161 1,317
---------- -----------
Change in cash and cash equivalents (25,964) 24,895
Cash and cash equivalents,
beginning of period 799,090 751,384
---------- -----------
Cash and cash equivalents, end of period $ 773,126 $ 776,279
========== ===========
--------------------------------------------------------------------------------
Contact:
Siebel Systems, Inc.
Kenneth Goldman, 650/295-5656
Senior Vice President, Finance and Administration and CFO
investor.relations@siebel.com
--------------------------------------------------------------------------------
Source: Siebel Systems |
