FYI -- Soundview piece on SEBL:
Action- Buy Siebel Systems May 11, 1999
(FYE December) F98 F99 F00 Curr. Last Yr. Ago
Ticker: SEBL
Revenue ($M) 391.5 614.5 878.5 147.5 123.2 69.2
Price: 39
EPS .56 .86 1.13 .21 .20 .10 52-Wk.
Range: 16.38 - 54.5
Old Revenue
Shrs. Out. (M): 106.8
Old EPS Rating:
Strong Buy
Siebel announced several new hires, most notably Paul Wahl, former CEO of
SAP America, as president and COO of Siebel. Siebel continues to deepen the
management team with the ultimate conviction that the front-office market is
a huge opportunity, with the only gating factor being company execution. We
tend to agree with this assertion, and think Wahl's addition is meaningful,
both in practice, as well as a statement of the current competitive
landscape. Siebel is on the rise, with the ERP players trying to catch up.
We reiterate our strong buy on fundamental strength.
Our General Comments
· We believe Siebel's hiring of Wahl serves two very meaningful purposes for
the company and the sector.
· First, Wahl is a proven software applications industry executive, with
substantial clout with partners, customers, and other potential hires. He
has experience running a very large software company (SAP America) through
major growth periods, exhibiting the capability of attracting large numbers
of sales, R&D, and services talent. Siebel clearly views this hire as an
additive, with the expectation that the company will grow to a size where
every management talent will be necessary to handle the rapid growth of the
company.
· Second, Wahl's willingness to join Siebel, post his days with SAP is a
major marketing coup for Siebel and continues to validate the front office
sector as a legitimate successor to the ERP sector of the early 90s.
Additionally, Wahl will lend credibility to the Siebel team (which has not
performed too badly either!), as it enters into more fierce competition with
Oracle, SAP, Peoplesoft, Baan, etc.,. As a whole, we are increasingly
encouraged by Siebel's willingness to "re-invent itself", by hiring
top-of-the-line management. No comment from the company on the quarter, but
our ongoing research indicates solid channel growth, as well as few signs of
Y2K.
· Reminder of our comments on competition post 4Q: Siebel again highlighted
the relatively light presence of Oracle or SAP in its competitive landscape,
in spite of the increased marketing efforts. Siebel mentioned that it felt
the market was approximately 5% saturated. Siebel believes that SAP will be
the single biggest competitor to Siebel, but expects them to become a
presence in the 2000 - 2001 timeframe. Execution is the only factor they
believe to be the major challenge, but will continue to add and build
management girth during the near term. In terms of competitive deal flow,
41% of deals were without a competitor, however, the other vendors were
Vantive - 16% (30 times) - mostly middle market, Aurum - 7%, Clarify - 6%,
Oracle - 4% (8 times), Oracle, SAP - 2% (4 engagements).
Siebel Press Announcement
· Siebel Systems, Inc. (Nasdaq: SEBL) today announced the appointment of
Paul Wahl, former CEO of SAP America, to the position of Siebel Systems'
President and Chief Operating Officer. As President and Chief Operating
Officer, Wahl will be directly responsible for much of the day-to-day
operation of the business. Thomas M. Siebel continues in his role as
Chairman and Chief Executive Officer. Wahl's appointment is part of
Siebel's plan to broaden the company's leadership to assure that the company
is well positioned to take advantage of the many new growth opportunities
ahead.
· Wahl will assume direct responsibility for all activities related to
sales, engineering, product marketing, customer service and professional
services. His direct reports will include: Craig Ramsey, Senior Vice
President of Field Operations; Mike Saranga, Senior Vice President of
Engineering; Karen Riley, Vice President of Global Services; and David
Schmaier, Senior Vice President of Products. Wahl will report directly to
Siebel as will Pat House, Executive Vice President and Co-Founder; and
Howard Graham, Senior Vice President Finance and Chief Financial Officer.
· Paul Wahl was a key executive at SAP, from 1991 to 1998, operating as a
member of the executive board of SAP AG and as CEO of SAP America. As CEO
of SAP America, Paul managed growth in revenue from $650 million in 1995 to
$2.2 billion in 1998. Paul resigned from SAP in September of 1998. Wahl
joins Siebel Systems from TriStrata Security, an Internet security software
provider, where he served as President and CEO.
This report is based on information believed by us to be reliable. No
representation is made that it is accurate or complete. This report is not
an offer to buy or sell or a solicitation of an offer to buy or sell the
securities mentioned. SoundView Technology Group, Inc., and others
associated with it may have positions in and effect transactions in the
securities mentioned or related options. SoundView Technology Group, Inc.,
may make a market in the security or securities listed herein and may also
perform or seek to perform investment banking services for those companies.
Do not change or reproduce this report wi |
