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Siebel posts $50m Q2 loss
Takes $74m restructuring charge
Siebel Systems has posted a net loss of $50m for its second quarter on revenues of $313.6m, compared to a net income of $7.5m on revenues of $301.1m a year ago.
The company issued a warning earlier this month, saying that delays to government deals had hit its licencing revenues, which were down 17 per cent on the same period last year. It also said it would pay a restructuring charge of $74.1m for the quarter.
In total, licence fees amounted to $78.3m over the quarter against $94.4m in 2004. Meanwhile maintenance revenues were $122.8m, and services and other activities brought in $112.5m.
Looking ahead, CFO Ken Goldman said he expects revenue of between $305m and $315m for the third quarter, which should result in earnings of between $10m-$15m (between two and three cents per share). New software sales should generate $75m-$85m in revenue, he added.
Shares in the company fell almost three per cent in after hours trading, on the back of the news. ®