SeeBeyond Meets Earnings Expectations

SeeBeyond Technologies

In a conference call Monday SeeBeyond, based here, reported pro forma income of $3.5 million, or 3 cents per share, for the quarter, meeting the consensus of First Call analysts. Last year the company posted a loss of 2 cents per share for the same quarter.

SeeBeyond revenue for the quarter was $40.4 million, down from $49.4 million in the first quarter of fiscal 2001. This figure was lower than both initial expectations and reduced estimates of $42 million to $42.5 million that SeeBeyond announced on April 1.

Echoing the sentiments of other tech executives this quarter, company founder and CEO Jim Demetriades attributed lower-than-expected revenue to the challenging economic climate. But he said that SeeBeyond, with its second consecutive profitable quarter, is faring well despite the uncertain economy.

"SeeBeyond, like all software companies, faced an incredibly challenging software environment [this quarter--more challenging than anticipated," said Demetriades. "IT spending budgets are under extreme pressure."

He said he expects SeeBeyond sales to pick up when the economy does, but until then it's a waiting game.

"The market is telling us--especially our customers--that many are committed to purchasing EAI technology," said Demetriades. "The question is when."

Demetriades also said the channel influenced 73 percent of SeeBeyond's revenue in the quarter, more than ever before. He said partners will play a key role moving forward in ensuring SeeBeyond's financial stability.