Siebel Says Sales Will Be At High End Of Forecast

In releasing its preliminary financial results for the quarter ended March 31, the San Mateo, Calif., company said it expects quarterly revenue of about $329 million and earnings per share of 5 cents to 6 cents. In January, Siebel's management had told analysts they expected first-quarter revenue of $315 million to $335 million, and 4 cents to 5 cents in earnings per share.

The company also said it now expects revenue from software licenses to be about $127 million for the quarter. Earlier guidance had been in the $110 million to $125 million range. Financial analysts covering the software industry typically consider license revenue as being more indicative of a company's actual growth than revenue from other parts of the operation. Siebel's pre-announced figures represent a 13 percent increase over the first quarter of 2003.

In addition, Siebel previewed a startling jump in net income for the quarter. According to the company, first-quarter income will be in the range of $27 million to $30 million, compared with $4.6 million in the same quarter last year. This represents an increase of approximately 500 percent.

The company generated approximately $100 million in cash during the quarter, resulting in cash, cash equivalents and short-term investments of approximately $2.12 billion as of March 31, 2004.

Shares of Siebel rose 3.7 percent to $12.75 after the market closed Friday.