Siebel Second-Quarter Earnings Drop 16 Percent

In a press release Wednesday, the business software company posted second-quarter earnings of $8.2 million, down from year-earlier net income of $9.8 million. Earnings per share were flat at 2 cents, with increased shares outstanding in the most recent quarter.

The latest second quarter included a $6 million pretax charge for in-process research and development. Non-GAAP income, which excludes this charge, was $11.8 million, or 2 cents a share, in line with Thomson First Call's average analyst per-share estimate.

Revenue fell 9.7 percent to $301.1 million from $333.3 million a year earlier.

Siebel warned on June 7 that second-quarter would be weaker than expected because of customer delays in purchasing decisions.

Siebel Systems said second-quarter license revenue was $94.8 million, while service revenue was $206.2 million. Both figures were in line with the company's June 7 warning.

Cash and equivalents, and short-term investments were $2.12 billion at June 30, including cash generated during the quarter of $58 million. This growth was offset by the company's $70 million cash outlay for its acquisition of Eontec Ltd., which resulted in a net $12 million decline in cash from March 30.

Siebel also named Bruce Cleveland senior vice president and general manager. Cleveland, a former Siebel senior vice president of marketing, has more recently held senior technical and marketing management positions at AT&T Corp.

The company also named Eileen J. McPartland senior vice president of global services. Previously, McPartland was executive vice president of solutions at Ariba Inc.

Siebel shares fell 31 cents to close at $7.74 Wednesday on the Nasdaq Stock Market. They gained 31 cents in the extended trading session.

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