Siebel Systems' Q3 profit, revenues jump

While the big ERP vendors stumble, Siebel Systems continues to prosper in the customer relations management market, announcing a 114% jump in net income for its third quarter.

Siebel Systems has announced a 114% jump in net income for its third quarter 1999 compared with last year's third quarter.

The customer relations management software company's net income rose to $US30.1 million for the third quarter ended Sept. 30 from a 1998 third quarter net income of US$14.1 million, the company said in a statement released yesterday. Profits per share increased 93% to reach 27 cents per share, up from 14 cents per share for the third quarter of 1998.

The company's revenues also jumped 87% jump in third quarter in comparison to the same period last year. Net revenues for the quarter were US$195.3 million, up from US$104.2 million, the company said.

While license fees, which accounted for 64% of total revenues, grew at 63% compared with the third quarter of 1998, Siebel's revenues from maintenance, consulting and other services increased even faster, at 157%, the company said.

Furthermore, Siebel's board has approved a two-for-one stock split. If approved by stockholders at a meeting scheduled for today, the stock split will take effect Nov. 1. Siebel's stock price rose yesterday 1.57% to reach $84.75.

Siebel plans to increase its sales in Europe so that 40% of its overall sales are in Europe, said Tom Siebel, chairman and chief executive officer, speaking last week at the European Technology Roundtable in Monte Carlo, Monaco. Europe, he said, is by far the fastest growing market for corporate software.

During the third quarter the company introduced the Siebel Sales Handheld, a handheld mobile sales application that runs on Microsoft's Windows CE platform. The Sales Handheld will be the first product of a series of handhelds the company announced at its Worldwide User Week conference in San Diego, held at the beginning of this month.

Siebel Systems, Inc., located in San Mateo, California, can be contacted at +1-650-295-5000, or http://www.siebel.com/.

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