FRAMINGHAM (10/03/2003) - Once high-flying customer relationship management software vendor Siebel Systems Inc. is reporting that it expects a loss in the third quarter, marking more gloomy news for the company, which has been beset by shrinking revenue.
On Oct. 2, the San Mateo, Calif.-based company announced in a preliminary earnings statement that it expected a loss of 12 cents per share. The company reported net income of US$9.8 million in the second quarter.
The loss will include a $107 million charge for restructuring and related activities, as Siebel had previously announced in July. At that time, Siebel's stated intention was to achieve a 15 percent operating margin; the move included laying off 490 employees and the consolidation or elimination of facilities.
Total revenue for the third quarter will be from $320 million to $322 million, down from second-quarter revenue of $333 million. Third-quarter license revenue will be relatively flat from the prior quarter, from around $109 million to $110 million; second-quarter licenses totaled $109.9 million.
Siebel also said this week that when its restructuring is completed, the company expects to hit its mark of saving $30 million by the fourth quarter of 2003 and $40 million in savings by the second half of 2004. Siebel also reported debt retirement costs of $11 million.