Siebel posts profit but revenue falls

Siebel Systems Inc. saw its revenue drop but its net income rise in its fourth fiscal quarter, while meeting Wall Street earnings per share expectations.

Siebel’s revenue dropped to $366.7 million for the three months ended Dec. 31, from $394.7 million in the fourth quarter of 2002. Net income came in at $41.5 million, or earnings of $0.08 per share, compared with a net loss of $38 million, or $0.08 per share, in the same quarter a year ago, the company said Wednesday.

The CRM (customer relationship management) software maker met the consensus earnings per share estimate of analysts polled by Thomson First Call, and exceeded their consensus revenue estimate by $4.7 million, a Thomson First Call spokesman said. Siebel had raised its earnings and revenue forecast for the quarter on Jan. 5.

Revenue also fell for the full 2003 year, to $1.35 billion from $1.63 billion in 2002. The CRM (customer relationship management) software maker posted a net loss of $3.4 million or $0.01 per share for the year, compared with a steeper loss of $35.7 million or $0.08 per share in 2002.

Siebel remains committed to the CRM market, Siebel Chairman and Chief Executive Officer Tom Siebel said during a conference call with press and analysts after the results came out.

“In the course of the year we doubled down on CRM. We see this as a large market opportunity that offers significant growth as the economy recovers. We see it as a market opportunity that is largely unpenetrated,” he said.