Siebel Systems Inc. lived up to the expectations it reset earlier this month when it warned analysts and investors that its revenue and profit would for the second quarter in a row be below its initial forecasts.
Siebel's revenue for the quarter ended June 30 was US$333.3 million, an 18 percent drop from last year's US$405.6 million total for the quarter, the company said Tuesday. Siebel's net income also declined, dropping 67 percent year-over-year, from US$29.8 million to $9.8 million.
Siebel's software license revenue slid 35 percent, to $109.9 million. Its professional services and maintenance revenue held steadier, dropping 5 percent, to US$223.4 million.
To lower its operating costs, Siebel, based in San Mateo, California, is restructuring in a move that includes cutting 490 positions, the company said. It hopes to achieve up to US$40 million in quarterly savings by mid-2004 though job cuts, the consolidating of some facilities and elimination of others, and the shift of some jobs out of the U.S. to overseas locations.