Siebel turns to layoffs as revenue slides

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.

Join the newsletter!

Error: Please check your email address.

More about Siebel Systems

Show Comments

Market Place