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Siebel blows past estimates
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October 24, 2000: 6:42 p.m. ET
Software maker's third-quarter net income surges 161 percent
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NEW YORK (CNNfn) - Business-software maker Siebel Systems on Tuesday reported third-quarter revenue and net income that blew past analyst estimates.
San Mateo, Calif.-based Siebel (SEBL: Research, Estimates) reported net income of $71 million, or 14 cents per share, compared with pro forma net income of $27.3 million, or 6 cents per share, for the same period last year, representing increases of 161 percent and 133 percent, respectively. The mean analyst estimate for the quarter was 11 cents per share, according to First Call.
Revenue for the third quarter surged 131 percent to $480.9 million from $208.5 million for the same period in 1999. CIBC World Markets analyst Melissa Eisenstat had estimated that Siebel's revenue would be $415.7 million – 14 percent less than what the company actually reported. Revenue from license fees totaled $300.4 million, compared with $127.7 million for the same period in 1999. Eisenstat had estimated that license revenue would total $254.1 million.
Revenue from maintenance, consulting, and other services reached $180.6 million, compared with $80.8 million for the same period in 1999, an increase of 123 percent.
Siebel is the leading player in the rapidly expanding area of customer-relationship management, or CRM, software, which is used to collect and analyze information about customers, enabling companies to better target their marketing campaigns and improve customer service call centers. Its stock closed Tuesday up $2.94 at $112.75, a level seven times higher than its 52-week low. At Tuesday's closing price, Siebel is selling for more than 260 times what analysts expect the company to earn this year. 
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