Siebel Systems, Inc.

Siebel Systems, Inc.

January 05, 2005 08:02 ET

Siebel Systems Reports Preliminary Financial Results for the Fourth Quarter Ended December 31, 2004; License Revenues Up 53% and Operating Income Up 130% Sequentially


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: SIEBEL SYSTEMS, INC.

NASDAQ SYMBOL: SEBL

JANUARY 5, 2005 - 08:02 ET

Siebel Systems Reports Preliminary Financial Results
for the Fourth Quarter Ended December 31, 2004;
License Revenues Up 53% and Operating Income Up 130%
Sequentially

SAN MATEO, Calif.--(CCNMatthews - Jan 5, 2005) -

All Revenue Categories and Profitability Up Year Over Year

Siebel Systems, Inc. (Nasdaq:SEBL), a leading provider of business
applications software, today announced preliminary financial results for
the quarter ended December 31, 2004 that were above financial analyst
consensus expectations.

The Company expects total revenues for the fourth quarter of 2004 to be
approximately $387 million to $390 million, which exceeds consensus
analyst expectations of $347 million and represents a 23% increase over
the third quarter of 2004. The Company expects license revenues for the
quarter to be approximately $159 million to $161 million, which exceeds
consensus analyst expectations of $129 million and represents a 53%
increase over the third quarter of 2004. Maintenance revenues are
expected to be approximately $122 million, which exceeds consensus
analyst expectations of $120 million and represents a 3% increase over
the third quarter of 2004. Services and other revenues are expected to
be approximately $106 million to $107 million, which exceeds consensus
analyst expectations of $98 million and represents a 13% increase over
the third quarter of 2004. In addition, OnDemand total contract value
for the fourth quarter of 2004 is expected to increase by approximately
27% over the third quarter of 2004.

Operating margin for the fourth quarter of 2004 is expected to be
approximately 15% to 16% of total revenues, which represents a 90%
increase over the third quarter of 2004. Operating income for the fourth
quarter of 2004 is expected to be approximately $58 million to $62
million, which exceeds consensus analyst estimates of $52 million and
represents a 130% increase over the third quarter of 2004. Net income
for the fourth quarter of 2004 is expected to be approximately $42
million to $44 million, which exceeds consensus analyst estimates of $38
million and represents a 120% increase over the third quarter of 2004.
Earnings per share for the fourth quarter of 2004 are expected to be
approximately $0.08 per share, which exceeds consensus analyst
expectations of $0.07 per share and represents a greater than 100%
increase over the third quarter of 2004.

The Company's cash, cash equivalents and short term investments are
expected to be approximately $2.24 billion as of December 31, 2004,
reflecting cash generated during the fourth quarter of 2004 of
approximately $85 million.

As disclosed on December 17, 2004, the Company expects its acquisition
of edocs, Inc. to close early in the first quarter of 2005. The Company
expects the acquisition to result in a one-time merger-related charge
estimated at approximately $0.01 per share and an additional reduction
in operating earnings of approximately $0.01 per share in the first
quarter of 2005. Other than these expected edocs merger-related
reductions to consensus expectations for first quarter 2005 earnings,
the Company is comfortable with current financial analyst consensus
expectations for the first quarter of 2005.

The Company will provide formal guidance for the first quarter and full
year of 2005 when it announces its final financial results for the
fourth quarter and full year of 2004 on January 27, 2005 at 2:00pm PST.
The live webcast and replay of the January 27th call can be accessed at
www.siebel.com/investor.

Siebel is a trademark of Siebel Systems, Inc. and may be registered in
certain jurisdictions. All other product and company names mentioned are
the property of their respective owners and are mentioned for
identification purposes only.

This press release contains forward-looking statements that involve
risks and uncertainties. The final results for the fourth quarter of
2004 of Siebel Systems, Inc. may differ from the preliminary results
discussed above due to factors that include, but are not limited to,
risks associated with final review of the results and preparation of
quarterly financial statements. Future operating results of Siebel
Systems, Inc. may differ from that forecasted in the forward-looking
statements due to factors that include, but are not limited to, risks
associated with financial, economic, political and other uncertainties,
the Business software applications market, dependence on the Internet,
risks associated with new versions and new products and risks associated
with rapid technological change. Further information on potential
factors that could affect the financial results of Siebel Systems, Inc.
are included in its Annual Report on Form 10-K, Quarterly Reports on
Form 10-Q and its other filings with the Securities and Exchange
Commission, which are available at www.sec.gov. Siebel Systems assumes
no obligation to update the information in this press release.

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