Siebel Systems, Inc.

Siebel Systems, Inc.

June 08, 2005 08:30 ET

Siebel Systems Initiates Quarterly Cash Dividend; In Letter to Shareholders, George Shaheen, Siebel CEO, Announces Series of Actions to Improve Financial Performance and Shareholder Value

SAN MATEO, Calif.--(CCNMatthews - Jun 8, 2005) -

Siebel Systems, Inc. (Nasdaq:SEBL), the leading provider of customer-facing solutions, today announced a series of actions to improve its financial performance and increase returns to shareholders, including the approval by its Board of Directors of its first quarterly dividend of $0.025 per share payable on July 15, 2005 to shareholders of record at the close of business on June 30, 2005.

"This dividend program reflects our Board of Directors' confidence in Siebel Systems' long-term record of positive cash flow generation, strong future growth opportunities and substantial commitment and ability to return capital to shareholders over time," said George T. Shaheen, Chief Executive Officer, Siebel Systems. "We believe it is the best way to increase long-term shareholder value, while preserving the financial strength and flexibility we need to take full advantage of growth opportunities."

While Siebel Systems intends to pay regular quarterly dividends for the foreseeable future, all subsequent dividends will be reviewed quarterly and declared by the Board of Directors in its discretion.

In a letter to shareholders available on the investor relations section of Siebel Systems' website at, Mr. Shaheen outlined the Company's growth strategy and described in detail several operating and other shareholder value enhancing initiatives underway, in addition to the dividend declaration. These include steps to increase revenue generation by simplifying Siebel Systems' sales and sales support organization and increasing the rigor and productivity of global sales activities; reduce millions of dollars in quarterly costs to facilitate achieving 15% operating margins by the end of 2005 and drive towards a 20% operating margin model; make continued investments in industry-leading products including its "component assembly" CRM framework offering to be introduced this summer; pursue its continued focus on acquisitions to complement organic growth strategies; and increase efforts to facilitate investor communications in Regulation FD compliant forums. Mr. Shaheen also disclosed cost estimates of the recently adopted Employee Retention Benefit Plan aimed at motivating and retaining highly valued employees and announced a plan to add two new independent directors to the Board.

"I am genuinely excited by the opportunities and resources we have at Siebel Systems -- and am keenly aware of the current market environment and our challenges," added Mr. Shaheen. "We have listened and will continue to listen to our shareholders, as well as our employees, partners and customers. I believe our stakeholders recognize the tremendous value in Siebel's market opportunity, products, partners, customers and employees. The executive leadership team and I are committed to return this company to growth and we share your strong sense of urgency to improve performance. I am committed to improving shareholder value."

About Siebel Systems

Siebel Systems is the world's leading provider of customer-facing solutions that deliver demonstrable business results and long-term competitive advantage. Siebel's multichannel offerings allow organizations to intelligently manage and coordinate all customer interactions across the Web, contact center, field sales/service force, branch/retail network, and indirect and partner distribution channels. Siebel solutions draw upon the company's best-in-class capabilities in customer relationship management (CRM), business intelligence, and customer data integration and can be deployed as licensed software or as a hosted service. Siebel solutions are tailored to the unique needs of 23 industries and incorporate industry-specific business processes, best practices, and business insight. They are the product of more than $2 billion in R&D investments and reflect over 11 years of experience with more than 4,000 organizations. Together with its extensive global network of alliance partners, Siebel provides the people, process, and technology expertise critical in driving business value from the deployment of customer-facing solutions. Over 3 million users worldwide in organizations of all sizes depend on Siebel solutions to deliver dramatic improvements in how they identify, acquire, retain, and serve customers. For more information, visit

For more information on Siebel Systems solutions and services, please visit our Web site: CRM -; OnDemand Solutions -; Industry CRM -; Call Center & Service -; Sales Force Automation -; Marketing Automation -; Business Intelligence -; Integration Solutions -; CRM Services -

Except for the historical information contained herein, this press release, including the letter to shareholders referenced herein, contains forward-looking statements, including statements regarding the effects of the dividend program, the effectiveness of the growth strategy and operating and other shareholder value enhancing initiatives, steps to increase revenue generation, the ability to reduce quarterly costs and facilitate improved operating margins, ability to achieve return of investments and the success and impact of acquisitions and organic growth strategies, the impact of the Employee Retention Benefit Plan on potential takeover attempts and value and size of current and potential market opportunities. These forward-looking statements involve risks and uncertainties. Future operating results of Siebel Systems may differ from the results discussed or forecasted in the forward-looking statements due to factors that include, but are not limited to, risks associated with customer relations, such as the availability of Siebel Systems' products and services, customer implementation of products and services, relationships with customers, third-party vendors and systems integrators, concentration of revenues in a relatively small number of customers, existence of errors or defects in products, ability to successfully manage growth, significant current and expected additional competition and the need to continue to expand product distribution and services offerings. Further information on potential factors that could affect the financial results of Siebel Systems are included in Siebel Systems' 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 Siebel Systems assumes no obligation to update the information in this press release.

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.

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