Siebel turns to layoffs as revenue slides

Siebel turns to layoffs as revenue slides

Siebel Systems 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 $US333.3 million, an 18 per cent drop from last year's $US405.6 million total for the quarter. Siebel's net income also declined, dropping 67 per cent year-over-year, from $US29.8 million to $US9.8 million.

Siebel's software license revenue slid 35 per cent, to $US109.9 million. Its professional services and maintenance revenue held steadier, dropping 5 per cent, to $US223.4 million.

To lower its operating costs, Siebel was restructuring in a move that includes cutting 490 positions, the company said.

It hoped to achieve up to $US40 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 US to overseas locations.

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