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.