Siebel Posts Profit, Narrows Revenue Gap

The CRM software market leader returns to profitability but falls just short of reversing a quarterly revenue decline that has entered its fourth year.

Siebel Systems Inc. returned to profitability in its third quarter after reporting a loss in the same period a year ago, but fell just short of reversing a quarterly revenue decline that has entered its fourth year.

The CRM software market leader reported net income of $19.4 million in the period ended Sept. 30, compared with a $59.3 million loss in last years third quarter.

Total revenues came in at $317.1 million, down from $321.4 million in the same period a year ago, the 13th consecutive quarter that Siebels revenues have fallen year over year. License revenue accounted for the shortfall, dropping from $110 million to $104.6 million year to year.

Siebel signed 84 licensing agreements with new customers and 212 with existing customers during the quarter. It deployed 176,000 new users.

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Siebels Business Analytics product line accounted for $27.4 million in license revenue in the quarter. Contract value for its fledgling Siebel CRM OnDemand hosted service increased 32 percent over the second quarter.

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