No Guidance Stunner at Siebel

It sees lower-than-expected revenue and earnings at the low end of its old forecast.
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One day after

PeopleSoft

(PSFT)

stunned Wall Street with word of a stellar second quarter, fellow business software maker

Siebel Systems

(SEBL)

said things didn't go quite as well for its business during the period.

San Mateo, Calif.-based Seibel expects to earn 2 cents a share on revenue of $330 million to $334 million and license revenue of about $110 million. Analysts surveyed by First Call were forecasting earnings of 3 cents a share on revenue of $347.6 million. Siebel's new estimate is within the range of its old earnings guidance and slightly below its old revenue and license revenue forecast.

The shares lost 32 cents, or 3.4%, to $9.14 on the Instinet premarket session.

"The company faced unexpected delays in purchasing decisions by prospects and customers due to the uncertain economic climate and turbulent enterprise software industry landscape," Siebel said, adding that it managed what it could: expenses, cash flow, and its balance sheet.

The company's estimated cash, cash equivalents, and short-term investments were about $2.29 billion as of June 30, an increase of more than $70 million in the quarter.