Updated from July 21

Siebel Systems ( SEBL), which warned earlier this month that license revenue would plummet to the lowest level since 1999, announced second-quarter results Wednesday largely in line with significantly reduced analyst expectations.

Shares recently gained 17 cents, or 2.2%, to $7.91. Siebel fell 31 cents, or 3.9%, to $7.74 in regular trading Wednesday.

Under generally accepted accounting principles, San Mateo, Calif.-based Siebel reported net income of $8.2 million, or 2 cents a share, in the second quarter. That was a decline from net income of $9.8 million, or 2 cents a share, in the same period a year earlier.

Excluding a $6 million acquisition-related charge, Siebel said it earned pro forma net income of $11.8 million, or 2 cents a share, in the second quarter.

Revenue declined nearly 10% from a year ago to $301.1 million. License revenue -- a benchmark of new software sales -- totaled $94.8 million, down 13.7% from a year ago.

Wall Street analysts, who had slashed estimates since Siebel preannounced results earlier this month, expected Siebel to earn pro forma net income of 2 cents a share on $303.2 million in revenue in the second quarter, according to Thomson First Call.

Siebel warned July 8 that second-quarter revenue would total only $301 million -- far short of the $353.1 million consensus estimate at that time. The company, which makes customer relationship management software, said license revenue would total $95 million, the lowest level for license revenue since March 1999. Siebel also said earnings would fall below the previously stated range of 5 cents to 7 cents a share, including a penny a share dilution from Siebel's recent acquisition of banking systems company Eontec.

Siebel cited customers delaying purchasing decisions -- an explanation served up by a slew of software vendors that preannounced disappointing quarterly results earlier this month.

If you liked this article you might like

Peregrine Gets a Loan and a Sale

Peregrine Gets a Loan and a Sale

Chip-Equipment Book-to-Bill Climbs Above Parity

Chip-Equipment Book-to-Bill Climbs Above Parity

Volcanic Paradise

Volcanic Paradise

Matching Money and Morals

Matching Money and Morals

A Getaway From the Ordinary

A Getaway From the Ordinary