Siebel Sales Way Ahead of Estimates

Fourth-quarter revenue should be about $469 million.
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Siebel

(SEBL)

, the software maker being acquired by

Oracle

(ORCL) - Get Report

, said fourth-quarter sales were about 33% higher than management previously forecast.

In a release Thursday, Siebel put sales for the three months ended Dec. 31 at $469 million, well ahead of the $340 million to $360 million the company's chief financial officer predicted in an Oct. 26 conference call. Analysts surveyed by Thomson First Call were forecasting $364.7 million.

Siebel said fourth-quarter license revenue will be $214 million, compared with its previous forecast of $110 million to $130 million. Maintenance revenue will be $131 million, compared with previous guidance for $120 million to $126 million. Services and other revenue will be $124 million, compared with $110 million to $115 million.

The company put fourth-quarter operating margin at 23% to 24% of total revenue and said operating income will be $107 million to $111 million. It declined to estimate earnings because it is still reviewing its tax rate for the quarter.

"In the second quarter of 2005, we committed to strengthening Siebel's leadership team and increasing accountability throughout our organization," the company said. "We committed to improving our revenue generation capability, aligning our cost structure with the scale of our business, and investing in the products and technology that would keep Siebel Systems at the forefront of CRM and analytics. We have delivered strongly against these objectives."