Updated from 5:06 p.m. EDT
Weighed down by heavy restructuring charges, struggling
reported a second-quarter loss and a sharp decline in license revenue.
And the company's long losing streak, which has sparked a shareholder revolt, is not yet over. Guidance for sales and earnings in the third quarter did not equal Wall Street's expectations.
There was at least one bright spot in the report: Total revenue, with a boost from maintenance and professional services, increased to $313.6 million from $301 million a year ago.
Including $74.1 million in charges, the company lost $71.3 million, or 10 cents a share. A year ago, the business software maker posted a profit of $7.5 million, or a penny a share. The results were in line with the company's warning on July 7 that it would not hit its financial marks for the quarter.
At the time, Siebel said revenue would range from $312 million to $314 million. But in April, the company said it expected second-quarter revenue of $310 million to $330 million.
Since the bad news was essentially priced into the stock some time ago -- shares are off about 20% since the beginning of the year -- the market's reaction was mild. In recent after-hours trading, the stock shed another 7 cents to $8.41 a share.
License revenue dropped 17.4% year over year to $78.3 million, at least the sixth straight quarter in which the key measure of new business dropped from the previous year.
Excluding charges, Siebel earned a profit of $700,000, or break-even on a per-share basis. Analysts polled by Thomson First Call were expecting a profit of 2 cents a share.
CFO Ken Goldman said the company expects to earn a third-quarter profit of 2 cents or 3 cents a share, excluding charges, on sales ranging from $305 million to $315 million. Analysts polled by Thomson First Call were looking for a 4-cent profit on sales of $319 million.
Goldman said to expect license revenue of $75 million to $85 million in the September quarter, well below the year-ago total of $104.6 million.
The company will likely take another restructuring charge of $10 million to $15 million in the quarter, and said it received notice from the Internal Revenue Service of a proposed $61 million tax adjustment. The company plans to appeal the amount of the adjustment.