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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
January 21, 2004
Date of Report (Date of earliest event reported)
SIEBEL SYSTEMS, INC.
(Exact name of Registrant as specified in its charter)
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2207 Bridgepointe Parkway
San Mateo, CA 94404
(650) 477-5000
Item 12. Results of Operations and Financial Condition.
On January 21, 2004, Siebel Systems, Inc. issued a press release announcing its financial results for the fourth quarter ended December 31, 2003. A copy of the press release, dated as of January 21, 2004, entitled "Siebel Systems Reports Financial Results for the Fourth Quarter Ended December 31, 2003" is furnished as Exhibit 99.1 to this Current Report and is incorporated herein by reference.
The information in this report, including the exhibit hereto, shall not be deemed to be "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section or Sections 11 and 12(a)(2) of the Securities Act of 1933, as amended. The information contained herein and in the accompanying exhibit shall not be incorporated by reference into any registration statement or other document filed with the Securities and Exchange Commission by Siebel Systems, Inc., whether made before or after the date hereof, regardless of any general incorporation language in such filing, except as shall be expressly set forth by specific reference in such filing.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.
SIEBEL SYSTEMS, INC. |
(Registrant) |
Dated: January 21, 2004
By: | /s/ Kenneth A. Goldman |
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Kenneth A. Goldman | |
Senior Vice President, Finance and Administration and Chief Financial Officer |
INDEX TO EXHIBITS
99.1 |
Exhibit 99.1
NEWS RELEASE
Siebel Systems Reports
Financial Results for the
Fourth Quarter Ended December 31, 2003
SAN MATEO, Calif.-January 21, 2004-
Siebel Systems, Inc. (NASDAQ: SEBL), a leading provider of business applications software, today announced results for the fourth quarter ended December 31, 2003, above the range of management guidance presented October 15, 2003, and in line with preliminary financial results presented January 5, 2004.Total revenues for the fourth quarter of 2003 were $366.7 million. Revenues from license fees were $150.3 million. Revenues from maintenance, consulting, and other services were $216.5 million. Net income for the fourth quarter of 2003 was $41.5 million or $0.08 per share.
Previous management guidance provided on October 15, 2003, had been for total revenues for the fourth quarter of 2003 to be in the range of $335 million to $355 million, license revenues to be in the range of $120 million to $140 million, and earnings per share to be $0.05-$0.06 per share. Preliminary financial results provided on January 5, 2004, had been for total revenues for the fourth quarter of 2003 to be approximately $365 million, license revenues to be approximately $150 million, and earnings per share to be approximately $0.08 per share.
The company's cash, cash equivalents, and short-term investments were $2.023 billion as of December 31, 2003, the net result of $53.4 million in cash generated during the quarter offset by a reduction of $57.2 million for the UpShot and Motiva acquisitions, which closed in the fourth quarter. Days sales outstanding in accounts receivable were 64 days in the fourth quarter of 2003.
Quarterly Highlights
The following highlights were announced or occurred since Siebel Systems' last earnings statement:
Siebel Systems Secures New Customers:
The company concluded new software licensing agreements with more than 151 new customers in the fourth quarter, including Abbey National Plc.; Agilent Technologies Inc.; Blue Cross & Blue Shield of N. Carolina; Candle Corporation; Home Depot Inc.; ING Life Insurance Co., Ltd.; Neopost; Nippon Shinyaku Company, Ltd.; Novartis Pharma HQ AG; Organon Nederland BV; Philips Medical Systems Nederland BV; Proctor & Gamble Company; Roche; Sallie Mae, Inc.; Telstra Corporation; and Vodafone Network.Siebel Systems Secures Repeat Orders:
In the fourth quarter, the company concluded additional software licensing agreements with more than 255 existing customers, including Allstate Insurance Company; American Express Corporate Services; Cesky Telecom a.s.; DHL WorldWide Express; Eli Lilly & Company Ltd.; Fleet National Bank; General Dynamics Corp.; GlaxoSmithKline Pharmaceuticals S.A; IT Telecom S.p.A.; Lansforskringar AB; MCI Worldcom Network Services Inc.; Minnesota Mining and Manufacturing Co.; Nokia Corporation; Reuters Ltd.; Sabre, Inc.; Rabobank Nederland; Security Service Federal Credit Union; Sky Italia S.r.l.; South African Revenue Services; Sprint Corporation; Terra Networks, S.A.; The McGraw Hill Companies, Inc.; Thomson Learning Prometric; and Westpac Banking Corporation.Siebel Systems Receives Industry Accolades:
During the fourth quarter of 2003, Siebel Systems also received industry honors from analysts, media, and users, including:Siebel Systems Corporate Governance Update
Marc F. Racicot appointed to Board of Directors Committee:
Siebel announced today that Marc F. Racicot has been appointed to the Compensation Committee and the Nominating and Corporate Governance Committees of the Board of Directors, effective December 3, 2003. Racicot, an independent director, previously served as Governor and Attorney General of the State of Montana as well as Chief Prosecutor in the United States Army. Racicot joined the Board in 2001.C. Scott Hartz appointed to Board of Directors and Committee: As previously disclosed, C. Scott Hartz was appointed to the Board of Directors and its Audit Committee effective July 31, 2003. Hartz, an independent director, is the managing partner of Spire Capital Group LLC and previously served as CEO of PwC Consulting.
Michael Spence resigns from Board of Directors:
Siebel announced today that Dr. A. Michael Spence resigned from its Board of Directors, effective March 1, 2004, to pursue other personal and professional interests. "Since joining the Board in 1995, Mike Spence has made enormous contributions to the Company," said Chairman and CEO Thomas M. Siebel. "All of us at Siebel Systems owe Mike a great debt of gratitude. We thank him for his many years of dedicated service."Corporate Governance Microsite Added to Siebel.com:
In a continuing effort to pursue its "best practices" approach to corporate governance matters, the Company has recently adopted a set of new charters for its Audit Committee, Compensation Committee, and Nominating and Corporate Governance Committee. The Company has posted these charters to its newly launched Corporate Governance microsite on its Web site www.Siebel.com, which can be directly accessed via the following URL: www.siebel.com/about/investor_information/corporate_governance/index.shtm.About Siebel Systems
Siebel Systems, Inc. is a leading provider of business applications software, enabling corporations to sell to, market to, and serve customers across multiple channels and lines of business. With more than 3,500 customer deployments worldwide, Siebel Systems provides organizations with a proven set of industry-specific best practices, CRM applications, market-leading analytics products, and business processes, empowering them to consistently deliver superior customer experiences and establish more profitable customer relationships. Siebel Systems' sales and service facilities are located in more than 30 countries.
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Investor Contact: Siebel Systems Investor Relations (650) 295-5656 Investor.relations@siebel.com |
Media Contact: Siebel Systems Public Relations (650) 295-5455 Stacey.Burbach@siebel.com |
Siebel is a trademark of Siebel Systems, Inc. and may be registered in certain jurisdictions. All other product and company names mentioned are the property of their respective owners and are mentioned for identification purposes only.
Except for the historical information contained herein, this press release contains forward-looking statements that involve risks and uncertainties. The future operating results of Siebel Systems, Inc. may differ from the results forecasted in the forward-looking statements due to factors that include, but are not limited to, risks associated with financial, economic, political and other uncertainties, the eBusiness software applications market, the company's restructuring efforts, dependence on the Internet, new versions and new products and rapid technological change. Further information on potential factors that could affect the financial results of Siebel Systems, Inc. are included in its Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and its other filings with the Securities and Exchange Commission, which are available at www.sec.gov. Siebel Systems assumes no obligation to update the information in this press release.
SIEBEL SYSTEMS, INC.
Consolidated Balance Sheets
(In thousands, except per share data)
December 31, September 30, December 31 2002 2003 2003 ------------- ------------- ------------- Assets Current assets: Cash and cash equivalents........................................... $ 667,511 $ 545,001 $ 583,532 Short-term investments.............................................. 1,494,093 1,481,959 1,439,674 ------------- ------------- ------------- Total cash, cash equivalents and short-term investments...... 2,161,604 2,026,960 2,023,206 Marketable equity securities........................................ 4,613 93 118 Accounts receivable, net............................................ 275,764 188,694 259,834 Deferred income taxes............................................... 96,518 123,006 61,742 Prepaids and other.................................................. 49,901 43,882 52,068 ------------- ------------- ------------- Total current assets......................................... 2,588,400 2,382,635 2,396,968 Property and equipment, net............................................ 273,024 182,561 157,391 Goodwill............................................................... 80,949 82,129 142,735 Intangible assets, net................................................. 10,354 3,230 10,786 Other assets........................................................... 37,580 39,771 48,892 Deferred income taxes.................................................. 42,711 42,711 95,866 ------------- ------------- ------------- Total assets................................................. $ 3,033,018 $ 2,733,037 $ 2,852,638 ============= ============= ============= Liabilities and Stockholders' Equity Current liabilities: Accounts payable.................................................... $ 15,239 $ 21,492 $ 18,907 Accrued expenses.................................................... 319,622 288,785 335,048 Restructuring obligations........................................... 42,703 56,166 53,676 Deferred revenue.................................................... 270,575 260,023 282,217 ------------- ------------- ------------- Total current liabilities.................................... 648,139 626,466 689,848 Restructuring obligations, less current portion........................ 111,845 123,591 104,405 Other long-term liabilities, less current portion...................... 15,574 10,316 8,159 Convertible subordinated debentures.................................... 300,000 -- -- ------------- ------------- ------------- Total liabilities............................................ 1,075,558 760,373 802,412 ------------- ------------- ------------- Commitments and contingencies Stockholders' equity: Common stock; $0.001 par value; 2,000,000 shares authorized; 486,428 494,667 and 498,305 shares issued and outstanding, respectively... 486 495 498 Additional paid-in capital........................................... 1,486,612 1,529,313 1,550,834 Deferred compensation................................................ (3,438) (1,840) (1,479) Accumulated other comprehensive income............................... 28,681 44,521 58,650 Retained earnings.................................................... 445,119 400,175 441,723 ------------- ------------- ------------- Total stockholders' equity................................... 1,957,460 1,972,664 2,050,226 ------------- ------------- ------------- Total liabilities and stockholders' equity................... $ 3,033,018 $ 2,733,037 $ 2,852,638 ============= ============= =============
SIEBEL SYSTEMS, INC.
Consolidated Statements of Operations
(In thousands, except per share data)
Three Months Ended Year Ended December 31, December 31, --------------------- ----------------------- 2002 2003 2002 2003 ---------- ---------- ----------- ----------- Revenues: Software.................................................... $ 157,354 $ 150,285 $ 700,344 $ 482,274 Professional services, maintenance and other................ 237,382 216,457 934,963 871,954 ---------- ---------- ----------- ----------- Total revenues.......................................... 394,736 366,742 1,635,307 1,354,228 ---------- ---------- ----------- ----------- Cost of revenues: Software.................................................... 5,024 3,394 21,612 18,357 Professional services, maintenance and other................ 140,397 115,698 540,194 487,840 ---------- ---------- ----------- ----------- Total cost of revenues.................................. 145,421 119,092 561,806 506,197 ---------- ---------- ----------- ----------- Gross margin....................................... 249,315 247,650 1,073,501 848,031 ---------- ---------- ----------- ----------- Operating expenses: Product development......................................... 93,057 82,675 366,230 308,852 Sales and marketing......................................... 104,348 80,329 476,975 357,133 General and administrative.................................. 23,142 24,222 119,253 106,082 Restructuring and related expenses.......................... 95,922 (650) 205,305 104,391 Purchased in-process product development.................... -- 5,312 -- 5,312 ---------- ---------- ----------- ----------- Total operating expenses................................ 316,469 191,888 1,167,763 881,770 ---------- ---------- ----------- ----------- Operating income (loss)............................ (67,154) 55,762 (94,262) (33,739) Other income, net.............................................. 7,744 9,157 38,475 39,144 Loss on early extinguishment of debt........................... -- -- -- (10,711) ---------- ---------- ----------- ----------- Income (loss) before income taxes.................. (59,410) 64,919 (55,787) (5,306) Income taxes (benefit)......................................... (21,388) 23,371 (20,083) (1,910) ---------- ---------- ----------- ----------- Net income (loss).................................. $ (38,022) $ 41,548 $ (35,704) $ (3,396) ========== ========== =========== =========== Diluted net income (loss) per share............................ $ (0.08) $ 0.08 $ (0.08) $ (0.01) ========== ========== =========== =========== Shares used in diluted share computation....................... 484,095 543,535 475,617 491,961 ========== ========== =========== =========== Basic net income (loss) per share.............................. $ (0.08) $ 0.08 $ (0.08) $ (0.01) ========== ========== =========== =========== Shares used in basic share computation......................... 484,095 496,579 475,617 491,961 ========== ========== =========== ===========
SIEBEL SYSTEMS, INC.
Condensed Consolidated Statements of Cash Flows
(In thousands)
Year Ended December 31, ------------------------ 2002 2003 ------------ ----------- Cash flows from operating activities: Net loss................................................................ $ (35,704) $ (3,396) Adjustments to reconcile net income to net cash provided by operating activities: Write-off of acquired technology..................................... -- 7,761 Loss on early extinguishment of debt................................. -- 10,711 Depreciation and amortization........................................ 158,010 158,873 Compensation expense related to option repurchase shares............. 31,471 -- Write-off of property and equipment abandoned in restructuring....... 25,955 17,506 Provision for doubtful accounts and sales returns.................... 21,376 5,184 Deferred income taxes................................................ (50,431) (15,449) Other, net........................................................... (2,430) (3,387) Changes in operating assets and liabilities: Accounts receivable............................................... 99,157 12,775 Prepaids and other................................................ 20,865 (20,425) Accounts payable and accrued expenses............................. (19,172) 7,334 Restructuring obligations......................................... 154,548 2,824 Deferred revenue.................................................. 29,558 7,723 ------------ ----------- Net cash provided by operating activities....................... 433,203 188,034 ------------ ----------- Cash flows from investing activities: Purchases of property and equipment..................................... (70,809) (14,958) Sales (purchases) of short-term investments, net........................ (629,298) 31,288 Other, net.............................................................. 7,680 (57,500) ------------ ----------- Net cash used in investing activities........................... (692,427) (41,170) ------------ ----------- Cash flows from financing activities: Proceeds from issuance of common stock, net of repurchases.............. 92,532 62,636 Proceeds from equipment financing....................................... 24,873 -- Repurchase of convertible subordinated debentures....................... -- (307,080) Payments of capital lease obligations................................... (8,714) (12,766) Proceeds from stockholder notes......................................... 422 -- ------------ ----------- Net cash provided by (used in) financing activities............. 109,113 (257,210) ------------ ----------- Effect of exchange rate fluctuations....................................... 18,532 26,367 ------------ ----------- Change in cash and cash equivalents........................................ (131,579) (83,979) Cash and cash equivalents, beginning of period............................. 799,090 667,511 ------------ ----------- Cash and cash equivalents, end of period................................... $ 667,511 $ 583,532 ============ ===========