Siebel Systems announced better than expected preliminary results for its third quarter yesterday, as it kicked off its user conference in San Diego, California and detailed ‘Chapter 2’ of the company’s development.
The company said it expected revenues for the quarter ending September 30 to come in between $315m and $317m, compared to last year’s $321m. Analysts had expected revenues of $306m. The company said operating income should be $24m to $25m, which it said exceeded analysts’ expectations of $20m. Last year, it reported an operating loss of $91m.
License revenues should be $104m to $105m for the quarter, compared to expectations of $96m. Maintenance revenues will be $118m, compared to expectations of $115m, while services revenues will be $93m to $94m, compared to the forecast $94m.
The company said it was comfortable with current expectations for the fourth quarter, which call for revenues of $342m.
The figures will give a boost to Mike Lawrie, who took over as CEO of the company in May, with a brief to revitalize its sales.
Lawrie was tasked with kicking off the firm’s User Week in San Diego yesterday, and detailed how the firm is increasing its focus on the front office market. Amongst the current business drivers, he said, is CEOs’ increasing focus on growing revenues, not just reducing costs, and the pressure to digitize business processes.
He said that front office enhancements had the greatest impact on improving customer experience, and claimed leading organizations are now shifting their strategic focus from the back office accordingly.
Chapter 2 of Siebel’s history, played out over the coming years, will focus on developing and acquiring front office capabilities, Lawrie said, including integration capabilities and analytics.
Lawrie said the company would work across a variety of delivery options, spanning hosted and packaged options, as well as custom-built solutions. This will coincide with a broader services offering from Siebel and its partners, he said, expanding its current focus on systems design and implementation.