Software maker Siebel Systems Inc. on Wednesday warned its second-quarter revenue would come in below expectations, punishing its stock price, as customers delayed buying at the end of the quarter.
Siebel’s stock fell about 16 percent in after-hours trade, following the release of earnings.
The San Mateo, California-based company, which will report its quarterly results on July 21, said it expects to report revenue of $301 million compared with average analyst revenue estimates of $352.7 million, according to Reuters Estimates.
Siebel did not provide an updated estimate on its earnings-per-share for the quarter, a company spokesman said.
Jamie Friedman, an analyst at Fulcrum Global Partners, LLC, said Siebel’s preliminary results were disappointing but said he had no plans to change his “buy” rating because of the company’s cash position.
“The company has about $2.1 billion in cash, about $4 of cash per share ... and there’s a lot they can do with that,” said Friedman, who does not own any Siebel stock.
Siebel forecast license revenue, a barometer of future growth, at $95 million.
“(The outlook) is a disappointment. We were looking for license revenue of $130 million,” JMP Securities analyst Patrick Walravens said.
Siebel’s warning followed those of several other software companies, including Veritas Software Corp., Sybase Inc. and PeopleSoft Inc.
Siebel said it expects service and other revenues at about $91 million and maintenance revenue of around $115 million.
Siebel was accused by federal regulators at the end of June of breaking rules on the dissemination of market-moving news, the second time it has faced civil charges for the offense.
The U.S. Securities and Exchange Commission said Siebel violated a 2001 rule that requires sensitive financial information to be disclosed equally to all investors.
The company has vowed to contest the charges.
