Siebel Expects Sales, Profit to Fall but Still Beat Forecasts

Siebel Systems Inc. on Monday said it expected revenue and operating profit for the recently completed quarter to exceed Wall Street forecasts.

The San Mateo, Calif., software firm expects revenue of $315 million to $317 million for the quarter ended Sept. 30. The company expects software license fees, a closely watched measure of business momentum, to fall about 5% to $104 million to $105 million from a year earlier.

In the same quarter last year, Siebel had total revenue of $321 million, including $110 million in software licenses. Analysts had expected quarterly revenue of $306 million, including $96 million of license fees, the company said.

Siebel, which makes software used to manage sales teams and call centers, has struggled with a drop in demand for its products and increased competition.

The company has undergone multiple restructurings and hired IBM Corp. executive Michael Lawrie to replace its founder as chief executive this year.

The company said it expected third-quarter operating income of $24 million to $26 million, including $11 million in restructuring and other charges.

It didn’t provide a net income forecast.

Siebel, which is hosting its annual customer gathering this week in Los Angeles, will report third-quarter results Oct. 20.

The company’s shares rose $1.15, or 14%, to $9.34 on Nasdaq. The stock has rebounded more than 30% since hitting a 52-week low of $6.97 in August.