Siebel Reports Stellar Fourth Quarter And Year

Siebel Systems Inc., the customer-relationship management software market leader, seems to have no intention of yielding its No. 1 slot, if quarterly earnings posted today are any indication: The vendor reported a 109% increase in revenue for the fourth quarter and a 93% increase for the year.

Siebel reported revenue of $268 million, up from $128.1 million in the fourth quarter of 1998 and not much less than it reported for the entire year in 1998. Profits grew even faster, to $45 million, up 127% from fourth-quarter 1998. License sales were up 88% to $170 million for the quarter, while maintenance and consulting services jumped 159% to $98 million. Consulting revenue received a boost because the results have been adjusted to reflect Siebel's fourth-quarter acquisition of consulting firm OnTarget Inc.

For the year, revenue was $790.9 million, up from $409.9 million in 1998. Net income was $122.1 million, a 116% increase from $56.4 million in 1998. Software revenue was $499.4 million in 1999, up from $290.9 million the previous year, while services were $291.5 million, up from $119 million.

Although Siebel certainly benefited from the growth of the CRM market, which the company has said has barely been penetrated, the vendor has even outpaced other CRM vendors with stellar quarters. Clarify Inc., one of Siebel's closest competitors, said Monday it grew 73% in fourth-quarter revenue to $71.6 million, and it grew 77% to $230.7 million for the year.