Briefs

By Robert Conlin
CRMDaily.com

CRM software maker Siebel Systems (Nasdaq: SEBL) ignored speculation
about an earnings slump in the first quarter and mass layoffs, and
instead reported revenue and income that topped analyst estimates and
injected a dose of good news into a gloomy industry.

Coming behind a long line of software and IT-related companies that
churned out negative earnings reports in the past week, the San Mateo,
California-based company announced revenues of US$588.7 million and
net income of $76.9 million, up more than 100 percent in both
categories from the same quarter in fiscal 2000.

Just as important for the fragile psyche of the industry, Siebel did
not announce the massive layoffs of up to 20 percent of its
7,400-employee workforce that were predicted in the run-up to the
earnings announcement late Wednesday. Instead, the company said it cut
10 percent of its staff through an internal performance evaluation
program. Last year, Siebel cut 5 percent of its staff in a similar
program.

New Business Climbs

Siebel said more than 50 percent of its revenues were derived from new
customers -- the best performance in that category in five quarters
from the company. Some significant new customers obtained in the
quarter include AT&T Wireless, Lufthansa Cargo, Ricoh Corporation,
Standard Register Company and Philips Medical Systems Nederland.

Not everything came up roses for the software vendor or its
executives. The company said it was cutting executive salaries by 20
percent across the board, a move that surely will not put any Siebel
executive in a soup kitchen line, but will undoubtedly sting.

Siebel also said it will close the curtain on its Sales.com sales
force automation Web site as of June 30th. The move was not unexpected
as news of the closure leaked out prior to the

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