Message Font: Serif | Sans-Serif
 
UnThreaded | Threaded | Whole Thread (1) | Ignore Thread Prev | Next
Author: newsreporter Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 3549  
Subject: Cost Cutting Date: 8/25/2005 5:29 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
Siebel's Cost-Cutting on Track
http://www.thestreet.com/tech/software/10239174.html


Siebel Systems (SEBL:Nasdaq - news - research - Cramer's Take), in a midquarter update Monday, had nothing to say about its performance in the current quarter, but did assure investors that its cost-cutting goals are on track.

Chief Financial Officer Ken Goldman said the software vendor, which has been plagued by falling license revenue and shrinking share value, expects to cut expenses in the third, or current, quarter to $300 million from $310 million in the last quarter. Some of the saving will come as management eliminates another 28 jobs, bringing the workforce to 4,900.

Goldman said the company "reaffirms its commitment" to bring operating margins to 15% on a sustainable basis. He noted that margins could reach that high in the seasonally strong fourth quarter, but that would not necessarily signal that margins will stay that high.

Areas that will be hit by ongoing cuts in expenses include R&D, which now consumes about 20% of Siebel's revenue. Goldman said companies wishing to lead their industry sector typically spend about 15% of revenue on research and development.
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (1) | Ignore Thread Prev | Next

Announcements

Managing Your Wealth
Our own TMFHockeypop from Rule Your Retirement fame on the TV show Managing Your Wealth.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Post of the Day:
Apple

Apple and Ninety Years Ago
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement