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Total revenues for the second quarter of 2005 were $313.6 million. License revenues were $78.3 million. Maintenance revenues were $122.8 million. Services and other revenues were $112.5 million.

Including the impact of $74.1 million in restructuring and other charges, GAAP operating loss and operating margin for the second quarter of 2005 were $(71.3) million and (22.7)%, respectively. GAAP pre tax loss for the second quarter of 2005 was $(55.6) million. GAAP net loss, net margin and net loss per share for the second quarter of 2005 were $(50.0) million, (15.9)% and $(0.10) per share, respectively. The effective tax rate for GAAP net loss in the second quarter of 2005 was a benefit of 10%.


The Company's cash, cash equivalents, and short-term investments were $2.242 billion as of June 30, 2005. The Company generated $60.6 million of cash in the quarter, which was offset by a $15.1 million outlay related to the Company's acquisition of edocs, Inc., resulting in a net $45.5 million increase in cash from the end of the first quarter. Deferred revenue was $331.4 million as of June 30, 2005. Days sales outstanding in accounts receivable were 60 days for the second quarter of 2005.

"I've made a commitment to shareholders to improve Siebel's financial performance over time and we are taking the necessary steps to achieve this goal," said George T. Shaheen, Chief Executive Officer of Siebel Systems. "Although we've made some progress, we still have more work to do. We have recently acted to improve our license sales execution, including reorganizing the Americas sales force, appointing a new Chief Marketing Officer, simplifying sales compensation, refocusing on business development, management and closure practices, and streamlining contract execution. We have reduced our cost structure, took additional restructuring actions at the end of the quarter, and aim to drive future costs down further. We have made significant strides with Siebel CRM OnDemand. In July, we released Siebel Component Assembly, built on industry standard service oriented architectures, on schedule and made our first multi-million dollar sale. We have added to and reorganized our management team to accelerate our progress and I am encouraged by the new leadership talent we continue to attract to Siebel. I am confident we have the assets it takes to return the Company to predictable and sustainable growth, including an unparalleled array of best of breed CRM solutions. I am committed to doing whatever it takes to improve our revenue generation, better align our costs to our business, and increase our profitability over time."
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