Exhibit 99.2
Reconciliation of Previously Issued Financial Statements to the Respective Restated Financial Statements
SIEBEL SYSTEMS, INC.
Reconciliation of Selected As Reported and As Restated Data
(In thousands, except per share data)
Year Ended December 31, ------------------------------------------------------------------------------- Selected Statement of Operations Data: 1998 1999 2000 2001 2002 2003 - --------------------------------------------- ----------- ---------- ------------ ------------ ------------ ------------ Total Costs and Expenses as reported $ 357,085 $ 661,267 $ 1,497,671 $ 1,726,714 $ 1,729,569 $ 1,387,967 adjustments 108 221 2,208 5,091 4,365 3,616 ---------- ---------- ------------ ------------ ------------ ------------ as restated 357,193 661,488 1,499,879 1,731,805 1,733,934 1,391,583 =========== ========== ============ ============ ============ ============ Operating Income (Loss) as reported 64,469 161,187 322,535 357,882 (94,262) (33,739) adjustments (108) (221) (2,208) (5,091) (4,365) (3,616) ----------- ---------- ------------ ------------ ------------ ------------ as restated 64,361 160,966 320,327 352,791 (98,627) (37,355) =========== ========== ============ ============ ============ ============ Net Income (Loss) as reported 42,290 110,025 221,899 254,575 (35,704) (3,396) adjustments (64) (131) (1,316) (3,047) (3,103) (1,795) ----------- ---------- ------------ ------------ ------------ ------------ as restated 42,226 109,894 220,583 251,528 (38,807) (5,191) =========== ========== ============ ============ ============ ============ Diluted EPS as reported 0.10 0.12 0.24 0.49 (0.08) (0.01) adjustments -- -- (0.01) (0.01) -- -- ----------- ---------- ------------ ------------ ------------ ------------ as restated 0.10 0.12 0.23 0.48 (0.08) (0.01) =========== ========== ============ ============ ============ ============ Selected Balance Sheet Data: - --------------------------------------------- Deferred Income Taxes as reported $ 13,270 $ -- $ 93,533 $ 110,856 $ 139,229 $ 157,608 adjustments 44 134 1,026 3,070 4,332 6,153 ----------- ---------- ------------ ------------ ------------ ------------ as restated 13,314 134 94,559 113,926 143,561 163,761 =========== ========== ============ ============ ============ ============ Restructuring and Other Long-Term Liabilities as reported 783 1,439 -- 3,048 127,419 106,078 adjustments 108 329 2,537 7,628 11,993 15,609 ----------- ---------- ------------ ------------ ------------ ------------ as restated 891 1,768 2,537 10,676 139,412 121,687 =========== ========== ============ ============ ============ ============ Retained Earnings as reported 56,973 103,104 226,248 480,823 445,119 441,723 adjustments (64) (195) (1,511) (4,558) (7,661) (9,456) ----------- ---------- ------------ ------------ ------------ ------------ as restated 56,909 102,909 224,737 476,265 437,458 432,267 =========== ========== ============ ============ ============ ============
SIEBEL SYSTEMS, INC.
Reconciliation of Selected As Reported and As Restated Data
(In thousands, except per share data)
Year Ended December 31, 2003 Year Ended December 31, 2004 --------------------------------------------------- ---------------------------------------- Selected Statement of Operations Data: Q1 2003 Q2 2003 Q3 2003 Q4 2003 Q1 2004 Q2 2004 Q3 2004 - --------------------------------------------- ----------- ---------- ------------ ------------ ------------ ------------ ------------ Total Costs and Expenses as reported $ 336,042 $ 328,208 $ 412,737 $ 310,980 $ 291,585 $ 297,030 $ 291,361 adjustments 1,436 1,325 (522) 1,377 1,137 1,175 1,758 ---------- ---------- ------------ ------------ ------------ ------------ ------------ as restated 337,478 329,533 412,215 312,357 292,722 298,205 293,119 =========== ========== ============ ============ ============ ============ ============ Operating Income (Loss) as reported (3,287) 5,091 (91,305) 55,762 37,702 4,029 25,725 adjustments (1,436) (1,325) 522 (1,377) (1,137) (1,175) (1,758) ----------- ---------- ------------ ------------ ------------ ------------ ------------ as restated (4,723) 3,766 (90,783) 54,385 36,565 2,854 23,967 =========== ========== ============ ============ ============ ============ ============ Net Income (Loss) as reported 4,618 9,768 (59,330) 41,548 31,652 8,216 19,370 adjustments (850) (759) 629 (815) (672) (695) (1,040) ----------- ---------- ------------ ------------ ------------ ------------ ------------ as restated 3,768 9,009 (58,701) 40,733 30,980 7,521 18,330 =========== ========== ============ ============ ============ ============ ============ Diluted EPS as reported 0.01 0.02 0.12 0.08 0.06 0.02 0.04 adjustments -- -- -- (0.01) -- (0.01) (0.01) ----------- ---------- ------------ ------------ ------------ ------------ ------------ as restated 0.01 0.02 0.12 0.07 0.06 0.01 0.03 =========== ========== ============ ============ ============ ============ ============ Selected Balance Sheet Data: - --------------------------------------------- Deferred Income Taxes as reported $ 139,463 $ 137,831 $ 165,717 $ 157,608 $ 154,652 $ 160,469 $ 159,088 adjustments 4,918 5,484 5,591 6,153 6,618 7,098 7,816 ----------- ---------- ------------ ------------ ------------ ------------ ------------ as restated 144,381 143,315 171,308 163,761 161,270 167,567 166,904 =========== ========== ============ ============ ============ ============ ============ Restructuring and Other Long-Term Liabilities as reported 114,812 84,520 127,421 106,078 98,689 89,896 81,509 adjustments 13,429 14,754 14,232 15,609 16,746 17,921 19,679 ----------- ---------- ------------ ------------ ------------ ------------ ------------ as restated 128,241 99,274 141,653 121,687 115,435 107,817 101,188 =========== ========== ============ ============ ============ ============ ============ Retained Earnings as reported 449,737 459,505 400,175 441,723 473,375 481,591 500,961 adjustments (8,511) (9,270) (8,641) (9,456) (10,128) (10,823) (11,863) ----------- ---------- ------------ ------------ ------------ ------------ ------------ as restated 441,226 450,235 391,534 432,267 463,247 470,768 489,098 =========== ========== ============ ============ ============ ============ ============
SIEBEL SYSTEMS, INC.
Consolidated Statements of Operations
(In thousands, except per share data)
Year Ended Year Ended December 31, December 31, 2003 Adjustments 2003 ------------------ --------------- --------------- (as reported) (as restated) Revenues: Software................................................... $ 482,274 $ -- $ 482,274 Professional services, maintenance and other............... 871,954 -- 871,954 ------------------ --------------- --------------- Total revenues......................................... 1,354,228 -- 1,354,228 ------------------ --------------- --------------- Cost of revenues: Software................................................... 18,357 -- 18,357 Professional services, maintenance and other............... 487,840 2,166 490,006 ------------------ -------------- -------------- Total cost of revenues................................. 506,197 2,166 508,363 ------------------ --------------- --------------- Gross margin........................................... 848,031 (2,166) 845,865 ------------------ --------------- --------------- Operating expenses: Product development........................................ 308,852 1,834 310,686 Sales and marketing........................................ 357,133 1,185 358,318 General and administrative................................. 106,082 512 106,594 Restructuring and related expenses......................... 104,391 (2,081) 102,310 Purchased in-process product development................... 5,312 -- 5,312 ------------------ --------------- --------------- Total operating expenses............................... 881,770 1,450 883,220 ------------------ --------------- --------------- Operating income (loss)................................ (33,739) (3,616) (37,355) ------------------ --------------- --------------- Other income, net: Interest and other income, net............................. 54,071 -- 54,071 Loss on early extinguishment of debt....................... (10,711) -- (10,711) Interest expense........................................... (14,927) -- (14,927) ------------------ --------------- --------------- Total other income, net................................ 28,433 -- 28,433 ------------------ --------------- --------------- Income (loss) before income taxes...................... (5,306) (3,616) (8,922) Income tax provision (benefit)................................. (1,910) (1,821) (3,731) ------------------ --------------- --------------- Net income (loss)...................................... $ (3,396) $ (1,795) $ (5,191) ================== =============== =============== Diluted net income (loss) per share............................ $ (0.01) $ -- $ (0.01) ================== =============== =============== Basic net income (loss) per share.............................. $ (0.01) $ -- $ (0.01) ================== =============== =============== Shares used in diluted share computation....................... 491,961 -- 491,961 ================== =============== =============== Shares used in basic share computation......................... 491,961 -- 491,961 ================== =============== ===============
SIEBEL SYSTEMS, INC.
Consolidated Statements of Operations
(In thousands, except per share data)
Year Ended Year Ended December 31, December 31, 2002 Adjustments 2002 ----------------- ---------------- ----------------- (as reported) (as restated) Revenues: Software............................................. $ 700,344 $ -- $ 700,344 Professional services, maintenance and other......... 934,963 -- 934,963 ----------------- ---------------- ----------------- Total revenues................................... 1,635,307 -- 1,635,307 ----------------- ---------------- ----------------- Cost of revenues: Software............................................. 21,612 -- 21,612 Professional services, maintenance and other......... 540,194 2,744 542,938 ----------------- --------------- ---------------- Total cost of revenues........................... 561,806 2,744 564,550 ----------------- ---------------- ----------------- Gross margin..................................... 1,073,501 (2,744) 1,070,757 ----------------- ---------------- ----------------- Operating expenses: Product development.................................. 366,230 2,157 368,387 Sales and marketing.................................. 476,975 1,841 478,816 General and administrative........................... 119,253 530 119,783 Restructuring and related expenses................... 205,305 (2,907) 202,398 ----------------- ---------------- ----------------- Total operating expenses......................... 1,167,763 1,621 1,169,384 ----------------- ---------------- ----------------- Operating income (loss).......................... (94,262) (4,365) (98,627) ----------------- ---------------- ----------------- Other income, net: Interest and other income, net....................... 58,491 -- 58,491 Interest expense..................................... (20,016) -- (20,016) ----------------- ---------------- ----------------- Total other income, net.......................... 38,475 -- 38,475 ----------------- ---------------- ----------------- Income (loss) before income taxes................ (55,787) (4,365) (60,152) Income tax provision (benefit)........................... (20,083) (1,262) (21,345) ----------------- ---------------- ----------------- Net income (loss)................................ $ (35,704) $ (3,103) $ (38,807) ================= ================ ================= Diluted net income (loss) per share...................... $ (0.08) $ -- $ (0.08) ================= ================ ================= Basic net income (loss) per share........................ $ (0.08) $ -- $ (0.08) ================= ================ ================= Shares used in diluted share computation................. 475,617 -- 475,617 ================= ================ ================= Shares used in basic share computation................... 475,617 -- 475,617 ================= ================ =================
SIEBEL SYSTEMS, INC.
Consolidated Statements of Operations
(In thousands, except per share data)
Year Ended Year Ended December 31, December 31, 2001 Adjustments 2001 ---------------- -------------- ----------------- (as reported) (as restated) Revenues: Software............................................... $ 1,065,618 $ -- $ 1,065,618 Professional services, maintenance and other........... 1,018,978 -- 1,018,978 ---------------- -------------- ----------------- Total revenues..................................... 2,084,596 -- 2,084,596 ---------------- -------------- ----------------- Cost of revenues: Software............................................... 16,294 -- 16,294 Professional services, maintenance and other........... 624,731 1,859 626,590 ---------------- ------------- ---------------- Total cost of revenues............................. 641,025 1,859 642,884 ---------------- -------------- ----------------- Gross margin....................................... 1,443,571 (1,859) 1,441,712 ---------------- -------------- ----------------- Operating expenses: Product development.................................... 333,661 993 334,654 Sales and marketing.................................... 615,675 1,833 617,508 General and administrative............................. 136,353 406 136,759 ---------------- -------------- ----------------- Total operating expenses........................... 1,085,689 3,232 1,088,921 ---------------- -------------- ----------------- Operating income (loss)............................ 357,882 (5,091) 352,791 ---------------- -------------- ----------------- Other income, net: Interest and other income, net......................... 64,528 -- 64,528 Interest expense....................................... (18,326) -- (18,326) ---------------- -------------- ----------------- Total other income, net............................ 46,202 -- 46,202 ---------------- -------------- ----------------- Income (loss) before income taxes.................. 404,084 (5,091) 398,993 Income tax provision (benefit)............................. 149,509 (2,044) 147,465 ---------------- -------------- ----------------- Net income (loss).................................. $ 254,575 $ (3,047) $ 251,528 ================ ============== ================= Diluted net income (loss) per share........................ $ 0.49 $ (0.01) $ 0.48 ================ ============== ================= Basic net income (loss) per share.......................... $ 0.56 $ (0.01) $ 0.55 ================ ============== ================= Shares used in diluted share computation................... 522,970 -- 522,970 ================ ============== ================= Shares used in basic share computation..................... 457,031 -- 457,031 ================ ============== =================
SIEBEL SYSTEMS, INC.
Consolidated Statements of Operations
(In thousands, except per share data)
Year Ended Year Ended December 31, December 31, 2000 Adjustments 2000 ----------------- --------------- --------------- (as reported) (as restated) Revenues: Software................................................ $ 1,114,753 $ -- $ 1,114,753 Professional services, maintenance and other............ 705,453 -- 705,453 ----------------- --------------- --------------- Total revenues...................................... 1,820,206 -- 1,820,206 ----------------- --------------- --------------- Cost of revenues: Software................................................ 18,391 -- 18,391 Professional services, maintenance and other............ 462,694 708 463,402 ----------------- -------------- -------------- Total cost of revenues.............................. 481,085 708 481,793 ----------------- --------------- --------------- Gross margin........................................ 1,339,121 (708) 1,338,413 ----------------- --------------- --------------- Operating expenses: Product development..................................... 238,020 364 238,384 Sales and marketing..................................... 609,898 934 610,832 General and administrative.............................. 132,164 202 132,366 Merger-related expenses................................. 36,504 -- 36,504 ----------------- --------------- --------------- Total operating expenses............................ 1,016,586 1,500 1,018,086 ----------------- --------------- --------------- Operating income (loss)............................. 322,535 (2,208) 320,327 ----------------- --------------- --------------- Other income, net: Interest and other income, net.......................... 79,784 -- 79,784 Interest expense........................................ (17,909) -- (17,909) ----------------- --------------- --------------- Total other income, net............................. 61,875 -- 61,875 ----------------- --------------- --------------- Income (loss) before income taxes................... 384,410 (2,208) 382,202 Income tax provision (benefit).............................. 162,511 (892) 161,619 ----------------- --------------- --------------- Net income (loss)................................... 221,899 (1,316) 220,583 Accretion of preferred stock................................ (98,755) -- (98,755) ----------------- --------------- --------------- Net income (loss) available to common stockholders.. $ 123,144 $ (1,316) $ 121,828 ================= =============== =============== Diluted net income (loss) per share......................... $ 0.24 $ (0.01) $ 0.23 ================= =============== =============== Basic net income (loss) per share........................... $ 0.29 $ -- $ 0.29 ================= =============== =============== Shares used in diluted share computation.................... 522,321 -- 522,321 ================= =============== =============== Shares used in basic share computation...................... 423,067 -- 423,067 ================= =============== ===============
SIEBEL SYSTEMS, INC.
Consolidated Statements of Operations
(In thousands, except per share data)
Year Ended Year Ended December 31, December 31, 1999 Adjustments 1999 ------------------- --------------- ------------------ (as reported) (as restated) Revenues: Software.................................................. $ 510,874 $ -- $ 510,874 Professional services, maintenance and other.............. 311,580 -- 311,580 ------------------- --------------- ------------------ Total revenues........................................ 822,454 -- 822,454 ------------------- --------------- ------------------ Cost of revenues: Software.................................................. 8,420 -- 8,420 Professional services, maintenance and other.............. 189,957 64 190,021 ------------------- -------------- ----------------- Total cost of revenues................................ 198,377 64 198,441 ------------------- --------------- ------------------ Gross margin.......................................... 624,077 (64) 624,013 ------------------- --------------- ------------------ Operating expenses: Product development....................................... 120,362 41 120,403 Sales and marketing....................................... 275,721 93 275,814 General and administrative................................ 66,807 23 66,830 ------------------- --------------- ------------------ Total operating expenses.............................. 462,890 157 463,047 ------------------- --------------- ------------------ Operating income (loss)............................... 161,187 (221) 160,966 ------------------- --------------- ------------------ Other income, net: Interest and other income, net............................ 21,190 -- 21,190 Interest expense.......................................... (6,100) -- (6,100) ------------------- --------------- ------------------ Total other income, net............................... 15,090 -- 15,090 ------------------- --------------- ------------------ Income (loss) before income taxes..................... 176,277 (221) 176,056 Income tax provision (benefit)................................ 66,252 (90) 66,162 ------------------- --------------- ------------------ Net income (loss)..................................... 110,025 (131) 109,894 Accretion of preferred stock.................................. (53,164) -- (53,164) ------------------- --------------- ------------------ Net income (loss) available to common stockholders.... $ 56,861 $ (131) $ 56,730 =================== =============== ================== Diluted net income (loss) per share........................... $ 0.12 $ -- $ 0.12 =================== =============== ================== Basic net income (loss) per share............................. $ 0.15 $ -- $ 0.15 =================== =============== ================== Shares used in diluted share computation...................... 467,907 -- 467,907 =================== =============== ================== Shares used in basic share computation........................ 387,867 -- 387,867 =================== =============== ==================
SIEBEL SYSTEMS, INC.
Consolidated Statements of Operations
(In thousands, except per share data)
Year Ended Year Ended December 31, December 31, 1998 Adjustments 1998 ----------------- --------------- --------------- (as reported) (as restated) Revenues: Software.................................................. $ 294,728 $ -- $ 294,728 Professional services, maintenance and other.............. 126,826 -- 126,826 ----------------- --------------- --------------- Total revenues........................................ 421,554 -- 421,554 ----------------- --------------- --------------- Cost of revenues: Software.................................................. 5,656 -- 5,656 Professional services, maintenance and other.............. 71,580 23 71,603 ----------------- -------------- -------------- Total cost of revenues................................ 77,236 23 77,259 ----------------- --------------- --------------- Gross margin.......................................... 344,318 (23) 344,295 ----------------- --------------- --------------- Operating expenses: Product development....................................... 64,004 20 64,024 Sales and marketing....................................... 167,669 54 167,723 General and administrative................................ 34,676 11 34,687 Merger-related expenses................................... 13,500 -- 13,500 ----------------- --------------- --------------- Total operating expenses.............................. 279,849 85 279,934 ----------------- --------------- --------------- Operating income (loss)............................... 64,469 (108) 64,361 ----------------- --------------- --------------- Other income, net: Interest and other income, net............................ 6,582 -- 6,582 Interest expense.......................................... (96) -- (96) ----------------- --------------- --------------- Total other income, net............................... 6,486 -- 6,486 ----------------- --------------- --------------- Income (loss) before income taxes..................... 70,955 (108) 70,847 Income tax provision (benefit)................................ 28,665 (44) 28,621 ----------------- --------------- --------------- Net income (loss)..................................... 42,290 (64) 42,226 Distributions to preferred stockholders as reported........... (39) -- (39) Accretion of preferred stock.................................. (325) -- (325) ----------------- --------------- --------------- Net income (loss) available to common stockholders.... $ 41,926 $ (64) $ 41,862 ================= =============== =============== Diluted net income (loss) per share........................... $ 0.10 $ -- $ 0.10 ================= =============== =============== Basic net income (loss) per share............................. $ 0.11 $ -- $ 0.11 ================= =============== =============== Shares used in diluted share computation...................... 416,395 -- 416,395 ================= =============== =============== Shares used in basic share computation........................ 364,964 -- 364,964 ================= =============== ===============
SIEBEL SYSTEMS, INC.
Consolidated Balance Sheets
(In thousands, except per share data)
December 31, December 31, 2003 Adjustments 2003 ----------------- --------------- ---------------- Assets (as reported) (as restated) Current assets: Cash and cash equivalents......................................... $ 583,532 $ -- $ 583,532 Short-term investments............................................ 1,439,674 -- 1,439,674 ----------------- --------------- ---------------- Total cash, cash equivalents, and short-term investments... 2,023,206 -- 2,023,206 Marketable equity securities...................................... 118 -- 118 Accounts receivable, net.......................................... 259,834 -- 259,834 Deferred income taxes............................................. 11,973 -- 11,973 Prepaids and other................................................ 52,068 -- 52,068 ----------------- --------------- ---------------- Total current assets....................................... 2,347,199 -- 2,347,199 Property and equipment, net.......................................... 157,391 -- 157,391 Goodwill............................................................. 140,957 -- 140,957 Intangible assets, net............................................... 10,786 -- 10,786 Other assets......................................................... 42,406 -- 42,406 Deferred income taxes................................................ 145,635 6,153 151,788 ----------------- --------------- ---------------- Total assets............................................... $ 2,844,374 $ 6,153 $ 2,850,527 ================= =============== ================ Liabilities and Stockholders' Equity Current liabilities: Accounts payable.................................................. $ 18,907 $ -- $ 18,907 Accrued expenses.................................................. 333,270 -- 333,270 Restructuring obligations......................................... 53,676 -- 53,676 Deferred revenue.................................................. 282,217 -- 282,217 ----------------- --------------- ---------------- Total current liabilities.................................. 688,070 -- 688,070 Restructuring obligations, less current portion...................... 97,919 1,331 99,250 Other long term liabilities.......................................... 8,159 14,278 22,437 ----------------- --------------- ---------------- Total liabilities.......................................... 794,148 15,609 809,757 ----------------- --------------- ---------------- Commitments and contingencies Stockholders' equity: Common stock....................................................... 498 -- 498 Additional paid-in capital......................................... 1,550,834 -- 1,550,834 Deferred compensation.............................................. (1,479) -- (1,479) Accumulated other comprehensive income............................. 58,650 -- 58,650 Retained earnings.................................................. 441,723 (9,456) 432,267 ----------------- --------------- ---------------- Total stockholders' equity................................. 2,050,226 (9,456) 2,040,770 ----------------- --------------- ---------------- Total liabilities and stockholders' equity................. $ 2,844,374 $ 6,153 $ 2,850,527 ================= =============== ================
SIEBEL SYSTEMS, INC.
Consolidated Balance Sheets
(In thousands, except per share data)
December 31, December 31, 2002 Adjustments 2002 --------------- -------------- --------------- Assets (as reported) (as restated) Current assets: Cash and cash equivalents............................................ $ 667,511 $ -- $ 667,511 Short-term investments............................................... 1,494,093 -- 1,494,093 --------------- -------------- --------------- Total cash, cash equivalents, and short-term investments...... 2,161,604 -- 2,161,604 Marketable equity securities......................................... 4,613 -- 4,613 Accounts receivable, net............................................. 275,764 -- 275,764 Deferred income taxes................................................ 12,456 -- 12,456 Prepaids and other................................................... 49,901 -- 49,901 --------------- -------------- --------------- Total current assets.......................................... 2,504,338 -- 2,504,338 Property and equipment, net............................................. 273,024 -- 273,024 Goodwill................................................................ 80,949 -- 80,949 Intangible assets, net.................................................. 10,354 -- 10,354 Other assets............................................................ 37,580 -- 37,580 Deferred income taxes................................................... 126,773 4,332 131,105 --------------- -------------- --------------- Total assets.................................................. $ 3,033,018 $ 4,332 $ 3,037,350 =============== ============== =============== Liabilities and Stockholders' Equity Current liabilities: Accounts payable..................................................... $ 15,239 $ -- $ 15,239 Accrued expenses..................................................... 319,622 -- 319,622 Restructuring obligations............................................ 42,703 -- 42,703 Deferred revenue..................................................... 270,575 -- 270,575 --------------- -------------- --------------- Total current liabilities..................................... 648,139 -- 648,139 Restructuring obligations, less current portion......................... 111,845 1,228 113,073 Capital lease obligations and other, less current portion............... 15,574 10,765 26,339 Convertible subordinated debentures..................................... 300,000 -- 300,000 --------------- -------------- --------------- Total liabilities............................................. 1,075,558 11,993 1,087,551 --------------- -------------- --------------- Commitments and contingencies Stockholders' equity: Common stock.......................................................... 486 -- 486 Additional paid-in capital............................................ 1,486,612 -- 1,486,612 Deferred compensation................................................. (3,438) -- (3,438) Accumulated other comprehensive income................................ 28,681 -- 28,681 Retained earnings..................................................... 445,119 (7,661) 437,458 --------------- -------------- --------------- Total stockholders' equity.................................... 1,957,460 (7,661) 1,949,799 --------------- -------------- --------------- Total liabilities and stockholders' equity.................... $ 3,033,018 $ 4,332 $ 3,037,350 =============== ============== ===============
SIEBEL SYSTEMS, INC.
Consolidated Balance Sheets
(In thousands, except per share data)
December 31, December 31, 2001 Adjustments 2001 ---------------- -------------- --------------- Assets (as reported) (as restated) Current assets: Cash and cash equivalents.......................................... $ 799,090 $ -- $ 799,090 Short-term investments............................................. 857,565 -- 857,565 ---------------- -------------- --------------- Total cash, cash equivalents, and short-term investments.... 1,656,655 -- 1,656,655 Marketable equity securities....................................... 8,254 -- 8,254 Accounts receivable, net........................................... 396,297 -- 396,297 Deferred income taxes.............................................. 3,472 -- 3,472 Prepaids and other................................................. 70,766 -- 70,766 ---------------- -------------- --------------- Total current assets........................................ 2,135,444 -- 2,135,444 Property and equipment, net........................................... 353,242 -- 353,242 Goodwill.............................................................. 72,869 -- 72,869 Intangible assets, net................................................ 19,000 -- 19,000 Other assets.......................................................... 56,905 -- 56,905 Deferred income taxes................................................. 107,384 3,070 110,454 ---------------- -------------- --------------- Total assets................................................ $ 2,744,844 $ 3,070 $ 2,747,914 ================ ============== =============== Liabilities and Stockholders' Equity Current liabilities: Accounts payable................................................... $ 14,395 $ -- $ 14,395 Accrued expenses................................................... 350,282 -- 350,282 Deferred revenue................................................... 241,017 -- 241,017 ---------------- -------------- --------------- Total current liabilities................................... 605,694 -- 605,694 Capital lease obligations and other, less current portion............. 3,048 7,628 10,676 Convertible subordinated debentures................................... 300,000 -- 300,000 ---------------- -------------- --------------- Total liabilities........................................... 908,742 7,628 916,370 ---------------- -------------- --------------- Commitments and contingencies Stockholders' equity: Common stock........................................................ 467 -- 467 Additional paid-in capital.......................................... 1,357,422 -- 1,357,422 Notes receivable from stockholders.................................. (422) -- (422) Deferred compensation............................................... (8,362) -- (8,362) Accumulated other comprehensive income.............................. 6,174 -- 6,174 Retained earnings................................................... 480,823 (4,558) 476,265 ---------------- -------------- --------------- Total stockholders' equity.................................. 1,836,102 (4,558) 1,831,544 ---------------- -------------- --------------- Total liabilities and stockholders' equity.................. $ 2,744,844 $ 3,070 $ 2,747,914 ================ ============== ===============
SIEBEL SYSTEMS, INC.
Consolidated Balance Sheets
(In thousands, except per share data)
December 31, December 31, 2000 Adjustments 2000 ----------------- ----------------- ----------------- Assets (as reported) (as restated) Current assets: Cash and cash equivalents.......................................... $ 751,384 $ -- $ 751,384 Short-term investments............................................. 401,200 -- 401,200 ----------------- ----------------- ----------------- Total cash, cash equivalents, and short-term investments.... 1,152,584 -- 1,152,584 Marketable equity securities....................................... 14,285 -- 14,285 Accounts receivable, net........................................... 521,358 -- 521,358 Deferred income taxes.............................................. 2,852 -- 2,852 Prepaids and other................................................. 92,825 -- 92,825 ----------------- ----------------- ----------------- Total current assets........................................ 1,783,904 -- 1,783,904 Property and equipment, net........................................... 189,610 -- 189,610 Goodwill.............................................................. 42,809 -- 42,809 Intangible assets, net................................................ 2,008 -- 2,008 Other assets.......................................................... 52,729 -- 52,729 Deferred income taxes................................................. 90,681 1,026 91,707 ----------------- ----------------- ----------------- Total assets................................................ $ 2,161,741 $ 1,026 $ 2,162,767 ================= ================= ================= Liabilities and Stockholders' Equity Current liabilities: Accounts payable................................................... $ 24,113 $ -- $ 24,113 Accrued expenses................................................... 355,159 -- 355,159 Deferred revenue................................................... 202,523 -- 202,523 ----------------- ----------------- ----------------- Total current liabilities................................... 581,795 -- 581,795 Capital lease obligations and other, less current portion............. -- 2,537 2,537 Convertible subordinated debentures................................... 300,000 -- 300,000 ----------------- ----------------- ----------------- Total liabilities........................................... 881,795 2,537 884,332 ----------------- ----------------- ----------------- Commitments and contingencies Stockholders' equity: Common stock........................................................ 442 -- 442 Additional paid-in capital.......................................... 1,062,599 -- 1,062,599 Notes receivable from stockholders.................................. (1,623) -- (1,623) Deferred compensation............................................... (15,199) -- (15,199) Accumulated other comprehensive income.............................. 7,479 -- 7,479 Retained earnings................................................... 226,248 (1,511) 224,737 ----------------- ----------------- ----------------- Total stockholders' equity.................................. 1,279,946 (1,511) 1,278,435 ----------------- ----------------- ----------------- Total liabilities and stockholders' equity.................. $ 2,161,741 $ 1,026 $ 2,162,767 ================= ================= =================
SIEBEL SYSTEMS, INC.
Consolidated Balance Sheets
(In thousands, except per share data)
December 31, December 31, 1999 Adjustments 1999 --------------- --------------- ---------------- Assets (as reported) (as restated) Current assets: Cash and cash equivalents.......................................... $ 486,321 $ -- $ 486,321 Short-term investments............................................. 198,878 -- 198,878 --------------- --------------- ---------------- Total cash, cash equivalents, and short-term investments.... 685,199 -- 685,199 Marketable equity securities....................................... 141,939 -- 141,939 Accounts receivable, net........................................... 300,468 -- 300,468 Deferred income taxes.............................................. -- -- -- Prepaids and other................................................. 33,401 -- 33,401 --------------- --------------- ---------------- Total current assets........................................ 1,161,007 -- 1,161,007 Property and equipment, net........................................... 60,624 -- 60,624 Other assets.......................................................... 53,970 -- 53,970 Deferred income taxes................................................. -- 134 134 --------------- --------------- ---------------- Total assets................................................ $ 1,275,601 $ 134 $ 1,275,735 =============== =============== ================ Liabilities and Stockholders' Equity Current liabilities: Accounts payable................................................... $ 12,944 $ -- $ 12,944 Accrued expenses................................................... 146,849 -- 146,849 Deferred revenue................................................... 89,240 -- 89,240 --------------- --------------- ---------------- Total current liabilities................................... 249,033 -- 249,033 Capital lease obligations and other, less current portion............. 1,439 329 1,768 Convertible subordinated debentures................................... 300,000 -- 300,000 --------------- --------------- ---------------- Total liabilities........................................... 550,472 329 550,801 --------------- --------------- ---------------- Mandatorily redeemable convertible preferred stock.................... 80,459 -- 80,459 Commitments and contingencies Stockholders' equity: Common stock........................................................ 403 -- 403 Preferred stock..................................................... 3 -- 3 Additional paid-in capital.......................................... 461,270 -- 461,270 Notes receivable from stockholders.................................. (548) -- (548) Deferred compensation............................................... (3,550) -- (3,550) Accumulated other comprehensive income.............................. 83,988 -- 83,988 Retained earnings................................................... 103,104 (195) 102,909 --------------- --------------- ---------------- Total stockholders' equity.................................. 644,670 (195) 644,475 --------------- --------------- ---------------- Total liabilities and stockholders' equity.................. $ 1,275,601 $ 134 $ 1,275,735 =============== =============== ================
SIEBEL SYSTEMS, INC.
Consolidated Balance Sheets
(In thousands, except per share data)
December 31, December 31, 1998 Adjustments 1998 ----------------- --------------- --------------- Assets (as reported) (as restated) Current assets: Cash and cash equivalents................................................... $ 80,741 $ -- $ 80,741 Short-term investments...................................................... 151,888 -- 151,888 ----------------- --------------- --------------- Total cash, cash equivalents, and short-term investments............. 232,629 -- 232,629 Accounts receivable, net.................................................... 126,081 -- 126,081 Deferred income taxes....................................................... 13,270 -- 13,270 Prepaids and other.......................................................... 14,402 -- 14,402 ----------------- --------------- --------------- Total current assets................................................. 386,382 -- 386,382 Property and equipment, net.................................................... 46,384 -- 46,384 Other assets................................................................... 14,830 -- 14,830 Deferred income taxes.......................................................... -- 44 44 ----------------- --------------- --------------- Total assets......................................................... $ 447,596 $ 44 $ 447,640 ================= =============== =============== Liabilities and Stockholders' Equity Current liabilities: Accounts payable............................................................ $ 4,558 $ -- $ 4,558 Accrued expenses............................................................ 99,102 -- 99,102 Deferred revenue............................................................ 52,033 -- 52,033 ----------------- --------------- --------------- Total current liabilities............................................ 155,693 -- 155,693 Capital lease obligations and other, less current portion...................... 783 108 891 ----------------- --------------- --------------- Total liabilities.................................................... 156,476 108 156,584 ----------------- --------------- --------------- Commitments and contingencies Stockholders' equity: Common stock................................................................. 182 -- 182 Additional paid-in capital................................................... 235,400 -- 235,400 Notes receivable from stockholders........................................... (406) -- (406) Deferred compensation........................................................ (360) -- (360) Accumulated other comprehensive income....................................... (669) -- (669) Retained earnings............................................................ 56,973 (64) 56,909 ----------------- --------------- --------------- Total stockholders' equity........................................... 291,120 (64) 291,056 ----------------- --------------- --------------- Total liabilities and stockholders' equity........................... $ 447,596 $ 44 $ 447,640 ================= =============== ===============
SIEBEL SYSTEMS, INC.
Consolidated Statements of Cash Flows
(In thousands)
Year Ended Year Ended December 31, December 31, 2003 Adjustments 2003 ---------------- --------------- ---------------- (as reported) (as restated) Cash flows from operating activities: Net income (loss)........................................................... $ (3,396) $ (1,795) $ (5,191) Adjustments to reconcile net income (loss) to net cash provided by operating activities: Depreciation and other amortization...................................... 150,938 -- 150,938 Write-off of property and equipment abandoned in restructuring........... 17,506 -- 17,506 Loss on early extinguishment of debt..................................... 10,711 -- 10,711 Write-off of acquired technology......................................... 2,449 -- 2,449 Write-off of purchased in process product development.................... 5,312 -- 5,312 Amortization of identifiable intangible assets........................... 6,295 -- 6,295 Compensation related to stock options, net............................... 1,640 -- 1,640 Provision for doubtful accounts and sales returns........................ 5,184 -- 5,184 Deferred income taxes.................................................... (15,449) (1,821) (17,270) Write-down of cost-method investments to fair value...................... 3,350 -- 3,350 Net realized gains on marketable investments............................. (6,737) -- (6,737) Changes in operating assets and liabilities: Accounts receivable................................................... 12,775 -- 12,775 Prepaids and other.................................................... (20,425) -- (20,425) Accounts payable and accrued expenses................................. 7,334 3,513 10,847 Restructuring obligations............................................. 2,824 103 2,927 Deferred revenue...................................................... 7,723 -- 7,723 ---------------- --------------- ---------------- Net cash provided by operating activities........................... 188,034 -- 188,034 ---------------- --------------- ---------------- Cash flows from investing activities: Purchases of property and equipment......................................... (14,958) -- (14,958) Purchases of short-term investments......................................... (1,980,246) -- (1,980,246) Sales and maturities of short-term investments.............................. 2,011,534 -- 2,011,534 Purchase consideration paid for acquired businesses, net of cash received... (62,574) -- (62,574) Proceeds from sale of marketable equity securities.......................... 5,593 -- 5,593 Other non-operating assets and non-marketable securities.................... (519) -- (519) ---------------- --------------- ---------------- Net cash used in investing activities............................... (41,170) -- (41,170) ---------------- --------------- ---------------- Cash flows from financing activities: Proceeds from issuance of common stock, net of repurchases.................. 62,636 -- 62,636 Repurchase of convertible subordinated debentures........................... (307,080) -- (307,080) Repayments of capital lease obligations..................................... (12,766) -- (12,766) ---------------- --------------- ---------------- Net cash provided by (used in) financing activities................. (257,210) -- (257,210) ---------------- --------------- ---------------- Effect of exchange rate fluctuations........................................... 26,367 -- 26,367 ---------------- --------------- ---------------- Change in cash and cash equivalents............................................ (83,979) -- (83,979) Cash and cash equivalents, beginning of period................................. 667,511 -- 667,511 ---------------- --------------- ---------------- Cash and cash equivalents, end of period....................................... $ 583,532 $ -- $ 583,532 ================ =============== ================
SIEBEL SYSTEMS, INC.
Consolidated Statements of Cash Flows
(In thousands)
Year Ended Year Ended December 31, December 31, 2002 Adjustments 2002 --------------- -------------- ---------------- (as reported) (as restated) Cash flows from operating activities: Net income (loss).............................................................. $ (35,704) $ (3,103) $ (38,807) Adjustments to reconcile net income (loss) to net cash provided by operating activities: Depreciation and other amortization......................................... 145,238 -- 145,238 Write-off of property and equipment abandoned in restructuring.............. 25,955 -- 25,955 Amortization of identifiable intangible assets.............................. 8,646 -- 8,646 Compensation related to stock options, net.................................. 4,126 -- 4,126 Compensation expense related to common shares issued in Option Repurchase... 31,471 -- 31,471 Provision for doubtful accounts and sales returns........................... 21,376 -- 21,376 Deferred income taxes....................................................... (50,431) (1,262) (51,693) Write-down of cost-method investments to fair value......................... 9,990 -- 9,990 Net realized gains on marketable investments................................ (12,420) -- (12,420) Changes in operating assets and liabilities: Accounts receivable...................................................... 99,157 -- 99,157 Prepaids and other....................................................... 20,865 -- 20,865 Accounts payable and accrued expenses.................................... (19,172) 3,137 (16,035) Restructuring obligations................................................ 154,548 1,228 155,776 Deferred revenue......................................................... 29,558 -- 29,558 --------------- -------------- ---------------- Net cash provided by operating activities.............................. 433,203 -- 433,203 --------------- -------------- ---------------- Cash flows from investing activities: Purchases of property and equipment............................................ (70,809) -- (70,809) Purchases of short-term investments............................................ (2,347,660) -- (2,347,660) Sales and maturities of short-term investments................................. 1,718,362 -- 1,718,362 Purchase consideration paid for acquired businesses, net of cash received...... (500) -- (500) Purchase of marketable equity securities....................................... (1,000) -- (1,000) Proceeds from sale of marketable equity securities............................. 1,189 -- 1,189 Other non-operating assets and non-marketable securities....................... 7,991 -- 7,991 --------------- -------------- ---------------- Net cash used in investing activities.................................. (692,427) -- (692,427) --------------- -------------- ---------------- Cash flows from financing activities: Proceeds from issuance of common stock, net of repurchases..................... 92,532 -- 92,532 Repayments of capital lease obligations........................................ (8,714) -- (8,714) Proceeds from equipment financing.............................................. 24,873 -- 24,873 Repayments of stockholder notes................................................ 422 -- 422 --------------- -------------- ---------------- Net cash provided by financing activities.............................. 109,113 -- 109,113 --------------- -------------- ---------------- Effect of exchange rate fluctuations.............................................. 18,532 -- 18,532 --------------- -------------- ---------------- Change in cash and cash equivalents............................................... (131,579) -- (131,579) Cash and cash equivalents, beginning of period.................................... 799,090 -- 799,090 --------------- -------------- ---------------- Cash and cash equivalents, end of period.......................................... $ 667,511 $ -- $ 667,511 =============== ============== ================
SIEBEL SYSTEMS, INC.
Consolidated Statements of Cash Flows
(In thousands)
Year Ended Year Ended December 31, December 31, 2001 Adjustments 2001 ------------------ -------------- ----------------- (as reported) (as restated) Cash flows from operating activities: Net income (loss)........................................................... $ 254,575 $ (3,047) $ 251,528 Adjustments to reconcile net income (loss) to net cash provided by operating activities: Depreciation and other amortization...................................... 93,179 -- 93,179 Amortization of identifiable intangible assets........................... 6,518 -- 6,518 Compensation related to stock options, net............................... 5,169 -- 5,169 Amortization of goodwill................................................. 20,041 -- 20,041 Provision for doubtful accounts and sales returns........................ 26,403 -- 26,403 Tax benefit from exercise of stock options............................... 53,800 -- 53,800 Deferred income taxes.................................................... (11,636) (2,044) (13,680) Write-down of cost-method investments to fair value...................... 3,073 -- 3,073 Net realized gains on marketable investments............................. (3,399) -- (3,399) Exchange of software for cost-method investments......................... (971) -- (971) Changes in operating assets and liabilities: Accounts receivable................................................... 105,816 -- 105,816 Prepaids and other.................................................... 17,247 -- 17,247 Accounts payable and accrued expenses................................. (19,616) 5,091 (14,525) Deferred revenue...................................................... 38,002 -- 38,002 ------------------ -------------- ----------------- Net cash provided by operating activities........................... 588,201 -- 588,201 ------------------ -------------- ----------------- Cash flows from investing activities: Purchases of property and equipment......................................... (245,945) -- (245,945) Purchases of short-term investments......................................... (1,113,004) -- (1,113,004) Sales and maturities of short-term investments.............................. 668,028 -- 668,028 Purchase consideration paid for acquired businesses, net of cash received... 8,555 -- 8,555 Proceeds from sale of marketable equity securities.......................... 821 -- 821 Other non-operating assets and non-marketable securities.................... (23,068) -- (23,068) Repayments from (advances to) affiliate, net................................ 10,579 -- 10,579 ------------------ -------------- ----------------- Net cash used in investing activities............................... (694,034) -- (694,034) ------------------ -------------- ----------------- Cash flows from financing activities: Proceeds from issuance of common stock, net of repurchases.................. 156,156 -- 156,156 Repayments of capital lease obligations..................................... (580) -- (580) Repayments of stockholder notes............................................. 1,201 -- 1,201 ------------------ -------------- ----------------- Net cash provided by financing activities........................... 156,777 -- 156,777 ------------------ -------------- ----------------- Effect of exchange rate fluctuations........................................... (3,238) -- (3,238) ------------------ -------------- ----------------- Change in cash and cash equivalents............................................ 47,706 -- 47,706 Cash and cash equivalents, beginning of period................................. 751,384 -- 751,384 ------------------ -------------- ----------------- Cash and cash equivalents, end of period....................................... $ 799,090 $ -- $ 799,090 ================== ============== =================
SIEBEL SYSTEMS, INC.
Consolidated Statements of Cash Flows
(In thousands)
Year Ended Year Ended December 31, December 31, 2000 Adjustments 2000 ---------------- -------------- ----------------- (as reported) (as restated) Cash flows from operating activities: Net income (loss)........................................................... $ 221,899 $ (1,316) $ 220,583 Adjustments to reconcile net income (loss) to net cash provided by operating activities: Depreciation and other amortization...................................... 35,352 -- 35,352 Write-off of acquired companies' assets.................................. 2,298 -- 2,298 Amortization of identifiable intangible assets........................... 1,326 -- 1,326 Compensation related to stock options, net............................... 11,491 -- 11,491 Amortization of goodwill................................................. 14,713 -- 14,713 Provision for doubtful accounts and sales returns........................ 39,385 -- 39,385 Tax benefit from exercise of stock options............................... 185,613 -- 185,613 Deferred income taxes.................................................... (62,059) (892) (62,951) Charitable contribution of marketable investments........................ 28,700 -- 28,700 Loss from equity method investee......................................... 7,481 -- 7,481 Loss on disposal of property and equipment............................... 13 -- 13 Net realized gains on marketable investments............................. (60,901) -- (60,901) Exchange of software for cost-method investments......................... (13,068) -- (13,068) Changes in operating assets and liabilities: Accounts receivable................................................... (264,251) -- (264,251) Prepaids and other.................................................... (53,095) -- (53,095) Accounts payable and accrued expenses................................. 230,807 2,208 233,015 Deferred revenue...................................................... 112,864 -- 112,864 ---------------- -------------- ----------------- Net cash provided by operating activities........................... 438,568 -- 438,568 ---------------- -------------- ----------------- Cash flows from investing activities: Purchases of property and equipment......................................... (162,161) -- (162,161) Purchases of short-term investments......................................... (487,888) -- (487,888) Sales and maturities of short-term investments.............................. 290,088 -- 290,088 Purchase consideration paid for acquired businesses, net of cash received... (29,212) -- (29,212) Proceeds from sale of marketable equity securities.......................... 35,351 -- 35,351 Other non-operating assets and non-marketable securities.................... (18,084) -- (18,084) Repayments from (advances to) affiliate, net................................ (12,362) -- (12,362) ---------------- -------------- ----------------- Net cash used in investing activities............................... (384,268) -- (384,268) ---------------- -------------- ----------------- Cash flows from financing activities: Proceeds from issuance of common stock, net of repurchases.................. 189,173 -- 189,173 Proceeds from issuance of preferred stock, net of repurchases............... 19,975 -- 19,975 Repayments of capital lease obligations..................................... (299) -- (299) Repayments of stockholder notes............................................. 78 -- 78 ---------------- -------------- ----------------- Net cash provided by financing activities........................... 208,927 -- 208,927 ---------------- -------------- ----------------- Effect of exchange rate fluctuations........................................... 1,836 -- 1,836 ---------------- -------------- ----------------- Change in cash and cash equivalents............................................ 265,063 -- 265,063 Cash and cash equivalents, beginning of period................................. 486,321 -- 486,321 ---------------- -------------- ----------------- Cash and cash equivalents, end of period....................................... $ 751,384 $ -- $ 751,384 ================ ============== =================
SIEBEL SYSTEMS, INC.
Consolidated Statements of Cash Flows
(In thousands)
Year Ended Year Ended December 31, December 31, 1999 Adjustments 1999 ---------------- -------------- ---------------- (as reported) (as restated) Cash flows from operating activities: Net income (loss)........................................................... $ 110,025 $ (131) $ 109,894 Adjustments to reconcile net income (loss) to net cash provided by operating activities: Depreciation and other amortization...................................... 19,334 -- 19,334 Amortization of identifiable intangible assets........................... 292 -- 292 Compensation related to stock options, net............................... 1,180 -- 1,180 Compensation related to stock warrants................................... 269 -- 269 Amortization of goodwill................................................. 4,529 -- 4,529 Provision for doubtful accounts and sales returns........................ 8,111 -- 8,111 Tax benefit from exercise of stock options............................... 91,679 -- 91,679 Deferred income taxes.................................................... (18,217) (90) (18,307) Loss on disposal of property and equipment............................... 737 -- 737 Net realized gains on marketable investments............................. (12,343) -- (12,343) Changes in operating assets and liabilities: Accounts receivable................................................... (175,842) -- (175,842) Prepaids and other.................................................... (16,705) -- (16,705) Accounts payable and accrued expenses................................. 40,745 221 40,966 Deferred revenue...................................................... 35,952 -- 35,952 ---------------- -------------- ---------------- Net cash provided by operating activities........................... 89,746 -- 89,746 ---------------- -------------- ---------------- Cash flows from investing activities: Purchases of property and equipment......................................... (45,604) -- (45,604) Proceeds from disposal of property and equipment............................ 13,284 -- 13,284 Purchases of short-term investments......................................... (126,171) -- (126,171) Sales and maturities of short-term investments.............................. 90,713 -- 90,713 Purchase consideration paid for acquired businesses, net of cash received... (250) -- (250) Other non-operating assets and non-marketable securities.................... (22,519) -- (22,519) ---------------- -------------- ---------------- Net cash used in investing activities............................... (90,547) -- (90,547) ---------------- -------------- ---------------- Cash flows from financing activities: Proceeds from issuance of common stock, net of repurchases.................. 76,233 -- 76,233 Proceeds from issuance of preferred stock, net of repurchases............... 33,139 -- 33,139 Proceeds from issuance of convertible debt, net............................. 291,316 -- 291,316 Repayments on line of credit, net........................................... (2,063) -- (2,063) Subchapter S distributions.................................................. (2,080) -- (2,080) ---------------- -------------- ---------------- Net cash provided by financing activities........................... 396,545 -- 396,545 ---------------- -------------- ---------------- Effect of exchange rate fluctuations........................................... 115 -- 115 ---------------- -------------- ---------------- Change in cash and cash equivalents............................................ 395,859 -- 395,859 Cash and cash equivalents, beginning of period................................. 90,462 -- 90,462 ---------------- -------------- ---------------- Cash and cash equivalents, end of period....................................... $ 486,321 $ -- $ 486,321 ================ ============== ================
SIEBEL SYSTEMS, INC.
Consolidated Statements of Cash Flows
(In thousands)
Year Ended Year Ended December 31, December 31, 1998 Adjustments 1998 ---------------- -------------- --------------- (as reported) (as restated) Cash flows from operating activities: Net income (loss)........................................................... $ 42,290 $ (64) $ 42,226 Adjustments to reconcile net income (loss) to net cash provided by operating activities: Depreciation and other amortization...................................... 13,936 -- 13,936 Compensation related to stock options, net............................... 288 -- 288 Compensation related to stock warrants................................... 54 -- 54 Provision for doubtful accounts and sales returns........................ 6,661 -- 6,661 Tax benefit from exercise of stock options............................... 13,517 -- 13,517 Deferred income taxes.................................................... (9,188) (44) (9,232) Loss on disposal of property and equipment............................... 4,557 -- 4,557 Changes in operating assets and liabilities: Accounts receivable................................................... (70,120) -- (70,120) Prepaids and other.................................................... (7,009) -- (7,009) Accounts payable and accrued expenses................................. 60,294 108 60,402 Deferred revenue...................................................... 31,150 -- 31,150 ---------------- -------------- --------------- Net cash provided by operating activities........................... 86,430 -- 86,430 ---------------- -------------- --------------- Cash flows from investing activities: Purchases of property and equipment......................................... (40,641) -- (40,641) Purchases, sales and maturities of short-term investments, net.............. (58,454) -- (58,454) Cash acquired in acquisitions............................................... (31) -- (31) Other non-operating assets and non-marketable securities.................... (2,641) -- (2,641) ---------------- -------------- --------------- Net cash used in investing activities............................... (101,767) -- (101,767) ---------------- -------------- --------------- Cash flows from financing activities: Proceeds from issuance of common stock, net of repurchases.................. 28,987 -- 28,987 Proceeds from issuance of preferred stock, net of repurchases............... 10,544 -- 10,544 Borrowings on line of credit................................................ 1,542 -- 1,542 Repayments of line of credit and capital lease obligations.................. (91) -- (91) Subchapter S distributions.................................................. (2,546) -- (2,546) ---------------- -------------- --------------- Net cash provided by financing activities........................... 38,436 -- 38,436 ---------------- -------------- --------------- Effect of exchange rate fluctuations........................................... (203) -- (203) ---------------- -------------- --------------- Change in cash and cash equivalents............................................ 22,896 -- 22,896 Adjustments to conform acquired company's year end............................. (4,140) -- (4,140) Cash and cash equivalents, beginning of period................................. 71,706 -- 71,706 ---------------- -------------- --------------- Cash and cash equivalents, end of period....................................... $ 90,462 $ -- $ 90,462 ================ ============== ===============
SIEBEL SYSTEMS, INC.
Consolidated Statements of Operations
(In thousands, except per share data)
Three Months Three Months Ended Ended September 30, September 30, 2004 Adjustments 2004 ----------------- ---------------- ----------------- (as reported) (as restated) Revenues: Software............................................. $ 104,579 $ -- $ 104,579 Professional services, maintenance and other......... 212,507 -- 212,507 ----------------- ---------------- ----------------- Total revenues................................... 317,086 -- 317,086 ----------------- ---------------- ----------------- Cost of revenues: Software............................................. 3,010 -- 3,010 Professional services, maintenance and other......... 108,868 278 109,146 ----------------- --------------- ---------------- Total cost of revenues........................... 111,878 278 112,156 ----------------- ---------------- ----------------- Gross margin..................................... 205,208 (278) 204,930 ----------------- ---------------- ----------------- Operating expenses: Product development.................................. 69,718 592 70,310 Sales and marketing.................................. 76,500 168 76,668 General and administrative........................... 27,114 129 27,243 Restructuring and related expenses................... 6,151 591 6,742 ----------------- ---------------- ----------------- Total operating expenses......................... 179,483 1,480 180,963 ----------------- ---------------- ----------------- Operating income (loss).......................... 25,725 (1,758) 23,967 ----------------- ---------------- ----------------- Other income, net: Interest and other income, net....................... 11,698 -- 11,698 Interest expense..................................... (174) -- (174) ----------------- ---------------- ----------------- Total other income, net.......................... 11,524 -- 11,524 ----------------- ---------------- ----------------- Income (loss) before income taxes................ 37,249 (1,758) 35,491 Income tax provision (benefit)........................... 17,879 (718) 17,161 ----------------- ---------------- ----------------- Net income (loss)................................ $ 19,370 $ (1,040) $ 18,330 ================= ================ ================= Diluted net income (loss) per share...................... $ 0.04 $ (0.01) $ 0.03 ================= ================ ================= Basic net income (loss) per share........................ $ 0.04 $ -- $ 0.04 ================= ================ ================= Shares used in diluted share computation................. 533,303 -- 533,303 ================= ================ ================= Shares used in basic share computation................... 506,706 -- 506,706 ================= ================ =================
SIEBEL SYSTEMS, INC.
Consolidated Statements of Operations
(In thousands, except per share data)
Three Months Three Months Ended Ended June 30, June 30, 2004 Adjustments 2004 ---------------- -------------- --------------- (as reported) (as restated) Revenues: Software.................................................... $ 94,829 $ -- $ 94,829 Professional services, maintenance and other................ 206,230 -- 206,230 ---------------- -------------- --------------- Total revenues.......................................... 301,059 -- 301,059 ---------------- -------------- --------------- Cost of revenues: Software.................................................... 2,837 -- 2,837 Professional services, maintenance and other................ 107,741 309 108,050 ---------------- ------------- -------------- Total cost of revenues.................................. 110,578 309 110,887 ---------------- -------------- --------------- Gross margin............................................ 190,481 (309) 190,172 ---------------- -------------- --------------- Operating expenses: Product development......................................... 75,537 590 76,127 Sales and marketing......................................... 78,409 143 78,552 General and administrative.................................. 27,512 133 27,645 Restructuring and related expenses.......................... (1,006) -- (1,006) Purchased in-process product development.................... 6,000 -- 6,000 ---------------- -------------- --------------- Total operating expenses................................ 186,452 866 187,318 ---------------- -------------- --------------- Operating income (loss)................................. 4,029 (1,175) 2,854 ---------------- -------------- --------------- Other income, net: Interest and other income, net.............................. 10,031 -- 10,031 Interest expense............................................ (234) -- (234) ---------------- -------------- --------------- Total other income, net................................. 9,797 -- 9,797 ---------------- -------------- --------------- Income (loss) before income taxes....................... 13,826 (1,175) 12,651 Income tax provision (benefit).................................. 5,610 (480) 5,130 ---------------- -------------- --------------- Net income (loss)....................................... $ 8,216 $ (695) $ 7,521 ================ ============== =============== Diluted net income (loss) per share............................. $ 0.02 $ (0.01) $ 0.01 ================ ============== =============== Basic net income (loss) per share............................... $ 0.02 $ (0.01) $ 0.01 ================ ============== =============== Shares used in diluted share computation........................ 541,543 -- 541,543 ================ ============== =============== Shares used in basic share computation.......................... 504,114 -- 504,114 ================ ============== ===============
SIEBEL SYSTEMS, INC.
Consolidated Statements of Operations
(In thousands, except per share data)
Three Months Three Months Ended Ended March 31, March 31, 2004 Adjustments 2004 ---------------- -------------- ----------------- (as reported) (as restated) Revenues: Software................................................. $ 126,799 $ -- $ 126,799 Professional services, maintenance and other............. 202,488 -- 202,488 ---------------- -------------- ----------------- Total revenues....................................... 329,287 -- 329,287 ---------------- -------------- ----------------- Cost of revenues: Software................................................. 3,207 -- 3,207 Professional services, maintenance and other............. 107,925 289 108,214 ---------------- ------------- ---------------- Total cost of revenues............................... 111,132 289 111,421 ---------------- -------------- ----------------- Gross margin......................................... 218,155 (289) 217,866 ---------------- -------------- ----------------- Operating expenses: Product development...................................... 72,024 609 72,633 Sales and marketing...................................... 86,257 141 86,398 General and administrative............................... 21,574 125 21,699 Restructuring and related expenses....................... 598 (27) 571 ---------------- -------------- ----------------- Total operating expenses............................. 180,453 848 181,301 ---------------- -------------- ----------------- Operating income (loss).............................. 37,702 (1,137) 36,565 ---------------- -------------- ----------------- Other income, net: Interest and other income, net........................... 12,075 -- 12,075 Interest expense......................................... (320) -- (320) ---------------- -------------- ----------------- Total other income, net.............................. 11,755 -- 11,755 ---------------- -------------- ----------------- Income (loss) before income taxes.................... 49,457 (1,137) 48,320 Income tax provision (benefit)............................... 17,805 (465) 17,340 ---------------- -------------- ----------------- Net income (loss).................................... $ 31,652 $ (672) $ 30,980 ================ ============== ================= Diluted net income (loss) per share.......................... $ 0.06 $ -- $ 0.06 ================ ============== ================= Basic net income (loss) per share............................ $ 0.06 $ -- $ 0.06 ================ ============== ================= Shares used in diluted share computation..................... 546,401 -- 546,401 ================ ============== ================= Shares used in basic share computation....................... 501,128 -- 501,128 ================ ============== =================
SIEBEL SYSTEMS, INC.
Consolidated Statements of Operations
(In thousands, except per share data)
Three Months Three Months Ended Ended December 31, December 31, 2003 Adjustments 2003 ------------------ ----------------- ----------------- (as reported) (as restated) Revenues: Software..................................................... $ 150,285 $ -- $ 150,285 Professional services, maintenance and other................. 216,457 -- 216,457 ------------------ ----------------- ----------------- Total revenues........................................... 366,742 -- 366,742 ------------------ ----------------- ----------------- Cost of revenues: Software..................................................... 3,394 -- 3,394 Professional services, maintenance and other................. 115,698 513 116,211 ------------------ ---------------- ---------------- Total cost of revenues................................... 119,092 513 119,605 ------------------ ----------------- ----------------- Gross margin............................................. 247,650 (513) 247,137 ------------------ ----------------- ----------------- Operating expenses: Product development.......................................... 82,675 471 83,146 Sales and marketing.......................................... 80,329 283 80,612 General and administrative................................... 24,222 110 24,332 Restructuring and related expenses........................... (650) -- (650) Purchased in-process product development..................... 5,312 -- 5,312 ------------------ ----------------- ----------------- Total operating expenses................................. 191,888 864 192,752 ------------------ ----------------- ----------------- Operating income (loss).................................. 55,762 (1,377) 54,385 ------------------ ----------------- ----------------- Other income, net: Interest and other income, net............................... 9,509 -- 9,509 Interest expense............................................. (352) -- (352) ------------------ ----------------- ----------------- Total other income, net.................................. 9,157 -- 9,157 ------------------ ----------------- ----------------- Income (loss) before income taxes........................ 64,919 (1,377) 63,542 Income tax provision (benefit)................................... 23,371 (562) 22,809 ------------------ ----------------- ----------------- Net income (loss)........................................ $ 41,548 $ (815) $ 40,733 ================== ================= ================= Diluted net income (loss) per share.............................. $ 0.08 $ (0.01) $ 0.07 ================== ================= ================= Basic net income (loss) per share................................ $ 0.08 $ -- $ 0.08 ================== ================= ================= Shares used in diluted share computation......................... 543,535 -- 543,535 ================== ================= ================= Shares used in basic share computation........................... 496,579 -- 496,579 ================== ================= =================
SIEBEL SYSTEMS, INC.
Consolidated Statements of Operations
(In thousands, except per share data)
Three Months Three Months Ended Ended September 30, September 30, 2003 Adjustments 2003 ------------------ --------------- ---------------- (as reported) (as restated) Revenues: Software.................................................. $ 110,003 $ -- $ 110,003 Professional services, maintenance and other.............. 211,429 -- 211,429 ------------------ --------------- ---------------- Total revenues........................................ 321,432 -- 321,432 ------------------ --------------- ---------------- Cost of revenues: Software.................................................. 5,974 -- 5,974 Professional services, maintenance and other.............. 120,489 562 121,051 ------------------ -------------- --------------- Total cost of revenues................................ 126,463 562 127,025 ------------------ --------------- ---------------- Gross margin.......................................... 194,969 (562) 194,407 ------------------ --------------- ---------------- Operating expenses: Product development....................................... 71,432 463 71,895 Sales and marketing....................................... 82,756 280 83,036 General and administrative................................ 27,319 107 27,426 Restructuring and related expenses........................ 104,767 (1,934) 102,833 ------------------ --------------- ---------------- Total operating expenses.............................. 286,274 (1,084) 285,190 ------------------ --------------- ---------------- Operating income (loss)............................... (91,305) 522 (90,783) ------------------ --------------- ---------------- Other income, net: Interest and other income, net............................ 14,140 -- 14,140 Loss on early extinguishment of debt...................... (10,711) -- (10,711) Interest expense.......................................... (4,827) -- (4,827) ------------------ --------------- ---------------- Total other income, net............................... (1,398) -- (1,398) ------------------ --------------- ---------------- Income (loss) before income taxes..................... (92,703) 522 (92,181) Income tax provision (benefit)................................ (33,373) (107) (33,480) ------------------ --------------- ---------------- Net income (loss)..................................... $ (59,330) $ 629 $ (58,701) ================== =============== ================ Diluted net income (loss) per share........................... $ (0.12) $ -- $ (0.12) ================== =============== ================ Basic net income (loss) per share............................. $ (0.12) $ -- $ (0.12) ================== =============== ================ Shares used in diluted share computation...................... 493,933 -- 493,933 ================== =============== ================ Shares used in basic share computation........................ 493,933 -- 493,933 ================== =============== ================
SIEBEL SYSTEMS, INC.
Consolidated Statements of Operations
(In thousands, except per share data)
Three Months Three Months Ended Ended June 30, June 30, 2003 Adjustments 2003 ---------------- --------------- ----------------- (as reported) (as restated) Revenues: Software................................................... $ 109,894 $ -- $ 109,894 Professional services, maintenance and other............... 223,405 -- 223,405 ---------------- --------------- ----------------- Total revenues......................................... 333,299 -- 333,299 ---------------- --------------- ----------------- Cost of revenues: Software................................................... 4,268 -- 4,268 Professional services, maintenance and other............... 126,141 531 126,672 ---------------- -------------- ---------------- Total cost of revenues................................. 130,409 531 130,940 ---------------- --------------- ----------------- Gross margin........................................... 202,890 (531) 202,359 ---------------- --------------- ----------------- Operating expenses: Product development........................................ 75,474 463 75,937 Sales and marketing........................................ 93,876 316 94,192 General and administrative................................. 28,175 162 28,337 Restructuring and related expenses......................... 274 (147) 127 ---------------- --------------- ----------------- Total operating expenses............................... 197,799 794 198,593 ---------------- --------------- ----------------- Operating income (loss)................................ 5,091 (1,325) 3,766 ---------------- --------------- ----------------- Other income, net: Interest and other income, net............................. 15,025 -- 15,025 Interest expense........................................... (4,854) -- (4,854) ---------------- --------------- ----------------- Total other income, net................................ 10,171 -- 10,171 ---------------- --------------- ----------------- Income (loss) before income taxes...................... 15,262 (1,325) 13,937 Income tax provision (benefit)................................. 5,494 (566) 4,928 ---------------- --------------- ----------------- Net income (loss)...................................... $ 9,768 $ (759) $ 9,009 ================ =============== ================= Diluted net income (loss) per share............................ $ 0.02 $ -- $ 0.02 ================ =============== ================= Basic net income (loss) per share.............................. $ 0.02 $ -- $ 0.02 ================ =============== ================= Shares used in diluted share computation....................... 526,726 -- 526,726 ================ =============== ================= Shares used in basic share computation......................... 490,078 -- 490,078 ================ =============== =================
SIEBEL SYSTEMS, INC.
Consolidated Statements of Operations
(In thousands, except per share data)
Three Months Three Months Ended Ended March 31, March 31, 2003 Adjustments 2003 ----------------- -------------- ----------------- (as reported) (as restated) Revenues: Software............................................ $ 112,092 $ -- $ 112,092 Professional services, maintenance and other........ 220,663 -- 220,663 ----------------- -------------- ----------------- Total revenues.................................. 332,755 -- 332,755 ----------------- -------------- ----------------- Cost of revenues: Software............................................ 4,721 -- 4,721 Professional services, maintenance and other........ 125,512 560 126,072 ----------------- ------------- ---------------- Total cost of revenues.......................... 130,233 560 130,793 ----------------- -------------- ----------------- Gross margin.................................... 202,522 (560) 201,962 ----------------- -------------- ----------------- Operating expenses: Product development................................. 79,271 437 79,708 Sales and marketing................................. 100,172 306 100,478 General and administrative.......................... 26,366 133 26,499 ----------------- -------------- ----------------- Total operating expenses........................ 205,809 876 206,685 ----------------- -------------- ----------------- Operating income (loss)......................... (3,287) (1,436) (4,723) ----------------- -------------- ----------------- Other income, net: Interest and other income, net...................... 15,397 -- 15,397 Interest expense.................................... (4,894) -- (4,894) ----------------- -------------- ----------------- Total other income, net......................... 10,503 -- 10,503 ----------------- -------------- ----------------- Income (loss) before income taxes............... 7,216 (1,436) 5,780 Income tax provision (benefit).......................... 2,598 (586) 2,012 ----------------- -------------- ----------------- Net income (loss)............................... $ 4,618 $ (850) $ 3,768 ================= ============== ================= Diluted net income (loss) per share..................... $ 0.01 $ -- $ 0.01 ================= ============== ================= Basic net income (loss) per share....................... $ 0.01 $ -- $ 0.01 ================= ============== ================= Shares used in diluted share computation................ 511,391 -- 511,391 ================= ============== ================= Shares used in basic share computation.................. 487,254 -- 487,254 ================= ============== =================* Certain prior year amounts have been reclassified to conform to the current year presentation.