In the three-month period to June 30, Siebel posted $30.7 million in concurrent transactions compared with $12.2 million in the corresponding quarter last year. The figure of $30.7 million represents 18% of the company’s total Q2 license revenue of $170.1 million. Siebel only recognized $76.4 million in concurrent transactions for the whole of fiscal 2001 but has already posted $50.6 million in concurrent transactions for the first six months of this fiscal year.
The increase in the proportion of Siebel’s revenue arising from concurrent transactions is disturbing an already edgy market as such ‘swap’ deals are usually viewed with caution. Concurrent transactions happen when a company buys goods or services from another vendor at the same time that they buy or license products from the company. Siebel claims that all of its concurrent transactions are separately negotiated, settled in cash and conducted at ‘arms length’.
