PeopleSoft Continues Recovery in Q3

Enterprise resources software vendor PeopleSoft has continued to improve revenue and profit figures, posting profit of $US23.4 million on record revenue of $US443.1 million for its third quarter ended Sept. 30. The 8 cents earnings per share was marginally better than the 7 cents estimate of 14 analysts polled by First Call Inc./Thomson Financial.

The Nasdaq stock market remained unimpressed -- PeopleSoft dropped $US3.06 during the day to $US32.75, but rose slightly to $US34 in after-hours trading, according to the Island ECN Web site.

The third-quarter revenue was 28 per cent higher than the $US346 million in 1999's third quarter, while profit improved from $US500,000 in the third quarter last year.

Software license revenue doubled from the year-earlier period, with financial and human resource applications showing particularly strong growth of 120 per cent, the company said. License revenue was 86 per cent higher in the U.S. and 127 per cent higher in the rest of the world, PeopleSoft said in the statement.

The results continue a positive trend for PeopleSoft throughout this financial year, with quarterly revenue and profit figures considerably better than their 1999 equivalents.

PeopleSoft President and Chief Executive Officer Craig Conway attributed the turnaround to the evolution of the Internet from a consumer vehicle to a business tool embraced by major companies, and the strength of the PeopleSoft 8 software in that market.

The company also announced that Chief Financial Officer Steve Hill will take the position of senior vice president of business development, to focus on mergers and acquisitions, joint ventures and venture capital funding of strategic initiatives worldwide.

PeopleSoft, in Pleasanton, California, can be reached on the Web at http://www.peoplesoft.com.

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