PeopleSoft clears its earnings hurdles

PeopleSoft released Thursday its full financial report on its just-ended quarter, confirming the better-than-anticipated revenue and income results it preliminarily announced earlier in the month.

PeopleSoft, based in Pleasanton, California, posted revenue of $497.4 million in its second quarter, ended June 30, up 3 percent from last year's $482.2 million second-quarter total. License revenue was down 15 percent, however, to $111.7 million, while professional services revenue also dipped slightly. A rise in maintenance revenue, from $171.3 million last year to $205.6 million in 2003's second quarter, offset the declines.

PeopleSoft Chief Executive Officer Craig Conway called the quarter a strong one and said the financial results reflect PeopleSoft's across-the-board healthy operations in all of its product lines and geographies.

PeopleSoft's net income for the quarter was $36.5 million, up fractionally from the $36 million total for the year-ago quarter. Excluding $14 million in restructuring charges relating to job cuts and the closure of PeopleSoft's Santa Clara, California, office, PeopleSoft posted earnings of $0.14 per share, in line with the range it forecast in its preliminary announcement.

PeopleSoft met the financial targets it set for the quarter before Oracle Corp. launched its $6.3 billion unsolicited takeover bid, a feat that helps it in its bid to rebuff its hostile suitor.

At midnight Thursday, the company's tender offer to acquire shares of J.D. Edwards & Co. expires, after which PeopleSoft intends to close its $1.8 billion acquisition of its fellow enterprise applications developer.

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