PeopleSoft's Q1 Profit Tops Expectations

STOCKHOLM (04/26/2000) - Business software applications vendor PeopleSoft Inc. yesterday reported higher-than-expected net income for the first quarter of 2000, handily beating analysts' earnings predictions.

For the quarter ended March 31, PeopleSoft reported net income, excluding one-off items, of US$11 million, or 4 cents per share, an increase of 39 percent over the $7.9 million and 3 cents, respectively, the company reported for the same period last year.

The per share earnings figure compares to the 2 cents per share consensus estimate of 17 analysts polled by First Call/Thomson Financial.

Including nonrecurring items such as pre-tax gains of $9.5 million from the sale of equity investments, net income for the first quarter of 2000 reached $16.8 million, or 6 cents per share, PeopleSoft said in a statement. Revenue reached $375 million, up 7 percent, as compared to $350 million a year ago.

The results from both periods include the results of Vantive Corp., which merged with PeopleSoft in the fourth quarter of 1999, PeopleSoft said.

Software license revenue during the first quarter dropped to $90.2 million from $98.7 million a year ago, while services revenue grew 4 percent to $262.1 million.

The slide in license revenue was significantly smaller than the 44 percent year-on-year drop PeopleSoft reported for its fourth quarter 1999, for which the company posted a $5.6 million net loss. [See "PeopleSoft Loss Less Than Expected," Feb. 2.]Revenue from international operations, meanwhile, jumped by a healthy 17 percent to $83.2 million, compared with $71.2 million for the first quarter of 1999.

PeopleSoft, in Pleasanton, California, can be reached at +1-925-225-3000, or via the Web at http://www.peoplesoft.com/.

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