PeopleSoft Profit Up 39 Percent
FOR IMMEDIATE RELEASE
PeopleSoft Profit Up 39 Percent
Emerging eCommerce Initiatives and eBusiness Solutions Drive
Second Consecutive Strong Quarter
AUCKLAND - April 26, 2000 - PeopleSoft today announced financial results for the quarter ended March 31, 2000. Revenues, net income and net income per share for the first quarter of 2000 from recurring operations were US$375.4 million, US$11.0 million and US$0.04, respectively.
This compares with revenues, net income and net income per share from recurring operations of US$350.1 million, US$7.9 million and US$0.03, respectively, for the first quarter of 1999, representing a 39 percent increase in net income. Including non-recurring items, net income and net income per share for the first quarter of 2000 were US$16.8 million, and US$0.06, respectively.
Revenues from license fees for the quarter ended March 31, 2000 were US$90.2 million, reflecting continued strong demand for the company's applications for eBusiness. Revenues from services increased four percent to US$262.1 million for the first quarter of 2000, up from US$250.8 million in the first quarter of 1999. Revenues from international operations for the first quarter of 2000 increased by 17 percent to US$83.2 million compared with US$71.2 million for the first quarter of 1999.
The results for all periods presented include the
results of The Vantive Corporation, which merged with
PeopleSoft in the fourth quarter of 1999 in a transaction
accounted for as a pooling of interests. Results from
recurring operations for the first quarter of 2000 do not
include pre-tax gains of US$9.5 million from the sale of
equity investments. Results from recurring operations in the
first quarter of 1999 do not include one-time,
pre-tax charges of US$176.4 million in connection with the spin-off of Momentum Business Applications Inc. and US$4.4 million for restructuring costs.
"Our momentum in the marketplace continued to build into 2000 with very strong Q1 financial results," said PeopleSoft President & CEO, Craig Conway. "Key financial indicators were all positive, including earnings up 39 percent from Q1 1999; revenue up 7 percent from Q1 1999; cash flow more than US$63 million in Q1 2000; and increases in deferred revenue during the quarter. We are seeing increased demand in our CRM and Supply Chain product suites as well as our traditional businesses in HRMS and Financials solutions. Competitively we are winning key deals against SAP, Oracle and Siebel.
"In the Internet age, enterprises continue to
depend on strong, innovative, and profitable
companies like PeopleSoft to supply mission critical business solutions," Mr Conway said. "We are seizing growth opportunities in the Internet economy and applying the business fundamentals that helped us build our strong franchise."
In Asia Pacific
Andrew Barkla, Regional Vice President, PeopleSoft Asia Pacific, said the region is well on track to achieve forecast annual growth of 30 percent.
"The first quarter of 2000 has demonstrated how robust the eBusiness market is in Asia Pacific. We welcomed a number of new Financials, Human Resources Management and Customer Relationship Management customers, including Ansett Australia, Boeing, Deloitte Touche Tohmatsu, and Vodafone in Australia, Starhub in Singapore and MTRC in Hong Kong.
"The integration of the Vantive Corporation and introduction of the Vantive suite of products has met with huge demand from organisations across the region. This is evidenced by over 600 registrations for our CRM Executive Briefings which begin today in Kuala Lumpur and travel around the region over the next two weeks." said Mr Barkla.
"In order to keep pace with the rapid growth of our business, we made a number of significant investments in our Asia Pacific management team during the first quarter. Rob Wells was appointed to the role of Director of Operations for Australia and Rob Squires was appointed as General Manager of PeopleSoft ASEAN. We also took a significant step in the development of our Professional Services and Consulting business by appointing Stephen Moore to the newly-created role of Vice President of Professional Services for Asia Pacific.
"With a formidable management team in place, we are confident that we will continue to experience strong results over the next three quarters and achieve our growth forecast of 30 per cent," Mr Barkla added.
PeopleSoft continued an aggressive release of eBusiness applications and Internet initiatives in Q1 2000.
The following highlights were announced or occurred since PeopleSoft's last earnings release:
1. Delivered Vantive eSuite - the industry's first true Internet-architected CRM solution.
2. Delivered Vantive Wireless CRM for eBusiness providing real-time data to field professionals.
3. Introduced Professional Services Automation - the first, complete, 100% Internet PSA solution.
4. Launched PeopleSoft eCenter (North America) - next generation application hosting (ASP) service.
5. Expanded partnership with Commerce One to deliver B2B eCommerce Exchanges.
6. Announced first and only fully integrated B2B marketplace for services firms with SkillsVillage.com.
7. Won "Oscar" of CRM industry, named one of top CRM vendors by Information Systems Marketing.
8. Adopted RosettaNet XML standard to power eBusiness Supply Chain.
9. Announcement to deliver first 100% Internet, XML-based, fully integrated global staffing solution.
PeopleSoft is a worldwide leader in eBusiness solutions offering Customer Relationship Management, Supply Chain Management, Human Resource Management, Financial Management, Professional Services Automation, and Learning Solutions for a range of industries. PeopleSoft supplies eBusiness applications, consulting and education for large and medium-size enterprises that desire flexibility, speed, and lower cost of ownership in the Internet economy. With more than 4,000 customers and 7,000 employees, including 2,400 consultants and products, installed in more than 90
countries, PeopleSoft leads its customers in achieving the highest value
from eBusiness solutions.
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PeopleSoft, the PeopleSoft logo, PeopleTools, and Vantive are registered trademarks. All other company and product names may be trademarks of their respective owners. Copyright ©2000 PeopleSoft Inc. All rights reserved.
This release contains
projections or other forward-looking statements regarding
future events or the future financial performance of the
Company that involve risks and uncertainties. Readers are
cautioned that these statements are only predictions and may
differ materially from actual future events or results. The
specific forward-looking statements relate to such matters
as competitive landscape; new product development
status; position in the Internet sector; and future growth. Please refer to the Company's annual report to shareholders (Form 10-K) and subsequent filings on Form 10-Q for more information on the risk factors that could cause actual results to differ.
PeopleSoft began operations in Asia Pacific in 1993 and now has offices in Auckland, Wellington, Sydney, Melbourne, Canberra, Perth, Brisbane, Adelaide, Singapore, Hong Kong and Malaysia. Its customers include AAP, AMP, Alcoa, Australian National University, Australian Stock Exchange, Coles Myer, Department of Defence, Eastern Energy, Ford, Foxtel, John Fairfax Holdings, Loy Yang Power, National Mutual Health Insurance, NZ Police, NZ Post, NZ UNITEC, Reserve Bank of Australia, Reding Paper Products, Transfield Pty Ltd, University of NSW, WA Department of Education and WA Petroleum, Hewlett-Packard, Citibank, AMD, DBS Bank, PSA Corporation, Singapore Ministry of Finance, Morrison Express, Singtel, Starhub, Tenaga Nasional, Telekom Malaysia and Swire Properties. For further information, please visit www.peoplesoft.com
Imogen Riley Nimita Morarji
PeopleSoft Botica Conroy & Associates
Phone: +61 2 9413 0120 Phone: +64 9 3033 862
Fax: +61 2 9413 0001 Fax: +64 9 3033 610
Mobile: 0412 774 144 Mobile: 021 950058