PeopleSoft Hits High with Strong Year End
97% license revenues increase quarter on quarter in Asia Pacific
Auckland- 31 January 2001 - PeopleSoft (Nasdaq - PSFT) today announced financial results for the fourth quarter and year ended 31 December 2000. Year on year the Asia Pacific region achieved 41 per cent total revenue growth, with 32 per cent and 46 per cent from licenses and services respectively.
Vice President Andrew Barkla says the Region's growth is attributed to PeopleSoft's strong sales in PeopleSoft 8 for CRM, HRMS, Financials, Supply Chain and Enterprise Performance Management. "Company-wide PeopleSoft had some incredibly aggressive growth goals for 2000, and for Asia Pacific reaching these goals was key for us in solidifying our place as a market leader." Barkla commented. "The year saw the Region signing significant customers such as ANZ bank, AMP, Development Bank of Singapore, Saloman Smith Barney, Vodafone and FOXTEL - strengthening our presence in the Finance and Communications sectors." Fourth quarter exceeds expectations Total revenue growth for the fourth quarter in Asia Pacific reached an astounding 72 per cent, with 97 per cent attributed to licence revenues, and 56 per cent to services. "The last quarter of this year has truly been impressive, surpassing our expectations in sales. Customers joining PeopleSoft this quarter included Commonwealth Bank of Australia, Fosters, Qantas, Lang, and Open Telecommunications. Across Asia new customers were signed with DataOne, ITE, CLP Communications and Stock Exchange of Thailand. It's been a great ending to an amazing year," Barkla commented. New appointments boost Asia-Pacific team Strengthening the Region's operations and management team are several key appointments.
ANZ star players become General Manager, North Asia and Director of Enterprise Sales Rob Wells, formerly Director of Operations for Australia and New Zealand, was appointed General Manager for North Asia, with the responsibility of strengthening PeopleSoft's presence in Hong Kong, Korea, Taiwan and Greater China. Joining Rob as Director of Enterprise Sales is Murray Sargant, former Director of Enterprise Performance Management for Australia and New Zealand. Murray will be responsible for building the company's market share position for Employee and Supplier applications.
New CRM Director for Asia Further strengthening the company's CRM presence across both North and South Asia, is Henri Barenholz, joining PeopleSoft on 1 February as CRM Director for Asia. Based in Singapore, Henri will be looking to rapidly grow CRM revenues and market share. Henri returns to PeopleSoft from thinkAnalytics, where he was Senior Vice President worldwide operations. Previously Henri held management and sales positions in Vantive based in Europe. Emerging Markets focus Building PeopleSoft's presence in new and emerging areas of business across Asia Pacific is Andrew Clay, as Director of Emerging Markets for PeopleSoft's Consulting Practice. Most recently Director of eBusiness at Oracle, Andrew will be focusing on CRM, ASP and PeopleSoft eCentre initiatives. Tony Gibbon, heading PeopleSoft eCentre for the Region also joins Andrew.
Director of Professional Services for North Asia Peter Chiu joins the company as Director, Professional services for North Asia, responsible for building strategic relationships and alliances to develop a network of key partners for the company's Enterprise Performance Management, Supply Chain, eProcurement and CRM product initiatives.
2001 brings aggressive growth targets Commenting on the impact of these new appointments and growth targets for the company this year Barkla said, "Asia is a critical Region for PeopleSoft. With a cemented Asian team, a compelling suite of e-Business and enterprise solutions and services, we are very confident that we will achieve our goal of 50% growth for Asia Pacific this year. 2001 will be an exciting year for PeopleSoft. 2000 was all about the rebirth of PeopleSoft, and the launch of the industry's first pure internet e-business enterprise applications - technology which puts us 12 to 18 months ahead of the competition."
2001 is about making sure we take advantage of that - by helping our customers get Straight to 8 with a clear, direct and cost effective upgrade path, take advantage of the collaboration offered by our eBusiness applications, and get the most from their customers with CRM solutions. 2000 was good - 2001 will be better." Global Earnings - Record Financial Results Total revenue of $498 million was the highest reported in company history, and was up 34 percent over $372 million in the same quarter of 1999.
Strong market demand for PeopleSoft 8, the company's pure internet eBusiness application suite, drove fourth quarter license revenue up 73 percent to $165 million, up from $95 million in the same quarter of 1999.
Net income from recurring operations increased sharply, rising 273 percent to $41 million, or $0.13 per share, up from $11 million, or $0.04 per share, in the same quarter of 1999.
Including non-recurring items, fourth quarter net income rose to $44 million, or $0.14 per share, compared with a loss of $5.6 million, or ($0.02) per share, in the same quarter of 1999. The fourth quarter of 2000 includes a favourable non-recurring, after-tax adjustment to existing acquisition related reserves of $2.8 million. The fourth quarter of 1999 included two non-recurring items: after-tax gains from the sale of equity securities of $29.7 million and after-tax restructuring and product exit costs of $46.4 million.
Management Commentary "In 2001 enterprises are widely adopting internet technology to improve business operations," said President and CEO Craig Conway. "PeopleSoft 8 is the only pure internet eBusiness suite on the market. With more than 1,000 orders for PeopleSoft 8 in less than four months, market acceptance has been very strong."
PeopleSoft 8 allows companies to extend their enterprise applications to customers, suppliers, and employees anywhere in the world, at any time. This provides a significant productivity advantage by creating a real-time collaborative network between customers, suppliers and employees, forming the foundation for eBusiness and eCommerce.
"Our Q4 financial results not only show the strong market demand for our eBusiness applications," Conway said, "they also demonstrate PeopleSoft's focus on growth and profit for our shareholders." About PeopleSoft PeopleSoft Inc. is a world leader in providing eBusiness applications that enable people - customers, employees, and suppliers - to power the internet. PeopleSoft's pure internet Customer Relationship Management, Supply Chain Management, and Enterprise Management solutions provide the industry's most open and flexible e-commerce platform. PeopleSoft employs more than 8,000 people worldwide, including 2,400 eBusiness consultants. More than 4,700 organisations in 107 countries run on PeopleSoft eBusiness applications. For more information, visit us at www.peoplesoft.com.
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, Bangkok General Hospital, Coles Myer, Department of Defence, Eastern Energy, Ford, Foxtel, Government of Singapore Investments Corporation, HSBC Holdings, John Fairfax Holdings, Mass Transit Railway Corporation (MTRC) Hong Kong, National Mutual Health Insurance, NZ Police, NZ Post, 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.
PeopleSoft and the PeopleSoft logo are registered trademarks. All other company and product names may be trademarks of their respective owners. Copyright © 2001 PeopleSoft, Inc. All rights reserved.
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