PeopleSoft Reports Second Quarter Results
FOR IMMEDIATE RELEASE
PeopleSoft Reports Second Quarter Results
Q2 License Revenue, Total Revenue and Earnings Per Share Exceed Company Guidance
PeopleSoft, Inc. (Nasdaq: PSFT) today reported its second quarter 2003 financial results. The company reported license revenues of US$112 million, a sequential increase of 38%, and total revenues of $497 million, an 8% sequential increase. Operating income from recurring operations increased 24% from the prior quarter to $64 million. The operating margin from recurring operations as a percentage of revenues increased to 12.9%, up from 11.3% last quarter. PeopleSoft reported earnings per share from recurring operations of $0.14, above the Company’s guidance for earnings per share from recurring operations of $0.11 - $0.12 per share.
On a GAAP basis, second quarter operating income was $50 million and operating margin as a percentage of revenues was 10.1%. The second quarter GAAP results include restructuring charges of $14 million that decreased the operating margin from 12.9% to 10.1% and decreased earnings per share by $0.03, from $0.14 to $0.11 per share. GAAP earnings per share of $0.11 exceeded the Company’s guidance of $0.08 - $0.09 per share.
The Company’s cash and investment balances at June 30, 2003 were $2 billion. In the second quarter, the Company’s cash flow from operations was $119 million. Days sales outstanding (DSO) at June 30, 2003 was 57 days.
“The simple truth behind our strong quarter is that we are a strong company,” said PeopleSoft President and CEO Craig Conway. “All product lines and service lines, all geographies and industries are operating well.”
“PeopleSoft said all along it has a better plan for shareholders and customers,” continued Conway. “As you look beneath the surface of these financial results, you can see how strongly positioned we are to achieve that plan.”
Leading organisations around the world continue to choose PeopleSoft applications to move their business processes on line and operate in real time. During the quarter, the Company added approximately 100 new customers. Organisations that purchased PeopleSoft pure-internet applications included: ABN AMRO; AIMCO; Bausch & Lomb; Circuit City Stores; Corning; Fleet National Bank; Government of Puerto Rico Department of Treasury; Metropolitan Life Insurance; Guardian Life Insurance; Hewlett-Packard; Hutchison Whampoa 3G; Hydro Ottawa; ING Bank; Intel; Penn Mutual Life Insurance; Sears Canada; Siam Cement; Target; Time; Trammell Crow; U.S. Department of Agriculture; University of Cambridge; University of Pittsburg; United States Department of the Army; and Yum Restaurant Services.
In Asia Pacific
“PeopleSoft continued to win significant deals in the second quarter across the region,” said Murray Creighton, senior vice president Japan and Asia Pacific. “Our presence was strengthened with deals in key emerging territories, and we secured new opportunities across the region through our focus on delivering solutions that lower operating cost and increase operating efficiencies.”
Asia Pacific customers that purchased PeopleSoft solutions in the second quarter include: Central Queensland University; The Director, Office of School Education, Department of Education and Training; TelstraClear Limited; Fairfield City Council; Farstad Shipping (Indian Pacific) Pty Ltd; Bank of Communications; China Minsheng Banking Co Ltd; Industrial Technology Research Institute; International Commercial Bank of China; i-flex Solution Limited; Polaris Software Labs Limited; Wipro Limited; Union Bank of India Limited; Telekom Malaysia Berhad; Universitas 21 Global Pte Ltd; Singapore Polytechnic; The Siam Cement Public Company Limited; Mizuho Securities Co., Ltd.; TDC Software Engineering Inc.; NTT DoCoMo, Inc.
Non-GAAP Financial Measures
The Company uses non-GAAP financial measures based on recurring operations in analysing financial results because they provide meaningful information regarding the Company’s operational performance and facilitate management’s internal comparisons to the Company’s historical operating results and comparisons to competitors’ operating results.
The Company believes that these non-GAAP financial measures are useful to investors as well because they allow for greater transparency. The Company has historically reported similar non-GAAP financial measures to investors and believes that the inclusion of comparative numbers provides for greater comparability in our financial reporting. Wherever non-GAAP financial measures have been included above, the Company has reconciled them in this press release to their GAAP counterparts.
These non-GAAP financial measures are not prepared in accordance with generally accepted accounting principles and may be different from non-GAAP financial measures used by other companies. Non-GAAP financial measures should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP.
PeopleSoft (Nasdaq: PSFT) is the world’s leading provider of application software for the real-time enterprise. PeopleSoft pure internet software enables organisations to reduce costs and increase productivity by directly connecting customers, suppliers, partners and employees to business processes on-line, in real time. PeopleSoft’s integrated, best-in-class applications include Customer Relationship Management, Supply Chain Management, Human Capital Management, Financial Management and Application Integration. Today more than 5,200 organisations in 140 countries run on PeopleSoft software. For more information, visit us at www.peoplesoft.com.
PeopleSoft commenced an exchange offer and filed a Schedule TO and a registration statement on Form S-4 with the SEC on June 19, 2003 for the proposed acquisition of J.D. Edwards & Company. Solicitations and exchanges of J.D. Edwards stock will only be made pursuant to the Offer to Exchange and related materials filed with the SEC. PeopleSoft has filed a Solicitation/Recommendation Statement on Schedule 14D-9 and amendments thereto regarding Oracle's tender offer. Stockholders should read these documents and any amendments thereto because they contain important information. These filings can be obtained without charge at www.sec.gov and at www.peoplesoft.com.
These materials may contain forward-looking statements, which reflect PeopleSoft’s and management’s current beliefs based on information currently available to PeopleSoft. These statements are only predictions and actual results may differ materially. For a more detailed discussion of information regarding risks that may affect PeopleSoft generally, see PeopleSoft’s most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q. Additional risks relating to the proposed J.D. Edwards acquisition and Oracle’s tender offer are described in PeopleSoft’s most recent SEC filings. All forward-looking statements are only as of the date they are made and PeopleSoft undertakes no obligation to update or revise them.
PeopleSoft and the PeopleSoft logo are registered trademarks of PeopleSoft, Inc. All other company and product names may be trademarks of their respective owners. Copyright © 2003 PeopleSoft, Inc. All rights reserved.