PeopleSoft Announces Record Quarterly Results
PeopleSoft Asia Pacific Licence Revenue Grows 35
Compared to Same Quarter Last Year
Auckland – October 19, 2001 – PeopleSoft Inc. (Nasdaq: PSFT) today announced record income from recurring operations for the third quarter ended September 30, 2001. Income from recurring operations increased by 113 percent to a record of US$50 million, or US$0.15 per share, up from US$23 million, or US$0.08 per share in the same quarter of 2000.
Total revenue increased 15 percent over the third quarter of last year to US$509 million. Continued market demand for PeopleSoft’s pure internet enterprise applications drove revenue growth. Third quarter licence revenue increased 15 percent over the same quarter of last year to US$152 million. Service revenue rose 21 percent over the same quarter of last year to US$333 million.
The Company’s cash and investments totalled more than US$1.5 billion at September 30, 2001, an increase of US$113 million during the quarter. Day’s sales outstanding (DSO) improved to 63 days from 68 days in the prior quarter.
Including non-recurring items, third quarter 2001 net income rose sequentially to US$50.3 million, or US$0.16 per share. The non-recurring items include a favourable adjustment to existing restructuring reserves and a charge related to the acquisition of assets of Cohera Corporation. The net impact of these non-recurring items is a charge of US$0.75 million before tax or a US$0.41 million after tax gain. Reported net income in the third quarter of 2000 of US$68.7 million, or US$0.23 per share, included two non-recurring items; a gain from the sale of equity securities and product line exit costs. The net impact of these non-recurring items was a favourable adjustment of US$84.2 million before tax or a US$45.3 million after tax gain.
“PeopleSoft continues to distinguish itself by delivering strong results under these extraordinarily challenging circumstances,” said President and CEO Craig Conway. “In this difficult economic environment, PeopleSoft continues to widen its lead by delivering the industry’s only pure internet enterprise applications and by focusing on business execution.
“We continue to experience accelerating adoption of PeopleSoft 8, our pure internet enterprise applications, by both new and existing customers,” Conway said. “Customers are realizing the dramatic productivity improvement, cost reductions and profit increases that these applications deliver. We also are experiencing rapid market acceptance of PeopleSoft 8 CRM. In addition, we launched PeopleSoft 8 Enterprise Service Automation (ESA), a solution that positions PeopleSoft as the leader in an exciting new market category,” Conway added.
“PeopleSoft’s operational efficiency and financial controls contributed to our strong performance,” Conway said. “PeopleSoft doubled operating profit margins compared with the same quarter last year, reported record income, and reduced DSO to an industry low of 63 days.
“PeopleSoft is pulling away from the competition,” Conway concluded. “While our competitors are disassembling and reassembling their products to compete with PeopleSoft’s pure internet architecture, we are extending our lead with enterprise applications that are recognized as a generation ahead.”
PeopleSoft won significant deals against its competitors in the third quarter in all product lines and across all geographies. Organisations buying PeopleSoft enterprise applications included: AON France; BNP Paribas; Burlington Resources Inc.; Children’s Hospital, Boston; Chubb Group Ltd.; Duke Energy Corp.; Duraflame Inc.; FedEx Corp.; Harvard University; Home Depot USA Inc.; Limited Inc.; Mazda Motor Corp.; Office Depot Inc.; Pepsico Inc.; Perot Systems Corp.; Phillips Petroleum Co.; Potash Corp.; Sony Electronics Inc.; Texas Education Agency; U.S. Census Bureau.
PeopleSoft Asia Pacific Performance
PeopleSoft recorded strong growth over the third quarter of 2000 throughout Asia Pacific. Total revenue increased by 41 percent, license revenue by 35 percent, and service revenue by 46 percent. All percentages assume constant currency exchange rates.
“In Asia Pacific, PeopleSoft continued its strong performance in the face of challenging economic conditions,” said Andrew Barkla, Vice President Asia Pacific. “Our growth is a direct result of continued market acceptance of PeopleSoft 8 pure internet enterprise applications and focused business execution. Customers are realising dramatic business benefits through deployment of our pure internet applications, including reduced costs and increased productivity.”
PeopleSoft continued to add new customers throughout the Region, including Chubb, Medibank Private, ACT Community Care, SEPCO, Larsen & Toubro Infotech Limited, DSQ, and BAG Networks (Ministry of Finance Brunei). Existing customers that licensed additional PeopleSoft products included Tower Insurance, Jupiters and University of Auckland.
In the third quarter, PeopleSoft signed one of the year’s largest enterprise software deals in China. SEPCO – Shandong Electric Power Group Corp., a subsidiary of State Power Corp. and the third largest power utility provider in China, will implement PeopleSoft 8 Financials and Enterprise Performance Management (EPM). SEPCO’s deployment and integration will be managed through Omega Data - a wholly owned subsidiary of Omega International Group, Inc.
“PeopleSoft’s continued momentum in North and South Asia is illustrated by accelerating customer adoption of PeopleSoft 8 throughout the continent,” said Barkla. “The SEPCO win further demonstrates PeopleSoft’s continued focus on the substantial market opportunity in China.”
PeopleSoft strengthened its Asia Pacific
management team this quarter, with the appointment of David
Webster as Managing Director for Australia and New Zealand.
Webster is responsible for the strategic growth and business
development within Australia and New Zealand.