Peoplesoft profits down

Blames elephants...

By John Oates • Get more from this author

Posted in Financial News, 28th July 2004 09:05 GMT

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PeopleSoft saw profits fall to $51m in the second quarter ended 30 June 2004. Licensing revenue was $130m and total revenues were $647m.

Earnings per share were down to $0.14 versus $0.17 for the same period last year. The enterprise software maker wasted no time in blaming Oracle's attempted hostile takeover for the shortfall. PeopleSoft warned on profits earlier this month but missed even those lowered targets.

Craig Conway, president and CEO of PeopleSoft, said: "Our financial results in Q2 reflected the heavy media coverage of the United States of America versus Oracle trial. Clearly it was the elephant in the room for our customers.

"Considering the extraordinary circumstances we were operating under, our performance was still solid with more than 160 new customers, and strong cash flow and bottom line earnings." Conway said these signs point to a strong underlying performance once a decision is reached in the takeover battle.

PeopleSoft refused to give guidance for the third and fourth quarters until after a decision is made on Oracle's takeover bid. It has spent $70m on defending itself against the buyout.

The press release is available for download here. ®