PeopleSoft blames Oracle for losses
A bigger boy did it and ran away
PeopleSoft has warned that sales for the second quarter are worse than predicted and lost no time in blaming Oracle for the fall. Shares in the enterprise software vendor fell more than 10 per cent in before-hours trading.
Peoplesoft now expects to post revenue of between $655m and $665m rather than the expected $675m for the three months ended 30 June.
Profits are likely to between 13 and 14 cents per share, against expected profits of 21 cents per share. Craig Conway, president and chief executive of PeopleSoft, pointed the finger at Oracle: "Although we have been able to meet or exceed our financial projections since Oracle launched their hostile tender offer more than a year ago, the extensive publicity of the antitrust trial during the last month of our quarter was impossible to completely overcome."
He said the impact of the attempted takeover by Oracle had been particularly strong in the last month, and he is looking forward to returning to normal business and recovering the losses.
In the statement Conway also mentioned the recent case brought by the US Department of Justice to block the Oracle takeover: "We believe that evidence submitted in the United States of America v. Oracle trial clearly displayed Oracle's intent to disrupt our business and damage PeopleSoft."
PeopleSoft will post its final results for the second quarter on 27 July. ®