A Beacon in the Darkness

PeopleSoft earnings are good news

Pleasanton, CA  July 25, 2001  There's an awful lot of bad financial news out there (unless you were incredibly prescient and shorted a ton of stocks), but there are some festive earnings tunes nested among the dirges, if you listen long enough. Last week, SAP recorded stout earnings, and yesterday PeopleSoft had good news of its own. The company's financial results for the quarter ended June 30, 2001 showed that total revenue increased 27 percent over the second quarter of last year to $533 million, the highest revenue in company history and the fifth consecutive record quarter.

Continued market demand for PeopleSoft's collaborative enterprise applications drove second quarter license revenue up 51 percent over the second quarter of last year to $166 million. Service revenues rose 20 percent over the same quarter of last year to $337 million as customer adoption of PeopleSoft 8 drove increased demand for the company's service offerings.

Net income from recurring operations increased sharply, rising 188 percent to $46 million, or $0.14 per share, up from $16 million, or $0.06 per share, in the same quarter of 2000.

Including non-recurring items, second quarter net income rose to $47 million, or $0.15 per share. The second quarter of 2001 includes two non-recurring items; a favorable after-tax adjustment to existing restructuring reserves of $2.6 million and an after-tax charge of $1.1 million related to the acquisition of SkillsVillage.

"PeopleSoft's strong performance in this challenging economic environment is a direct result of continued market acceptance of PeopleSoft 8 enterprise applications and our diligent focus on precision management and execution," said president and CEO Craig Conway.

"In June, PeopleSoft delivered PeopleSoft 8 CRM, the first and only [customer relationship management] solution to run entirely on the Internet," Conway said. "The on-time delivery of this next generation CRM solution further demonstrates PeopleSoft's continued leadership in providing integrated, best-of-breed applications.

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