PeopleSoft Announces Record Quarterly Revenue
Announcement posted by PeopleSoft 27 Apr 2001
PeopleSoft Inc. (Nasdaq: PSFT) today announced record financial results for the first quarter ended March 31, 2001. Total revenue increased 34 percent over the first quarter of last year to $503 million. It was the highest revenue in company history and the fourth consecutive record quarter for the pure internet applications leader.
Continued market demand for PeopleSoft's collaborative enterprise applications drove first quarter license revenue up 70 percent over the first quarter of last year to $153 million. Service revenues rose 22 percent over the same quarter of last year to $319 million as customer adoption of PeopleSoft 8 drove increased demand for the Company's
consulting business.
Net income from recurring operations increased sharply, rising 229 percent to $36 million, or $0.11 per share, up from $11 million, or $0.04 per share, in the same quarter of 2000. Results for the first quarter of 2000 do not include a non-recurring after-tax gain from the sale of equity securities of $5.8 million. Including this gain, net income for the first quarter of 2000 was $17 million, or $0.06 per share.
The company's cash and investments were $1.155 billion at March 31, 2001, an increase of $59 million from December 31, 2000.
Management Commentary
"PeopleSoft is reporting strong financial results during a very difficult macro economic period," said President and CEO Craig Conway. "This success is based on continued market acceptance of PeopleSoft 8 and the strength of our services business, together with strong execution and precision management," Conway said.
"Our pure internet applications have given PeopleSoft an unprecedented leadership opportunity," Conway said. "No other applications vendor can match our internet architecture. It is the basis for companies to create a collaborative network between customers, suppliers and employees, which dramatically lowers costs and increases productivity," Conway added.
"Enhancing productivity and lowering costs are at the center of technology buying decisions, especially in tough economic times. PeopleSoft's eBusiness solutions are uniquely positioned to help companies drive top line growth and bottom line profit. No company can ignore this today," Conway added.
Customer Wins
PeopleSoft won significant deals against its competitors in the first quarter in all product lines and across all geographies. Enterprises buying PeopleSoft eBusiness applications included: AT&T Broadband, Avery Dennison, Avon Products, BEA Systems, Boeing, CIBC, Darden Restaurants, Dynegy, Jostens, Lowe's Companies, Lucent Technologies, Nationwide Building Society plc, Pfizer, Pharmacia, Safeway plc, Sumitomo Forestry,
University of Texas Medical Branch at Galveston, Verizon Wireless and Weyerhaeuser Company.
In Asia Pacific
Commenting on the results for region, Andrew Barkla, Vice President for PeopleSoft Asia Pacific said, "It's been an outstanding start to 2001. We've recorded impressive growth of 41% in our total revenues over the first quarter of 2000 in constant USD. This quarter saw also our license revenues grow by 93%, and our services revenue by 29% over the first quarter of 2000 in constant USD".
"This quarter has seen exceptionally strong growth in North and South Asia, with market-making deals signed with Asia's leading corporations such as Cathay Pacific, Bank of China, Hong Leong Insurance and United Overseas Bank," Mr. Barkla added. "In ANZ we saw new deals closed with Hutchison, Lang Corporation, Tower and University of Auckland - its been a great quarter, and one which sees PeopleSoft confirmed as a strong Asia Pacific player."
PeopleSoft's growth in the region continues to be driven by companies looking for total eBusiness applications spanning interactions with their customers, suppliers and employees.
"Customer Relationship Management, eProcurement and self-service Human Resource Management solutions and Business Analytics are continuing to drive our customers' enterprise applications decisions. The need to understand their customer fully, to use that data to drive intelligent sales, marketing and service decisions, as well as to integrate with their suppliers and empower employees through self service is critical for our customers."
"It is these areas, in addition to PeopleSoft's strong expertise in Financials and Student Administration, that will see our business in the region continuing to perform well," Mr Barkla said.
In Asia Pacific PeopleSoft's employees grew 40% over the first quarter of 2000, with the company employing over 430 staff.
About PeopleSoft
PeopleSoft is a world leader in providing eBusiness applications that enable people - customers, suppliers and employees - to power the internet. PeopleSoft's pure internet Customer Relationship Management, Supply Chain Management, and Enterprise Management solutions provide the industry's most open and flexible e-commerce platform. PeopleSoft employs more than 8,000 people worldwide, including 2,400 eBusiness consultants. More than 4,700 organisations in 107 countries run on PeopleSoft eBusiness applications. Visit us at www.peoplesoft.com
<http://www.peoplesoft.com/>.
PeopleSoft began operations in Asia Pacific in 1993 and now has offices in Sydney, Melbourne, Canberra, Perth, Brisbane, Adelaide, Auckland, Wellington, Singapore, Hong Kong and Malaysia. Its customers include AAP, AMP, Alcoa, Australian National University, Australian Stock Exchange, Bangkok General Hospital, Coles Myer, Department of Defence, Eastern Energy, Ford, Foxtel, Government of Singapore Investments Corporation, HSBC Holdings, John Fairfax Holdings, Mass Transit Railway Corporation (MTRC) Hong Kong, National Mutual Health Insurance, NZ Police, NZ Post, UNITEC, Reserve Bank of Australia, Reding Paper Products, Transfield Pty
Ltd, University of NSW, WA Department of Education and WA Petroleum, Hewlett-Packard, Citibank, AMD, DBS Bank, PSA Corporation, Singapore Ministry of Finance, Morrison Express, Singtel, Starhub, Tenaga Nasional, Telekom Malaysia and Swire Properties.
# # #
PeopleSoft and the PeopleSoft logo are registered trademarks. All other company and product names may be trademarks of their respective owners. Copyright 2001 PeopleSoft, Inc. All rights reserved.
# # #
Statements made in this press release that state the Company's or management's intentions, beliefs, expectations, or predictions for the future are forward-looking statements. Readers are cautioned that these statements are only predictions and may differ materially from actual future events or results. The specific forward-looking statements relate to such matters as the Company's plans for the development and marketing of certain products and services and the competitive position and market
acceptance of existing products and services, as well as those under development. Such forward-looking statements are subject to a number of risks, assumptions and uncertainties that could cause the Company's actual results to differ materially from those projected in such forward-looking statements. These risks, assumptions and uncertainties include: the ability to complete and deliver products and services within currently
estimated time frames and budgets; the ability to achieve revenues from products and services that are under development; competitive and pricing pressures; and other risks referenced from time to time in the Company's filings with the Securities and Exchange Commission. Please refer to the Company's annual report to shareholders (Form 10-K) and subsequent filings on Form 10-Q for more information on the risk factors that could cause actual results to differ.
Continued market demand for PeopleSoft's collaborative enterprise applications drove first quarter license revenue up 70 percent over the first quarter of last year to $153 million. Service revenues rose 22 percent over the same quarter of last year to $319 million as customer adoption of PeopleSoft 8 drove increased demand for the Company's
consulting business.
Net income from recurring operations increased sharply, rising 229 percent to $36 million, or $0.11 per share, up from $11 million, or $0.04 per share, in the same quarter of 2000. Results for the first quarter of 2000 do not include a non-recurring after-tax gain from the sale of equity securities of $5.8 million. Including this gain, net income for the first quarter of 2000 was $17 million, or $0.06 per share.
The company's cash and investments were $1.155 billion at March 31, 2001, an increase of $59 million from December 31, 2000.
Management Commentary
"PeopleSoft is reporting strong financial results during a very difficult macro economic period," said President and CEO Craig Conway. "This success is based on continued market acceptance of PeopleSoft 8 and the strength of our services business, together with strong execution and precision management," Conway said.
"Our pure internet applications have given PeopleSoft an unprecedented leadership opportunity," Conway said. "No other applications vendor can match our internet architecture. It is the basis for companies to create a collaborative network between customers, suppliers and employees, which dramatically lowers costs and increases productivity," Conway added.
"Enhancing productivity and lowering costs are at the center of technology buying decisions, especially in tough economic times. PeopleSoft's eBusiness solutions are uniquely positioned to help companies drive top line growth and bottom line profit. No company can ignore this today," Conway added.
Customer Wins
PeopleSoft won significant deals against its competitors in the first quarter in all product lines and across all geographies. Enterprises buying PeopleSoft eBusiness applications included: AT&T Broadband, Avery Dennison, Avon Products, BEA Systems, Boeing, CIBC, Darden Restaurants, Dynegy, Jostens, Lowe's Companies, Lucent Technologies, Nationwide Building Society plc, Pfizer, Pharmacia, Safeway plc, Sumitomo Forestry,
University of Texas Medical Branch at Galveston, Verizon Wireless and Weyerhaeuser Company.
In Asia Pacific
Commenting on the results for region, Andrew Barkla, Vice President for PeopleSoft Asia Pacific said, "It's been an outstanding start to 2001. We've recorded impressive growth of 41% in our total revenues over the first quarter of 2000 in constant USD. This quarter saw also our license revenues grow by 93%, and our services revenue by 29% over the first quarter of 2000 in constant USD".
"This quarter has seen exceptionally strong growth in North and South Asia, with market-making deals signed with Asia's leading corporations such as Cathay Pacific, Bank of China, Hong Leong Insurance and United Overseas Bank," Mr. Barkla added. "In ANZ we saw new deals closed with Hutchison, Lang Corporation, Tower and University of Auckland - its been a great quarter, and one which sees PeopleSoft confirmed as a strong Asia Pacific player."
PeopleSoft's growth in the region continues to be driven by companies looking for total eBusiness applications spanning interactions with their customers, suppliers and employees.
"Customer Relationship Management, eProcurement and self-service Human Resource Management solutions and Business Analytics are continuing to drive our customers' enterprise applications decisions. The need to understand their customer fully, to use that data to drive intelligent sales, marketing and service decisions, as well as to integrate with their suppliers and empower employees through self service is critical for our customers."
"It is these areas, in addition to PeopleSoft's strong expertise in Financials and Student Administration, that will see our business in the region continuing to perform well," Mr Barkla said.
In Asia Pacific PeopleSoft's employees grew 40% over the first quarter of 2000, with the company employing over 430 staff.
About PeopleSoft
PeopleSoft is a world leader in providing eBusiness applications that enable people - customers, suppliers and employees - to power the internet. PeopleSoft's pure internet Customer Relationship Management, Supply Chain Management, and Enterprise Management solutions provide the industry's most open and flexible e-commerce platform. PeopleSoft employs more than 8,000 people worldwide, including 2,400 eBusiness consultants. More than 4,700 organisations in 107 countries run on PeopleSoft eBusiness applications. Visit us at www.peoplesoft.com
<http://www.peoplesoft.com/>.
PeopleSoft began operations in Asia Pacific in 1993 and now has offices in Sydney, Melbourne, Canberra, Perth, Brisbane, Adelaide, Auckland, Wellington, Singapore, Hong Kong and Malaysia. Its customers include AAP, AMP, Alcoa, Australian National University, Australian Stock Exchange, Bangkok General Hospital, Coles Myer, Department of Defence, Eastern Energy, Ford, Foxtel, Government of Singapore Investments Corporation, HSBC Holdings, John Fairfax Holdings, Mass Transit Railway Corporation (MTRC) Hong Kong, National Mutual Health Insurance, NZ Police, NZ Post, UNITEC, Reserve Bank of Australia, Reding Paper Products, Transfield Pty
Ltd, University of NSW, WA Department of Education and WA Petroleum, Hewlett-Packard, Citibank, AMD, DBS Bank, PSA Corporation, Singapore Ministry of Finance, Morrison Express, Singtel, Starhub, Tenaga Nasional, Telekom Malaysia and Swire Properties.
# # #
PeopleSoft and the PeopleSoft logo are registered trademarks. All other company and product names may be trademarks of their respective owners. Copyright 2001 PeopleSoft, Inc. All rights reserved.
# # #
Statements made in this press release that state the Company's or management's intentions, beliefs, expectations, or predictions for the future are forward-looking statements. Readers are cautioned that these statements are only predictions and may differ materially from actual future events or results. The specific forward-looking statements relate to such matters as the Company's plans for the development and marketing of certain products and services and the competitive position and market
acceptance of existing products and services, as well as those under development. Such forward-looking statements are subject to a number of risks, assumptions and uncertainties that could cause the Company's actual results to differ materially from those projected in such forward-looking statements. These risks, assumptions and uncertainties include: the ability to complete and deliver products and services within currently
estimated time frames and budgets; the ability to achieve revenues from products and services that are under development; competitive and pricing pressures; and other risks referenced from time to time in the Company's filings with the Securities and Exchange Commission. Please refer to the Company's annual report to shareholders (Form 10-K) and subsequent filings on Form 10-Q for more information on the risk factors that could cause actual results to differ.