PeopleSoft Meets Analyst Expectations
Enterprise resource planning and e-business software maker PeopleSoft Inc. met analyst expectations Thursday as it cut costs to shore up slow demand for its software. PeopleSoft announced Thursday its first quarter earnings, which ended March 31. Total revenue for the Pleasanton, Calif., company was $483 million, down 6 percent from $541 million for the same quarter a year ago.Service revenue increased 4 percent from $330 million in the first quarter of 2001 to $342 for this past quarter. Income from recurring operations grew 28 percent to $46 million, or 14 cents per share, compared with $36 million, or 11 cents a share, for the same quarter last year. "PeopleSoft was not immune to the slowdown in technology spending in the first quarter," Craig Conway, the companys president and CEO, said during the PeopleSofts earnings call Thursday. "However, our financial results were generally positive and were comparatively the strongest in the industry." At its Leadership Summit user conference in Las Vegas next week, PeopleSoft will introduce a number of new technologies, including a new HRMS suite, two new supply chain management applications, four new vertical markets for its CRM (customer relationship management) suite and the next generation of its portal offering. The Human Capital Management Solution will allow human resource professionals to manage incentives in regard to sales force compensation, and manage performance and enterprise learning by tying individual measures back to the enterprise goals. The two new supply chain products include Strategic Sourcing and TPM (Trading Partner Management) applications. The sourcing app will enable procurement departments to become profit centers by shrinking the time it takes to determine purchases and invite suppliers into the mix, from the bid process through placing an order, according to officials. The TPM app provides a unified way for companies to do business with partners and suppliers by simplifying--and standardizing on--the registration and engagement of suppliers. PeopleSoft is also building on its CRM momentum. Its CRM product, launched last summer, includes software specific to the telecommunications and financial sectors. Next week, four new verticals will be introduced: government, insurance, energy and high tech. The new vertical solutions can be integrated into business processes across the enterprise, according to officials. As for the portal upgrade, PeopleSoft will announce two new technology upgrades. The Intelligent Content Management component provides the ability to predict what to do next in the context of a specific business process. The portal upgrade will also provide integration of Web services, with the ability to take transactions and content from a variety of vendors and systems and bring them into the portal as Web services, officials said. PeopleSofts Summit will be on Monday and Tuesday of next week. Related stories:
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License revenues declined 13 percent to $133 million as a result of the global slowdown in IT spending, according to PeopleSoft officials. For the same period last year, the company logged $153 million in license revenues.