PeopleSoft Inc. announced Wednesday preliminary results for its second quarter ended June 30—poorer-than-expected earnings that company officials blame on bad press stemming from Oracle Corp.s $7.7 billion bid.
PeopleSoft has been fending off a hostile takeover attempt from Oracle for the past year—a deal the U.S. Department of Justice is looking to block through a federal injunction. With the trial facing its closing arguments July 20, a ruling isnt expected for at least another month after that.
PeopleSoft, of Pleasanton, Calif., expects to report on July 27 total revenues between $655 million and $665 million, on which it will earn $0.03 to $0.05 per share. Software license revenues are expected to post between $129 million and $133 million.
In April, PeopleSoft said its second-quarter license revenues would come in between $150 million and $170 million.
PeopleSofts CEO Craig Conway said in a statement the blame lies squarely on the shoulders of 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," said Conway, who expects the "substantial" blow to have an even greater impact on this past months results.
Conway went on to say he anticipates business will return to normal once the trial is over.