One of the few software makers that seemed to be sailing through the recession unscathed issued a profit warning yesterday.
PeopleSoft Inc. announced preliminary financial results for the first quarter that ended March 31--and said it expected license revenues to fall short of initial expectations.
Based on preliminary information, license revenue is expected to be between $130 million and $135 million vs. $153 million for the same quarter last year, when the company announced the highest revenue in company history.
Earnings per share for the first quarter of 2002 are expected to be about 14 cents, 3 cents higher than last years first-quarter earnings.
Craig Conway, president and CEO at PeopleSoft, in Pleasanton, Calif., said that consulting revenue and maintenance revenue are on plan for the first quarter, as is EPS, which are expected to meet PeopleSofts original guidance.
However, "license revenue clearly reflected a cautious economy," said Conway in a press release.
Conway said the company remains confident that its PeopleSoft 8 enterprise e-business suite will drive continued growth in 2002.
PeopleSoft will announce its final first-quarter results on April 25.