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PeopleSoft Inc., which has been a star performer in an enterprise software space sagging under the weight of the slowing economy, saw revenues and profits fall in the first quarter of 2003 as license revenues took a big hit.
The Pleasanton, Calif., companys overall revenues dropped to $460.3 million from $483.3 million in the same period last year. License revenues were down to $80.8 million from $133.3 million in the year-ago period.
In response to the drop-off in revenues, PeopleSoft announced a restructuring that would cut 200 jobs and close its Santa Clara, Calif., office, resulting in a $12 million charge to be taken in the second quarter. PeopleSoft had 8,180 employees at the end of March.
PeopleSoft did manage to offset the license revenue downturn somewhat with a $27 million increase in services revenue, mainly from maintenance contracts.
Net income still fell though, from $44.5 million to $38.5 million.
PeopleSoft President and CEO Craig Conway said in a statement that the company posted “solid” results despite the economy.
“The recovery that began in Q4 was fragile and simply ended with additional economic concerns and geopolitical tensions,” he said. “While PeopleSofts license revenue was impacted, professional services and maintenance revenue remained strong during the quarter.”
PeopleSoft added 70 new customers during the quarter and generated $75 million in cash.
Other Earnings
In other software company earnings news Tuesday:
- CRM software Chordiant Software Inc. saw revenues fall from $22.8 million in last years first quarter to $13.8 million this year. License revenue was hardest hit, dropping from $11.1 million to $4.1 million. The Cupertino, Calif., company lost $6.9 million in the quarter compared with an $8.2 million loss in last years first quarter.
- Firstwave Technologies Inc. saw revenues fall slightly, from $4.3 million to $4.1 million. The Atlanta-based CRM software developer did manage an increase in net income though, from $779,000 to $1.03 million.
- Also on the CRM front, Kana Software Inc.s total revenues fell to $18.1 million from $25.1 million in last years first quarter. License revenues dropped to $9.4 million from $15.1 million. The Menlo Park, Calif., company cut its net loss, however, to $3.9 million from $6.8 million.
- Sales and marketing software developer Blue Martini Software Inc. managed an increase in license revenue, from $1.02 million to $1.8 million year-to-year. Total revenues fell however to $7.7 million from $8.5 million. The San Mateo, Calif., company lost $5.4 million on that revenue after a $7.3 million loss in last years first quarter.
- Art Technology Group Inc., which develops e-commerce and service applications, saw total revenues drop year-to-year from $27.3 million to $19.4 million. License revenue was hardest hit, falling from $12.5 million to $7.5 million. ATG, of Cambridge, Mass., lost $2.75 million on that revenue after posting a $2.85 million loss in last years first quarter.
- Hyperion Solutions Corp. proved the continued resilience of the business intelligence software space, as its revenues increased from $120 million to $126.6 million. License revenue climbed from $50 million to $50.4 million. Hyperion, of Sunnyvale, Calif., saw net income rise from $3.1 million to $8.3 million.
- Enterprise and Web search developer Ask Jeeves Inc. enjoyed a revenue increase from $16.1 million to $25.2 million. The companys Web properties led the surge, accounting for $21.6 million in revenue. Revenue for its Jeeves Solutions enterprise search business fell year-to-year from $5.3 million to $3.6 million. Emeryville, Calif.-based AskJeeves reported net income of $7.7 million after losing $10.4 million in the year-ago period.
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