PeopleSofts License Revenue Climbs as Income Dips in Q1

The company's license revenues for the first quarter of 2004 climbed 61 percent over last year's first-quarter revenues, while its net income dipped substantially in part because of its acquisition of J.D. Edwards.

PeopleSoft Inc.s license revenues for the first quarter of 2004 climbed 61 percent over last years first-quarter revenues, while the companys net income dipped substantially.

After the close of the market Thursday, PeopleSoft announced total license revenues of $131 million for the first quarter, besting last years first-quarter license revenues of $81 million.

But costs from PeopleSofts acquisition of J.D. Edwards last summer made a sizable dent in the companys net income, officials said. The company reported a total income of $24.2 million, or 7 cents a share—well below the $38.5 million, or 12 cents a share, for the same quarter last year.

Pleasanton, Calif.-based PeopleSoft reported revenue of $643 million for this first 2004 quarter, beating its own guidance of $625 million and coming in at $183 million more than 2003s first-quarter revenue of $460 million.

"We announced a growth objective for 2004 that was by far the most aggressive in the enterprise application software business, and were delivering to that plan," Craig Conway, president and CEO of PeopleSoft, said in a statement.

Conway, along with PeopleSofts board, has been heartily fending off a $9.4 billion hostile takeover bid by rival Oracle Corp for almost a year, repeatedly claiming that the offer undervalues the company.

The proposed merger is up in the air while Oracle, of Redwood Shores, Calif., defends its bid in federal court over the summer. In February, the U.S. Department of Justice filed suit to block the deal.

Earlier this week, the European Commission stopped the clock on its antitrust investigation into the proposed deal because Oracle missed its deadline for supplying the EC with what it termed pertinent information, according to new reports.

While an initial decision from the EC was expected May 11, its now unclear when a decision will be made.

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