PeopleSoft Inc. has announced its financial results for the quarter ending December 31, 2000, and the results have set a record for the company. Total revenue reached $498 million, up 34% over $372 million for the same quarter in 1999.
Demand for PeopleSoft 8, the company's Internet e-business application suite, drove fourth quarter revenue to $165 million, up 73% from the same quarter in 1999, at $95 million.
"During Q4, we added 150 new customers, the largest quarterly addition in two years," said Kevin Parker, chief financial officer of PeopleSoft. "We're also very pleased with the demand for our e-business applications from existing customers, which accounted for 67% of license revenue during the quarter."
Net income from recurring operations increased by 273% to $41 million, or 13 cents a share, up from $11 million, or 4 cents a share, in the same quarter of 1999.
"PeopleSoft has emerged in a very favorable position in the industry," said Craig Conway, PeopleSoft's president and chief executive officer. "This is the year companies are adopting Internet technology to improve their business processes."
Fourth quarter net income grew to $44 million, or 14 cents a share, compared with a loss of $5.6 million, or 2 cents per share, including non-recurring items. The fourth quarter of 2000 included a favorable non-recurring, after-tax adjustment to existing acquisition-related reserves of $2.8 million. Meanwhile, the fourth quarter of 1999 saw two non-recurring items: after-tax gains from the sale of equity securities of $29.7 million and after-tax restructuring and product exit costs of $46.4 million.
The company expects a continuance of the demand for its products this year, Parker said.
"The Internet can and will have a pronounced effect on companies," Conway said. The Internet allows companies to extend enterprise applications to reach customers and employees, no matter where they are, he said. Additionally, "Real-time collaboration is the basis for e-business and e-commerce," he added.
PeopleSoft places the success of the past quarter and the coming year on its flagship product, PeopleSoft 8. The software is a pure Internet suite of CRM applications, which is scheduled for release in mid-2001, according to Conway.
"The CRM market is growing rapidly," Conway said. "We're optimistic about the coming year," he said, for five reasons. He named PeopleSoft 8 as the first reason, which he describes as a "superior suite of Internet-based enterprise applications."
Secondly, PeopleSoft's collaborative self-service applications are another reason for optimism, according to Conway. There are "59 of them, to help customers become real e-businesses."
Additionally, Conway points to the executive management team and senior level management team, which have been rebuilt. "Our competitors have issues," Conway said as his fourth reason for being optimistic.
Lastly, "companies that distract our customers and distract or recruit our people today, there are fewer," Conway said, referring to the thinning-out of the players in the CRM market.
"We're suited up and we're ready for rumble in 2001," Conway said.
Yet on January 31, a day after the earnings were announced, shares of PeopleSoft closed at $41 per share, $7.9375 lower than the previous day. In early-morning trading on the Nasdaq on February 1, shares were selling for $ 40.5156.
FOR MORE INFORMATION:
PeopleSoft's Web site.