Oracle bid `hurt PeopleSoft`

By Iain Scott for PeopleSoft
Johannesburg, 08 Jul 2004

PeopleSoft says it did not perform as well as expected in the second quarter to end-June, naming Oracle`s takeover bid as the culprit.

"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 anti-trust trial during the last month of our quarter was impossible to completely overcome," says Craig Conway, PeopleSoft`s president and CEO.

"We believe the adverse impact to our business has been substantial, with even greater impact this past month. We look forward to returning to normal business soon and recovering these damages."

The final second-quarter results are to be announced on 27 July.

The company expects to report total revenues between $655 million and $665 million. Licence revenue is expected to amount to between $129 million and $133 million, with pro forma earnings per share of $0.13 to $0.15.

Earnings per share according to generally accepted accounting practice (GAAP) are expected to amount to $0.03 to $0.05.

GAAP earnings take into account a $0.03 per share deferred maintenance write-down, restructuring charges of $0.01 a share, costs of $0.02 a share related to the Oracle bid, and $0.04 per share amortisation of capitalised software and intangible assets.