Network Computing is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

PeopleSoft Plot Thickens

PeopleSoft Inc.s (Nasdaq: PSFT) touch-and-go efforts to fend off a predatory Oracle Corp. received a boost last night as the company unveiled a healthy set of third-quarter results (see PeopleSoft Reports Q3 )

Oracle’s hostile takeover bid for the software vendor has turned into something of a soap opera, complete with courtroom drama and boardroom machinations (see Oracle Battles With PeopleSoft and PeopleSoft Suffers Crisis of Confidence).

But last night’s results suggest that PeopleSoft is far healthier than many industry observers anticipated. The vendor announced quarterly revenues of $699 million, a company record, up from $624 million in the same period last year. Revenue was also 8 percent up on the previous quarter, topping analysts' estimates of $680 million.

Pro forma earnings per share came in at 17 cents, higher than analyst estimates of 14 cents. License revenues, which have been a source of concern for many software vendors recently, were $161.4 million, up slightly from $160.5 million a year ago and 24 percent higher than the previous quarter.

These results will go some way to reassuring shareholders about PeopleSoft’s viability at a time when Oracle appears to be closing in on its target. Last month a U.S. District Court judge removed one of the major obstacles in the takeover’s path, and reports suggest that the E.U. is likely to give the deal a green light (see Oracle Prevails in Antitrust Lawsuit).

  • 1