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PeopleSoft Reports First Quarter 2004 Results
SYDNEY, – April 23, 2004 -- PeopleSoft, Inc. (Nasdaq: PSFT) today announced its first quarter 2004 financial results. For the first quarter ended March 31, 2004, the Company reported total revenue of $643 million, exceeding the company’s guidance of $625 million to $635 million. License revenue for the quarter was $131 million, consistent with the Company’s guidance. Pro forma net income for the first quarter of 2004 was $62 million, an increase of 62% when compared to pro forma net income of $38 million in the first quarter of 2003. First quarter pro forma earnings per share rose 42% to $0.17, meeting the Company’s guidance.
On a GAAP basis first quarter 2004 earnings per share was $0.07, meeting the Company’s guidance. GAAP net income for the quarter was $24 million compared with $38 million in the same period last year. GAAP results include charges for purchase accounting adjustments related to the acquisition of J.D. Edwards.
At March 31, 2004, the Company’s cash and investment balances were $1.6 billion. First quarter cash flow from operations was $116 million, a 55% increase from the first quarter of 2003. Days Sales Outstanding for the quarter was an industry leading 53 days, an improvement from 61 days in the fourth quarter of 2003.
The first quarter 2004 pro forma results exclude charges for purchase accounting adjustments related to the acquisition of J.D. Edwards, including the revenue impact of the deferred maintenance write-down to fair value, amortization of capitalized software and other restructuring charges. A reconciliation of GAAP to non-GAAP financial results is included in this press release and is available on our website at www.peoplesoft.com.
Management Commentary “We announced a growth objective for 2004 that was by far the most aggressive in the enterprise application software business, and we are delivering to that plan,” said President and CEO Craig Conway.
“With most of the extraordinary distractions now behind us, we can return our full attention to our business,” continued Conway.
Leading organizations around the world continue to choose PeopleSoft applications to move their business processes on line and operate in real time. During the quarter, organizations that purchased PeopleSoft’s industry leading applications included: AGCO, Amersham Biosciences UK, Asia Optical, British Telecommunications, Cincinnati Children’s Hospital Medical Center, CR Bard, Ecolab, Edens & Avant, FedEx, Hovnanian Enterprises, NYU Hospitals Center, RR Donnelley & Sons, Saint-Gobain Distribution Batiment, Sodisco-Howden Group, Sony Global Solutions, Staples and the U.S. Department of Defense.
In Japan and Asia Pacific
“Organisations from diverse industries throughout the region continued to choose PeopleSoft applications,” said Murray Creighton, senior vice president of PeopleSoft, Japan and Asia Pacific. “Customers of all sizes chose PeopleSoft’s flexible and adaptable solutions to run their enterprises.”
During the quarter, organizations that purchased PeopleSoft’s industry leading applications in Japan and Asia Pacific included: Department of Education and Training, Hamilton City Council, Livingstone Shire Council, Department of Defence, MTQ Engine Systems (Aust) Pty Ltd, Pentarch Holdings Pty Ltd, Auburn Council, Zensar Technologies Limited, SembCorp Industries Limited, International Information Products (Shenzhen) Co. Ltd, China Minsheng Banking Co. Ltd., YUM! Restaurants (China) Investment Company Limited, Shanghai SVA NEC Liquid Crystal Display Co. Ltd, ASIA OPTICAL CO., INC., Da Cin Construction Co., Ltd, Sony Global Solutions Inc.
Non-GAAP Financial Measures The Company uses non-GAAP pro forma financial measures, which exclude adjustments related to purchase accounting and restructuring costs, in analyzing financial results because they provide meaningful information regarding the Company's operational performance and facilitate management's internal comparisons to the Company's historical operating results and comparisons to competitors' operating results.
The Company believes that these non-GAAP financial measures are useful to investors because they allow for greater transparency. Wherever non-GAAP financial measures have been included in this press release, the Company has reconciled them in the tables below to their GAAP counterparts. Reconciliation of these GAAP to non-GAAP financial measures is also included on our web site at www.peoplesoft.com.
These non-GAAP financial measures are not prepared in accordance with generally accepted accounting principles and may be different from non-GAAP financial measures used by other companies. Non-GAAP financial measures should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP.
The following tables reconcile the non-GAAP financial measures to GAAP:
Q1 04 Q1 04 Net Income* EPS* Pro forma $ 62,422 $ 0.17 Revenue impact of deferred maintenance write-down (16,572) (0.05) Restructuring charges (5,090) (0.01) Amortization of capitalized software and intangible assets (16,555) (0.04) GAAP $ 24,205 $ 0.07
*There are no reconciling items between pro forma and GAAP relating to net income and EPS for the first quarter of 2003.
Company to Host Conference Call PeopleSoft will host a conference call today, April 22, 2004, at 3:00 p.m. PT/6:00 p.m. ET to discuss the quarterly results. A live audio-only web cast of the call will be made available in the Investor Relations section of the Company's web site at www.peoplesoft.com. A replay of the call will be made available for seven days following the call and will be accessible on the Company's web site.
About PeopleSoft PeopleSoft (Nasdaq: PSFT) is the world's second largest provider of enterprise application software with 12,200 customers in more than 25 industries and 150 countries. For more information, visit us at www.peoplesoft.com.
PeopleSoft and the PeopleSoft logo are registered trademarks of PeopleSoft, Inc. All other Company and product names may be trademarks of their respective owners. Copyright © 2004 PeopleSoft, Inc. All rights reserved.
Forward-Looking Statements This press release may contain forward-looking statements that state PeopleSoft's intentions, beliefs, expectations, or predictions for the future. You are cautioned that these statements are only predictions and may differ materially from actual future events or results. All forward-looking statements are only as of the date they are made and PeopleSoft undertakes no obligation to update or revise them. The specific forward-looking statements relate to such matters as the impact of PeopleSoft's combination with J.D. Edwards including the integration, the profitability of our international operations, and the combined Company's projected financial performance. Such forward-looking statements are subject to a number of risks, assumptions and uncertainties that could cause the PeopleSoft's actual results to differ materially from those projected in such forward-looking statements. These risks, assumptions and uncertainties include: our ability to successfully complete the integration of J.D. Edwards into PeopleSoft and to achieve anticipated synergies; the costs and disruption to our business arising from the Oracle tender offer; economic and political conditions in the U.S. and abroad; the ability to complete and deliver products and services within currently estimated time frames and budgets; the ability to manage expenses effectively; the ability to achieve revenue from products and services that are under development; competitive and pricing pressures; and other risks referenced from time to time in PeopleSoft's filings with the Securities and Exchange Commission. Please refer to PeopleSoft's current annual report on Form 10-K for more information on the risk factors that could cause actual results to differ.
Important Additional Information
PeopleSoft has filed a Solicitation/Recommendation Statement on Schedule 14D-9 regarding Oracle's tender offer. PeopleSoft stockholders should read the Schedule 14D-9 (including any amendments) because these documents contain important information. The Schedule 14D-9 and other public filings made by PeopleSoft with the SEC are available without charge from the SEC's website at www.sec.gov and from PeopleSoft at www.peoplesoft.com.
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