PeopleSoft has reported record revenue of S$624m and a
narrower-than-expected loss of $7.3m.
PeopleSoft's licence fees, maintenance and professional services
revenue all increased from last year's third quarter, contributing
to its 32% revenue gain. The company declined to break out JD
Edwards' contribution to the quarter's revenue, or provide a
comparison with last year's quarter, but said the unit's financial
impact on PeopleSoft's results was positive.
"JD Edwards has been more than we could have expected," said
chief executive officer Craig Conway. "A number of theoretical
advantages of combining the company with JD Edwards are actually
showing quantifiable results. It's one thing to talk about
cross-selling and up-selling opportunities; it's another to
actually see a number of cross-selling and up-selling opportunities
in the first sixty days."
Conway called the quarter a strong one, and said the results
reflect the beginning of advantages from combining PeopleSoft and
JD Edwards. More than 170 customers that had not previous purchased
from PeopleSoft signed on with the company during the quarter,
making it the company's best quarter for new customer signings
since 1998.
"It may be the curse of the Oracle tender offer that many people
find themselves unable to suspend their disbelief in anything
positive I say. But I think for those people, the financial results
speak for themselves," Conway said .
Oracle's $7.3bn offer to PeopleSoft's shareholders for control
of the company, initiated in June and now extended at least through
the end of the year, remains a concern for customers, Conway
said.
"I think it's fair to say that every single transaction we did
in Q3 came with a requirement to give an update on the Oracle
approach. If it's not the first topic, it's certain in the top
three topics every customer would like to get an update on."
But the uncertainty created by Oracle's takeover attempt is not
preventing deals, even large ones, from going through, Conway said,
pointing to the five-year-high number of new customers signed
during the quarter.
Several rivals in the industry - most notably, SAP - have
complained about price warfare decimating margins for enterprise
software sales, particularly since the advent of Oracle's brawl
with PeopleSoft.
PeopleSoft chief financial officer Kevin Parker said they agreed
pricing is hotly competitive, but denied their company is chopping
its price tags.
"The funny thing about a price war is that no one ever seems to
start it," Parker said. For two years the software market has been
"very, very competitive and almost suicidal at times", but
PeopleSoft has held the line on its prices, he added.
Stacy Cowley writes for IDG News Service