The company recorded $498m (£338m) in sales in the final three months of 2000, up 34 per cent from $372m in the same quarter in 1999.
Licence revenue for Peoplesoft 8, the company's e-business application suite, rose 73 per cent to $165m, up from $95m in the same quarter of 1999.
Ovum senior analyst Stuart Armstrong commented, "The key thing is that all ERP vendors are reporting better than expected financial results. The effect of Y2K is beginning to ease off and people are beginning to spend money on IT again.
He continued, "ERP vendors are reinventing themselves as e-business providers and are moving into a more lucrative space." But added that, "In terms of future forecasts, there is still a long way to go."
Sarah Gemmell, marketing manager at reseller XTML, attributed the sales growth to Peoplesoft's decision to appoint channel partners.
"Peoplesoft has recognised that they need to address the SME sector. This has marked a shift in direction because they have always sold direct."
Peoplesoft's UK customers include British American Tobacco, the British Red Cross, BT, BP Amoco, BUPA, Marks & Spencer, Nissan, Orange, Oxfam, Sainsbury's, Shell and Thames Water.
This was first published in February 2001