PeopleSoft hits profit target 'against all odds'

PeopleSoft has met its previously announced financial expectations for the quarter that ended 30 June.

PeopleSoft has met its previously announced financial expectations for the quarter ending 30 June.

Software licence revenue will be between $105m (£63m) and $115m, with total revenue in the $490m (£294m) to $500m range, PeopleSoft said. In last year's second quarter, the company generated licence revenue of $131.9m and total revenue of $482.2m.

PeopleSoft chief executive officer Craig Conway hailed the company's performance as a triumph "against all odds and odds makers".

Since Oracle's surprise announcement of a $5.1bn offer to acquire PeopleSoft, the two enterprise applications suppliers have been locked in an acrimonious battle.

Oracle later increased its bid to $6.3bn, and hoped to entice PeopleSoft shareholders to take advantage of a tender offer due to expire next week.

With Oracle's takeover attempt timed to the crucial end of PeopleSoft's financial quarter, when many sales take place, industry analysts warned that the company could fall short of its financial goals if customers decided to delay purchases.

But new and existing customers continued buying, Conway said, hailing those purchases as "an undeniable vote of confidence".

PeopleSoft is scheduled to release its full second-quarter results later this month.

Stacy Cowley writes for IDG News Service

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