Company Press Release
PeopleSoft Reports Financial Results for the Year and Quarter Ended December 31, 1999
License Revenues Up 45% Sequentially in Fourth Quarter
PLEASANTON, Calif.--(BUSINESS WIRE)--Feb. 1, 2000--PeopleSoft, Inc. (Nasdaq:PSFT - news) announced today the financial results for the quarter and year ended December 31, 1999. Revenues, net income and net income per share for the fourth quarter of 1999 from recurring operations were $372.3 million, $11.1 million and $0.04, respectively. This compares with revenues, net income and net income per share from recurring operations of $411.3 million, $42.3 million and $0.15, respectively, for the fourth quarter of 1998. Including non-recurring items, net loss and net loss per share for the fourth quarter of 1999 were $(5.6) million, and $(0.02), respectively.
Revenues, net income and net income per share for the year ended December 31, 1999 from recurring operations were $1,429.1 million, $21.0 million and $0.08, respectively. This compares with revenues, net income and net income per share from recurring operations of $1,474.8 million, $164.1 million, and $0.58, respectively, in 1998. Including non-recurring items, net loss and net loss per share for the year ended December 31, 1999 were $(177.8) million and $(0.67), respectively.
Revenues from license fees for the quarter ended December 31, 1999 for the combined company increased 45% over the combined license revenues of the previous quarter. Fourth quarter license revenues for the enterprise software business grew 37% from the previous quarter while license revenues for the customer relationship management (CRM) business grew 68% from the previous quarter. Revenues from services for the fourth quarter of 1999 decreased 1% from the previous quarter. Revenues from the combined company's international operations for the fourth quarter of 1999 increased by 40% to $102.3 million or 27% of total revenues, compared to $73.3 million or 21% of total revenues for the third quarter of 1999.
``The fourth quarter marked a much anticipated return in customer demand for PeopleSoft and our industry,'' said Craig Conway, president and chief executive officer. ``With the growth in licensing activity, the addition of a functionally rich CRM product suite, and the release of our new, pure HTML PeopleSoft Internet Architecture, PeopleSoft has become a stronger competitor in a rapidly improving industry.''
The results for all periods presented include the results of The Vantive Corporation, which merged with PeopleSoft in the fourth quarter of 1999 in a transaction accounted for as a pooling of interests. Recurring operations for the fourth quarter of 1999 exclude charges of $64.3 million incurred in connection with the merger and write-off of certain assets and gains of $51.3 million from the sale of equity investments, and for the year exclude charges of $185.1 million incurred in connection with the first quarter of 1999 spin-off of Momentum Business Applications, Inc. and reductions in work force. The fourth quarter of 1998 recurring operations exclude the write-off of in-process research and development costs of $13.9 million incurred principally in connection with the acquisition of Intrepid Systems, Inc., and for the year exclude acquisition expenses incurred by Vantive of approximately $11 million.
Quarterly Highlights
The following highlights were announced or occurred since PeopleSoft's last earnings release:
-- Vantive Acquisition. PeopleSoft completed its acquisition of The
Vantive Corporation, a leading vendor of CRM solutions. The
acquisition of Vantive makes PeopleSoft the only enterprise
software company offering a full suite of CRM products which are
integrated with PeopleSoft and other major back-office
applications. Organizations can now turn to PeopleSoft for an
industry-leading, functionally rich, stand-alone CRM solution, or
take full advantage of PeopleSoft's integrated suite of CRM and
Enterprise Resource Planning (ERP) applications, and eBusiness
intelligence applications.
-- Vantive eBusiness Applications for CRM. Less than one month after
completing its acquisition of The Vantive Corp., PeopleSoft
shipped the first true Internet-architected CRM solutions with
the Vantive eBusiness applications for CRM. Vantive eSales
provides access through any standard Web browser to the
award-winning Vantive Enterprise CRM solution, driving
opportunities for revenue growth, increased sales productivity
and profitable customer relationships. Also available, Vantive's
Internet-architected service solutions empower users to initiate,
track and resolve product issues via a pure-browser interface,
enabling customers to reduce response time and increase customer
loyalty and retention.
-- Significant CRM Win. ABN AMRO Bank of the Netherlands, the
world's sixth-largest bank, has selected PeopleSoft's integrated
CRM solution to center the bank's business operations around its
customers. ABN AMRO will provide more than 22,000 employees with
access to PeopleSoft's CRM solutions in the bank's first phase of
deployment, enabling a 360-degree view of customers for improved
customer service. The ABN AMRO project is believed to be the
largest CRM deployment to date in the software industry.
-- PeopleSoft Internet Architecture. PeopleSoft shipped the
PeopleSoft Internet Architecture, the first pure HTML
server-centric development platform delivered by a major
enterprise application company. Representing a paradigm shift in
PeopleSoft technology, this platform enables the rapid
development, deployment, customization and cost effective
management of PeopleSoft's next generation of eBusiness
applications, and allows business-to-business (B2B) transactions
and collaboration via the Internet using XML, the emerging
standard for enabling interoperability over the Internet.
-- Enterprise Performance Management 8. PeopleSoft shipped
Enterprise Performance Management 8, the first PeopleSoft
applications based on the PeopleSoft Internet Architecture. The
industry's most comprehensive and integrated suite of eBusiness
intelligence applications, Enterprise Performance Management is
entirely accessible over the Internet through a standard browser
enabling customers to harness internal data from transactional
applications as well as external data from the Internet. The
integrated suite, the second generation of PeopleSoft Enterprise
Performance Management has become PeopleSoft's fourth largest
product suite.
-- eBusiness Applications. PeopleSoft announced several key
milestones for its eBusiness applications including an e-commerce
portal for the apparel industry, the integration of PeopleSoft
Order Management with the Commerce One MarketSite, and the
implementation of PeopleSoft eProcurement by Pepsi-Cola General
Bottlers in just nine weeks. PeopleSoft eBusiness applications
streamline and aggregate purchasing across an enterprise thereby
reducing supply chain costs and facilitating B2B and
business-to-consumer (B2C) transactions over the Internet.
-- Education and Government. PeopleSoft shipped PeopleSoft Financial
Management for Education and Government Release 7.5. With this
release, educational institutions and government agencies can
benefit from enhanced reporting and analysis tools and expanded
Internet functionality. The new release also includes PeopleSoft
Grants, a comprehensive application for higher education
institutions to more effectively manage sponsored research
projects throughout the entire grants life cycle. In addition,
this release was certified on the Joint Financial Management
Improvement Program (JFMIP) Core Financial System Software
Qualification Test for the U.S. Federal government in September
1999.
About PeopleSoft
PeopleSoft (Nasdaq:PSFT - news) is a world leader in enterprise application software. PeopleSoft provides eBusiness applications for customer relationship management, human resource management, financials, and supply chain, along with a range of industry-specific solutions. For more than 4,000 customers, PeopleSoft applications offer greater flexibility, rapid implementation, scalability across multiple databases and operating systems, and lower cost of ownership. Customers include some of the largest multi-national organizations in the world, as well as small- and medium-size businesses. In addition to software, PeopleSoft offers PeopleSoft Advantage Customer Service, a comprehensive consulting, education and technical support program. Headquartered in Pleasanton, California, PeopleSoft (www.peoplesoft.com) employs 7,000 people and had 1999 revenues of $1.4 billion.
Note to Editors: PeopleSoft, the PeopleSoft logo, PeopleTools, and Vantive are registered trademarks. All other company and product names may be trademarks of their respective owners.
This release contains projections or other forward-looking statements regarding future events or the future financial performance of the Company that involve risks and uncertainties. Readers are cautioned that these statements are only predictions and may differ materially from actual future events or results. The specific forward-looking statements relate to such matters as competitive landscape; new product development status; position in the Internet sector; and future growth. Please refer to the Company's annual report to shareholders (Form 10-K) and subsequent filings on Form 10-Q for more information on the risk factors that could cause actual results to differ.
PEOPLESOFT, INC.
CONDENSED CONSOLIDATED FINANCIAL INFORMATION
(In thousands, except per share data)
(Unaudited)
THREE MONTHS ENDED YEAR ENDED
December 31, December 31,
1998 1999 1998 1999
Revenues:
License fees $ 169,515 $ 95,285 $ 664,277 $ 339,676
Services 241,781 264,198 810,491 1,061,838
Development and
other services - 12,793 - 27,632
Total revenues 411,296 372,276 1,474,768 1,429,146
Costs and expenses:
Cost of license fees 13,142 10,131 44,418 42,578
Cost of services 135,313 142,133 465,670 564,404
Cost of development
services - 11,608 - 25,107
Sales and marketing 111,947 94,666 407,023 391,572
Product development 69,611 81,410 237,970 297,212
General and
administrative 17,661 24,169 73,828 97,387
Restructuring and
other charges 15,120 64,320 24,795 73,050
Contribution to
Momentum Business
Applications - - - 176,409
Total costs and
expenses 362,794 428,437 1,253,704 1,667,719
Operating income (loss) 48,502 (56,161) 221,064 (238,573)
Other income, interest
expense and other 5,962 55,797 20,778 72,175
Income (loss) before
income taxes 54,464 (364) 241,842 (166,398)
Provision for income
taxes 27,250 5,201 101,904 11,367
Net income (loss) $ 27,214 $ (5,565) $ 139,938 $(177,765)
Basic income (loss)
per share $ 0.11 $ (0.02) $ 0.56 $ (0.67)
Shares used in basic per
share computation 254,857 269,170 249,807 263,914
Diluted income (loss)
per share $ 0.10 $ (0.02) $ 0.50 $ (0.67)
Shares used in diluted
per share computation 274,930 269,170 281,059 263,914
DECEMBER 31, DECEMBER 31,
1998 1999
ASSETS
Current assets:
Cash and cash equivalents $531,722 $414,019
Short term investments 249,416 290,122
Accounts receivable, net 427,268 331,104
Investments available for sale - 260,664
Deferred income taxes 59,812 -
Other current assets 49,995 63,467
Total current assets 1,318,213 1,359,376
Property and equipment, at cost 348,527 359,549
Less accumulated depreciation
and amortization (139,228) (187,056)
---------- ----------
209,299 172,493
Investments 31,616 67,852
Deferred income taxes 7,814 18,774
Software developed or acquired,
less accumulated amortization 37,393 27,286
Other assets 19,190 42,097
-------- --------
$1,623,525 $1,687,878
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and
accrued liabilities $132,521 $ 148,989
Accrued compensation and
related expenses 116,825 130,245
Income taxes payable 22,587 19,055
Deferred income taxes - 23,945
Deferred revenue 442,131 429,929
Total current liabilities 714,064 752,163
Long term debt 69,000 69,000
Long term deferred maintenance 89,393 88,046
Other long term liabilities 18,732 14,050
Stockholders' equity:
Common stock 2,557 2,709
Additional paid-in capital 396,037 538,643
Dividend declared of
Momentum Business
Application shares 78,622 -
Accumulated other comprehensive
(loss) income (2,614) 143,298
Retained earnings 257,734 79,969
--------- ---------
732,336 764,619
--------- ---------
$1,623,525 $1,687,878
Worldwide employee count 7,632 6,929
PeopleSoft Reports Financial Results for the Year and Quarter Ended December 31, 1999
License Revenues Up 45% Sequentially in Fourth Quarter
PLEASANTON, Calif.--(BUSINESS WIRE)--Feb. 1, 2000--PeopleSoft, Inc. (Nasdaq:PSFT - news) announced today the financial results for the quarter and year ended December 31, 1999. Revenues, net income and net income per share for the fourth quarter of 1999 from recurring operations were $372.3 million, $11.1 million and $0.04, respectively. This compares with revenues, net income and net income per share from recurring operations of $411.3 million, $42.3 million and $0.15, respectively, for the fourth quarter of 1998. Including non-recurring items, net loss and net loss per share for the fourth quarter of 1999 were $(5.6) million, and $(0.02), respectively.
Revenues, net income and net income per share for the year ended December 31, 1999 from recurring operations were $1,429.1 million, $21.0 million and $0.08, respectively. This compares with revenues, net income and net income per share from recurring operations of $1,474.8 million, $164.1 million, and $0.58, respectively, in 1998. Including non-recurring items, net loss and net loss per share for the year ended December 31, 1999 were $(177.8) million and $(0.67), respectively.
Revenues from license fees for the quarter ended December 31, 1999 for the combined company increased 45% over the combined license revenues of the previous quarter. Fourth quarter license revenues for the enterprise software business grew 37% from the previous quarter while license revenues for the customer relationship management (CRM) business grew 68% from the previous quarter. Revenues from services for the fourth quarter of 1999 decreased 1% from the previous quarter. Revenues from the combined company's international operations for the fourth quarter of 1999 increased by 40% to $102.3 million or 27% of total revenues, compared to $73.3 million or 21% of total revenues for the third quarter of 1999.
``The fourth quarter marked a much anticipated return in customer demand for PeopleSoft and our industry,'' said Craig Conway, president and chief executive officer. ``With the growth in licensing activity, the addition of a functionally rich CRM product suite, and the release of our new, pure HTML PeopleSoft Internet Architecture, PeopleSoft has become a stronger competitor in a rapidly improving industry.''
The results for all periods presented include the results of The Vantive Corporation, which merged with PeopleSoft in the fourth quarter of 1999 in a transaction accounted for as a pooling of interests. Recurring operations for the fourth quarter of 1999 exclude charges of $64.3 million incurred in connection with the merger and write-off of certain assets and gains of $51.3 million from the sale of equity investments, and for the year exclude charges of $185.1 million incurred in connection with the first quarter of 1999 spin-off of Momentum Business Applications, Inc. and reductions in work force. The fourth quarter of 1998 recurring operations exclude the write-off of in-process research and development costs of $13.9 million incurred principally in connection with the acquisition of Intrepid Systems, Inc., and for the year exclude acquisition expenses incurred by Vantive of approximately $11 million.
Quarterly Highlights
The following highlights were announced or occurred since PeopleSoft's last earnings release:
-- Vantive Acquisition. PeopleSoft completed its acquisition of The
Vantive Corporation, a leading vendor of CRM solutions. The
acquisition of Vantive makes PeopleSoft the only enterprise
software company offering a full suite of CRM products which are
integrated with PeopleSoft and other major back-office
applications. Organizations can now turn to PeopleSoft for an
industry-leading, functionally rich, stand-alone CRM solution, or
take full advantage of PeopleSoft's integrated suite of CRM and
Enterprise Resource Planning (ERP) applications, and eBusiness
intelligence applications.
-- Vantive eBusiness Applications for CRM. Less than one month after
completing its acquisition of The Vantive Corp., PeopleSoft
shipped the first true Internet-architected CRM solutions with
the Vantive eBusiness applications for CRM. Vantive eSales
provides access through any standard Web browser to the
award-winning Vantive Enterprise CRM solution, driving
opportunities for revenue growth, increased sales productivity
and profitable customer relationships. Also available, Vantive's
Internet-architected service solutions empower users to initiate,
track and resolve product issues via a pure-browser interface,
enabling customers to reduce response time and increase customer
loyalty and retention.
-- Significant CRM Win. ABN AMRO Bank of the Netherlands, the
world's sixth-largest bank, has selected PeopleSoft's integrated
CRM solution to center the bank's business operations around its
customers. ABN AMRO will provide more than 22,000 employees with
access to PeopleSoft's CRM solutions in the bank's first phase of
deployment, enabling a 360-degree view of customers for improved
customer service. The ABN AMRO project is believed to be the
largest CRM deployment to date in the software industry.
-- PeopleSoft Internet Architecture. PeopleSoft shipped the
PeopleSoft Internet Architecture, the first pure HTML
server-centric development platform delivered by a major
enterprise application company. Representing a paradigm shift in
PeopleSoft technology, this platform enables the rapid
development, deployment, customization and cost effective
management of PeopleSoft's next generation of eBusiness
applications, and allows business-to-business (B2B) transactions
and collaboration via the Internet using XML, the emerging
standard for enabling interoperability over the Internet.
-- Enterprise Performance Management 8. PeopleSoft shipped
Enterprise Performance Management 8, the first PeopleSoft
applications based on the PeopleSoft Internet Architecture. The
industry's most comprehensive and integrated suite of eBusiness
intelligence applications, Enterprise Performance Management is
entirely accessible over the Internet through a standard browser
enabling customers to harness internal data from transactional
applications as well as external data from the Internet. The
integrated suite, the second generation of PeopleSoft Enterprise
Performance Management has become PeopleSoft's fourth largest
product suite.
-- eBusiness Applications. PeopleSoft announced several key
milestones for its eBusiness applications including an e-commerce
portal for the apparel industry, the integration of PeopleSoft
Order Management with the Commerce One MarketSite, and the
implementation of PeopleSoft eProcurement by Pepsi-Cola General
Bottlers in just nine weeks. PeopleSoft eBusiness applications
streamline and aggregate purchasing across an enterprise thereby
reducing supply chain costs and facilitating B2B and
business-to-consumer (B2C) transactions over the Internet.
-- Education and Government. PeopleSoft shipped PeopleSoft Financial
Management for Education and Government Release 7.5. With this
release, educational institutions and government agencies can
benefit from enhanced reporting and analysis tools and expanded
Internet functionality. The new release also includes PeopleSoft
Grants, a comprehensive application for higher education
institutions to more effectively manage sponsored research
projects throughout the entire grants life cycle. In addition,
this release was certified on the Joint Financial Management
Improvement Program (JFMIP) Core Financial System Software
Qualification Test for the U.S. Federal government in September
1999.
About PeopleSoft
PeopleSoft (Nasdaq:PSFT - news) is a world leader in enterprise application software. PeopleSoft provides eBusiness applications for customer relationship management, human resource management, financials, and supply chain, along with a range of industry-specific solutions. For more than 4,000 customers, PeopleSoft applications offer greater flexibility, rapid implementation, scalability across multiple databases and operating systems, and lower cost of ownership. Customers include some of the largest multi-national organizations in the world, as well as small- and medium-size businesses. In addition to software, PeopleSoft offers PeopleSoft Advantage Customer Service, a comprehensive consulting, education and technical support program. Headquartered in Pleasanton, California, PeopleSoft (www.peoplesoft.com) employs 7,000 people and had 1999 revenues of $1.4 billion.
Note to Editors: PeopleSoft, the PeopleSoft logo, PeopleTools, and Vantive are registered trademarks. All other company and product names may be trademarks of their respective owners.
This release contains projections or other forward-looking statements regarding future events or the future financial performance of the Company that involve risks and uncertainties. Readers are cautioned that these statements are only predictions and may differ materially from actual future events or results. The specific forward-looking statements relate to such matters as competitive landscape; new product development status; position in the Internet sector; and future growth. Please refer to the Company's annual report to shareholders (Form 10-K) and subsequent filings on Form 10-Q for more information on the risk factors that could cause actual results to differ.
PEOPLESOFT, INC.
CONDENSED CONSOLIDATED FINANCIAL INFORMATION
(In thousands, except per share data)
(Unaudited)
THREE MONTHS ENDED YEAR ENDED
December 31, December 31,
1998 1999 1998 1999
Revenues:
License fees $ 169,515 $ 95,285 $ 664,277 $ 339,676
Services 241,781 264,198 810,491 1,061,838
Development and
other services - 12,793 - 27,632
Total revenues 411,296 372,276 1,474,768 1,429,146
Costs and expenses:
Cost of license fees 13,142 10,131 44,418 42,578
Cost of services 135,313 142,133 465,670 564,404
Cost of development
services - 11,608 - 25,107
Sales and marketing 111,947 94,666 407,023 391,572
Product development 69,611 81,410 237,970 297,212
General and
administrative 17,661 24,169 73,828 97,387
Restructuring and
other charges 15,120 64,320 24,795 73,050
Contribution to
Momentum Business
Applications - - - 176,409
Total costs and
expenses 362,794 428,437 1,253,704 1,667,719
Operating income (loss) 48,502 (56,161) 221,064 (238,573)
Other income, interest
expense and other 5,962 55,797 20,778 72,175
Income (loss) before
income taxes 54,464 (364) 241,842 (166,398)
Provision for income
taxes 27,250 5,201 101,904 11,367
Net income (loss) $ 27,214 $ (5,565) $ 139,938 $(177,765)
Basic income (loss)
per share $ 0.11 $ (0.02) $ 0.56 $ (0.67)
Shares used in basic per
share computation 254,857 269,170 249,807 263,914
Diluted income (loss)
per share $ 0.10 $ (0.02) $ 0.50 $ (0.67)
Shares used in diluted
per share computation 274,930 269,170 281,059 263,914
DECEMBER 31, DECEMBER 31,
1998 1999
ASSETS
Current assets:
Cash and cash equivalents $531,722 $414,019
Short term investments 249,416 290,122
Accounts receivable, net 427,268 331,104
Investments available for sale - 260,664
Deferred income taxes 59,812 -
Other current assets 49,995 63,467
Total current assets 1,318,213 1,359,376
Property and equipment, at cost 348,527 359,549
Less accumulated depreciation
and amortization (139,228) (187,056)
---------- ----------
209,299 172,493
Investments 31,616 67,852
Deferred income taxes 7,814 18,774
Software developed or acquired,
less accumulated amortization 37,393 27,286
Other assets 19,190 42,097
-------- --------
$1,623,525 $1,687,878
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and
accrued liabilities $132,521 $ 148,989
Accrued compensation and
related expenses 116,825 130,245
Income taxes payable 22,587 19,055
Deferred income taxes - 23,945
Deferred revenue 442,131 429,929
Total current liabilities 714,064 752,163
Long term debt 69,000 69,000
Long term deferred maintenance 89,393 88,046
Other long term liabilities 18,732 14,050
Stockholders' equity:
Common stock 2,557 2,709
Additional paid-in capital 396,037 538,643
Dividend declared of
Momentum Business
Application shares 78,622 -
Accumulated other comprehensive
(loss) income (2,614) 143,298
Retained earnings 257,734 79,969
--------- ---------
732,336 764,619
--------- ---------
$1,623,525 $1,687,878
Worldwide employee count 7,632 6,929
