Most Read Technology Reporter For More Than Two Decades

Maureen O'Gara

Subscribe to Maureen O'Gara: eMailAlertsEmail Alerts
Get Maureen O'Gara: homepageHomepage mobileMobile rssRSS facebookFacebook twitterTwitter linkedinLinkedIn


PeopleSoft Reports Loss but Wows Street

PeopleSoft Reports Loss but Wows Street

PeopleSoft lost $7.3 million, or two cents a share, on revenues of $624 million in Q3 but still beat expectations.

Excluding certain accounting adjustments related to its acquisition of JD Edwards, PeopleSoft said it would have earned 17 cents a share, exceeding its guidance of 10 cents-11 cents as well as Wall Street's expectations of 11 cents.

The company's revenues were also higher than its guidance of $575 million-$590 million.

Software license revenues, a yardstick of growth, totaled $160 million, well above the $135 million-$150 million the company thought it would do and nicely ahead of the $121.61 million in the year-earlier quarter.

Reflecting confidence in the future, PeopleSoft raised its Q4 revenue projections to $625 million-$640 million from $615 million- $630 million and its EPS outlook to 18 cents-19 cents from 16 cents- 17 cents excluding charges.

PeopleSoft's strong numbers in the face of the uncertainty provoked by Oracle's hostile takeover bid seemed to impress Wall Street. US Bancorp Piper Jaffray upgraded the stock to a "strong buy" from "outperform" citing better overall demand and growing operating margins, and Prudential declared that, "The positive impact of the JD Edwards acquisition is just starting to play out."

PeopleSoft's strong results also make it more difficult for Oracle's five-month-old bid to succeed unless it raises its offer, something it's said it's reluctant to do.

More Stories By Maureen O'Gara

Maureen O'Gara the most read technology reporter for the past 20 years, is the Cloud Computing and Virtualization News Desk editor of SYS-CON Media. She is the publisher of famous "Billygrams" and the editor-in-chief of "Client/Server News" for more than a decade. One of the most respected technology reporters in the business, Maureen can be reached by email at maureen(at) or paperboy(at), and by phone at 516 759-7025. Twitter: @MaureenOGara

Comments (0)

Share your thoughts on this story.

Add your comment
You must be signed in to add a comment. Sign-in | Register

In accordance with our Comment Policy, we encourage comments that are on topic, relevant and to-the-point. We will remove comments that include profanity, personal attacks, racial slurs, threats of violence, or other inappropriate material that violates our Terms and Conditions, and will block users who make repeated violations. We ask all readers to expect diversity of opinion and to treat one another with dignity and respect.