PeopleSoft CFO: Not Looking To Buy Supply-Chain Rival
By: Marcelo Prince, Of DOW JONES NEWSWIRES
NEW YORK -(Dow Jones)- Kevin Parker, the chief financial officer of PeopleSoft Inc. , said Tuesday the software company isn't looking to acquire one of its large supply-chain rivals.
There has been speculation since February that PeopleSoft was looking to buy a supply-chain management, or SCM, software vendor, possibly i2 Technologies Inc. or Manugistics Group (NasdaqNM: MANU - News) Inc. . Both companies have suffered sharp declines in business, and their shares are trading near year lows.
"We are not interested in those companies," Parker told attendees of the Bear Stearns Technology Conference.
The Pleasanton, Calif. , company is still interested in "expanding its supply- chain presence" and is evaluating a "variety of things" including acquisitions, Parker added. But PeopleSoft is more interested in acquiring technology that complements its current SCM offerings, rather than i2 or Manugistics.
The takeover talk was sparked by a Feb. 4 Financial Times article in which PeopleSoft Chief Executive Craig Conway said some SCM vendors were "reasonably valued" and the company was willing to use its cash to gain ground in the SCM market.
Also Tuesday, Parker said the company is unlikely to expand its share repurchase program, despite having about $1.7 billion in cash.
PeopleSoft's board authorized a $100 million buyback program in October 2000 . Parker said the company has so far used $15 million to $20 million under that authorization. He said being a vendor flush with cash is reassuring to PeopleSoft's customers.
Although the board will evaluate the program from time to time, buybacks " never achieve from a historical perception the (desired) results" - accretion to earnings and a show of confidence by the company's management, Parker said. |
