PeopleSoft Reports First Quarter Results
Tuesday April 22, 4:39 pm ET
Q1 Revenue $460 Million, EPS at 12 Cents
PLEASANTON, Calif.--(BUSINESS WIRE)--April 22, 2003--PeopleSoft, Inc. (Nasdaq:PSFT - News) today reported its first quarter 2003 financial results. For the quarter ended March 31, 2003, the Company reported total revenues of $460 million. Total revenues include license revenue of $81 million, professional services revenue of $179 million and maintenance revenue of $200 million. First quarter operating income was $52 million and operating margins were 11.3 percent. PeopleSoft reported net income of $38 million and EPS of $0.12.
The Company's Q1 cash flow from operations was $75 million and cash and investment balances at March 31, 2003 were $2 billion. Days sales outstanding (DSO) at March 31, 2003 was 61 days.
Management Commentary
"The recovery that began in Q4 was fragile and simply ended with additional economic concerns and geopolitical tensions," said Craig A. Conway, PeopleSoft president and CEO.
"While PeopleSoft's license revenue was impacted, professional services and maintenance revenue remained strong during the quarter," added Conway. The strength of our services business combined with strong internal cost controls allowed us to post solid financial results in a very tough environment.
Customer Wins
Leading organizations around the world continue to choose PeopleSoft applications to move their business processes on line and operate in real time. During the quarter, the Company added more than 70 new customers. Organizations that purchased PeopleSoft pure-internet applications included: ABN AMRO, Altec S.A., Anthem Insurance, Avis Europe, Banta Corporation, CGE&Y, Central Japan Railway, DePaul University, Goldman Sachs, Hakuhodo KK, Health Care Service Corporation, Illinois Tool Works, La Quinta, Marsh & McLennan, McKesson, British Columbia Provincial Health Services Authority, Ruan Transport, Sandvik AB, State of Oklahoma, Textron, Vodafone Libertel N.V., VoiceStream Wireless and 3M.
About PeopleSoft
PeopleSoft (Nasdaq: PSFT - News) is the world's leading provider of application software for the real-time enterprise. PeopleSoft pure internet software enables organizations to reduce costs and increase productivity by directly connecting customers, suppliers, partners and employees to business processes on-line, in real time. PeopleSoft's integrated, best-in-class applications include Customer Relationship Management, Supply Chain Management, Human Capital Management, Financial Management and Application Integration. Today more than 5,100 organizations in 140 countries run on PeopleSoft software. For more information, visit us at www.peoplesoft.com.
Note to Editors: PeopleSoft and the PeopleSoft logo are registered trademarks and Pure Internet Architecture is a trademark of PeopleSoft, Inc. All other company and product names may be trademarks of their respective owners.
Statements made in this press release that state the Company's or management's intentions, beliefs, expectations, or predictions for the future are forward-looking statements. 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 the Company's competitive position and its market acceptance of existing products and services, and its projected financial performance. Such forward-looking statements are subject to a number of risks, assumptions and uncertainties that could cause the Company's actual results to differ materially from those projected in such forward-looking statements. These risks, assumptions and uncertainties include: economic and political conditions in the U.S. and abroad; the ability to complete and deliver products and services within currently estimated time frames and budgets; the ability to manage expenses effectively; the ability to achieve revenues from products and services that are under development; competitive and pricing pressures; and other risks referenced from time to time in the Company's filings with the Securities and Exchange Commission. Please refer to the Company's current annual report on Form 10-K for more information on the risk factors that could cause actual results to differ.
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CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(In thousands, except per share data)
(unaudited)
THREE MONTHS ENDED
MARCH 31,
---------------------------
2003 2002
---------------------------
Revenues:
License fees $80,841 $133,290
Maintenance revenue 199,921 164,573
Professional services revenue 179,494 177,874
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Services revenue 379,415 342,447
Development and other services - 7,530
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Total revenues 460,256 483,267
Costs and expenses:
Cost of license fees 8,726 11,437
Cost of services 163,469 164,530
Cost of development and other
services - 6,755
Sales and marketing expense 119,558 124,570
Product development expense 83,705 82,333
General and administrative
expense 33,015 30,246
Restructuring, acquisition and
other charges - 2,800
---------------------------
Total costs and expenses 408,473 422,671
---------------------------
Operating income 51,783 60,596
Other income, net 6,966 7,239
---------------------------
Income before provision for income
taxes 58,749 67,835
Provision for income taxes 20,270 23,291
---------------------------
Net income $38,479 $44,544
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Basic income per share $0.12 $0.14
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Shares used in basic per share
computation 314,782 307,990
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Diluted income per share $0.12 $0.14
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Shares used in diluted per share
computation 319,831 325,865
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CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except employee count)
(unaudited)
MARCH 31, DECEMBER 31,
2003 2002
------------------------------------
Assets:
Current assets:
Cash and cash equivalents $239,031 $319,344
Short-term investments 1,693,811 1,588,172
Accounts receivable, net 313,450 357,353
Deferred tax assets 39,944 40,559
Prepaid and other current
assets 47,615 45,448
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Total current assets 2,333,851 2,350,876
Property and equipment, net 288,135 222,800
Investments 19,732 21,946
Deferred tax assets 142,953 149,187
Capitalized software, net 39,890 44,101
Goodwill 54,366 54,294
Other assets 5,068 5,359
------------------------------------
Total assets $2,883,995 $2,848,563
====================================
Liabilities and Stockholders'
Equity:
Current liabilities:
Accounts payable and accrued
liabilities $118,759 $132,687
Accrued compensation and
related expenses 133,179 172,566
Income taxes payable 31,174 48,095
Short-term deferred revenues 455,820 422,657
------------------------------------
Total current liabilities 738,932 776,005
Long-term deferred revenues 88,253 95,460
Other liabilities 22,086 21,486
------------------------------------
Total liabilities 849,271 892,951
Stockholders' equity:
Common stock 3,176 3,150
Additional paid-in capital 1,416,744 1,382,442
Retained earnings 638,282 599,803
Treasury stock (35,654) (35,563)
Accumulated other
comprehensive income 12,176 5,780
------------------------------------
Total stockholders' equity 2,034,724 1,955,612
------------------------------------
Total liabilities and
stockholders' equity $2,883,995 $2,848,563
====================================
Worldwide employee count 8,180 8,293
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(unaudited)
THREE MONTHS ENDED
MARCH 31,
----------------------
2003 2002
----------------------
Operating activities:
Net income $38,479 $44,544
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization 26,884 22,231
Provision for doubtful accounts 3,780 2,037
Tax benefits from employee stock transactions 1,956 14,515
Provision (benefit) for deferred income taxes 6,562 (643)
Gain on sales of investments and disposition
of property and equipment, net (649) (1,373)
Non-cash stock compensation 2,304 1,569
Restructuring, acquisition and other charges - 2,800
Changes in operating assets and liabilities, net of
effects of acquisitions:
Accounts receivable 41,742 60,382
Accounts payable and accrued liabilities (11,509) 3,885
Accrued compensation and related expenses (39,701) (33,420)
Income taxes, net (16,698) 5,258
Deferred revenues 21,015 17,057
Other 584 1,976
----------------------
Net cash provided by operating activities 74,749 140,818
Investing activities:
Purchase of available-for-sale investments (3,226,843)(2,373,033)
Proceeds from maturities and sales of available-
for-sale investments 3,123,799 2,267,094
Purchases of property and equipment (86,695) (22,418)
Acquisitions, net of cash acquired - (29,999)
----------------------
Net cash used in investing activities (189,739) (158,356)
Financing activities:
Net proceeds from employee stock transactions 30,068 63,732
----------------------
Net cash provided by financing activities 30,068 63,732
Effect of foreign exchange rate changes on cash
and cash equivalents 4,609 (1,730)
----------------------
Net (decrease) increase in cash and cash
equivalents (80,313) 44,464
Cash and cash equivalents at beginning of period 319,344 433,700
----------------------
Cash and cash equivalents at end of period $239,031 $478,164
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Contact:
PeopleSoft Inc.
Lori Varlas, 877/528-7413 (Investor Relations)
lori_varlas@peoplesoft.com
Kara Wilson, 925/694-4046 (Corporate Communications)
925/408-2249 (cell)
kara_wilson@peoplesoft.com
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Source: PeopleSoft |
