PeopleSoft not so soft anymore-reason to cheer for i2?
Shane:
Any thoughts on this bit of news and how it might play out with respect to i2? Thanks in advance for your input.
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PeopleSoft Not So Soft
Wired News Report
3:00 a.m. 29.Jan.99.PST
PeopleSoft, a software company famed for coddling its employees, said on Thursday it will fire 430 workers, or 6 percent of its staff, amid stiffer competition with rivals SAP of Germany and Oracle.
PeopleSoft (PSFT), based in Pleasanton, California, said the job cuts will come in administration, sales support, and marketing support. It plans to shift 100 employees to new product development, product support, and other areas.
The company also reported fourth-quarter profit of US$40 million, or 16 cents a diluted share -- a penny shy of analyst forecasts of 17 cents a share, according to First Call.
In the past 12 months, PeopleSoft's stock has tumbled by half from a high of $57.44. Demand and prices for its financial and human-resources software have fallen amid competition with SAP and Oracle. In addition, its customers have put off more purchases from the company to deal with the Year 2000 data issue first.
That's partly why its software license revenue rose just 3 percent, far short of the 12 percent that analysts were expecting.
"Their license revenue was quite weak," said James Moore, analyst at BT Alex. Brown. "That's the key metric investors have been looking at."
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