PeopleSoft, Inc. Reports Sales and Earnings for the Fourth Quarter
and Year Ended Dec. 31, 1996
BusinessWire, Tuesday, February 04, 1997 at 17:18
PLEASANTON, Calif.--(BUSINESS WIRE)--Feb. 4, 1997--PeopleSoft,
Inc. (NASDAQ: PSFT) announced today the financial results for the
quarter and year ended December 31, 1996, which include, as
previously announced, certain non-recurring charges related to two
recent acquisitions.
Revenues, net income and net income per share for the fourth
quarter of 1996 were $147.7 million, $1.7 million and $0.01,
respectively. The results for the fourth quarter of 1996 include a
one time write-off of in-process research and development and other
acquisition related costs of $26.5 million incurred in connection
with the acquisition of PMI and other non-recurring charges of $2.9
million associated with the October 1996 merger with Red Pepper
Software Company. Without the write-off of in-process research and
development, the non-recurring acquisition and merger costs and their
related tax effects, net income and net income per share for the
fourth quarter of 1996 would have been $20.5 million and $0.17,
respectively.
This compares with revenues, net income and net income per share
of $78.2 million, $11.0 million and $0.09, respectively, recorded
during the corresponding period of 1995. After adjustment of the
prior period shares to reflect the Company's recent two-for-one
stock split, weighted average shares outstanding were 123,028,000 and
116,536,000 for the quarters ended December 31, 1996 and 1995,
respectively. All consolidated financial information and share data
applicable to prior periods have been restated to reflect the
acquisition of Red Pepper Software Company, accounted for as a
pooling of interests.
For the year ended December 31, 1996, revenues, net income and
net income per share were $450.1 million, $35.9 million, and $0.30
per share, respectively. Without the aforementioned write-off of
in-process research and development, the non-recurring acquisition
and merger costs and their related tax effects, net income and net
income per share for the year ended December 31, 1996 would have been
$54.7 million and $0.46, respectively. This compares with revenues,
net income and net income per share of $232.1 million, $27.3 million
and $0.24, respectively, for the corresponding period of 1995.
Weighted average shares outstanding were 120,032,000 and 114,062,000
for the years ended December 31, 1996 and 1995, respectively.
Revenues from license fees for the fourth quarter of 1996
increased 72% over the comparable period of the prior year.
PeopleSoft HRMS software products accounted for $43.3 million of
license fees recognized during the fourth quarter of 1996 compared to
$30.5 million for the same quarter of the prior year, an increase of
42%, while PeopleSoft Financials, PeopleSoft Distribution and
PeopleSoft Manufacturing software products accounted for $41.8
million in license fees recognized in the fourth quarter of 1996
compared to $18.9 million for the same quarter of the prior year, an
increase of 121%. For the year ended December 31, 1996, revenue
generated from PeopleSoft HRMS license fees totaled $142.5 million
compared to $87.8 million for the prior year, while PeopleSoft
Financials, PeopleSoft Distribution and PeopleSoft Manufacturing
license fees totaled $110.3 million and $50.0 million for the years
ended December 31, 1996 and 1995, respectively.
Revenue from services for the fourth quarter increased 117% over
the comparable period of the prior year and accounted for 42% and 37%
of total revenues for the fourth quarters of 1996 and 1995,
respectively. Revenues from international operations increased by
67% to $23.3 million or 16% of total revenues for the fourth quarter
of 1996, compared to $14.0 million or 18% of total revenues for the
same quarter of the prior year.
Continued strong demand for PeopleSoft's client/server product
offerings resulted in 1996 fourth quarter contracting activity for
software products and related bundled services of $135.5 million,
including $65.8 million related to its PeopleSoft Financials,
PeopleSoft Distribution and PeopleSoft Manufacturing software
products. Total contracting activity for the comparable quarter of
the prior year was approximately $76.6 million, including $34.1
million related to the PeopleSoft Financials, PeopleSoft Distribution
and PeopleSoft Manufacturing software products.
The fourth quarter contracts included 24 license agreements in
excess of $1 million, including a significant enterprise license
agreement with Ford Motor Company for PeopleSoft Financials and
PeopleSoft HRMS. For the year ended December 31, 1996, total
contracting activity was approximately $407.6 million, including
$184.4 million for PeopleSoft Financials, PeopleSoft Distribution and
PeopleSoft Manufacturing software products, compared to
$218.6 million and $88.4 million, respectively, for the prior year.
Quarterly Highlights
The following highlights were announced or occurred since
PeopleSoft's last earnings release:
-- The general availability of PeopleSoft 6, a major new release of
PeopleSoft's entire applications suite. Designed for the global
enterprise, PeopleSoft 6 features 11 new software products (including
a new product line, PeopleSoft Manufacturing), numerous functional
enhancements, and new technology including on-line distributed
processing, electronic commerce support and a 32-bit architecture.
In addition, industry specific solutions for the public, federal and
higher education sectors and additional multilanguage support for
PeopleSoft 6 will be available in the first half of 1997;
-- The acquisition of PeopleSoft Manufacturing, Inc. and PeopleMan,
LP (collectively referred to as PMI) for $30.1 million in stock,
stock options and other consideration. PMI was engaged in developing
new applications to meet the demands of discrete manufacturers using
PeopleTools, PeopleSoft's rapid application development environment;
-- Business partnerships with Intrepid Systems, Inc. (Intrepid),
The Vantive Corporation (Vantive) and Universal Algorithms. Intrepid
will port its Evolution software product for retail management to
PeopleTools and both parties will jointly market a comprehensive,
integrated enterprise solution for retail customers. PeopleSoft and
Vantive will jointly design, develop and market integrated versions
of Vantive's leading field service application with PeopleSoft
Manufacturing. Universal Algorithms' advanced space management and
CollegeNET admissions software will be bundled with PeopleSoft
Student Administration;
-- Support for PeopleSoft HRMS and PeopleSoft Financials on
Microsoft's SQL Server 6.5 and Windows NT 4.0, as well as IBM's
AS/400 PowerPC platform, the 64-bit RISC-based successor to IBM's
CISC-processor AS/400 systems;
-- The results of a customer implementation survey which provides
PeopleSoft customers and prospects key implementation data on phased
implementations, project team sizes, implementation times and degrees
of customization. Of the 700 customers polled, 259 responded and 99%
reported that they would choose PeopleSoft again.
Special Note
The quarterly highlights and certain announcements referenced
above contain forward-looking statements as defined in the Private
Securities Litigation Reform Act of 1995. These forward-looking
statements are subject to risks and uncertainties which could cause
actual results to differ materially from those anticipated.
Such risks and uncertainties include, but are not limited to,
fluctuations in customer demand, the timing and complexity of large
transactions, intensity of competition from other application
vendors, timing and acceptance of new products, the Company's
significant operating leverage, and general economic, seasonal and
industry conditions, as well as other risks detailed in the Company's
filings with the Securities and Exchange Commission, including, but
not limited to, the Form S-3 Registration Statement filed on January
29, 1997, the report on Form 10-Q for the quarter ended September 30,
1996 (Part I, Item 2, Factors That May Affect Future Results) and the
1995 Annual Report to Shareholders (Form 10- K). PeopleSoft assumes
no obligation to update the information contained in this press
release or the announcements referenced above.
About PeopleSoft
PeopleSoft, Inc. (NASDAQ:PSFT) was established in 1987 to
provide innovative software solutions that meet the changing business
demands of enterprises worldwide. A client/server applications
pioneer and a market leader, PeopleSoft develops, markets, and
supports a complete suite of enterprise solutions for accounting,
materials management, distribution, manufacturing, and human
resources. In addition, PeopleSoft provides industry-specific
enterprise solutions to customers in select markets including
financial services, healthcare, manufacturing, retail, higher
education, the public sector, and the U.S. federal government.
With more than 1,300 customers around the world, the Company has
been recognized for both its award-winning customer service and its
remarkable growth. PeopleSoft was listed by Fortune Magazine as one
of the fastest growing companies in America in 1994, 1995, and again
in 1996. PeopleSoft product and service information is located on
the World Wide Web at peoplesoft.com, and, for recent
press releases and financial information, via fax-on-demand at
800/296-0937.
*T
PeopleSoft, Inc.
Condensed Consolidated Financial Information
(In thousands, except per share and employee amounts)
Three Months Year Ended
Ended Dec. 31, Ended Dec. 31,
1995 1996 1995 1996
Revenues:
License fees $ 49,377 $ 85,112 $ 137,808 $ 252,799
Services 28,780 62,555 94,331 197,253
Total revenues 78,157 147,667 232,139 450,052
Costs and Expenses:
Cost of license fees 2,218 4,083 8,503 12,357
Cost of services 17,925 38,481 56,789 118,906
Sales and marketing 23,302 42,101 70,052 135,757
Product development 12,740 21,042 38,625 70,653
General and administrative 4,764 9,279 16,182 27,162
In-process research and
development and non-recurring
acquisition costs -- 29,393 -- 29,393
Total costs and expenses 60,949 144,379 190,151 394,228
Operating income 17,208 3,288 41,988 55,824
Other income, net 1,216 1,561 4,149 5,888
Income before taxes 18,424 4,849 46,137 61,712
Provision for income taxes 7,392 3,105 18,799 25,851
Net income $ 11,032 $ 1,744 $ 27,338 $ 35,861
Net income per share $ 0.09 $ 0.01 $ 0.24 $ 0.30
Shares used in computation 116,536 123,028 114,062 120,032
Dec. 31, Dec. 31,
1995 1996
Current Assets:
Cash and investments $ 128,369 $ 197,013
Receivables 100,151 163,676
Deferred income taxes 14,170 28,246
Other current assets 7,894 7,703
Total current assets 250,584 396,638
Property and equipment, net 64,315 96,698
Long-term investments -- 18,270
Long-term deferred income taxes -- 13,302
Capitalized software, net 7,342 11,173
Other assets -- 3,999
Total assets $ 322,241 $ 540,080
Current Liabilities:
Accounts payable and accrued expenses $ 51,245 $ 84,809
Taxes payable 11,779 18,771
Deferred revenue 98,123 183,252
Total current liabilities 161,147 286,832
Stockholders' Equity:
Paid in capital 107,649 163,767
Foreign currency translation adjustment (264) (89)
Retained earnings 53,709 89,570
Total stockholders' equity 161,094 253,248
Total liabilities and
stockholders' equity $ 322,241 $ 540,080
Worldwide employee count 1,393 2,490
Note To Editors: All share and per share amounts have been
restated to reflect a two for one split of the Company's common stock
in November 1996. All prior period amounts have been restated to
reflect the merger with Red Pepper Software Company in October 1996
which was accounted for as a pooling of interests.
CONTACT: PeopleSoft, Inc.
Ronald E. F. Codd, 510/468-1278
ron_codd@peoplesoft.com
or
The Horn Group
Sabrina Horn, 415/579-6400
shorn@horngroup.com
KEYWORD: CALIFORNIA
INDUSTRY KEYWORD: COMPUTERS/ELECTRONICS COMED
INTERACTIVE/MULTIMEDIA/INTERNET EARNINGS |
