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Technology Stocks : PSFT - 1999: The "Make-It-or-Break-It" Year? -- Ignore unavailable to you. Want to Upgrade?

To: SemiBull who wrote (1185)	9/10/2002 7:33:00 PM
From: SemiBull	Read Replies (1) \| Respond to of 1274

PeopleSoft Focuses on Asian Expansion By Wong Choon Mei KUALA LUMPUR (Reuters) - U.S.-based software maker PeopleSoft Inc said on Tuesday it would expand operations in Malaysia to tap other Asian markets including India, a move which could sideline traditional hub Singapore. Rick Bergquist, PeopleSoft's chief technology officer, said the software industry was still weak, recovery was difficult to predict and the company needed to get closer to its markets. He said the firm planned to decentralize and broaden its market by being in places with high growth opportunities. "These are still challenging times, it has not got any easier," Berquist told reporters, after hosting a one-day summit for regional clients in the Malaysian capital. "But if you can't change the outcome, which no one company can, then you've got to change the outcome for your own company." The Pleasanton, California-based seller of software that automates human resources, accounting and sales activities, posted revenues of about $2.0 billion last year. But its share price is down 61 percent this year, hit by the technology downturn and slack corporate demand for high-tech products. Andrew Barkla, vice president of Asia Pacific, named Malaysia, India and Thailand as PeopleSoft's growth sites in South and Southeast, and China, South Korea and Taiwan were rated top areas of opportunity in North Asia. Barkla cited the electronic-government program among the reasons for his firm's expansion in Malaysia, where chief rival Siebel Systems pulled out last year. "We see Malaysia as a significant opportunity and a key part of our South Asian growth strategy including India." SHORTEST PAYBACK WINS Apart from Singapore, the firm has a hub in Hong Kong. Barkla said his firm was not planning major staff cuts in Singapore, despite moving some operations out of the island. "We are shifting our hub out of Singapore in terms of our focus in markets and people," Barkla said. "Customers in the region want a direct presence." "But we have a very large customer base in Singapore and we can support our operations there. We need that critical mass to support our thrust here." PeopleSoft and many of its rivals have been targeting smaller businesses as large corporations remain reluctant to spend on big software projects following the dot-com and telecoms collapses. Bergquist said customers were still cautious but could be won over if they could get a fast return on their investment. "It's more the uncertainty than anything else," he said. "But if you can show them a shorter payback, that's the key to getting the deals signed." "The average implementation time 15 years ago was 9-12 months, and we are now talking about 14-16 weeks."