Business applications vendor PeopleSoft reported that third-quarter revenue rose 33 percent to US$625.1 million, up from US$471.2 million the same time a year ago.
President and CEO Craig Conway said the record revenue is a first look at benefits derived from the company's US$1.8 billion acquisition of J.D. Edwards & Co.
'What you see today in our financial results is in fact the beginning of the advantages of the acquisition,' Conway said. 'The benefits of combined product strength, industry strength, midmarket strength, international strength and financial strength are just beginning to show.'
License and maintenance revenue also increased; license revenue jumped 32 percent to US$160.5 million, up from US$121.6 million a year earlier, while maintenance revenue rose 33 percent to US$234.6 million, up from US$176.9 million a year ago. Professional-services revenue was US$229.1 million, compared with US$172.7 million in the year-ago quarter.
The company did post a net loss of US$7.3 million, compared with a profit of US$44.5 million a year ago, because of charges associated with the J.D. Edwards acquisition.
CFO Kevin Parker said Oracle's hostile takeover bid also affected income. The company spent US$18 million in the third quarter fighting off the bid and expects to spend as much as US$5 million in the fourth quarter. Oracle is still pursuing its unsolicited US$7.5 billion offer doggedly, and earlier this month it extended the bid's deadline.
The Oracle question has come up in every new deal, but 'most customers feel that the saga is over, and they don't hold [Oracle's bid] in a particularly positive light,' Conway said.
PeopleSoft said it expects even better numbers for its fourth quarter, citing improved technology spending and the J.D. Edwards merger. License revenue will come in between US$170 million and US$185 million, Parker said, and overall revenue will come in between US$625 million and US$640 million.
-1.jpg&w=100&c=1&s=0)
.png&w=100&c=1&s=0)
