PeopleSoft scores earnings blow against Oracle

PeopleSoft scored a blow against Oracle yesterday by announcing that it expects second-quarter earnings to be higher than its previous guidance.

The company expects to post earnings of 10 cents to 11 cents a share, compared with earlier guidance of eight cents to nine cents a share. It forecast quarterly revenue of $490 million to $500 million and licence revenue of $105 million to $115 million.

CEO Craig Conway immediately claimed the revised figures were a sign that PeopleSoft had loyal customers who wanted to keep the company's products and services, rather than give in to Oracle's $6.3 billion bid. "In a undeniable vote of confidence, both existing customers and new customers continued to select PeopleSoft ... They continued to choose a company with a real commitment to customer satisfaction," he said.

"This morning we announced that against all odds and odds makers, under the most challenging conditions a company can face, PeopleSoft not only met but significantly exceeded our original financial guidance," he added.

The final version of the company's second quarter results will be released later this month.

In the first quarter, PeopleSoft reported a 14 per cent drop in net income as revenues fell 14 per cent. When it issued its results in April, it said its full-year sales figures would fall short of Wall Street estimates at the time.

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