ERP software vendor PeopleSoft Inc posted second-quarter net income down 92.5% year-over-year at $3.0m as revenue declined 2.6% to $312.2m. Earnings per share plunged from $0.15 last year to $0.01, matching the consensus estimate of analysts surveyed by First Call. The Pleasanton, California-based company continues to complain of flagging purchases of enterprise applications due to widespread Y2K concerns.
Revenues from license fees for the quarter were $57.9m, a 61% drop from the year-ago period’s $148.5m. Service revenues, meanwhile, rose 44.6% to $248.7m and accounted for 80% of total sales, up from 54% last year. Revenues from international operations increased 64% to $76m, or 24% of the total, compared to $46.4m, or 14%, in the year-ago quarter.
For the six-month period, net loss was $168.5m on revenue up 3.2% at $617.6m, against net income of $73m, or $0.28. Full-year results include a restructuring charge of $4.4m and a one-time charge of $176.4m related to the spin-off of the company’s research and development operations as Momentum Business Applications Inc. Net of the one-time items, net income for the quarter would have been $10.5m, or $0.04 per share – still a drop of 85.7% from the year-ago quarter.
