Continued market demand for PeopleSoft’s collaborative enterprise applications drove second quarter license revenue up 51 percent over the second quarter of last year to $166 million. Service revenues rose 20 percent over the same quarter of last year to $337 million as customer adoption of PeopleSoft 8 drove increased demand for the Company’s service offerings.
Net income from recurring operations increased sharply, rising 188 percent to $46 million, or $0.14 per share, up from $16 million, or $0.06 per share, in the same quarter of 2000.
Including non-recurring items, second quarter net income rose to $47 million, or $0.15 per share. The second quarter of 2001 includes two non-recurring items; a favorable after-tax adjustment to existing restructuring reserves of $2.6 million and an after-tax charge of $1.1 million related to the acquisition of SkillsVillage.
The company’s cash and investments were $1.4 billion at June 30, 2001, an increase of $247 million during the quarter. Day’s sales outstanding (DSO) improved to 68 days from 77 days over the same period.
PeopleSoft’s strong performance in this challenging economic environment is a direct result of continued market acceptance of PeopleSoft 8 enterprise applications and our diligent focus on precision management and execution, said President and CEO Craig Conway.
In this difficult market, customers are particularly concerned with increasing productivity and reducing costs, Conway said. Moving enterprise applications to the internet enables companies to immediately realize these business benefits. PeopleSoft 8, based on a pure internet architecture, is the technology that is driving this dramatic shift.
In June, PeopleSoft delivered PeopleSoft 8 CRM, the first and only CRM solution to run entirely on the internet, Conway said. The on-time delivery of this next generation CRM solution further demonstrates PeopleSoft’s continued leadership in providing integrated, best-of-breed applications.
