Vantive Corp, on the way to being acquired by Peoplesoft Inc, reported third quarter revenue of $43m yesterday, compared with $41.7m in the same quarter of last year. Net loss for the quarter was $4.7m, excluding a $1.3m restructuring charge, compared with a $1m profit in the same quarter last year.
Vantive warned investors that the quarter would come in below expectations at the same time the $433m Peoplesoft acquisition was announced on October 11th (CI No 3,767). Investors polled by First Call had originally been expecting a loss of $0.1 per share, but Vantive warned the loss would actually come in between $0.16 and $0.18. In the event, the loss was $0.17 per diluted share, compared with $0.4 per share in the third quarter last year.
Weakness in the company’s North American market and slower than expected restructuring in the domestic operation were blamed for the shortfall. Overseas sales remain strong, and now stand at 37% of total revenue, up from 31% in the second quarter.
Tom Thomas, CEO and chairman, said that initiatives now in place along with strategic alliances and partnerships announced during the quarter would give the company significant leverage going forward. Those include a partnership with consultants KPMG LLP, an integration partnership with planning and logistics software house Servistics Inc, and a Peoplesoft integration deal, announced before the merger agreement.
