Financial: Financial: PeopleSoft, Inc. Reports Final Financial Results for the Quarter Ended March 31, 1999 - Company Financial Information

Edge: Work-Group Computing Report, April 26, 1999

PeopleSoft, Inc. (Nasdaq:PSFT) announced Tuesday the financial results for the quarter ended March 31, 1999. Revenues for the quarter totaled $305.4 million, an increase of 10% over the first quarter of 1998. Excluding one time charges related to the formation of Momentum Business Applications, Inc.

and one time charges associated with the reduction in staff completed in the quarter, net income and net income per share were $7.6 million and $0.03, in comparison to $33.8 million and $0.13 in the prior year. One-time write-offs for the quarter consisted of $176.4 million incurred in connection with the spin-off of Momentum Business Applications, Inc. ("Momentum Business Applications") and $4.4 million for charges related to the previously announced reduction in force which was completed in the quarter. Including the impact of these one time charges, the net loss for the quarter totaled ($171.5) million, or ($0.73) per share. Revenues from license fees for the quarter ended March 31, 1999 were $76.6 million. Revenue from services for the same period of $228.3 million increased 62% over the comparable period of the prior year and accounted for 75% and 51% of total revenues for the quarters ended March 31, 1999 and 1998, respectively. Revenues from international operations increased by 31% to $54.1 million or 18% of total revenues for the first quarter of 1999, compared to $41.2 million or 15% of total revenues for the same quarter of the prior year. "PeopleSoft is financially very healthy, we have a lot of cash and we are free of debt," said Al Castino, Chief Financial Officer. "The entire enterprise software market is in a difficult period at this time, but our win rate against our competitors continues to be strong. We are seeing early success in selling our new analytical application suite, Enterprise Performance Management. Our extensive new product investments remain on track, including eBusiness Communities and Internet enablement of the eBusiness Backbone." "Our mission is to lead our customers into the Internet economy by helping them increase the value of their greatest asset, their people," said Dave Duffield, Chairman and CEO. "By virtue of our dominance in the HR marketplace, PeopleSoft is ideally positioned to deliver on this vision. We are investing in the PeopleSoft Business Network in order to deliver a full range of content, including transactions, analytics, knowledge, and merchant data, to knowledge workers throughout the enterprise. To execute on this vision, we have greatly strengthened our senior management team over the past several months with executives experienced in running a large, successful enterprise." "I'm delighted to be at a company that really understands the business value of the Internet and has the insight and ability to deliver leading edge products," said Michael Gioja, who recently joined PeopleSoft as Senior Vice President of Development. Quarterly Highlights The following highlights were announced or occurred since PeopleSoft's last earnings release: * PeopleSoft introduced PeopleSoft Campus Connection, a dynamic Internet community for PeopleSoft Student Administration, providing role-based communication and information access to students, faculty, alumni, and administrators at educational institutions. * In the first quarter, PeopleSoft announced new licensing agreements with Kmart Corporation; Time Warner Telecom; American Home Assurance Company -- a subsidiary of American International Group (AIG), Science Applications International Corporation (SAIC); Fine Host Corporation and the University of Southern California. The Sierra Club, Inktomi and 23 other mid-sized enterprises bought product offerings from PeopleSoft Select, which serves companies in the middle market. * PeopleSoft has selected Microsoft technologies and standards to develop key elements of the PeopleSoft Business Network (PSBN), including PSBN's role-based Enterprise Portal and a series of eBusiness Community applications. * PeopleSoft announced general availability of the industry's first comprehensive analytic solution, PeopleSoft Enterprise Performance Management (EPM) which is designed to increase the value of organizations by enabling people to make better business decisions. More than 40 companies purchased PeopleSoft EPM including manufacturers Pfizer, Inc. and Metatech Corporation. * PeopleSoft and Informatica Corporation formed a strategic alliance in which PeopleSoft will distribute Informatica's PowerMart with PeopleSoft technology to power the PeopleSoft EPM application suite. PowerMart is an integrated software suite for deploying and managing line-of-business data marts and analytic applications. The agreement promises to deliver on the companies' joint commitment to help organizations make better use of their corporate data for strategic decision making. * PeopleSoft and Information Advantage, Inc. announced a multi-year development and VAR agreement that makes MyEureka! the exclusive ROLAP engine extending analysis choices to PeopleSoft's Enterprise Performance Management (EPM) suite of analytic applications. PeopleSoft will integrate Information Advantage's MyEureka! ROLAP Engine into PeopleSoft's EPM suite, which includes data warehousing, multidimensional analysis, strategic cost management, key performance measures and industry specific analytics. * PeopleSoft passed certification and completed negotiations with the U.S. General Services Administration to include PeopleSoft Financials for Education and Government on the Financial Management Systems Software (FMSS) schedule. PeopleSoft's financial management applications combine federal financial requirements and technology to provide organizations information for improved financial analysis and strategic management. * PeopleSoft and Financial Engineering Associates (FEA) announced that PeopleSoft will embed FEA's VaRlib to deliver comprehensive Value at Risk reporting for PeopleSoft's Treasury Management solution. PeopleSoft will also embed FEA's analytics libraries to enhance the derivatives pricing capabilities of the PeopleSoft Treasury Management solution. This alliance will offer PeopleSoft Treasury Management users a seamless solution for measuring, evaluating and analyzing financial market risk. * Datamation magazine readers selected PeopleSoft's 7.5 software release as the "1999 Product of the Year," making it the second consecutive year that readers have ranked the PeopleSoft enterprise resource planning (ERP) product ahead of those offered by its major competitors. * PeopleSoft announced the following changes in the management team: (i) appointment of Tom Glassanos as President of PeopleSoft eBusiness solutions; (ii) appointment of Aneel Bhusri to its Board of Directors as Vice Chairman; (iii) Michael Gioja has joined the Company as Senior Vice President of Development; (iv) Howard Gwin was appointed Senior Vice President of Worldwide Operations; (v) the appointment of Rick Berquist as Chief Technology Officer; and (vi) the appointment of Jeff Carr as Vice President of Marketing and Strategy Execution. * PeopleSoft named Corio a preferred application service provider (ASP) partner. According to the agreement, Corio will provide application hosting and management solutions for PeopleSoft's line of enterprise applications. Corio is a leading ASP specializing in enterprise applications for high-growth companies. PeopleSoft has also announced an equity investment in Corio as a key element of the company's outsourcing strategy. PeopleSoft (Nasdaq:PSFT) is a global supplier of enterprise application software for business and government. PeopleSoft solutions for manufacturing, supply chain, financial, project and human resource management are used by more than 3,000 customers worldwide. PeopleSoft is currently developing the PeopleSoft Business Network (PSBN), a network of e-business applications and content that unleashes the power of people to work and transact business in the Internet-enabled world. PSBN incorporates business transactions, knowledge and sophisticated analytics within and across enterprise boundaries, and makes all of this content available to employees, customers, and suppliers through a personalized, easy-to-use Internet portal. Headquartered in Pleasanton, California, PeopleSoft employs more than 6,600 people and had 1998 revenues of $1.3 billion. PeopleSoft is on the World Wide Web at www.peoplesoft.com.