PeopleSoft up earnings projections again
PeopleSoft up earnings projections again
Enterprise software vendor PeopleSoft has raised its estimates for third quarter earnings for the second time, suggesting that the impact on the company's fortunes of Oracle's bid to buy the company is fading.
The company said the revised estimates were based on preliminary results, license revenue, total revenue and earnings per share. Last month, the company raised third quarter projections to between $135 million and $150 million in license revenue, and $575 million to $590 million in total revenue (all figures in US dollars), with earnings per share expected to be 10 or 11 cents. It now expects to exceed these earlier estimates.
The company largely attributed the positive customer reaction to the recently completed acquisition of J.D. Edwards to the strong quarterly performance.
"When you offer customers better software, a choice of databases and you build on their existing product investments, they buy more," said PeopleSoft President and CEO Craig Conway.
"The powerful combination of PeopleSoft and J.D. Edwards is already exceeding our expectations," added PeopleSoft Chief Financial Officer Kevin Parker.
Oracle's offer of $19.50 per share to PeopleSoft shareholders is still on the table, but the vendor is way short of accumulating enough shares to successfully mount a takeover, and with the company stating that it does not intend to up its offer, coupled with the fact that any such deal would come under the scrutiny of the US Federal Government's antitrust committee, the bid seems unlikely to succeed.
PeopleSoft did not state how much they thought the company would exceed last months improved estimate, but analysts expect the improvement to be fairly modest. Final results and additional information regarding the Company's third quarter performance will be released later this month.
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