News
News
7/21/1999
07:34 AM
Connect Directly
RSS
E-Mail
50%
50%

Earnings Reports: ERP Down, CRM Up

Quarterly results from SAP, PeopleSoft, and Siebel Systems confirm the obvious: The market for enterprise resource planning software is continuing its free fall, while the customer relationship management software market continues to climb.

SAP, the largest ERP provider, reported profits for its fiscal second quarter fell 7%, to $146 million from $158.27 million in the second quarter of 1998. Revenue for the quarter was up 13% to $1.3 billion. However, product revenue grew only 1%. Hasso Plattner, SAP co-chairman and CEO, says the leveling off in profits is due primarily to the affect of year 2000 projects, which have diverted corporate resources from ERP installations.

PeopleSoft, which has had several bumpy quarters, showed little sign of improvement with second quarter revenue of $312.2 million, a 3% drop from the year-ago quarter's $320 million. The company eked out a profit of $3 million, but that's a substantial drop from the previous year's $39.2 million. PeopleSoft's revenue mix has changed: License fees dropped dramatically, falling from $148.9 million to $57.9 million this quarter, while service revenue increased 45% to become 80% of total revenue for the quarter.

On the flip side, front-office vendor Siebel Systems continued previous quarters' meteoric growth with revenue of $164.4 million, an 83% rise over $90 million in the second quarter last year. Net income was $25.8 million, up 115% from $12 million in the year-ago quarter. License fees increased 63% to $110.1 million, but dropped slightly as a percentage of Siebel's total revenue.

Comment  | 
Print  | 
More Insights
The Business of Going Digital
The Business of Going Digital
Digital business isn't about changing code; it's about changing what legacy sales, distribution, customer service, and product groups do in the new digital age. It's about bringing big data analytics, mobile, social, marketing automation, cloud computing, and the app economy together to launch new products and services. We're seeing new titles in this digital revolution, new responsibilities, new business models, and major shifts in technology spending.
Register for InformationWeek Newsletters
White Papers
Current Issue
InformationWeek Tech Digest September 18, 2014
Enterprise social network success starts and ends with integration. Here's how to finally make collaboration click.
Flash Poll
Video
Slideshows
Twitter Feed
InformationWeek Radio
Archived InformationWeek Radio
The weekly wrap-up of the top stories from InformationWeek.com this week.
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.