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PeopleSoft Warns Of Weak Quarter From Oracle Bid

PeopleSoft Inc. warned that its second-quarter results would be weak as a result of the “substantial” negative impact Oracle Corp.’s hostile bid has had on the company.
PeopleSoft Inc. on Wednesday warned that its second-quarter results would be weak, blaming it on the “substantial” negative impact Oracle Corp.'s hostile bid has had on the company.

The Pleasanton, Calif., business software maker said revenues for the quarter ended June 30 would be between $655 million and $665 million, including license revenue from $129 million to $133 million. Earnings based on generally accepted accounting principles are expected to be from three cents to five cents a share.

On a non-GAAP basis, which excludes adjustments related to purchase accounting and restructuring costs, the company expected earnings from 13 cents to 15 cents a share. Financial analysts polled by Thomson First Call had produced a mean earnings estimate of 21 cents a share on $689 million in revenues.

Craig Conway, president and chief executive of PeopleSoft, said the extensive publicity of the federal antitrust trial stemming from Oracle's attempted takeover has been “impossible to completely overcome.” In the San Francisco case, the Justice Department has sued Oracle in an attempt to stop its bid for PeopleSoft, claiming a takeover would harm competition within the business software market for large companies.

“We believe the adverse impact to our business has been substantial, with even greater impact this past month,” Conway said in a statement. “We look forward to returning to normal business soon and recovering these damages.”

PeopleSoft is scheduled to announce second-quarter results July 27.