COMPANY PRESS RELEASE: PeopleSoft, has announced its fourth quarter and full year 2001 results. For the fourth quarter ended December 31, 2001, software license revenue rose to a record $174 million and total revenue increased to $528 million.
Income from recurring operations increased by 40 percent to a record $58 million, or $0.18 per share, up from $41 million, or $0.13 per share in the same quarter of 2000.
For the full year of 2001, software license revenue increased 30 percent to $645 million, and total revenue increased by 19 percent to a record $2.07 billion. Income from recurring operations increased 107 percent to a record $190 million, or $0.59 per share, up from $92 million, or $0.30 per share in 2000.
The Company’s cash and investments rose to $1.67 billion at December 31, 2001, an increase of $158 million during the fourth quarter, and an increase of $577 million during the full year 2001. Days sales outstanding (DSO) at the end of 2001 were 64 days, an improvement from 83 days at the end of 2000.
PeopleSoft’s fourth quarter results were a strong finish to a very strong year, said President and CEO Craig Conway. Leading companies around the world continue to select PeopleSoft 8 pure internet applications to build real-time, high performance enterprises. Using PeopleSoft 8 applications, these companies are realizing significant cost reductions and dramatic increases in productivity, Conway said.
The year 2001 was an exceptional year of financial performance for PeopleSoft, including record total revenue, record income from recurring operations, more than $500 million of cash and investments generated, and the lowest DSO in the industry, Conway said. At the same time, we introduced many successful new product lines, including PeopleSoft 8 CRM and PeopleSoft Enterprise Service Automation.
With our pure internet technology advantage, broad suite of best-of-breed business applications, and strong management team, PeopleSoft is well positioned to continue to gain market share and lead the industry in 2002, Conway said.
PeopleSoft won significant deals against its competitors in the fourth quarter in all product lines and across all geographies. Organizations buying PeopleSoft enterprise applications included: American International Group (AIG), American Red Cross, Bausch & Lomb, Blue Cross of California, Borders Group, Carrefour S.A., Citigroup, British Telecom, Duke Energy, Hewlett-Packard, Intel, Lockheed Martin, Lufthansa, Mitsubishi Motors, Nike, Nippon Paper, Quest Diagnostics, Royal Bank of Canada, Sears Canada, Sprint, State of Oklahoma, Sun Microsystems, United Parcel Service, and Verizon Wireless.
The results for the fourth quarter of 2001 do not include any non-recurring items.
The full year 2001 results include two non-recurring items, a favorable adjustment to existing acquisition reserves of $4.9 million ($4.9 million after-tax) and acquisition related charges of $4.9 million ($3.0 million after-tax). Including these non-recurring items, net income for 2001 was $192 million, or $0.59 per share, equal to the per share results from recurring operations.
The results for the fourth quarter of 2000 included one non-recurring item, a favorable adjustment to existing acquisition reserves of $3.5 million ($2.8 million after-tax). Including this non-recurring item, net income for the fourth quarter of 2000 was $44 million, or $0.14 per share, or $0.01 per share higher than the per share results from recurring operations.
The full year 2000 results included three non-recurring items, gains on the sale of equity securities of $129.6 million ($79.7 million after-tax), product line exit costs of $35.9 million ($28.6 million after-tax) and a favorable adjustment to existing acquisition reserves of $3.5 million ($2.8 million after-tax). Including these non-recurring items, net income for 2000 was $146 million, or $0.48 per share, or $0.18 per share higher than the per share results from recurring operations.