Joining a Growing List, PeopleSoft Misses Forecasts
PeopleSoft Inc. said Wednesday that it expected to report that its second-quarter profit fell and sales lagged behind forecasts because customers held off placing software orders last month while the company fought a hostile takeover bid by Oracle Corp.
After regular trading ended on Wall Street, two other software giants -- Siebel Systems Inc. and BMC Software Inc. -- also warned about disappointing results. On Tuesday, Veritas Software Corp. said its results would fall short.
The pattern has unnerved tech-stock investors, triggering heavy selling of many software shares.
PeopleSoft, based in Pleasanton, Calif., said net income was 3 cents to 5 cents a share, based on a preliminary review. Analysts expected about 18 cents.
Sales rose to $655 million to $665 million in the quarter, missing the company’s prediction of at least $675 million.
Chief Executive Craig Conway blamed Oracle’s $7.7-billion bid and the subsequent antitrust trial for making clients hesitant to sign deals. The trial came in the last month of the quarter, when many orders typically are completed.
The trial concluded last week in San Francisco. U.S. District Judge Vaughn Walker scheduled closing arguments for July 20.
PeopleSoft said sales of software licenses were $129 million to $133 million in the quarter, compared with its forecast of $150 million to $170 million.
PeopleSoft shares fell as low as $15.39 in Nasdaq trading but rebounded to close at $17.13, up 31 cents.
Siebel Systems and BMC also said sales last quarter missed their forecasts because some expected customer orders didn’t materialize.
San Mateo, Calif.-based Siebel said quarterly sales declined to $301 million from $333 million a year earlier. Houston-based BMC said first-quarter revenue was $318 million to $328 million, compared with a forecast of $345 million to $355 million.
Siebel shares rose 23 cents to $9.21 in regular Nasdaq trading, then slid to $7.76 after hours.
BMC shares slipped 23 cents to $16.67 in regular New York Stock Exchange trading, then fell to $15.30 after hours.
