A Review of
PeopleSoft
By J. Carlton Collins, CPA

The Company Behind the Product

When it comes to evaluating accounting software, too many evaluators dive right into the product without giving a second thought to the company behind the product. It is not prudent to disregard the stability and future of the accounting software publisher. Customers who have traveled this path before know that when you select an accounting software package, the resulting relationship is akin to a marriage. Once the product is installed, the customer becomes dependent upon the accounting publisher to supply updates for payroll taxes, sales taxes, and depreciation rates. The customer must also rely on the vendor to fix bugs, provide support, and continually enhance the product to run on the latest platforms and technologies. Like it or not, the continued success of the accounting software publisher has a direct bearing on the customer's continued success with the accounting software product. The bottom line is that some accounting software vendors have figured out the magical formula for producing top quality products, successfully distributing those products directly or through a profitable dealer channel, and supporting those products in an timely matter - all while remaining profitable and achieving a high level of customer satisfaction. Those companies that fall into this category should rate higher in your evaluation and selection process. With this in mind, presented below is an brief overview of PeopleSoft - the company.

About PeopleSoft

Started in 1987 by Dave Duffield and Ken Morris who built their first human resources application on a client-server platform instead of the traditional mainframe, adding needed flexibility and putting more power into the hands of users. 

1.  

Company Name

PeopleSoft Inc.

2.  

Address, Phone, Web Address. 

PeopleSoft Inc.
4460 Hacienda Drive
Pleasanton, CA 94588
925-694-5670
Fax 925-694-4471

www.peoplesoft.com 

3.  

Ownership

Publicly traded on NASDAQ Symbol : PSFT 

4.  

Latest Product Version

Version 8.4

5.  

List of all Products Sold by 
PeopleSoft

PeopleSoft EPM 8.3
PeopleSoft CRM
PeopleSoft Enterprise Service Automation
PeopleSoft 8.4 Financial Management Solutions
PeopleSoft Human Capital Management (HCM)
PeopleSoft Portal Solutions
PeopleSoft 8 SRM

PeopleSoft’s Key Management:

Chairman of the Board
President and Chief Executive Officer

Executive VP, Chief Financial Officer

Executive VP, Worldwide Operations

Executive VP, Corporate Product Officer

Senior Vice President, Organization and HR

Senior Vice President, International Sales

Director, Corporate Infrastructure

Director, Corporate Communications

US President                                             
US Director, Channel Sales

US Director Marketing Comm.

US Director Application Center

 
Dave Duffield
Craig A. Conway

7.  

   Brief History of PeopleSoft

8.  

Total number of  customers
 around the world

9.               

Total number of customers (companies)

 currently using the

10.               

Total number of users (individuals) 

using the  product

      
PeopleSoft, Inc. April 25, 2002(Nasdaq: PSFT) today announced its first quarter 2002 results. For the first quarter ended March 31, 2002, income from recurring operations increased 28 percent to $46 million, or $0.14 per share, up from $36 million, or $0.11 per share in the same quarter of 2001.

Software license revenue was negatively impacted by the slowdown in technology spending, declining 13 percent to $133 million, from $153 million in the first quarter of 2001. Service revenue was $342 million, an increase of 4 percent from $330 million in the first quarter of 2001. Total revenue for the first quarter of 2002 was $483 million, a decline of 6 percent from $514 million in the first quarter of 2001.

Total operating expenses from recurring operations were $420 million, a 10 percent reduction from the first quarter of 2001. As a result, operating margin from recurring operations increased significantly to $63 million, an increase of $17 million, or 37 percent, from $46 million in the first quarter of 2001. Operating margins from recurring operations, as a percentage of revenue, also improved to 13.1 percent, from 9.0 percent in the same quarter of last year.

The Company's cash and investment balances at March 31, 2002 were $1.82 billion, an increase of $149 million during the first quarter. Days Sales Outstanding (DSO) at March 31, 2002 declined to 58 days, an improvement from 63 days at December 31, 2001.

Management Commentary
"PeopleSoft was not immune to the slowdown in technology spending in the first quarter," said PeopleSoft President and CEO Craig Conway. "However, our financial results were generally positive and were comparatively the strongest in the industry. We increased our income from recurring operations 28 percent over the same period last year. We grew service revenues. We met our EPS guidance of 14 cents. We increased cash and investments by $149 million. We also improved our operating margins and we further reduced our industry-low DSO."

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