Updated from 9:33 a.m. EDT

PeopleSoft ( PSFT) dropped Wednesday after the software company posted a 70% drop in second-quarter earnings after the close Tuesday on lower-than-forecast revenue.

Reiterating earlier charges that the Oracle ( ORCL) antitrust suit is hurting sales, PeopleSoft said it won't hit 2004 guidance but declined to offer new targets for the rest of the year.

PeopleSoft shares were recently down 58 cents, or 3.4%, to $16.74.

Under generally accepted accounting principles, Pleasanton, Calif.-based PeopleSoft reported net income of $11 million, or 3 cents a share, in the second quarter. That compared with net income of $36.5 million, or 11 cents a share, in the same period a year earlier.

Excluding charges, PeopleSoft said it earned pro forma net income of $50.5 million, or 14 cents a share, in the second quarter, compared with pro forma net income of $53.8 million, or 17 cents a share, a year earlier.

Revenue rose 30.1% to $647.3 million from $497.4 million the prior year. License revenue totaled $130 million, up 16.4% from a year earlier. In a postclose conference call, CFO Kevin Parker pointed out that excluding the impact of a $15 million deferred maintenance writedown related to the J.D. Edwards acquisition, revenue totaled $662 million -- in line with the company's preannounced range.

The consensus estimate on Wall Street, which was lowered after the company's preannouncement, called for PeopleSoft to earn pro forma net income of 14 cents a share on $661.6 million in revenue in the second quarter, according to Thomson First Call.

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