Updated from 5:11 p.m. EDT

A day after a stunning disappointment from software stalwart

Siebel Systems

(SEBL)

, competitor

PeopleSoft

(PSFT)

reported sequentially flat second-quarter results in line with its prior guidance.

Pleasanton, Calif.-based PeopleSoft, which makes a wide range of software products used by corporations, posted net income of $36 million, or 11 cents a share, according to generally accepted accounting principles in the second quarter, compared to net income of $47.4 million, or 15 cents a share, in the same period a year earlier.

Excluding a non-recurring acquisition-related charge of $8.7 million for purchased in-process research and development, PeopleSoft reported earnings from recurring operations of 14 cents a share, or sequentially flat from the first quarter.

PeopleSoft said revenue declined 11.4%, to $482.2 million from $544.5 million a year earlier and was nearly flat compared to the $483.3 million in revenue reported the previous quarter. Software licenses dropped 20.7%, to $131.9 million from $166.3 million in the year-ago period, and were nearly flat compared to the $133.3 million posted in the first quarter.

Wall Street analysts were expecting PeopleSoft to earn 13 cents a share on $474.5 million in the second quarter, according to Thomson Financial/First Call. In April, PeopleSoft said second-quarter results would remain sequentially flat.

On a post-close conference call, PeopleSoft said it expects third-quarter earnings from recurring operations to total 13 cents a share -- in line with Wall Street estimates. Third-quarter license revenue is expected to fall sequentially to between $120 million and $130 million. PeopleSoft did not give guidance beyond the third quarter.

Shares of PeopleSoft fell $1.12, or 7.2%, Thursday to close at $14.51. In after-hours trading, PeopleSoft shares bounced up to $16.16.