PeopleSoft Revenue a Record

The business software maker bests Wall Street and its own guidance with $699 million in revenue for the quarter.
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Updated from 5:19 p.m. EDT

PeopleSoft

(PSFT)

bettered its own recently issued guidance and Wall Street's expectations for the third quarter, driving revenue to a record $699 million, the business software maker reported after the close of trading Thursday.

But investors hoping for insight into the company's willingness to negotiate with

Oracle

(ORCL) - Get Report

, now that PeopleSoft's new executive team is in place, were disappointed: The company flat out refused to discuss its position on the prolonged hostile takeover bid until a midquarter update in late November.

Excluding items, the company earned a profit of $62 million, or 17 cents a share. Analysts polled by Thomson First Call were expecting a profit of 14 cents a share on sales of $680.75 million. The 3 cents of upside was largely driven by routine cost savings across the company, said PeopleSoft co-President Kevin Parker.

The market showed only moderate interest in PeopleSoft Thursday, with volume below average, likely because the company preannounced most of its results a few weeks ago. In after-hours trading, the stock was up 6 cents to $20.49, after gaining 23 cents, or 1.1%, during the day.

According to generally accepted accounting principles, net income was $24 million, or 6 cents a share, compared with a loss of $7.34 million, or 2 cents a share, a year ago on the same basis. PeopleSoft took a significant charge last year relating to the acquisition of J.D. Edwards.

Sales were up 12% year over year.

License revenue, a measure of new business and a key metric for software companies, was flat, coming in at $161 million, compared with $160.5 million last year.

Separately, Oracle announced that it has extended its tender offer for PeopleSoft until November 5. The price remains the same -- $7.7 billion, or $21 a share.