Can Peoplesoft Deliver? - New Data

Can Peoplesoft Deliver? - New Data
1995 DATA         Due to the number of new enterprise software products under development during 1996, and an increase in customers seeking either firm delivery dates for such technology under development, or demanding additional contractual conditions tied to the availability of such software products, the ability of the Company to finalize agreements that meet the customer's objectives and the Company's license fee revenue objectives within a particular quarter may be adversely affected.

        In 1995, Peoplesoft's "deferred revenue" went up to $96.8 million from $52.2 million in 1994 and $26.9 million in 1993. $20.7 million of the 1995 and $11.6 million of the 1994 deferred revenue was due to "license fees for which revenue recognition is dependent primarily on software product availability."

        Peoplesoft reported in its 1995 SEC 10-K report, "There can be no assurance that the Company will be successful in developing and marketing, on a timely basis, fully functional software product enhancements or new software products that respond to the technological advances by others, including changes in platform architectures." "In the past, the Company has experienced delays in its release of certain modules, enhancements and platform versions of its applications software."

        "Due to the increasing number of possible combinations of vendor hardware platforms, operating systems, third party software (such as Seagate Technology, Inc.'s Crystal), and RDBMS platforms, the effort and expense of developing, testing and maintaining these software product lines will increase, and the ability to develop consistent product performance characteristics across all of these combinations could place a significant strain on the Company's development resources and deliverable schedules."

          Peoplesoft also reported, "The growth in the Company's customer base and expansion of its software product lines and supported platforms have placed, and are expected to continue to place, a significant strain on the company's management and operations, including its services organization and development organizations."

        In 1995, Peoplesoft spent 186% more on sales and marketing than on product development and engineering. In 1994 the company spent 244% more on sales and marketing.

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HERE Local 2850, 548-20th Street, Oakland, CA 94612 510-893-3181 ext. 116 Fax: 510-893-5362 e-mail: here2850_at_igc.apc.org Received on Mon May 20 1996 - 00:00:00 CEST