PeopleSoft, Inc. Reports First Quarter Sales And Earnings.

PLEASANTON, Calif.--(BUSINESS WIRE)--April 20, 1995--PeopleSoft, Inc. (NASDAQ:PSFT) announced today the results for the quarter ended March 31, 1995.

Revenues for the first quarter of 1995 were $40,126,000 representing a 100% increase over revenues of $20,099,000 recorded during the corresponding period of 1994. First quarter net income increased 110% to $4,666,000, or 12% of revenues, compared to $2,227,000, or 11% of revenues for the same period in 1994. Net income per share was $0.17 compared to $0.09 for the same quarter of the prior year. Weighted average shares outstanding were 26,725,000 and 25,563,000 for the quarters ended March 31, 1995 and 1994, respectively.

Revenues from license fees increased 82% over the comparable period of the prior year. PeopleSoft HRMS products accounted for $16.2 million or approximately 73% of license fees recognized during the first quarter, with the PeopleSoft Financials product line generating the balance of $5.8 million in license fees. Revenue from services increased 126% over the comparable period of the prior year and accounted for 45% and 40% of total revenues for the first quarters of 1995 and 1994, respectively.

Continued strong demand for PeopleSoft's client/server product offerings resulted in 1995 first quarter contracting activity for products and related bundled services of $43.7 million, including $15.2 million related to its Financials products. Total contracting activity for the comparable quarter of the prior year was approximately $17.2 million, including $3.3 million related to the PeopleSoft Financials product line. The first quarter of 1995 included 9 contracts over $1,000,000, including HRMS contracts with 2 of the "Big 3" U.S. automakers, an HRMS license with one of Germany's largest technology companies, a global financials license with a multi-billion dollar clothing manufacturer and retailer, and a follow-on HRMS and financials license with one of the largest retailers in Australia.

Also contributing to the growth in contracting activity of 154% from the first quarter of 1994 to the first quarter of 1995 was the rapid acceptance of PeopleSoft Financials 3 and PeopleSoft Purchasing, and significant growth in contracts in the healthcare market. PeopleSoft Purchasing, the first product of the PeopleSoft Distribution product suite, was released in the fourth quarter of 1994 and was a licensed module in over 50% of all PeopleSoft Financials contracts in the first quarter of 1995. In addition, PeopleSoft's sales and marketing initiative in the healthcare sector resulted in approximately $4.6 million of contracts in the first quarter of 1995 in this industry.

PeopleSoft recently regionalized its North American operations and hired key senior software executives to manage sales and services operations in five regions in the U.S. and Canada, bringing the total number of regions worldwide to eight.

As part of this program, each regional general manager has full management responsibilities for all sales and customer services activity within the region. By effectively moving management authority closer to the customer, PeopleSoft believes that in the long term, this organizational change will enhance PeopleSoft's ability to both respond to the rapid growth of its regional operations and maintain its high level of customer services and support.

During the first quarter, PeopleSoft incorporated subsidiaries in Germany and Mexico, and opened offices in Munich and Mexico City to support sales, services, and development in those countries. In addition, in February 1995, PeopleSoft relocated its corporate headquarters to Pleasanton, California.

About PeopleSoft

Founded in 1987, PeopleSoft was the first to deliver high-end client/server business applications. Today, with years of client/server experience, PeopleSoft leads the industry in providing client/server business solutions worldwide.

Targeting large organizations, PeopleSoft products -- PeopleSoft Financials, PeopleSoft Distribution, PeopleSoft HRMS, and PeopleTools -- are setting the standard for enterprise-wide information management. Only PeopleSoft products -- which support the Windows graphical interface and a choice of RDBMS platforms on a range of mainframe, midrange, and LAN server platforms deliver truly portable and scalable client/server applications. These products are backed by the award-winning PeopleSoft customer service and support team.

With hundreds of customers in nearly every industry and geographic region in the world, including a cross-section of Fortune 1000 organizations, PeopleSoft licenses its products through direct sales offices and distributors in the U.S., Canada, Europe, Asia/ Pacific, Latin America, and Africa. PeopleSoft, named the fastest-growing software applications company in America by Fortune, is based in Pleasanton, California. -0-

Note to Editors: PeopleSoft, PeopleCode, and PeopleTalk are trademarks, and PeopleTools and PS/nVision are registered trademarks of PeopleSoft, Inc. All other company and product names may be trademarks of their respective owners. -0-

                           PeopleSoft, Inc.
                    Condensed Financial Information
               (In thousands, except per share amounts)

                                             Quarter Ended
                                                March 31,
                                           1994         1995

Revenues:

 License fees                            $12,056        $21,968
 Services                                  8,043         18,158
                                         -------        -------
Total revenues                            20,099         40,126

Costs and expenses:

 Cost of license fees                      1,426          1,957
 Cost of services                          4,984         10,126
 Sales and marketing                       6,225         12,047
 Product development                       2,537          6,057
 General and administrative                1,706          2,936
                                         -------        -------
   Total costs and expenses               16,878         33,123
                                         -------        -------
Operating income                           3,221          7,003
Other income, net                            340            775
                                         -------        -------
   Income before taxes                     3,561          7,778
Provision for income taxes                 1,334          3,112
                                         -------        -------

Net income                               $ 2,227        $ 4,666
                                         =======        =======
Net income per share                     $  0.09        $  0.17
                                         =======        =======
Shares used in computation                25,563         26,725
                                         =======        =======

                                       Dec.            Mar.
                                        31,             31,
                                       1994             1995

Current assets:

 Cash and investments                    $87,953        $86,814
 Receivables                              51,084         58,487
 Other current assets                     10,184         11,466
                                       ---------       --------
  Total current assets                   149,221        156,767
Fixed assets, net                         19,617         25,050
Capitalized software, net                  3,433          3,344
                                       ---------       --------

   Total assets                         $172,271       $185,161
                                        ========        =======

Current liabilities:

 Accounts payable and accrued
  expenses                               $20,708        $24,371
 Taxes payable                             5,147          2,833
 Deferred revenue                         52,176         56,869
                                        --------       --------
   Total current liabilities              78,031         84,073
Long-term liabilities                        891          1,189
Stockholders' equity:
 Common stock                             65,035         66,960
 Foreign currency translation
   adjustment                               (132)          (173)

Retained earnings                         28,446         33,112
                                        --------       --------
 Total stockholders' equity               93,349         99,899
                                        --------       --------
 Total liabilities and stockholders'
  equity                              $  172,271      $ 185,161
                                      ==========      =========

Worldwide employee count                     651            792

    Note: All share and per share amounts have been restated to
reflect a two for one split of the Company's common stock in November
1994.

CONTACT: PeopleSoft, Inc.

Ronald E.F. Codd, 510/295-9486

or

The Horn Group

Sabrina Horn, 415/579-6400