甲骨文 (ORCL) 2001 Q2 法說會逐字稿

PEOPLESOFT INCORPORATED SECOND QUARTER EARNINGS CONFERENCE CALL

PEOPLESOFT INCORPORATED 第二季度收益電話會議

Good afternoon, and welcome to the PeopleSoft second quarter earnings conference call. Replays of this conference call will be available for seven days following the call, by dialing 1800-964-45-72. There is no pass code needed for the replay. Again that number is 1800-964-45-72. I'd now like to turn the call over to PeopleSoft's Vice-President of Investor relations David Sankaran, and sir, you may begin.

下午好，歡迎參加 PeopleSoft 第二季度財報電話會議。本次電話會議的重播將在電話會議結束後的 7 天內提供，請撥打 1800-964-45-72。重播不需要密碼。同樣，該號碼是 1800-964-45-72。我現在想將電話轉給 PeopleSoft 投資者關係副總裁 David Sankaran，先生，您可以開始了。

Thank-you. Good afternoon and welcome to PeopleSoft's second quarter earnings conference call. Joining me today is Craig Conway, our President and CEO, and Kevin Parker, PeopleSoft's Chief Financial Officer. During this call, we will review PeopleSoft's results of operations for the second quarter and provide an overview of current market conditions. We will also share some of our expectations for PeopleSoft's future financial performance. After our commentary, we will open up the conference call for questions. Please remember, our discussions of quarterly results and our business outlook may contain forward-looking statements. A particular forward-looking statement and other statements that may be made on this conference call that are no historical facts are subject to a number of risks and uncertainties, and actual results may differ materially. These specific forward-looking statements may relate to such matters as future customer demands, competitive landscape, including our [________________] as competitors, new product development status, position of the eBusiness software application sector, and future financial performance or expectations; including revenue, operating margins, and earnings expectations. Please refer to the company's current earnings press release, our annual report on Form 10-K, and our quarterly filings on Form 10-Q for more information on some of the risk factors that could cause actual results to differ. Please remember, the company undertakes no obligations to update any information presented in this discussion. Now let me turn the call over to Craig.

謝謝。下午好，歡迎參加仁科第二季度財報電話會議。今天加入我的還有我們的總裁兼首席執行官 Craig Conway 和 PeopleSoft 的首席財務官 Kevin Parker。在本次電話會議中，我們將審查 PeopleSoft 第二季度的運營業績，並提供當前市場狀況的概述。我們還將分享我們對 PeopleSoft 未來財務業績的一些期望。發表評論後，我們將開啟電話會議提問。請記住，我們對季度業績和業務前景的討論可能包含前瞻性陳述。在本次電話會議上可能做出的特定前瞻性陳述和其他非歷史事實的陳述受到許多風險和不確定性的影響，實際結果可能存在重大差異。這些特定的前瞻性陳述可能與未來客戶需求、競爭格局（包括我們作為競爭對手的[________________]）、新產品開發狀態、電子商務軟件應用程序行業的地位以及未來財務業績或預期等事項有關；包括收入、營業利潤率和盈利預期。有關可能導致實際結果不同的一些風險因素的更多信息，請參閱公司當前的收益新聞稿、我們的 10-K 表格年度報告以及我們的 10-Q 表格季度報告。請記住，公司不承擔更新此討論中提供的任何信息的義務。現在讓我把電話轉給克雷格。

Good afternoon everybody. This was a remarkable quarter for PeopleSoft and one of the most challenging economic environments in the past 20 years. PeopleSoft was able to achieve record financial results. The company achieved total revenue of $533 million, an increase of 27% over the prior year. That's the highest total revenue in the company's history. Net income increased to $46 million, an increase of 188% over the prior year. Total cash and cash investments were $1.4 billion, an increase of $247 million in a single quarter. That again was the highest cash balance in the company's history. We experienced positive cash flow from operations of $152 million which again was the highest in the company's history. And finally, DSO decreased to 68 days from 77 days during the quarter, a 9-day reduction in a single quarter, the lowest DSO in the company's history. Truly, we are very pleased with PeopleSoft's financial performance in Q2. The company continues to gain share in the enterprise application market; our PS8 Internet architecture is widely regarded as superior to our competitors. We are growing in our traditional product categories of human resource management and financial management, at the same time we are also growing in newer product categories such as customer relationship management and supply chain management. Frankly in Q2, PeopleSoft did better than we expected, but it wasn't easier than we expected. In fact, the macroeconomic environment is becoming more difficult, not less difficult. Nevertheless, we continue to believe that the outlook for PeopleSoft is very bright indeed.

大家下午好。對於 PeopleSoft 而言，這是一個非凡的季度，也是過去 20 年來最具挑戰性的經濟環境之一。 PeopleSoft 能夠實現創紀錄的財務業績。公司實現總收入 5.33 億美元，比上年增長 27%。這是該公司歷史上最高的總收入。淨收入增至 4600 萬美元，比上年增長 188%。現金和現金投資總額為 14 億美元，單季度增加 2.47 億美元。這又是該公司歷史上最高的現金餘額。我們從運營中獲得了 1.52 億美元的正現金流，這再次是公司歷史上的最高水平。最後，DSO 從本季度的 77 天減少到 68 天，單季度減少了 9 天，是公司歷史上最低的 DSO。確實，我們對 PeopleSoft 第二季度的財務表現感到非常滿意。公司在企業應用市場的份額不斷擴大；我們的 PS8 互聯網架構被廣泛認為優於我們的競爭對手。我們在傳統的人力資源管理和財務管理產品類別中成長，同時我們也在客戶關係管理和供應鏈管理等更新的產品類別中成長。坦率地說，PeopleSoft 在第二季度的表現比我們預期的要好，但並不比我們預期的要容易。事實上，宏觀經濟環境正變得越來越困難，而不是越來越困難。儘管如此，我們仍然相信仁科的前景確實非常光明。

I am going to turn the call over to Kevin Parker, PeopleSoft's Chief Financial Officer for more financial details on the quarter but then I am going to come back and comment on the business climate, our experiences during the last quarter, and our expectations for the second half of the year. Kevin.

我將把電話轉給 PeopleSoft 的首席財務官 Kevin Parker，以了解有關本季度的更多財務細節，但隨後我將回過頭來評論商業環境、我們在上一季度的經歷以及我們對本季度的預期。下半年。凱文。

Thanks Craig. As Craig announced total revenues for the second quarter of 2001, reached a record of $533 million. This represents an increase of 27% over the same quarter last year and 6% growth over Q1 2001. This is the fifth consecutive quarter of record quarterly revenue for PeopleSoft. License revenues in Q2 were $166 million, an increase of 51% over the same quarter last year. In reviewing the geographic split of our license revenues, we continue to see worldwide acceptance of PeopleSoft 8 with approximately 39% of our license revenue generated internationally during the quarter. Year-over-year license revenue growth was 48% in the US and 57% internationally. Using constant foreign currency exchange rates, the international growth rate would have been nearly 70%. During the quarter, we won a number of large deals including 24 Hour Fitness, AT&T Wireless Services, Credit Suisse, Dana-Farber Cancer Institute, the US Department of Defense, France Telecom, Hewlett Packard, Morgan Stanley Dean Witter, Nextel, Pricewaterhouse Coopers, Ross Stores, Siemens Business Services, TD Waterhouse Group, Tiffany & Company, and Waste Management. During the quarter, we signed 29 deals in excess of $1 million and our average new deal size exceeded $600,000. We also added 120 new customers during the quarter. New customers accounted for 35% of our license revenue, a slight decrease from 37% in Q1. Notably, since the launch of PeopleSoft in September 2000, we have added over 500 new customers. As of today, we have over 160 customers live on PeopleSoft 8, and there are more than 1000 implementations underway.

謝謝克雷格。隨著克雷格宣布2001年第二季度的總收入達到創紀錄的5.33億美元。這比去年同期增長了 27%，比 2001 年第一季度增長了 6%。這是 PeopleSoft 連續第五個季度創紀錄的季度收入。第二季度的許可收入為 1.66 億美元，比去年同期增長 51%。在審查我們的許可收入的地理分佈時，我們繼續看到 PeopleSoft 8 在全球範圍內的接受度，本季度我們的許可收入中約有 39% 來自國際。美國的許可收入同比增長 48%，國際增長 57%。如果使用固定的外幣匯率，國際增長率將接近 70%。本季度，我們贏得了多項大型交易，包括 24 Hour Fitness、AT&T Wireless Services、Credit Suisse、Dana-Farber Cancer Institute、美國國防部、法國電信、惠普、摩根士丹利 Dean Witter、Nextel、普華永道、Ross Stores、西門子商業服務、TD Waterhouse Group、Tiffany & Company 和廢物管理。本季度，我們簽署了 29 筆超過 100 萬美元的交易，我們的平均新交易規模超過 600,000 美元。本季度我們還增加了 120 名新客戶。新客戶占我們許可收入的 35%，比第一季度的 37% 略有下降。值得注意的是，自 2000 年 9 月 PeopleSoft 推出以來，我們已經增加了 500 多個新客戶。截至今天，我們有 160 多個客戶使用 PeopleSoft 8，並且有 1000 多個實施正在進行中。

Q2 service revenues of $337 million increased 20% from the same quarter last year and 6% sequentially. The major components for service revenue, maintenance revenue, and consulting revenue increased sequentially and year-over-year. Reviewing our cost and expenses, our total expenses grew at a much slower year-over-year rate than total revenue. We have continued our focus on profitably growing our business. As we have described before, our hirings, since last summer, has been focused primarily on revenue generating headcount, sales reps, and billable consultants. We continue to keep a close eye on our expenses as well as our headcount growth. The clearest way to see this is in the expansion of our operating profit margin which nearly tripled from Q2 of 2000, to 10.7% during the quarter. Let me hit the components of our cost, in Q2 gross margins on license revenue of 89% and gross margin on services of 45% were both essentially unchanged from Q1. During Q2, our sales and marketing expenses increased to $131 million from $112 million in the second quarter of 2000. The increase is due to our continuing investment in expanding our marketing activities, and the addition of new sales reps to leverage the PeopleSoft 8 opportunity. During the past year, we increased the number of direct sales reps by over 60%. Q2 sales and marketing expenses were 25% of total revenues. This percentage is down from 27% in Q2 of 2000, and is unchanged from Q1 of this year. Product development expenses, including the cost of development services, were $100 million, a decrease of 10% from the same quarter last year and 6% sequentially.

第二季度服務收入為 3.37 億美元，比去年同期增長 20%，環比增長 6%。服務收入、維護收入和諮詢收入的主要組成部分環比和同比增長。回顧我們的成本和費用，我們的總費用同比增長速度遠低於總收入。我們繼續專注於盈利性地發展我們的業務。正如我們之前所描述的，自去年夏天以來，我們的招聘主要集中在創收員工、銷售代表和計費顧問上。我們繼續密切關注我們的開支以及我們的員工人數增長。看到這一點的最明顯方式是我們的營業利潤率從 2000 年第二季度幾乎翻了三倍，在本季度達到 10.7%。讓我談談我們成本的組成部分，第二季度許可收入的毛利率為 89%，服務的毛利率為 45%，與第一季度基本持平。在第二季度，我們的銷售和營銷費用從 2000 年第二季度的 1.12 億美元增加到 1.31 億美元。這一增長是由於我們繼續投資擴大我們的營銷活動，並增加了新的銷售代表以利用 PeopleSoft 8 機會。在過去的一年裡，我們的直銷代表人數增加了 60% 以上。第二季度的銷售和營銷費用佔總收入的 25%。這一百分比低於 2000 年第二季度的 27%，與今年第一季度持平。包括開發服務成本在內的產品開發費用為 1 億美元，比去年同期下降 10%，環比下降 6%。

As a percentage of revenue, product development expenses, including the cost of development services, declined to 19% of revenue from 26% in the second quarter of 2000, and from 21% in the first quarter of 2001. As we have discussed on several occasions, we expect product development expenses as a percentages of revenue to decline over the next several quarters ultimately reaching 15%. G&A expenses were $42 million for the quarter. G&A as a percentage of revenue was 7.8%, up from 6.7% in Q1. Two primary factors were behind the increase, first, we recorded additional expenses for nonproduct related litigation. I want to be very clear, contrary to recent rumors, these charges were for historical nonproduct related legal matters. The second factor impacting G&A expenses relates to the investments we are making in improving our worldwide systems and processes to support our expected future growth. We are upgrading to the PeopleSoft 8 eBusiness applications for each major business process area financials, supply chain, human resources, CRM, and analytics. We are live on PeopleSoft's HR, and we will be live on CRM next week. The remaining systems will be live in the coming months. Other income, which consists primarily of interest income, increased 60% over the prior year to $13 million. The increase is attributable to higher interest earned resulting from our higher cash and investment balances partially offset by lower interest rates. Looking at profitability, we made significant improvements during the quarter. Operating income from our current operations increased year-over-year by 253% to $57 million. Operating margin from our recurring operations as a percentage of revenues was 10.7%, up from 3.8% in Q2 of 2000.

作為收入的百分比，產品開發費用，包括開發服務的成本，從 2000 年第二季度的 26% 和 2001 年第一季度的 21% 下降到收入的 19%。正如我們在幾個在某些情況下，我們預計產品開發費用佔收入的百分比將在未來幾個季度下降，最終達到 15%。本季度的 G&A 費用為 4200 萬美元。 G&A 佔收入的百分比為 7.8%，高於第一季度的 6.7%。增長背後有兩個主要因素，首先，我們記錄了非產品相關訴訟的額外費用。我想非常清楚，與最近的謠言相反，這些指控是針對歷史上與產品無關的法律事務。影響 G&A 費用的第二個因素與我們在改進全球系統和流程以支持我們預期的未來增長方面所做的投資有關。我們正在為每個主要業務流程領域的財務、供應鏈、人力資源、CRM 和分析升級到 PeopleSoft 8 電子商務應用程序。我們在 PeopleSoft 的 HR 上直播，下週我們將在 CRM 上直播。其餘系統將在未來幾個月內投入使用。其他收入（主要包括利息收入）比上年增長 60%，達到 1300 萬美元。增加的原因是由於我們較高的現金和投資餘額所賺取的利息較高，部分被較低的利率所抵消。從盈利能力來看，我們在本季度取得了顯著改善。我們當前業務的營業收入同比增長 253% 至 5700 萬美元。我們經常性業務的營業利潤率佔收入的百分比為 10.7%，高於 2000 年第二季度的 3.8%。

Net income from recurring operations increased year-over-year by a 188% to $46 million. Finally, earnings per share from recurring operations came in at 14 cents, 2 cents better than Wall Street's consensus estimate and up from 6 cents in Q2 of 2000. Reported earnings per share including $1.5 million favorable after tax impact, from two nonrecurring acquisition related items was 15 cents. Focusing on our balance sheets, significant highlights for the quarter include cash and investments increasing by $247 million during the quarter to $1.4 billion at June 30th. This reflects our continuing focus on maintaining a very solid cash flow and strong balance sheet. In fact, during the past 12 months, our cash and investment balances grew by over $600 million, a 76% increase. Cash flow from operations of $152 million during the quarter, up 168% sequentially. DSO declined to a record low of 68 days at the end of the second quarter. This is significant improvement from 77 days last quarter. I'd like to point out that these results do not include any factoring. We have not factored any receivables since last year, and we do not intend to factor anything in the future. We are very pleased with our focus on collections that has driven DSO down to best in class levels. Going forward, we continue to expect DSO to remain in our target range of 70 to 80 days. Total deferred revenues increased in Q2 by 1% from the prior quarter to $523 million. As we discussed in our last conference call, deferred license revenue declined by $13 million during the quarter to $26 million at June 30th. This decrease is consistent with our focus on maintaining business practices that result in current period revenue recognition.

來自經常性業務的淨收入同比增長 188% 至 4600 萬美元。最後，經常性業務的每股收益為 14 美分，比華爾街的普遍預期高 2 美分，高於 2000 年第二季度的 6 美分。報告的每股收益包括 150 萬美元的有利稅後影響，來自兩個非經常性收購相關項目是 15 美分。關注我們的資產負債表，本季度的重要亮點包括現金和投資在本季度增加了 2.47 億美元，到 6 月 30 日達到 14 億美元。這反映了我們繼續專注於保持非常穩健的現金流和強勁的資產負債表。事實上，在過去的 12 個月中，我們的現金和投資餘額增長了 6 億多美元，增長了 76%。本季度運營現金流為 1.52 億美元，環比增長 168%。 DSO 在第二季度末跌至 68 天的歷史新低。這與上一季度的 77 天相比有了顯著改善。我想指出，這些結果不包括任何因素。自去年以來，我們沒有對任何應收賬款進行保理，並且我們不打算在未來進行任何保理。我們對我們專注於將 DSO 降低到一流水平的系列感到非常高興。展望未來，我們繼續預計 DSO 將保持在 70 至 80 天的目標範圍內。第二季度的總遞延收入比上一季度增長 1%，達到 5.23 億美元。正如我們在上次電話會議中所討論的那樣，本季度的延期許可收入下降了 1300 萬美元，至 6 月 30 日的 2600 萬美元。這一減少與我們專注於維持導致當期收入確認的業務實踐一致。

As a result of this focus, deferred license revenues may continue to decrease slightly going forward. As Craig stated earlier in the call, we are very pleased with our continued strong performance during a very tough macroeconomic period. We remain very concerned with these current global economic conditions. As we look forward, we do not expect these conditions to change in the near term. However, our pipeline continues to grow substantially and our execution remains strong. Taking all of these factors into account, for Q3, we expect to increase both license revenue and EPS sequentially, and we expect to come in slightly ahead of the current Wall Street consensus estimates, specifically we're expecting Q3 license revenue to be in the range of $165 million to $170 million. We also expect Q3 earnings per share to increase sequentially by one penny to 15 cents per share. For Q4, we remain comfortable with the consensus estimates. For the full year, we now expect license revenues to slightly exceed our previous guidance of 35% year-over-year growth, and we now expect earnings per share to be at the high end of our previous range of 55 cents to 60 cents. Let me turn the call back to Craig for additional comments about our results and future expectations. Craig?

由於這一重點，遞延許可收入可能會在未來繼續小幅下降。正如克雷格早些時候在電話會議中所說，我們對我們在非常艱難的宏觀經濟時期持續強勁的表現感到非常滿意。我們仍然非常關注當前的全球經濟狀況。正如我們所期待的那樣，我們預計這些情況在短期內不會改變。然而，我們的管道繼續大幅增長，我們的執行力依然強勁。考慮到所有這些因素，對於第三季度，我們預計許可收入和每股收益將連續增加，並且我們預計將略高於華爾街當前的普遍預期，特別是我們預計第三季度的許可收入將在範圍在 1.65 億美元至 1.7 億美元之間。我們還預計第三季度每股收益將連續增長 1 美分至每股 15 美分。對於第四季度，我們仍然對共識估計感到滿意。對於全年，我們現在預計許可收入將略高於我們之前 35% 同比增長的指導，我們現在預計每股收益將處於我們之前 55 美分至 60 美分範圍的高端。讓我將電話轉回 Craig，以獲取有關我們的結果和未來期望的更多評論。克雷格?

Thank-you Kevin. Three months ago, on the Q1 earnings call, I said the macroeconomic environment was very difficult, particularly in United States. Spending was being curtailed in all categories including IT. Approval cycles were longer and required more justification for return on investment and discounting pressure was high in that type of market. I said at that time that PeopleSoft was not immune from the effects of the market. I did not see that market improving, and in that respect, I think, on both accounts, I was right. The market did not improve in the past 3 months. In fact, as Kevin mentioned, those conditions that I described at the end of Q1 have now spread to the international markets. Europe, Latin America, and Asia-Pacific, all showed signs of slowing, and in fact, PeopleSoft was not immune. Our overall conversion rate in Q2 actually decreased. We may have actually done better in Q2, but the rate of closing deals in the pipeline decreased. But despite the macroeconomic environment, that has now impacted the international markets and the decrease in the rate of closing deals in the pipeline, PeopleSoft continues to still be able to post record quarters. Why? One answer is simply that the increase in our pipeline is higher than the decrease in the closure rate. In other words, the interest in PeopleSoft's Enterprise Software is growing faster and the conversion rate is slowing down, and it's the rapid growth of the pipeline that continues to give us confidence, not only in the short term but is, in fact, very exciting to us in the long term. Second reason is that our win rate against competition is very high right now. The PeopleSoft 8 product line is simply very strong in competitive evaluations.

謝謝凱文。三個月前，在第一季度財報電話會議上，我說宏觀經濟環境非常困難，尤其是在美國。包括 IT 在內的所有類別的支出都在縮減。審批週期更長，需要更多理由來證明投資回報，並且在這類市場中貼現壓力很大。我當時說過，仁科也不能倖免於市場的影響。我沒有看到市場在改善，在這方面，我認為，在這兩個方面，我都是對的。市場在過去 3 個月內沒有改善。事實上，正如凱文所說，我在第一季度末描述的那些情況現在已經蔓延到國際市場。歐洲、拉丁美洲和亞太地區都出現了放緩的跡象，事實上，仁科也未能倖免。我們在第二季度的整體轉化率實際上有所下降。我們實際上可能在第二季度做得更好，但正在籌備中的交易完成率有所下降。但是，儘管宏觀經濟環境現在已經影響了國際市場，並且正在籌備中的交易完成率有所下降，但 PeopleSoft 仍然能夠發布創紀錄的季度業績。為什麼？一個答案很簡單，我們管道的增加高於關閉率的減少。換句話說，人們對 PeopleSoft 企業軟件的興趣增長得更快，轉換率正在放緩，而正是管道的快速增長繼續給我們信心，不僅在短期內，而且實際上非常令人興奮對我們來說是長期的。第二個原因是我們現在對抗競爭的勝率非常高。 PeopleSoft 8 產品線在競爭評估中非常強大。

Overall, we feel that PeopleSoft is uniquely positioned even in this difficult market. In fact, in a difficult market, companies were particularly concerned with increasing productivity and reducing cost, and by moving enterprise applications to the Internet, it has been estimated by various research firms that companies can save up to 90% on implementation and administration, and by moving enterprise applications to the Internet, it allows collaboration between customer systems, supply chain systems, and human capital management systems, and that represent an enormous increase in productivity. So, every company today seems to want to build a collaborative enterprise, and as they investigate how to do that, they discover three things. One, that PeopleSoft has a technology architecturally, with many large customers live and in full production on PeopleSoft 8 including WalMart with 980,000 employees live on the PeopleSoft 8 HR system, and Credit Suisse First Boston, with the PeopleSoft 8 global financial system live around the world, right now. The second thing companies discover is that PeopleSoft has a best of breed product line not only of customer relationship management but of supply chain management, financial management, and human resource management software that is also fully integrated. The third thing companies discover is that PeopleSoft enjoys a high level of customer satisfaction and reference ability. We're known as a trustworthy partner. The latest example of that is today's announcement of a global alliance with IBM, integrating WebSphere into the entire PeopleSoft product line. So, that's why we're really affirming guidance for the remainder of the year despite a challenging market. Now, as Kevin mentioned, that's not to say we believe it's going to be easy, we don't, we're cautious, in fact, we're more than cautious. We would continue to take additional steps to manage expenses to help us achieve our financial goals.

總體而言，我們認為即使在這個困難的市場中，仁科也具有獨特的定位。事實上，在困難的市場中，公司特別關注提高生產力和降低成本，通過將企業應用程序轉移到互聯網上，各種研究公司估計公司可以節省高達 90% 的實施和管理成本，並且通過將企業應用程序轉移到 Internet，它允許客戶系統、供應鏈系統和人力資本管理系統之間的協作，這代表著生產力的巨大提高。所以，今天的每家公司似乎都想建立一個協作企業，當他們研究如何做到這一點時，他們發現了三件事。一，PeopleSoft 在架構上擁有一項技術，許多大客戶在 PeopleSoft 8 上生活和全面生產，包括擁有 980,000 名員工的 WalMart 生活在 PeopleSoft 8 人力資源系統上，以及 Credit Suisse First Boston 和 PeopleSoft 8 全球金融系統生活在世界，現在。公司發現的第二件事是 PeopleSoft 擁有一流的產品線，不僅包括客戶關係管理，還包括供應鏈管理、財務管理和完全集成的人力資源管理軟件。公司發現的第三件事是 PeopleSoft 享有很高的客戶滿意度和參考能力。我們被稱為值得信賴的合作夥伴。最新的例子是今天宣布與 IBM 結成全球聯盟，將 WebSphere 集成到整個 PeopleSoft 產品線中。因此，這就是為什麼儘管市場充滿挑戰，我們仍然在今年餘下時間確認指導。現在，正如凱文所說，這並不是說我們相信這會很容易，我們不相信，我們很謹慎，事實上，我們不僅僅是謹慎。我們將繼續採取額外措施來管理費用，以幫助我們實現財務目標。

At the same time, we continue to invest in certain growth factors and growth drivers, including customer relationship management where we recently released a product we feel is the best in the industry, and that is being reviewed very highly by customers and analysts alike. In the end, I'd say, I've never felt more confident about PeopleSoft's product line, our management team, and our position in the marketplace. I believe we will continue to execute well, and as I said, more than 2 years ago, when I joined the company, I do believe PeopleSoft's best days are still yet to come. At this time, I would like to move to the question and answer portion of the call. Operator, if you could please begin the polling.

與此同時，我們繼續投資於某些增長因素和增長動力，包括客戶關係管理，我們最近發布了一款我們認為是業內最好的產品，並且得到了客戶和分析師的高度評價。最後，我想說，我從未對 PeopleSoft 的產品線、我們的管理團隊以及我們在市場中的地位充滿信心。我相信我們將繼續保持良好的執行力，正如我所說，兩年多前，當我加入公司時，我相信 PeopleSoft 最好的日子還沒有到來。此時，我想轉到電話的問答部分。接線員，如果可以，請開始投票。

Thank you, and at this time, if you would like to ask a question, please press '*' and then '1' on your touch-tone phone. At this time, please press '*' '1' on your touch-tone phone. Our first question comes from Tom Berquist, and sir, your line is open. Please state you company name.

謝謝，此時，如果您想提問，請在您的按鍵式電話上按“*”，然後按“1”。此時，請在您的按鍵式電話上按“*”“1”。我們的第一個問題來自 Tom Berquist，先生，您的電話是開放的。請註明您的公司名稱。

Goldman Sachs. Great quarter guys. If you look at the time of the competitive landscape in light of all those factors that you have been looking at, it does appear that we're seeing a little bit of a swing back towards some of the larger package app vendors and that coupled with the other architectural changes that you alluded to does seem to reward, kind of, a different set of vendors that has been rewarded over the last year. Is that your sense? And if that's the case, can you talk about the competitors you see most often?

高盛。偉大的四分之一傢伙。如果您根據您一直在關注的所有這些因素來查看競爭格局的時間，我們確實看到一些較大的軟件包應用程序供應商正在向一些更大的應用程序供應商傾斜，並且再加上您提到的其他架構更改似乎確實獎勵了去年獲得獎勵的一組不同的供應商。那是你的感覺嗎？如果是這樣的話，你能談談你最常看到的競爭對手嗎？

Tom, I do think that's the case. I think particularly in this market, companies are preoccupied with productivity and expense management and as companies look at their large IT enterprise systems, they are attracted to the proposition of putting them on the Internet, because putting them on the Internet will reduce cost up to 90%, and it simply doesn't cost very as much to implement a enterprise wide implementation if all the code is on the various servers, and it is not on any clients. So, I think that reduces cost and it does play to company's interest in increasing productivity, because when you get all the enterprise applications running on the Internet with an XML architecture, you can have collaboration between customer management systems and supply chain management systems and supply chain management systems and financial management systems and human resource management systems. So, I think in this market in particular, the value proposition has shifted probably back to an interest in productivity and reducing cost. I think that in a relatively competitive landscape, I feel that the vendors that are playing to that interest are PeopleSoft, and I think we are perceived as thought leaders in that category and architecture leaders in that category, and probably SAP, who as well as seems to be able to achieve growth in this market. I think that the smaller a company and the more isolated they are in their product line, in other words, the more they are a small part of a collaborative enterprise instead of a multiproduct line company, I think, the more difficult it is. So, I think best of breed providers are having a more difficult time than the suite providers right now.

湯姆，我確實認為是這樣。我認為特別是在這個市場上，公司全神貫注於生產力和費用管理，並且當公司查看他們的大型 IT 企業系統時，他們被將它們放到 Internet 上的提議所吸引，因為將它們放到 Internet 上將降低成本高達90%，如果所有代碼都在不同的服務器上，而不是在任何客戶端上，實現企業範圍的實現成本就不會那麼高。所以，我認為這降低了成本，並且確實有利於公司提高生產力，因為當你讓所有企業應用程序在 Internet 上使用 XML 架構運行時，你可以在客戶管理系統和供應鏈管理系統和供應商之間進行協作連鎖管理系統和財務管理系統和人力資源管理系統。因此，我認為特別是在這個市場中，價值主張可能已經轉向對生產力和降低成本的興趣。我認為在競爭相對激烈的環境中，我認為發揮這種興趣的供應商是 PeopleSoft，我認為我們被認為是該類別的思想領袖和架構領導者，可能還有 SAP，他們以及似乎能夠在這個市場上實現增長。我認為公司越小，產品線越孤立，換句話說，他們越是協作企業的一小部分，而不是多產品線公司，我認為越困難。所以，我認為最好的供應商現在比套件供應商更困難。

Great. Thanks.

偉大的。謝謝。

Thank you, and our next question comes from Neil Herman. Sir, your line is open. Please state your company name.

謝謝，我們的下一個問題來自 Neil Herman。先生，您的線路已開通。請註明您的公司名稱。

Lehman Brothers. Congratulations. Your capital I saw for the quarter was up a bit, I presume that's associated with the SkillsVillage acquisition, could you walk us through that, and then, secondarily, on the competitive environment, could you just talk a little bit about what you're seeing competitively from Oracle, SAP, and it seems Siebel these days is announcing some of your CRM deals on their calls. Could you just talk a little bit more in depth about some of the deals you've won specifically in that space, and how are you competing there?

雷曼兄弟。恭喜。我在本季度看到的您的資本有所增加，我認為這與收購 SkillsVillage 相關，您能否帶我們了解一下，其次，關於競爭環境，您能否談談您的現狀看到 Oracle、SAP 的競爭優勢，而且最近 Siebel 似乎在他們的電話會議上宣布了您的一些 CRM 交易。您能否更深入地談談您在該領域贏得的一些交易，以及您在該領域的競爭情況如何？

In terms of this SkillsVillage acquisition Neil, I think, I'm not sure of the details behind the question that was accounted for as a purchase, and it was closed during the course of quarter. We had an IP R&D write-off that was part of a nonrecurring charges we spoke of during the course of the prepared text. I'm not sure what the specifics of the question are that you're asking.

就 SkillsVillage 收購 Neil 而言，我認為，我不確定作為購買的問題背後的細節，並且在本季度期間關閉。我們有一個知識產權研發註銷，這是我們在準備文本過程中談到的非經常性費用的一部分。我不確定您要問的問題的具體內容是什麼。

Yes, your caps offer increased from 6.5 to 15 million in the quarter. I was just wondering would it.........

是的，您的上限在本季度從 6.5 增加到 1500 萬。我只是想知道會不會…………

That is the intangible assets associated with the SkillsVillage acquisition, you're correct.

那是與 SkillsVillage 收購相關的無形資產，你是對的。

Okay, great.

好，太棒了。

On the competitive front, I tend to think all of our major competitors are pretty good companies Oracle, SAP, and Siebel, I think our competitive win rate against Oracle and SAP has never been higher. I think that's related to product in architectural lead, and I think we're able to capitalize on that by recruiting better and better people, and I think what's coming along with that is better and better executions. So, I think we've got a bit of a symbiotic effect going that is now swinging the momentum in our direction. So, I think our win rate is probably better than it has been. You know Siebel is also a very, very strong company and it's led by a very high integrity guy, and Tom mentioned on his call, not on this call but the one before, some of the deals that PeopleSoft has won on the customer relationship management area. We have, you know, some of those customers we are working press releases around in various marketing programs around to try to draw visibility to them but some are more visible others weren't were announced by Tom in our prior call. There is one thing that I think that has been said in these competitive situations is that PeopleSoft has been winning them by discounting heavily, and that's just not the case. I don't know whether Tom is not being given the correct information by our sales organization a lot, but if you speak to some of those companies, they will confirm absolutely that they did not choose PeopleSoft because we're the lowest price offer. I think that the attraction people saw in the customer relationship management's basis is because of the architecture, the richness of functionality, and the integration of PeopleSoft enterprise software as well as other backbone software, Oracle and SAP, I think, we've got a very seamlessly integrated best of breed CRM product, and this also happens to be fully integrated with PeopleSoft apps. So, I know it's not a very specific answer, but I'm not into competitor bashing, and I would just say that our win rate seems to be probably as high as it has ever been right now.

在競爭方面，我傾向於認為我們所有的主要競爭對手都是相當不錯的公司 Oracle、SAP 和 Siebel，我認為我們與 Oracle 和 SAP 的競爭勝率從未如此高。我認為這與架構領導的產品有關，我認為我們能夠通過招募越來越好的人來利用這一點，我認為隨之而來的是越來越好的執行。所以，我認為我們已經產生了一種共生效應，現在正在朝著我們的方向擺動勢頭。所以，我認為我們的勝率可能比以前要好。你知道 Siebel 也是一家非常非常強大的公司，它由一個非常正直的人領導，Tom 在他的電話會議上提到，不是在這次電話會議上，而是在之前的電話會議上，PeopleSoft 在客戶關係管理方面贏得的一些交易區域。你知道，我們有一些客戶，我們正在圍繞各種營銷計劃發布新聞稿，以試圖吸引他們的知名度，但有些更明顯，其他一些客戶在我們之前的電話會議中沒有被湯姆宣布。我認為在這些競爭環境中已經說過的一件事是，仁科一直在通過大量折扣贏得他們，但事實並非如此。我不知道我們的銷售組織是否經常向 Tom 提供正確的信息，但是如果您與其中一些公司交談，他們會絕對確認他們沒有選擇 PeopleSoft，因為我們是最低價格。我認為人們在客戶關係管理基礎上看到的吸引力在於架構、功能的豐富性以及 PeopleSoft 企業軟件以及其他骨幹軟件、Oracle 和 SAP 的集成，我認為，我們有一個非常無縫地集成了同類最佳的 CRM 產品，而且這也恰好與 PeopleSoft 應用程序完全集成。所以，我知道這不是一個非常具體的答案，但我不喜歡抨擊競爭對手，我只想說我們的勝率似乎可能與現在一樣高。

Thank-you very much.

非常感謝。

Thanks.

謝謝。

Thank you, and our next question comes from Jim Mendelson. Sir, your line is open, please state your company name.

謝謝，我們的下一個問題來自 Jim Mendelson。先生，您的線路已開通，請註明您的公司名稱。

Soundview. Could you elaborate Craig, a little bit in terms of the macro picture? You indicated that during the quarter, you certainly felt that it was getting worse. I am just curious whether or not you felt whether that was a function really of the international showing signs of slowing or whether or not you felt that in the US, it's stabilizing, or whether or not you felt that US was continuing to soften as well?

聲景。您能否詳細說明一下 Craig，就宏觀情況而言？您表示，在本季度，您當然覺得情況變得更糟。我只是好奇你是否覺得這是否真的是國際市場出現放緩跡象的原因，或者你是否認為美國正在企穩，或者你是否認為美國也在繼續走軟?

Jim, it is the former not the latter. It was international that began to soften. United States could not get worse. As a matter of fact, we actually had a very strong quarter in the US, but there was for the first time for PeopleSoft a general slowing in Europe, Latin America, and Asia-Pacific, and so, when I was referring to the global macroeconomic conditions, I think that they became more difficult mostly because international began to slow down, not because the US continued or got slower. I think the United States actually probably stabilized and got a little bit better for us.

吉姆，是前者而不是後者。是國際開始軟化。美國不能變得更糟。事實上，我們實際上在美國有一個非常強勁的季度，但是對於仁科來說，歐洲、拉丁美洲和亞太地區第一次普遍放緩，因此，當我指的是全球宏觀經濟狀況，我認為它們變得更加困難主要是因為國際開始放緩，而不是因為美國繼續或放緩。我認為美國實際上可能已經穩定下來，對我們來說稍微好一點。

Okay, and one last point. I know you don't break out any kind of specific revenues based on functional classifications of products, but could you give us a little more color in terms of just the relative sense of momentum around whether it's CRM versus supply chain versus ERM or however you want to describe it?

好的，最後一點。我知道您不會根據產品的功能分類列出任何類型的特定收入，但是您能否就 CRM 與供應鏈與 ERM 的相對動量感給我們提供更多顏色想描述一下嗎？

Yeah, I can give you a little bit more, I mean, we don't break it our for a number of reasons. One is that it's hard to put in things in categories anymore because they're all bleeding into each other, you know, customer relationship management is bleeding in the supply chain management and financial management, and vendor to vendor, we don't all call our modules the same thing in terms of what category they're in. The second reason we don't break it out is that the trend on all of them is stronger, and on any given quarter, one or two of them tends to be stronger than the others, but they all tend to be getting stronger. None of our product lines are showing a weakness. In Q2, human capital management or human resource management was very, very strong for us. Customer relationship management, despite the fact that we were only shipping PeopleSoft 8 CRM for two weeks in the quarter, it was actually very strong as well. Financial management was trending higher as well as supply chain management. If you look quarter to quarter, there is only something that tends to emerge a little bit faster then others, but there is no general pattern in there. I would say that human resource management and customer relationship management this quarter tended to lead the way with financial management having very strong quarter and supply chain management far behind that.

是的，我可以給你更多一點，我的意思是，我們不會出於多種原因破壞它。一是很難再將事物歸類，因為它們都相互滲透，你知道，客戶關係管理正在供應鏈管理和財務管理中流淌，供應商對供應商，我們並不都打電話我們的模塊在它們所屬的類別方面是相同的。我們不打破它的第二個原因是它們的趨勢都更強，並且在任何給定的季度，它們中的一兩個往往是比其他人更強大，但他們都傾向於變得更強大。我們的所有產品線都沒有表現出弱點。在第二季度，人力資本管理或人力資源管理對我們來說非常非常強大。客戶關係管理，儘管我們在本季度僅交付了兩週的 PeopleSoft 8 CRM，但它實際上也非常強大。財務管理和供應鏈管理呈上升趨勢。如果您逐個查看季度，只會發現某些事物的出現速度往往比其他事物快一點，但其中沒有普遍的模式。我想說，本季度的人力資源管理和客戶關係管理往往處於領先地位，財務管理非常強勁，而供應鏈管理則遠遠落後。

Thanks, congratulations on a good performance.

謝謝，恭喜你有好的表現。

Thank you Jim.

謝謝吉姆。

Thank you, and our next question comes from Chuck Philips. Sir, your line is open. Please state your company name.

謝謝，我們的下一個問題來自 Chuck Philips。先生，您的線路已開通。請註明您的公司名稱。

Morgan Stanley. Just wondering as the upgrades in the installed basis and if you look at PeopleSoft 8, I think we, kind of, presumed those aren't competitive, but do they in fact open up the decision to alternative, vendors and so, in fact, you have to recompete and you're just winning that much more or are those in fact less competitive normally?

摩根士丹利。只是想知道安裝基礎的升級，如果你看一下 PeopleSoft 8，我認為我們，有點，認為這些沒有競爭力，但他們實際上是否向替代品、供應商等開放了決定，事實上，您必須重新競爭，而您只是贏得了更多，還是實際上通常不那麼具有競爭力？

Chuck, I would say they are less competitive to be honest with you. Although I did think about capitalizing on that to say we're beating everybody on the upgrades too, but it just wouldn't be the truth. I think the cost of an upgrade to PeopleSoft 8 is pretty modest. Actually, although it's a completely different architecture and we've got so many automated tools available, and we have done special packages with our professional service organization to effect that upgrade that it's nowhere near and is not even close to near what it would be to change a vendor. Companies can move to PeopleSoft 8 in fractions, small fractions of the cost of it would take to deploy another vendor. I think that the overall movement within that architecture has provided an opportunity in some cases to go in and win business against the competitor, but to be honest with you, I think that was just a convenient at which the customer that was tremendously upset with their current vendor just took it as an opportunity to change vendors. We've had several of those and like several, I mean, 5 or 6, but in general, I think the upgrades in our customer base are a matter of course.

查克，老實說，我會說他們的競爭力較弱。雖然我確實考慮過利用這一點說我們在升級方面也擊敗了所有人，但事實並非如此。我認為升級到 PeopleSoft 8 的成本相當適中。實際上，雖然它是一個完全不同的架構，而且我們有很多可用的自動化工具，而且我們已經與我們的專業服務組織做了特殊的包來實現升級，但它遠不及甚至接近它的目標更換供應商。公司可以分階段遷移到 PeopleSoft 8，這只是部署另一個供應商所需成本的一小部分。我認為該架構中的整體運動在某些情況下提供了進入並贏得與競爭對手的業務的機會，但老實說，我認為這只是一種方便，客戶對此感到非常不滿當前的供應商只是將其作為更換供應商的機會。我們已經有幾個這樣的，我的意思是，5 或 6 個，但總的來說，我認為我們客戶群的升級是理所當然的。

And on the European slowing, are you satisfied that it's not any basic functionality on your European footprint international capabilities is there or is it demand or is it PeopleSoft 8 to come, part of the way down, not all the way there yet, in terms of functionality ruling it out yet.

關於歐洲的放緩，您是否滿意它在您的歐洲足跡上沒有任何基本功能 國際能力是否存在，是否需要，或者是否 PeopleSoft 8 即將到來，部分下降，尚未完全實現的功能排除了它。

Yeah. If you closed your eyes, you would think you were in the United States two quarters ago. It was a universal phenomena, it was across Europe, Latin America, and Asia Pacific, it was almost the exact percentage point against what our forecasts were. So every indication was that it was a market issue, not a product issue. The other indication is, what the sales organization says, or what the customers say, which shows you we just did not feel that we could move forward this particular quarter. So there was nothing about PeopleSoft 8 that was not playing as well internationally. If you remember Q1, we had a 90% growth internationally versus 70% growth this quarter, and I guess 70% growth is pretty damn good, but I will tell you that compared to our expectations for the last week or two of the quarter, it was a universal deceleration internationally and fortunately an acceleration in the United States at the same time.

是的。如果你閉上眼睛，你會認為你在兩個季度前在美國。這是一種普遍現象，遍及歐洲、拉丁美洲和亞太地區，幾乎與我們的預測相差無幾。因此，所有跡像都表明這是一個市場問題，而不是產品問題。另一個跡像是，銷售組織所說的話，或者客戶所說的話，這表明我們只是覺得我們不能在這個特定的季度前進。因此，PeopleSoft 8 在國際上表現不佳。如果您還記得第一季度，我們的國際增長率為 90%，而本季度為 70%，我想 70% 的增長率非常好，但我會告訴您，與我們對本季度最後一周或兩週的預期相比，這是國際上的普遍減速，幸運的是，同時在美國也是加速。

And now the CRM product that you shipped the last two weeks of the quarter, but was enough activity going into that period, will you predict pipeline at CRM and sales force is likely to, can you shift the focus a little bit on it?

現在，您在本季度的最後兩週發布了 CRM 產品，但在此期間有足夠的活動，您是否會預測 CRM 的管道和銷售人員可能會，您能否將重點轉移一點？

Yeah. We were surprised by the revenue we did in Q2. We did not count on a great deal of revenue on CRM, and I guess on an overall basis it wasn't an enormous amount, but it was way more than we thought we could do in 2 weeks. The really encouraging part for us was not the surprise element of revenue in Q2 related to PeopleSoft 8 CRM, it was the size of the pipeline that immediately opened up. Both domestically and internationally, we essentially moved into the fast current of evaluations, some of which are down-the-line evaluations, some of which were immediate evaluations that may have been headed towards another vendor. So I think we now have the opportunity to play in evaluations on a larger scale. I know we don't disclose the exact numbers in pipelines, but the percent increase in our CRM pipeline has been in the order of magnitude since the announcement of PeopleSoft 8 CRM, and we're at a magnitude higher than it was before.

是的。我們對第二季度的收入感到驚訝。我們並沒有指望在 CRM 上獲得大量收入，而且我想總體而言這並不是一個巨大的數字，但這比我們認為我們在 2 週內可以做的要多得多。對我們來說真正令人鼓舞的部分不是第二季度與 PeopleSoft 8 CRM 相關的令人驚訝的收入因素，而是立即開放的管道規模。無論是在國內還是在國際上，我們基本上都進入了快速的評估流程，其中一些是下線評估，其中一些是立即評估，可能已經轉向另一個供應商。所以我認為我們現在有機會在更大規模的評估中發揮作用。我知道我們沒有透露管道中的確切數字，但是自 PeopleSoft 8 CRM 發布以來，我們 CRM 管道的百分比增長已經達到了一個數量級，而且我們的數量級比以前更高。

And it was a super quarter in a very tough environment.

這是一個非常艱難的環境中的超級季度。

You're thinking straight.

你想的很清楚。

Thank you, and our next question comes from Gretchen Teagarden. Ma'am your line is open, please state your company name.

謝謝，我們的下一個問題來自 Gretchen Teagarden。女士，您的線路已開通，請說明您的公司名稱。

Salomon Smith Barney. A couple of questions. The cost of opportunity is so large within your existing base, however historically the sales force has been organized by product, where are you in terms of transitioning the sales force to move over global account coverage model and intending them for cross selling versus the product oriented focus that they've have historically?

所羅門美邦。幾個問題。在您現有的基礎上，機會成本是如此之大，但是從歷史上看，銷售隊伍是按產品組織的他們在歷史上擁有的焦點？

There's really two answers to the question, one was on the generic incentive for sales reps to cross our [_______________] and global account management. We have had an emphasis in our sales organization on one part of our product line whether it was human resources management, customer relationship management, or financial management. However, I think about a third of their compensation comes from cross selling opportunities. Now they don't try to close, they don't complete the sale on another integrate suite, but they are paid commissions, when they're able to isolate an enterprise-wide opportunity in another product category and then they bring in another PeopleSoft sales organization to pursue it. So I guess we're trying to have our cake and eat it too. We're trying to have a high level specialization by major product group, customer management, financial management, and supply management, and human resource management. At the same time, we're trying to leave a large amount of centers in terms of commission dollars and bonuses to try to cultivate interest in other PeopleSoft products. On our global account management side, we are in the process of improving our global account coverage, you know, as PeopleSoft has moved from 17% of revenue, two years ago, coming out of international market to 40% or so, now we have had to improve the way we manage global multinational accounts and so there is a new and improved distribution group dedicated to global accounts that we are hoping will make us a better company in managing global multinationals.

這個問題實際上有兩個答案，一個是一般激勵銷售代表跨越我們的 [_______________] 和全球客戶管理。無論是人力資源管理、客戶關係管理還是財務管理，我們的銷售組織都將重點放在我們產品線的一部分上。但是，我認為他們三分之一的報酬來自交叉銷售機會。現在他們不再試圖關閉，他們沒有在另一個集成套件上完成銷售，但是當他們能夠在另一個產品類別中隔離一個企業範圍的機會，然後他們引入另一個 PeopleSoft 時，他們會獲得佣金銷售組織去追求它。所以我想我們也想吃蛋糕。我們正在努力在主要產品組、客戶管理、財務管理、供應管理和人力資源管理方面實現高水平的專業化。同時，我們試圖在佣金和獎金方面留下大量的中心，以試圖培養對其他 PeopleSoft 產品的興趣。在我們的全球客戶管理方面，我們正在改善我們的全球客戶覆蓋率，你知道，因為 PeopleSoft 已經從兩年前的 17% 收入從國際市場上升到 40% 左右，現在我們有必須改進我們管理全球跨國客戶的方式，因此有一個新的和改進的分銷集團致力於全球客戶，我們希望這將使我們成為管理全球跨國公司的更好公司。

Great, and I know you're now in support of IBMs WebSphere application servers, did you notice an increase in demands for the IBM WebSphere platform, was that the key catalyst for you to offer to support IBM in addition to BEA?

太好了，而且我知道您現在支持 IBM 的 WebSphere 應用程序服務器，您是否注意到對 IBM WebSphere 平台的需求增加了，這是除了 BEA 之外您還支持 IBM 的關鍵催化劑嗎？

Yes, and the demand for WebSphere is significantly emerging as a real market factor, and frankly I was surprised that companies had a strong opinion about what application server they used. To be honest with you, I guess, we all get focused so intently on what we do as being incredibly important, we may not attach this high level to other parts of the equation. I had no idea that companies would be strongly opinionated about what application server product they must have, and WebSphere has emerged as a must-have application server by many large organizations around the world. So that was certainly, going to be honestly, the driving factor in our decision to include WebSphere product. We also would include the WebLogic product. And by the way, PeopleSoft 8, I believe, is unique in providing these application server products for free. But in our product line, we pay for them, and we included them in WebLogic, but we did have very strong demands, and it's probably the right word, not even request demands around the world for the WebSphere product either in addition to as an alternative to WebLogic, so we work together with IBM.

是的，對 WebSphere 的需求正在顯著成為一個真正的市場因素，坦率地說，我很驚訝公司對他們使用的應用程序服務器有強烈的看法。老實說，我想，我們都非常專注於我們所做的非常重要的事情，我們可能不會將這個高水平附加到等式的其他部分。我不知道公司會對他們必須擁有的應用程序服務器產品抱有強烈的意見，而 WebSphere 已成為全球許多大型組織必備的應用程序服務器。因此，老實說，這肯定是我們決定包含 WebSphere 產品的驅動因素。我們還將包括 WebLogic 產品。順便說一句，我相信 PeopleSoft 8 在免費提供這些應用服務器產品方面是獨一無二的。但是在我們的產品線中，我們為它們付費，我們將它們包含在 WebLogic 中，但我們確實有非常強烈的需求，這可能是正確的詞，甚至沒有要求世界各地對 WebSphere 產品的需求，除了作為WebLogic 的替代品，因此我們與 IBM 合作。

Great, thank you.

太好了謝謝。

Welcome.

歡迎。

Thank you, and our next question comes from Craig Wood. Sir your line is open, please state your company name.

謝謝，我們的下一個問題來自 Craig Wood。先生，您的線路已開通，請說明您的公司名稱。

Thank you, it's Merrill Lynch. It sounds like you're not ready to provide the specific names of some of your new CRM customers as you wait for some approvals there. Can you just provide some indication of how many units you're able to ship above and beyond the 9 or 10 beta customers that you had at the June event?

謝謝，是美林。當您在那裡等待一些批准時，聽起來您還沒有準備好提供一些新 CRM 客戶的具體名稱。您能否提供一些指標，說明您能夠在 6 月活動中擁有的 9 或 10 個 beta 客戶之外運送多少單位？

Yeah, I don't think we're going to break out that detail here this afternoon, Craig. As the information becomes ready for market in terms of the customer names and [________________], we'll talk about the components of it at that time.

是的，克雷格，我認為我們今天下午不會在這裡討論這個細節。隨著客戶姓名和 [________________] 方面的信息準備好投放市場，我們屆時將討論它的組成部分。

Okay, and also in June you talked about the [_______________] partnership that you had set up for the CRM practice. To what extent have they been valuable in bringing some of these deals home and setting up the pipeline for the second half?

好的，同樣在 6 月份，您談到了您為 CRM 實踐建立的 [_______________] 合作夥伴關係。在將其中一些交易帶回家並為下半年建立管道方面，他們在多大程度上有價值？

Well, that's going to be a controversial answer. I would say that all of our partners have been tremendously supportive of our new CRM offering, and these are partners that have in most cases multi billion dollar practices in PeopleSoft technology and PeopleSoft products. So to add customer relationship management to their practice was something they were very happy to do. I would describe in this standing ready to capitalize on customer interest. I think in this short a period of time, none of them are geared up and become lead generation machines for us. I would love for them to be that, but at this point, I think they are supportive, trained, staffed, and ready to capitalize on customers that show interest. I think, again to be honest, it is still thought to be our responsibility to generate the pipeline for them. Having said that, the deals that have closed, our partners have been instrumental in helping us close. They've been there to support the demonstration, the evaluations, to advise the account on the strengths and weaknesses of PeopleSoft's product versus competitor products. So, I don't think we would have got many of these deals, if we did not have a supportive systems integration relationship, and I guess, if you have to say sorry in general, happy, satisfied, extremely happy with the response you've gotten from systems integration, I'd say extremely happy at this point.

嗯，這將是一個有爭議的答案。我想說，我們所有的合作夥伴都非常支持我們的新 CRM 產品，這些合作夥伴在大多數情況下在 PeopleSoft 技術和 PeopleSoft 產品方面擁有數十億美元的實踐。因此，將客戶關係管理添加到他們的實踐中是他們非常樂意做的事情。我將在此描述準備好利用客戶利益。我認為在這短短的時間內，他們都沒有準備好成為我們的潛在客戶。我希望他們能做到這一點，但在這一點上，我認為他們是支持性的、訓練有素的、配備有人員的，並準備好利用表現出興趣的客戶。我認為，老實說，我們仍然認為為他們生成管道是我們的責任。話雖如此，在已經完成的交易中，我們的合作夥伴在幫助我們完成交易方面發揮了重要作用。他們一直在那裡支持演示、評估，並就 PeopleSoft 產品與競爭對手產品的優缺點向客戶提供建議。所以，如果我們沒有支持性的系統集成關係，我認為我們不會得到很多這樣的交易'已經從系統集成中獲得，我會說在這一點上非常高興。

Okay, and finally Kevin with the DSO down, is that a reflection of less backend loading in the quarter or is that more around collection?

好的，最後 Kevin 的 DSO 關閉了，這是反映本季度後端負載減少還是收集更多？

I think it's more around collections. The quarter was no more backend loaded than we saw Q1 or perhaps Q4 of last year. We just put a significant effort on collections and the efforts were paying off.

我認為它更多地圍繞著收藏。本季度的後端加載量並不比我們去年第一季度或第四季度看到的多。我們只是在收藏上付出了巨大的努力，這些努力得到了回報。

Okay, thanks very much.

好的，非常感謝。

Thank-you, and our next question comes from Jim Pickrel, and Sir, your line is open. Please state your company name.

謝謝您，我們的下一個問題來自 Jim Pickrel，先生，您的電話已開通。請註明您的公司名稱。

Hi! JP Morgan. Congrats on the quarter. Can you talk a bit about vertical markets, strength or weakness, both in the quarter, and what you're seeing in the pipeline?

你好！摩根大通。祝賀本季度。您能否談談本季度的垂直市場、優勢或劣勢，以及您在管道中看到的情況？

You know, the vertical markets are interesting in that the stronger you get, the stronger you get, I mean, we have been strong for years in financial service industry, the telecommunications industry. We have gotten stronger in previous years, and now it's starting to become a self-fulfilling prophecy in other industries such as the consumer package goods industry. The government had been a historically a very strong vertical for PeopleSoft. It flattened out in the last 2 years. It is emerging, once again, as one of our strongest verticals. So, I think we're getting stronger and stronger, and once we've been strong and then I think we're clawing our way into other ones. With regard to many of our product lines, we have started to template them, or in fact, develop specific versions for each of these verticals to give people a running start, a head start in the implementation of the product. In the customer relationship management area, in particular, we have developed or are still developing almost a complete verticalization approach to ensure that the companies have a product, which has been almost preconfigured for their industry. Other markets like human resource management is not quite as critical that we have a vertical market approach but in markets like, or in products areas like the customer relationship management it's heavily verticalized.

你知道，垂直市場很有趣，你越強大，你就越強大，我的意思是，我們在金融服務行業、電信行業多年來一直很強大。我們在前幾年變得更強大，現在它開始成為其他行業如消費品行業的自我實現預言。從歷史上看，政府一直是 PeopleSoft 的一個非常強大的垂直領域。在過去的 2 年裡，它趨於平緩。它再次成為我們最強大的垂直領域之一。所以，我認為我們正在變得越來越強大，一旦我們變得強大，然後我認為我們正在努力進入其他領域。對於我們的許多產品線，我們已經開始對它們進行模板化，或者實際上為這些垂直領域中的每一個開發特定的版本，以便讓人們在產品實施中獲得良好的開端。特別是在客戶關係管理領域，我們已經開發或仍在開發幾乎完整的垂直化方法，以確保公司擁有幾乎已針對其行業進行預配置的產品。人力資源管理等其他市場並不像我們採用垂直市場方法那麼重要，但在諸如客戶關係管理之類的市場或產品領域，它是高度垂直化的。

And so, was there any particular trend in terms of that conversion rates, you know, certain industries being hit harder by profitability concerns. Did that really impact your sales efforts in those verticals to any differing degree or any trend lines that you're seeing in the pipeline there?

因此，在轉換率方面是否有任何特殊趨勢，你知道，某些行業受到盈利能力問題的打擊更大。這是否真的在不同程度上影響了您在這些垂直領域的銷售努力，或者您在那裡看到的任何趨勢線？

No pattern whatsoever.

一點圖案都沒有。

And Craig, when you talked about, it's probably hard to specify but the conversion rate fall-off, are we talking about a few percentage points over the last quarter or anything more notable than that?

克雷格，當你談到時，可能很難具體說明，但轉化率下降了，我們是在談論上個季度的幾個百分點還是比這更值得注意的事情？

Well, nothing that much more notable than that, I mean, we all know and we've all talked about the fact that the software company has two of the major dials to steer the ship, the pipeline and the conversion rate, and to some extent, it is a constant balance between keeping a high enough pipeline and a high enough conversion rate, and if you estimate what your conversion rate is going to be on your pipeline accurately, you're able to forecast quarter to quarter, and when either of the pipeline changes or the conversion rate, it can be scary. The conversion rate has gone a bit down but down, I mean, I would not say if that's dimensionally down or even significantly down, but it is down, and I just tend to want to be more open modest about that factor. At the same time, the pipeline has grown tremendously. So, we've more than made up for it, and our win rate has grown tremendously. So, the overall equation still continues to equate out to a rapidly growing company. As a matter of fact, I think there is almost a silver lining in all of those in that, although the conversion rate has dropped a bit, the pipeline has grown so much that our confidence in future quarters has actually gone higher because even if the conversion rate returns, it's returning to a pipeline that has grown so much larger than we had anticipated. That's why I said, in my prepared remarks, that the formula is still working very much in PeopleSoft's favor, and in fact, the subsequent quarter implications of a growing pipeline with an improving conversion rate should be very beneficial to PeopleSoft, that's why we've got a little bit of a spring in our step even as the conversion rates have eroded somewhat, but the pipelines have more than made up for it, as has the competitive win rate.

好吧，沒有什麼比這更值得注意的了，我的意思是，我們都知道並且我們都談論過這樣一個事實，即軟件公司有兩個主要的錶盤來引導船舶，管道和轉換率，以及一些在某種程度上，它是保持足夠高的管道和足夠高的轉化率之間的恆定平衡，如果你準確估計你的轉化率將在你的管道上，你可以預測一個季度到一個季度，以及何時管道變化或轉換率，它可能是可怕的。轉化率下降了一點，但下降了，我的意思是，我不會說這是否在維度上下降甚至顯著下降，但它下降了，我只是傾向於對這個因素保持更開放的謙虛。與此同時，管道也大幅增長。所以，我們已經彌補了這一點，我們的勝率也大大提高了。因此，整體等式仍然等同於一家快速發展的公司。事實上，我認為所有這些幾乎都有一線希望，儘管轉化率有所下降，但渠道增長如此之快，以至於我們對未來幾個季度的信心實際上更高了，因為即使轉化率回歸，它正在回歸到一個比我們預期的要大得多的管道。這就是為什麼我在準備好的評論中說，該公式仍然非常有利於 PeopleSoft，事實上，隨著轉換率的提高，管道不斷增長的後續季度影響應該對 PeopleSoft 非常有利，這就是為什麼我們'即使轉換率有所下降，我們的步伐也有一點點春天，但管道已經彌補了這一點，競爭性的獲勝率也是如此。

Great. Okay, well, again great job on the quarter. Thanks.

偉大的。好的，好吧，本季度再次做得很好。謝謝。

Thank-you.

謝謝。

Thank you, and our next question comes from Laura Lederman and Ma'am, your line is open. Please state your company name.

謝謝，我們的下一個問題來自 Laura Lederman 和女士，您的電話是開放的。請註明您的公司名稱。

Yeah, William Blair. I have a few questions. One is, if you look at your assumptions for the third and the fourth quarter, what do you assume in the terms of the year up? How much do you expect it to deteriorate? And also, the US to continue to assume a stabilization, and also, separately, can you talk a little bit about the pricing environment? I know Siebel accused you guys of pricing on the conference call, but who are you seeing pricing out there in terms of the different segments you compete in?

是的，威廉布萊爾。我有幾個問題。一個是，如果你看一下你對第三季度和第四季度的假設，你對今年的預期是什麼？你預計它會惡化多少？此外，美國將繼續保持穩定，另外，您能否談談定價環境？我知道 Siebel 指責你們在電話會議上定價，但是根據你們競爭的不同細分市場，你們看到了誰的定價？

In terms of the economic assumptions, we are driving our future outlook, we are not anticipating an improvement, at any point in time, in the next two quarters either in US or in Europe. We're not also expecting an enormous deterioration with those things. It's fairly much a status quo component in terms of our outlook for the rest of the year. Craig, you want to talk about the pricing issues?

就經濟假設而言，我們正在推動我們的未來展望，我們預計未來兩個季度美國或歐洲在任何時候都不會有所改善。我們也不期望這些事情會出現巨大的惡化。就我們對今年剩餘時間的展望而言，這在很大程度上是維持現狀的一部分。克雷格，你想談談定價問題嗎？

Yeah, I think I may be the only CEO still who acknowledges that this pricing pressure out there, I know, in Q1, nobody seemed to want to say that there is discounting pressures but there is. So, we are under them like anybody else. We are not lower priced by the business. By the way, I don't think people license enterprise software like that anywhere. We had many situations where a competitor and when the deal was not going your way offered to give away the software, and they still chose PeopleSoft and wrote a check that they thought was fair. Most companies do not want to, I think virtually every company, does not want to do a business with a vendor at a price that they feel is going to drive the vendor out of business. So, I'm just confident that PeopleSoft is not buying business out there. It's certainly the transactions and the size of the transactions relative to our other product lines would not imply that, and I think what has occurred perhaps in this customer relationship management area, more so than others, is that competition has entered the equation in the customer relationship management area in particular, I don't think there was a strong competition until recently. So, I think when you are the only vendor with a viable solution, I do think you're able to capitalize on it to a higher, overall level. But, customer relationship management is no more or less critical to running an organization and financial management or supply chain management or customer management. So, the relative transaction sizes may tend to, over time, be more in line with other enterprise licenses done by those companies.

是的，我想我可能是唯一一位仍然承認存在定價壓力的首席執行官，我知道，在第一季度，似乎沒有人想說存在折扣壓力，但確實存在。所以，我們像其他人一樣在他們之下。我們不被商家低價定價。順便說一句，我認為人們不會在任何地方許可這樣的企業軟件。我們遇到過很多情況，競爭對手在交易不順利時提出放棄軟件，但他們仍然選擇 PeopleSoft 並開出他們認為公平的支票。大多數公司不想，我認為幾乎每家公司都不想以他們認為會導致供應商破產的價格與供應商做生意。所以，我只是相信 PeopleSoft 不會購買那裡的業務。當然，交易和相對於我們其他產品線的交易規模並不意味著這一點，而且我認為在這個客戶關係管理領域可能發生的事情，比其他領域更重要的是，競爭已經進入了客戶的方程式特別是關係管理領域，我認為直到最近才出現激烈的競爭。因此，我認為當您是唯一擁有可行解決方案的供應商時，我確實認為您能夠將其利用到更高的整體水平。但是，客戶關係管理對於運行組織和財務管理或供應鏈管理或客戶管理而言並不重要。因此，隨著時間的推移，相對交易規模可能會更符合這些公司獲得的其他企業許可。

Companies, in the end, feel they come in range, that's a fair range for their critical enterprise software systems and may be CRM is coming within that range, but it is certainly not, you know, we're not buying business and it's not a heavily discounted area. I know for a fact that they can't be enormously discounted because at PeopleSoft, the sales organization cannot discount beyond a certain level without my personal approval, and I get those periodically and out of the 100 or 150 transactions a quarter, I might get 2 or 3 outside the range that the sales force can operate within. So I think that there is pricing pressure, I think there is pricing pressure for everybody, SAP, Oracle, PeopleSoft, and Siebel. We're not buying business on any of our product sales, and I just think that there is nothing that damaging occurring certainly at PeopleSoft's level.

最終，公司覺得他們進入了範圍，對於他們的關鍵企業軟件系統來說，這是一個公平的範圍，可能 CRM 也在這個範圍內，但肯定不是，你知道，我們不是在購買業務，它不是一個折扣很大的區域。我知道他們不能大幅打折，因為在 PeopleSoft，未經我個人批准，銷售組織不能打折超過一定水平，而且我會定期獲得這些折扣，並且在每季度 100 或 150 筆交易中，我可能會得到2 或 3 個超出銷售人員可以運作的範圍。所以我認為存在定價壓力，我認為每個人都有定價壓力，SAP、甲骨文、PeopleSoft 和 Siebel。我們不會在任何產品銷售中購買業務，我只是認為在 PeopleSoft 的層面上肯定不會發生任何破壞性的事情。

Final question and that is, any very large deals in the quarter, you mentioned those greater than 1 million, but what about greater than 10 million or 5 million? Thanks.

最後一個問題，即本季度任何非常大的交易，您提到超過 100 萬的交易，但超過 1000 萬或 500 萬的交易呢？謝謝。

I think in the course of the quarter, we had one transaction in excess of 10 million of the 29 transactions we described greater than one million. There was one transaction greater than 10 million, the rest of it was $10 million and below.

我認為在本季度的過程中，在我們描述的超過 100 萬筆交易的 29 筆交易中，我們有一筆交易超過了 1000 萬筆。有一筆交易超過1000萬美元，其餘為1000萬美元及以下。

Congratulations on a great quarter.

祝賀一個偉大的季度。

Thank you Laura.

謝謝勞拉。

Thank you and our next question comes from Brent Thill, and sir your line is open. Please state your company name.

謝謝你，我們的下一個問題來自 Brent Thill，先生，你的電話是開放的。請註明您的公司名稱。

Credit Suisse First Boston. ASPs broke out of their 500K holding pattern to 600K, is this a trend we are starting to see on smaller number of larger deals, and I think, last quarter you said 130 new customers, can you give us a sense of where both those figures are at?

瑞士信貸第一波士頓。 ASP 突破了 500K 的持有模式至 600K，這是我們開始在數量較少的大型交易中看到的趨勢嗎處於？

Yeah, it's hard to tell, or draw conclusion from a single data point. We don't believe the underlying trend has changed significantly. The migration from 500K a quarter to 600K a quarter is primarily just may be based on circumstantial mix for the quarter and that may be driving it. There is no real underlying trend that I see under that.

是的，很難從單個數據點判斷或得出結論。我們認為基本趨勢並未發生顯著變化。從每季度 500K 到每季度 600K 的遷移主要可能只是基於該季度的環境組合，這可能是推動它的原因。我沒有看到真正的潛在趨勢。

I think that $5000 or $6000 average selling prices by comparison are probably low versus any of our three traditional competitors. There are times that we think that's very good thing, because we are more predictable and less dependent on $10 million or $5 million or $20 million deals, and sometimes we don't think it's not favorable that having $10 million or $20 million, although many of them as some of our competitors are able to do, is something that we'd like to have that provides relief in the quarter. We, by and large, still do not do, not because I don't think we want to, I just don't think we go after deals in the same future packaged way that some of our competitors do. But I don't think in general it's changed. We had one deal that was more than $10 million, but by and large the quarter looked pretty much like prior quarters.

我認為與我們三個傳統競爭對手中的任何一個相比，5000 美元或 6000 美元的平均售價可能較低。有時我們認為這是非常好的事情，因為我們更容易預測，更少依賴 1000 萬美元或 500 萬美元或 2000 萬美元的交易，有時我們認為擁有 1000 萬美元或 2000 萬美元並不有利，儘管許多人我們的一些競爭對手能夠做到這一點，這是我們希望在本季度提供緩解的東西。總的來說，我們仍然不這樣做，不是因為我認為我們不想這樣做，我只是不認為我們以與我們的一些競爭對手相同的未來打包方式追求交易。但我認為總體上沒有改變。我們有一筆超過 1000 萬美元的交易，但總的來說，該季度看起來與前幾個季度非常相似。

We want to know the trends that a couple of other software names you mentioned is the steam around aggregating, kind of, what they have had over the last 2 years, where they put in financials, what are you seeing in terms of aggregating it into one common platform, and how do you treat that as a revenue opportunity inside install base?

我們想知道你提到的其他幾個軟件名稱的趨勢是圍繞聚合的趨勢，有點，他們在過去 2 年裡有什麼，他們在哪裡投入財務，你在聚合方面看到了什麼一個通用平台，您如何將其視為安裝基礎內的收入機會？

You know, I said the same thing myself several quarters ago, that as companies move their enterprise applications to an Internet architecture, they will look for a single supplier or maybe two or three suppliers, but they won't do with 20, and that is absolutely the trend, and we see that everywhere. Companies are trying to reduce the number of vendors, they are trying to consolidate their systems in a common architecture and that's just the way the world is working today. And I think the catalyst for doing that was real time Internet-based applications. As soon as enterprise applications become real time and they become collaborative between themselves, you can't afford to try that exercise with 10 vendors, because the kind of effort not working is much higher, and when enterprise applications were kind of done department by department, I won't say department, group by group, and the HR organization had an HRMS implementation in the financials that were run by finance and nothing is really collaborative, you can, kind of, do what you want. But, when all those systems are collaborative and CRM systems integrates [________________] to supply chain management system, and suppliers watch orders being placed by their customer's customers, when financial information and financial applications are updated automatically from the supply chain management system or the CRM system. You know, companies are just not willing to try that dive with that degree of difficulty with 10 or 15 vendors, so I do think that the implication of that is that you do tend to try to win the corporate like standardization exercise.

你知道，幾個季度前我自己也說過同樣的話，當公司將他們的企業應用程序遷移到 Internet 架構時，他們會尋找一個供應商，或者可能是兩三個供應商，但他們不會用 20 個，而且絕對是趨勢，我們隨處可見。公司正試圖減少供應商的數量，他們正試圖將他們的系統整合到一個通用架構中，而這正是當今世界的工作方式。我認為這樣做的催化劑是基於互聯網的實時應用程序。一旦企業應用程序變得實時並且它們之間變得協作，您就無法與 10 個供應商一起嘗試這種練習，因為不工作的工作量要高得多，而且當企業應用程序是一個部門一個部門地完成時，我不會說部門，一個組一個組，人力資源組織在由財務管理的財務中實施了人力資源管理系統，沒有什麼是真正的協作，你可以，有點，做你想做的事。但是，當所有這些系統都是協作的，並且 CRM 系統將 [________________] 集成到供應鏈管理系統中，並且供應商觀察其客戶的客戶下的訂單時，當財務信息和財務應用程序從供應鏈管理系統或 CRM 自動更新時系統。您知道，公司只是不願意嘗試與 10 或 15 家供應商進行那種難度的潛水，所以我確實認為這意味著您確實傾向於嘗試贏得像標準化活動這樣的公司。

Now, I'll add as a footnote, I don't think this is a new phenomenon, I don't think it's ever been a new phenomenon. I think companies went through this exercise with hardware platforms, and if they went through this exercise with operating systems, I think they went through this exercise with databases, and I think they are now going through this exercise with enterprise software vendors, and I think PeopleSoft would do very well through this exercise, because (a) We do have an integrated suite of applications, (b) We think are best of breed, and (c) Companies tend to like us. We tend to have treated customers very, very well; and they have a high degree of confidence in PeopleSoft and affinity to PeopleSoft. So when the standardization exercise unfolds, I think we'll do very well.

現在，我將添加一個腳註，我不認為這是一個新現象，我不認為它曾經是一個新現象。我認為公司在硬件平台上進行了這個練習，如果他們在操作系統上進行了這個練習，我認為他們在數據庫上進行了這個練習，我認為他們現在正在與企業軟件供應商一起進行這個練習，我認為PeopleSoft 會通過這個練習做得很好，因為 (a) 我們確實有一套集成的應用程序，(b) 我們認為是同類中最好的，並且 (c) 公司往往喜歡我們。我們往往非常非常好地對待客戶；他們對仁科有很高的信心，對仁科有很高的親和力。因此，當標準化工作展開時，我認為我們會做得很好。

And if you could just quickly just comment on the second half of the year, what should we expect from the product perspective on the second half of this year?

如果您可以快速評論一下下半年，那麼從產品的角度來看，我們應該對今年下半年有什麼期待？

Well, all of under financials, Kevin can give an answer. I am expecting the growth in customer relationship management, as I said in prior quarters, to be in the second half of the year, and our pipeline would imply that that will be the case. If we have any reasonable conversion on the pipeline for CRM, CRM should start to play bigger and bigger role in the second half of the year and in PeopleSoft, you know, human resource management, that category that nobody wanted to talk about a year ago, continues to grow, a very big number, continues to grow very respectably, and even in the HR area, companies are moving to employ self service enterprise portals for their internal human capital management, and PeopleSoft provides a portal in the industry in enterprise portal for employee management. We provide 38 modules for human resource management, employee management, so we think in the second half of the year that will continue to grow. Supply chain management is kind of interesting. That category in general goes and fits and starts. I think what most companies are thinking about today in supply chain management is supplier relationship management, where supply chain management is a part of that, but you know the value proposition in supply chain management at one time is being promoted to be new market sites and buy sites software and trading exchanges and that's an important part of e-commerce and supply chain management, but in the overall infrastructure framework you have to build to really deliver on that is much broader. Non-industrial companies are evaluating, so although supply chain management is probably not the highest growth for us in the first half, it may well be in the second half. So that's where I think the growth will come from.

好吧，所有在財務方面，凱文都可以給出答案。正如我在前幾個季度所說的那樣，我預計客戶關係管理的增長將在今年下半年出現，我們的管道意味著情況將如此。如果我們對 CRM 的管道有任何合理的轉換，CRM 應該會在下半年開始發揮越來越大的作用，在 PeopleSoft，你知道，人力資源管理，一年前沒人想談論的那個類別，繼續增長，一個非常大的數字，繼續非常可觀地增長，甚至在人力資源領域，公司正在轉向使用自助服務企業門戶進行內部人力資本管理，而仁科在企業門戶中提供了行業中的門戶用於員工管理。我們為人力資源管理、員工管理提供了38個模塊，所以我們認為下半年還會繼續增長。供應鏈管理有點意思。總體而言，該類別適合併開始。我認為當今大多數公司在供應鏈管理中考慮的是供應商關係管理，其中供應鏈管理是其中的一部分，但是您知道供應鏈管理中的價值主張一度被提升為新的市場站點和購買網站軟件和交易交易所，這是電子商務和供應鏈管理的重要組成部分，但在整體基礎架構框架中，您必須構建才能真正實現這一目標更廣泛。非工業公司正在評估，所以雖然供應鏈管理對我們來說可能不是上半年增長最快的，但很可能是下半年。所以這就是我認為增長的來源。

Just to talk about in terms of absolute dollar terms, earlier we described our Q3 expectations are between $165 million and $170 million of total license revenue. The consensus estimates for Q4, as we look at them, are about a $191 million or $192 million of revenue driven by the factors that Craig described a moment ago plus the normal seasonality of the business. That's our expectations and the consensus for the rest of the year.

僅就絕對美元而言，我們早些時候描述了我們第三季度的預期是總許可收入的 1.65 億美元到 1.7 億美元之間。正如我們所看到的，第四季度的共識估計約為 1.91 億美元或 1.92 億美元的收入，這是由 Craig 剛才描述的因素加上正常的業務季節性驅動的。這是我們對今年剩餘時間的期望和共識。

Great, thanks.

太謝謝了。

Thank you. Our next question comes from Eric Upin, and sir, your line is open. Please state your company name.

謝謝你。我們的下一個問題來自 Eric Upin，先生，您的電話是開放的。請註明您的公司名稱。

Thanks. Robertson Stephens. Can you give a little more texture on a couple of things? Sales cycle and how is that changing, deals you closed this quarter obviously started beginning of this year, maybe a little less, maybe little longer, but any kind of sales cycle commentary, including are there now components of the sales cycle where there are additional review boards or additional types of bodies that are trying to clamp down on controls and how you're wrestling with that, and are you seeing more or less of that. And then secondly, a little bit about the growth opportunities you see for the business in terms of the next couple of years, and what you really see when recovery hits, and back to the domestic economy, what kind of growth this business could ultimately be generating on a two to three year basis, and your opinion maybe backed up with some kind of hiring plans you see, either over the next year or over the next couple of years in terms of headcounts and office base and so forth. Thanks.

謝謝。羅伯遜斯蒂芬斯。你能在幾件事上多說一點嗎？銷售週期以及這種變化如何變化，您本季度完成的交易顯然是從今年年初開始的，可能會少一點，也可能會長一點，但是任何類型的銷售週期評論，包括現在銷售週期的組成部分是否有額外的審查委員會或其他類型的機構試圖壓制控制以及您如何與之搏鬥，您是否或多或少地看到了這些。其次，關於您在未來幾年看到的業務增長機會，以及當複蘇來襲時您真正看到的情況，回到國內經濟，這項業務最終會實現什麼樣的增長在兩到三年的基礎上產生，您的意見可能會得到您看到的某種招聘計劃的支持，無論是在未來一年還是在未來幾年，在員工人數和辦公基礎等方面。謝謝。

You know, the sales cycles are lengthening, and I don't think they are lengthening because additional bodies are being added to the approval cycles. I don't think that there are additional purchase approval committees, I just think that each step, each stage of the sales approval is harder and it's stickier. To get through each step of the process, even if it was the same process being used last year, it's just got more inertia build into it, and I think as some of our competitors have indicated in their conference calls, you are not even quite sure when you get to the last step that it's going to get approved, so I think the sales cycles are lengthening but not because there is more bodies in between I just think that each step is cognizant to their company's desire to control expenses. I think that we surely did not see the US economy worsening or at least US existence of customers getting any worse like I said we maybe saw if anything a bit of a improvement in the US, international took the major hit in Q2 from a growth point of view, but even so it still is pretty good broad growth areas for us. I don't see any signs of recovery, and I know we're all very optimistic as individuals, but I think we have to separate optimism and emotion and just face reality, and the reality is I don't think there are any signs of improvement. We on an economic basis, I am not an economist and we don't watch it everyday but that's my thought, our business plans for the remainder of this year and all of next year have growth drivers built into them

你知道，銷售週期正在延長，我不認為它們正在延長，因為批准週期中增加了額外的機構。我不認為有額外的採購審批委員會，我只是認為銷售審批的每個步驟、每個階段都更難，更粘。為了完成流程的每一步，即使它與去年使用的流程相同，它只是內置了更多的慣性，我認為正如我們的一些競爭對手在電話會議中所表明的那樣，你甚至還不夠確定當你到達最後一步時，它會獲得批准，所以我認為銷售週期正在延長，但不是因為中間有更多的機構，我只是認為每一步都認識到他們公司控制費用的願望。我認為我們肯定沒有看到美國經濟惡化，或者至少美國客戶的存在變得更糟，就像我說的那樣，我們可能看到美國是否有任何改善，國際在第二季度從增長點受到重大打擊看來，但即便如此，它對我們來說仍然是相當不錯的廣闊增長領域。我沒有看到任何復甦的跡象，我知道我們每個人都非常樂觀，但我認為我們必須將樂觀和情緒分開，面對現實，而現實是我認為沒有任何跡象的改進。我們在經濟基礎上，我不是經濟學家，我們不會每天都看，但這是我的想法，我們今年剩餘時間和明年所有的業務計劃都包含增長動力

assuming that the market doesn't improve, and some of our growth drivers of course include customer relationship management, continued improvement in international, continued growth in mid market, we will have a couple of very major announcements on August 28, 2001, at our user conference in Atlanta. If you have never been to Atlanta, in August you need to go, get some experience. But we are going to make a couple of very major announcements on August 28, 2001. So finally in terms of hiring, I think, we are as well managed company and is nimble a company in adjusting our expense and head count rates to what we are seeing, you know, the PeopleSoft I think to some extent until in the last couple of years had been a company that was not particularly self directed in the expense management and hiring plans. I think we are extremely soft directed today. So we have business plans, we are sticking with the business plans, and in the end we are sticking to business plans, because we have new data to support not sticking with them and we continue to exceed them. So we are going to stick with the business plans, but we got a very high cautionary note around expenses and in fact and probably taking more measures to control expenses proactively. Hiring continues in the sales area very aggressively, I think we added 60 to 100 sales people a quarter in the PeopleSoft and that will continue as long as the pipeline seems to reactive to it and respond to it, and you know, at the same time I think, that's obviously the first area you slow down if you feel you need to, and we will certainly not be reluctant to do that.

假設市場沒有改善，我們的一些增長動力當然包括客戶關係管理、國際市場的持續改善、中端市場的持續增長，我們將在 2001 年 8 月 28 日在我們的亞特蘭大用戶大會。如果你從未去過亞特蘭大，八月份你需要去，獲得一些經驗。但是我們將在 2001 年 8 月 28 日發布幾個非常重要的公告。所以最後在招聘方面，我認為，我們是一家管理良好的公司，並且在調整我們的費用和員工人數方面非常靈活看到，你知道，在某種程度上，直到最近幾年，PeopleSoft 一直是一家在費用管理和招聘計劃方面沒有特別自我指導的公司。我認為我們今天的指導非常溫和。所以我們有商業計劃，我們堅持商業計劃，最終我們堅持商業計劃，因為我們有新的數據來支持不堅持它們，我們繼續超越它們。因此，我們將堅持商業計劃，但我們對費用提出了非常高的警告，實際上可能會採取更多措施來主動控制費用。銷售領域的招聘繼續非常積極，我認為我們每個季度在 PeopleSoft 中增加了 60 到 100 名銷售人員，只要管道似乎對它做出反應並做出反應，這種情況就會繼續下去，你知道，同時我認為，如果您覺得需要，這顯然是您放慢速度的第一個領域，我們當然不會不願意這樣做。

Thanks very much.

非常感謝。

Operator, we probably got time for about one more question.

接線員，我們可能還有時間再問一個問題。

Thank you and our next question comes from Bob Austrian, and Sir, your line is open. Please state your company name.

謝謝你，我們的下一個問題來自 Bob Austrian，先生，你的電話是開放的。請註明您的公司名稱。

Banc of America and thanks. Congratulations, I have just sneaked in, I will try to keep it quick. Can you give us any mix information about the PeopleSoft 8 either total of the revenues over the last year or in terms of the number of customers, for example, US versus international, is it doing you equally well in one or the other and new versus existing customers is there any either dollars or customer counts or portions of the live 160 that you can share?

美國銀行，謝謝。恭喜，我剛剛偷偷溜進來，我會盡量保持快。您能否向我們提供有關 PeopleSoft 8 的任何混合信息，無論是過去一年的總收入還是客戶數量，例如，美國與國際，它在一個或另一個和新的與新的與現有客戶 是否有任何美元或客戶數量或直播 160 的部分您可以分享？

Bob, we haven't broken that out historically other than anecdotally described the fact that we are very pleased with the progress we are making in all of the areas of PeopleSoft 8, and Craig, I think, discussed the launch of PeopleSoft 8 CRM, and the fact that we did see some positive impact from that. The success from our point of view seems to be very broad based in terms of the product offering and very broad based in terms of geography, as we pointed out earlier, 39% of our revenue this quarter was generated internationally, slight increase from our prior quarter, so it's not dominated by any one group of products that we can see, and from our view, we think we have made good progress in all areas.

Bob，除了傳聞我們對在 PeopleSoft 8 的所有領域所取得的進展感到非常滿意的事實之外，我們還沒有在歷史上打破這一點，我認為 Craig 討論了 PeopleSoft 8 CRM 的推出，事實上，我們確實看到了一些積極的影響。從我們的角度來看，成功似乎在產品供應方面非常廣泛，在地域方面也非常廣泛，正如我們之前指出的那樣，本季度我們 39% 的收入來自國際，比我們之前的略有增加季度，所以它不是由我們可以看到的任何一組產品所主導，並且從我們的角度來看，我們認為我們在所有領域都取得了良好的進展。

Bob, what I will say is that at one point when we were developing PeopleSoft 8 to [_______________] of architecture we thought one of us was going to play, and geography is that don't use the Internet that much. They don't have the infrastructure that is as Internetcentric as the United States and that absolutely hasn't been the case. Every place I go, customers want to talk about moving enterprise applications to the Internet and Internet architecture. So, even in countries that don't have a strong consumer deployment of the Internet businesses, nevertheless they are excited about moving the enterprise access to the Internet architecture. It is all we sell and we don't sell PeopleSoft 7 or 7.5 any more, so you can tell by the revenues somewhat that the adoption of PeopleSoft 8 through Internet enterprise application is pretty well balanced.

Bob，我要說的是，當我們將 PeopleSoft 8 開發為 [_______________] 架構時，我們認為我們中的一個人會玩，而地理是不經常使用 Internet。他們沒有像美國那樣以互聯網為中心的基礎設施，而且絕對不是這樣。我所到的每一個地方，客戶都想談論將企業應用程序遷移到 Internet 和 Internet 架構。因此，即使在沒有強大的互聯網業務消費者部署的國家，他們仍然對將企業訪問轉移到互聯網架構感到興奮。這是我們銷售的所有產品，我們不再銷售 PeopleSoft 7 或 7.5，因此您可以從收入中看出，通過 Internet 企業應用程序採用 PeopleSoft 8 的情況相當平衡。

Sure, that's very helpful and actually a good tie-in to my second question which does relate to the expanded enterprise licensing. Could you just review for us as concisely as possible what exactly the extended enterprise licensing model is all about for PeopleSoft? I hear you that you are not selling 7 or 7.5 or anything predecessor of, 8 but what portion of PeopleSoft licenses continue to be derived from the installed based which moves necessarily to the newer extended enterprise that's the right level licensing model.

當然，這非常有幫助，實際上與我的第二個問題有很好的聯繫，這確實與擴展的企業許可有關。您能否為我們簡明扼要地回顧一下 PeopleSoft 的擴展企業許可模型到底是什麼？我聽說您不是在銷售 7 或 7.5 或任何其前身 8，而是 PeopleSoft 許可證的哪一部分繼續來自已安裝的基礎，這必然會轉移到更新的擴展企業，即正確級別的許可模型。

Well 95% of our customers or more have this extended enterprise license and they have had one back to the days of PeopleSoft 7 or 7.5. The extended enterprise license was a mechanism to increase the deployment or allow customers to increase the use of PeopleSoft applications back in the days of PeopleSoft 6 moving to PeopleSoft 7 not to a number of users or limited to one particular server, in fact enterprise wide and outside the enterprise via the Internet access and that was a licensing vehicle that we used, gosh it's got to be 2 years ago or maybe even 3 years ago. It was 2-1/2 years ago, back in the days of PeopleSoft 7 or 7.5 to allow companies to extend from server based licensing to enterprise licensing, and by the time we got the PeopleSoft 8, 95%, 96%, 97% of our customers had already extended their enterprise licenses to be able to do that so PeopleSoft 8 to that extent does not come with any upgrade deal. In PeopleSoft 8, if you are under a maintenance and you had already executed an [________________] enterprise license that was provided free.

好吧，我們 95% 或更多的客戶都擁有這種擴展的企業許可證，並且他們擁有一個可以追溯到 PeopleSoft 7 或 7.5 時代。擴展的企業許可證是一種增加部署或允許客戶增加 PeopleSoft 應用程序使用的機制，在 PeopleSoft 6 遷移到 PeopleSoft 7 的時代，不是針對多個用戶或僅限於一個特定的服務器，實際上是企業範圍和在企業外部通過 Internet 訪問，這是我們使用的許可工具，天哪，它必須是 2 年前，甚至可能是 3 年前。 2-1/2 年前，在 PeopleSoft 7 或 7.5 時代，允許公司從基於服務器的許可擴展到企業許可，到我們獲得 PeopleSoft 8 時，95%、96%、97%我們的客戶已經擴展了他們的企業許可證以便能夠做到這一點，因此 PeopleSoft 8 在該程度上不附帶任何升級協議。在 PeopleSoft 8 中，如果您正在維護並且您已經執行了免費提供的 [________________] 企業許可證。

Okay, that's very helpful and a very quick last question is do you have any information about Euro compliance whether you feel that there has been any additional demands of late, perhaps a fall out sometime in the future, as a result of companies in Europe trying to get there on the new Euro powered PeopleSoft 8 or its predecessors?

好的，這非常有幫助，最後一個非常快速的問題是，您是否有任何關於歐元合規性的信息，您是否覺得最近有任何額外的要求，也許在未來某個時候會因為歐洲公司的嘗試而失敗使用新的 Euro 驅動的 PeopleSoft 8 或其前身？

Yeah, I don't know, I just want to qualify the answer. I have not seen any major change, but I am not in a position to have seen it. PeopleSoft, of course supports Euro conversions, and it has not been on my radar screen as a major issue or major dilemma, but that's not even an answer. It is not even an incomplete answer, so I am not in a position to really answer your question. Sorry Bob.

是的，我不知道，我只是想限定答案。我沒有看到任何重大變化，但我無法看到它。 PeopleSoft 當然支持歐元轉換，它並沒有在我的雷達屏幕上作為一個主要問題或主要困境出現，但這甚至不是一個答案。這甚至不是一個不完整的答案，所以我無法真正回答你的問題。對不起鮑勃。

We will get to it another time. Thanks and a great for job good news of the industry.

我們將在另一次討論它。感謝和一個偉大的行業好消息。

Thanks very much for attending the Q2 earnings call for PeopleSoft. As I said before, we continue in the most challenging economic environment through the last one year to achieve record financial results. The results I think speak for themselves, the macro trends driving PeopleSoft success or related to a superior product and architecture, and our ability to improve productivity at reduced cost, moving to the internet phase and additional dividend and collaboration, given the customers systems and supply chain management and financial systems and HR systems and that's what every company appears now to want to do. We are confident in our guidance for the remainder of the year despite a challenging macroeconomic environment, because our pipeline is growing so exponentially even as a conversion rate has stepped back a bit, but the overall pipeline is more than made up for that, and our competitive win rate has gone up dramatically, if anything I would say future guidance we are even more confident about because this pipeline will eventually be converted, and so I think we sit here today more confident in our product offering somewhat concerned about the macroeconomic environment, but overall confident that we will continue to achieve our predicted financial results. Thank you again for listening in, and we will talk to you in the quarter.

非常感謝您參加 PeopleSoft 第二季度財報電話會議。正如我之前所說，我們在過去一年中繼續在最具挑戰性的經濟環境中取得創紀錄的財務業績。我認為結果不言自明，推動 PeopleSoft 成功的宏觀趨勢或與卓越產品和架構相關的宏觀趨勢，以及我們以更低的成本提高生產力、進入互聯網階段以及考慮到客戶系統和供應的額外紅利與協作的能力連鎖管理、財務系統和人力資源系統，這就是現在每家公司都想做的事情。儘管宏觀經濟環境充滿挑戰，但我們對今年剩餘時間的指導充滿信心，因為即使轉化率有所回落，我們的管道也在呈指數級增長，但整體管道遠遠彌補了這一點，而且我們的競爭勝率急劇上升，如果我想說的話，我們對未來的指導更有信心，因為這條管道最終會被轉換，所以我認為我們今天坐在這裡對我們的產品更有信心，有點擔心宏觀經濟環境，但總體上相信我們將繼續實現我們預期的財務業績。再次感謝您的收聽，我們將在本季度與您交談。