甲骨文 (ORCL) 2001 Q3 法說會逐字稿

PEOPLESOFT THIRD QUARTER EARNINGS CONFERENCE CALL

PEOPLESOFT 第三季財報電話會議

Welcome to the PeopleSoft third quarter earnings conference call. You will be able to listen only until the question and answer session of today's conference. Replays of this conference call will be available for 7 days following the call by dialing 1-800-846-5780. There is no pass code needed for the replay. Again, the number is 1-800-846-5780. I will now turn the call over to PeopleSoft's Vice President of Investor Relations David Sankaran. Thank you David. You may begin.

歡迎參加 PeopleSoft 第三季財報電話會議。您將只能收聽至今日會議的問答環節開始為止。本次電話會議的重播將於會後 7 天內提供，請撥打 1-800-846-5780。重播不需要密碼。再重複一次，電話是 1-800-846-5780。現在我把電話交給 PeopleSoft 投資人關係副總裁 David Sankaran。謝謝你，David。你可以開始了。

Good afternoon and welcome to PeopleSoft's third quarter earnings conference call. Joining me today is Craig Conway, our President and CEO, and Kevin Parker, our Chief Financial Officer. A little bit later in the call Phil Wilmington, will also join us for question and answer. During this call, we will review our results of operations for this passed third quarter. We will provide an overview of current market conditions. We will also share some of our expectations for future financial performance. After our commentary, we'll take your 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 not historical facts are subject to a number of risks and uncertainties, and actual results may differ materially. The specific forward-looking statements may relate to such matters as future customer demands, competitive landscape, including our win rate against competitors, new product development status, position in 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, Form 10-K, and 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 obligation to update any information presented in this discussion. Now let me turn the call over to Craig.

各位下午好，歡迎參加 PeopleSoft 第三季財報電話會議。今天與我一同出席的有我們的總裁兼執行長 Craig Conway，以及我們的財務長 Kevin Parker。稍後在電話會議中，Phil Wilmington 也將加入問答環節。在本次電話會議中，我們將回顧剛結束的第三季營運成果，並提供目前市場狀況的概覽，同時分享我們對未來財務表現的一些預期。在我們的說明之後，將開放各位提問。請記得，我們對季度業績與業務展望的討論可能包含前瞻性陳述。本次電話會議中所作出的特定前瞻性陳述，以及其他非歷史事實之陳述，均可能受到多項風險與不確定性影響，實際結果可能出現重大差異。這些特定前瞻性陳述可能涉及未來客戶需求、競爭態勢（包括我們對競爭對手的勝率）、新產品開發進度、在電子商務（eBusiness）軟體應用領域的地位，以及未來財務表現或預期（包括營收、營業利益率與每股盈餘預期）等事項。更多可能導致實際結果不同的風險因素，請參閱公司最新的財報新聞稿、年報、Form 10-K，以及 Form 10-Q 季度申報文件。請記得，公司不承擔更新本次討論中所呈現任何資訊的義務。現在我把電話交給 Craig。

Thanks Dave. Good afternoon everybody. I won't spend a lot of time today talking about the difficult business environment. I think you probably already know this is a difficult business climate. You have heard enough companies talk about their decreased visibility, their uncertain outlook, and the difficulty of predicting the immediate future. In most part, all of that is true. But I suspect you would like to know is what was the impact of September 11th on PeopleSoft's business. As I have said publicly, PeopleSoft had more than $25 million in contracts with companies or government organizations in or near the World Trade Center. These contracts had been negotiated and most were awaiting final signatures. Even with some last minute erosion, this would likely have represented over $20 million of license revenue to PeopleSoft in Q3. Of course, that was just the start of the impact of September 11th on the quarter. Other companies in New York were also unable to move forward with their original timeframes. In fact, companies everywhere paused to examine the impact of the attacks on their business. PeopleSoft sat right in the middle of all of that. Keep in mind we're the number one provider of enterprise software applications to the financial service industry. The financial service industry is largely headquartered in New York City. Outside the United States, the effects of September 11th were less severe. PeopleSoft is a strong global provider with nearly 40% of our revenue from outside The United States. As you know, international business itself experiences a slowdown in Q3 due to the heavy impact of vacations in Europe. I am relating all of these things to put our strong Q3 financial results in context. PeopleSoft performed extremely well in Q3. License revenue increased by 15% over the same quarter last year, and it was only a slight decline in license revenue over Q2 of only $15 million. Remarkable, I think, considering the effects of September 11th and the seasonal slowdown in Europe. Operating margins actually increased from last quarter at 0.7% over 13%. Earnings per share increased from ¢14 cents to ¢15 per share over the prior quarter, beating the Wall Street consensus estimate by a full ¢3. Expenses declined by over $35 million from the prior quarter alone. Operating profit was the highest in the company's history, and DSO dropped to the lowest level in the company's history, and maybe the entire industry, 63 days. This was a solid quarter in any economic environment or any geopolitical environment. You can only imagine what our financial results would have been without the factors I mentioned before. Why do we continue to do well, particularly relative to our competitors? Reasons really haven't changed. First, we have a superior architecture for moving enterprise applications onto the Internet. SAP still has code on the client. Oracle still has code on the client. Siebel still has code on the client. PeopleSoft has a peer Internet architecture with no code on the client, and so we enjoy a clear competitive advantage. Second reason I think is we have successfully expanded into new product areas. In the CRM industry, PeopleSoft 8 has quickly become the challenger to Siebel and a major contributor to our financial results. We also introduced products in an entirely new category called Enterprise Service Automation. These are products that enable companies to automate or manage their service spend. For most companies, service spend is actually higher than spending on MRO, and PeopleSoft Enterprise Service Automation has gained visibility and revenue momentum in this new area very quickly. These are just two of our new product introductions. There were other new products, and there will be more new products in the future. The third reason I think we are doing well is I think we are executing well in the field. Marketing has generated a high number of leads, and our pipeline remains strong. Of course, converting the pipeline to sales is harder in this environment, but the size of the pipeline continues to offset the conversion rate. And fourth, finally, we are controlling our costs very well. You see that in our gross margins, you see that in earnings per share, costs are being controlled very carefully, and we will continue to make further additional improvements in the quarters ahead. I don't want to imply that PeopleSoft in invulnerable. I said in prior quarters that we weren't immune to the macroeconomic environment and that if the overall environment eroded further, it would affect PeopleSoft. At that time, I couldn't imagine how much worse it could get. Nevertheless, in Q3, our license revenue was only slightly off our original guidance, and our earnings per share guidance continues to be met. Kevin will speak to our Q4 guidance in just a minute. Regarding our guidance for 2002, the economic outlook is indeed uncertain right now, but our visibility is improving every day, and we think it will continue to improve between now and January. We will provide clear guidance as we always do at that time. Incidentally, the guidance we provided last January was reasoned and considered and, in retrospect, accurate. In fact, I think we were the only software company that did not reduce guidance during the 2001 year. We intend to do the same thing in 2002. Kevin.

謝謝你，Dave。各位下午好。今天我不會花太多時間談論艱困的商業環境。我想各位大概已經知道，這是一個艱難的商業氣候。你們已經聽過很多公司談到能見度下降、前景不確定，以及難以預測短期未來。大致上，這些都是真的。但我猜各位更想知道的是，9 月 11 日事件對 PeopleSoft 業務造成了什麼影響。正如我先前公開表示的，PeopleSoft 與位於或鄰近世界貿易中心的公司或政府機構，有超過 2,500 萬美元的合約。這些合約已完成談判，多數正等待最後簽署。即使考量到最後一刻的些許流失，這些合約在第三季仍很可能為 PeopleSoft 帶來超過 2,000 萬美元的授權收入。當然，這只是 9 月 11 日對本季影響的開始。紐約的其他公司也無法依原定時程推進。事實上，各地公司都暫停腳步，檢視攻擊事件對其業務的影響，而 PeopleSoft 正處於這一切的核心。請記住，我們是金融服務業企業軟體應用的第一大供應商，而金融服務業的總部多集中在紐約市。在美國以外，9 月 11 日的影響較不嚴重。PeopleSoft 是強大的全球供應商，近 40% 的營收來自美國以外。如各位所知，國際業務在第三季本就會因歐洲假期的高度影響而放緩。我提到這些，是為了讓我們強勁的第三季財務結果更有脈絡可循。PeopleSoft 在第三季表現極為出色。授權收入較去年同期成長 15%，相較第二季的授權收入僅小幅下滑 1,500 萬美元。我認為這相當驚人，考量到 9 月 11 日的影響以及歐洲的季節性放緩。營業利益率實際上較上季提升，從 0.7% 提升至超過 13%。每股盈餘由上一季的 14 美分增至 15 美分，並以足足 3 美分超越華爾街一致預期。費用僅較上一季就下降超過 3,500 萬美元。營業利益創公司歷史新高，DSO（應收帳款週轉天數）降至公司歷史最低、甚至可能是全產業最低的 63 天。這在任何經濟環境或任何地緣政治環境下，都是一個扎實的季度。你們可以想像，如果沒有我先前提到的那些因素，我們的財務結果會有多好。我們為何能持續表現良好，尤其是相對於競爭對手？原因其實沒有改變。第一，我們擁有將企業應用移轉到網際網路的更優越架構。SAP 仍有用戶端程式碼；Oracle 仍有用戶端程式碼；Siebel 仍有用戶端程式碼。PeopleSoft 採用同儕式的網際網路架構，用戶端沒有程式碼，因此我們享有明顯的競爭優勢。第二個原因是，我們已成功擴展到新的產品領域。在 CRM 產業中，PeopleSoft 8 很快成為挑戰 Siebel 的競爭者，並成為我們財務成果的重要貢獻者。我們也在一個全新類別推出產品，稱為企業服務自動化（Enterprise Service Automation）。這些產品可協助企業自動化或管理其服務支出。對多數公司而言，服務支出實際上高於 MRO 支出，而 PeopleSoft 的企業服務自動化產品在這個新領域很快就獲得能見度與營收動能。這只是我們兩項新產品的推出。我們還有其他新產品，未來也會有更多新產品。第三個原因是，我認為我們在前線執行得很好。行銷創造了大量潛在客戶線索，我們的銷售管線仍然強勁。當然，在這樣的環境下，將管線轉換為銷售更困難，但管線規模持續抵銷轉換率的下降。第四，也是最後一點，我們對成本控制得非常好。你們可以從毛利率看到、從每股盈餘看到：成本被非常謹慎地控制，我們也將在未來幾季持續進一步改善。我不想暗示 PeopleSoft 刀槍不入。我在前幾季就說過，我們並非不受總體經濟環境影響；如果整體環境進一步惡化，將會影響 PeopleSoft。當時我無法想像情況還能糟到什麼程度。儘管如此，在第三季，我們的授權收入僅略低於原先指引，而每股盈餘指引仍持續達成。Kevin 將在稍後談到我們第四季的指引。至於 2002 年的指引，目前經濟前景確實不明朗，但我們的能見度每天都在改善，我們認為從現在到一月之間會持續改善。屆時我們將一如既往提供明確指引。順帶一提，我們去年一月提供的指引是經過推理與審慎考量的，回頭看也相當準確。事實上，我想我們是 2001 年唯一沒有下修指引的軟體公司。我們打算在 2002 年也做同樣的事。Kevin。

Thanks Craig. As Craig noted, PeopleSoft had a very strong financial quarter during a period of extreme adversity. We continued our focus on the growth and profitability of our business during these challenging times. Our results reflect that focus, as we are able to meet our original earnings per share guidance of ¢15 per share. Looking at the quarter, total revenues grew 15% year-over-year to $509 million, as continued market demand for our PeopleSoft 8 peer Internet applications and services drove year-over-year increases in license revenue, maintenance revenue, and professional services revenue. License revenues in Q3 were $152 million, an increase of 15% 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 35% of our license revenues generated internationally, during the quarter. International license revenue was lower sequentially due in part to normal seasonality. Year-over-year license revenue growth was 24% in the US and 3% internationally. Using constant foreign currency exchange rates, the international growth rate would have been 9%. While we don't breakout our license revenue by product category, the majority of the sequential decline was related to our financials product line, where our pipeline was somewhat weighted toward the financial services industry in the US. Having said that, we did see strong results across all of our other product lines. During the quarter, we won a number of large deals including Aon France, BNP Paribas, Burlington Resources, Children's Hospital of Boston, Chubb Group, Duraflame, Duke Energy, FedEx, Harvard University, Home Depot Ltd., Mazda Motor Corp., Office Depot, PepsiCo, Perot Systems, Phillips Petroleum, Sony Electronics, The Texas Education Agency, and the US Census Bureau. In Q3, we signed 27 deals in excess of $1 million, and our average size deal exceeded $700,000. We also added 103 new customers during the quarter. New customers accounted for 43% of our license revenue, above the recent quarterly average of approximately 37%. Notably, since the launch of PeopleSoft 8 in September 2000, we have added over 600 new customers. The number of customers live on PeopleSoft 8 more than doubled during the past 3 months, doubled to more than 350, and we expect the number to be higher than 500 by the end of the year. We also saw significant improvements in license margins, which increased to 92% up from 89% in Q2. Reviewing service revenue, Q3 service revenue of $333 million increased 21% from the same quarter last year and was down slightly sequentially. The major components of service revenue, maintenance and professional services, increased year-over-year by 19% and 23% respectively. Maintenance revenue increased sequentially, while professional services revenue declined from Q2. The decline related primarily to lost trading and billable consulting days following the September 11th attacks. Despite this, service margins in Q3 increased to 49%, up from 45% in Q2, and improved from 44% in Q3 of 2000. The increase is attributable to improved utilization throughout the quarter, as well as improved cost management. Reviewing our overall operating expenses, our total expenses grew at a much slower year-over-year rate than total revenue. We have continued our focus on profitably managing our business. Our hiring remains targeted on revenue generating headcount, sales reps, and billable consultants. In addition to carefully managing headcount, we continue to keep a close eye on all of our expenses. The clearest way to see the results of this focus is in the expansion of our operating profit margin, which more than doubled from Q3 of 2000 to 13.4% during the quarter. We have reported higher operating margins in each quarter this year, an achievement we are very proud of, especially in this difficult environment. During Q3, our sales and marketing expenses increased to $126 million from $117 million in the third quarter of 2000. The increase is due to our continuing investment in marketing activities and the addition of new sales reps to leverage the PeopleSoft 8 opportunity. During the past year, we have increased the number of direct sales reps by over 50%. Q3 sales and marketing expenses were 25% of total revenues, consistent with recent quarters. Product development expenses, including the cost of development services, were $93 million, a decrease of 16% from the same quarter last year and 7% sequentially. The decrease is primarily due to lower costs associated with the release testing as we complete the rollout of PeopleSoft 8 across all of our product segments. As a percentage of revenue, product development expenses, including the cost of development services, declined to 18% of revenue, down from 25% in the third quarter of 2000 and from 19% in the second quarter of 2001. We continue to expect product development expenses, as a percentage of revenue, to decline over the next several quarters, ultimately reaching 15%. G&A expenses were $41 million for the quarter. G&A as a percentage of revenue was approximately 8%, flat with Q2. Other income, which consists primarily of interest income, decreased to $8 million in Q3. The decrease is directly attributable to lower interest earned on our cash balances and foreign currency exchange losses. Looking at profitability, we made significant progress during the quarter. Operating income from our current operations increased year-over-year by 166% to an all time high of $68 million. Operating margin from our current operations, as a percentage of revenue, was 13.4%, up from 5.8% in Q3 2000. Net income from our current operations increased year-over-year by 113% to $50 million, also a record performance. Earnings per share from our current operations came in at ¢15, on target with our guidance given in July. This result was ¢3 better than Wall Street's consensus estimate, up ¢1 sequentially, and up ¢7 from Q3 of 2000. Reported GAAP earnings per share, including the net favorable after-tax impact of 2 nonrecurring items, was ¢16 for the quarter. Focusing on our balance sheet, significant highlights for the quarter include cash and investments increasing by over $100 million during the quarter to an excess of $1.5 billion at September 30. This reflects our continuing focus on maintaining a solid a cash flow and strong balance sheet. In fact, during the past 12 months, our cash and investment balances grew by over $500 million, a 51% increase. Cash flow from operations was $122 million during the quarter, up 213% from Q3 of 2000. Day sales outstanding or DSO declined to a record low of 63 days at the end of the third quarter. This is a significant improvement from 68 days last quarter. During the quarter, we saw improvement in our accounts receivable aging in virtually all geographies and all categories. By now, it goes without saying that we do not factor any receivable during the quarter and we do not intend to factor any in the future. We are very pleased that our focus on collections has driven DSO down to best-in-class levels, and going forward, we expect DSO to remain in the 70-day range. Total deferred revenues decreased in Q3 by 4% from the prior quarter, to $501 million. Consistent with our previous guidance, deferred license revenue declined by $9 million during the quarter, leaving a remaining balance of $17 million at September 30th. Again, consistent with our previous guidance, deferred license revenues may continue to decrease slightly going forward. I want to spend just a moment on capitalized software. During Q3, we had a $3 million increase in net capitalized software. We also had an $8 million increase in Q2. Both of these increases were related to acquired software, not capitalizing our own operating costs. In fact, we did not capitalize any internally developed software costs in Q2 or Q3. Summarizing the results for this past quarter, we are very pleased with our continued strong performance during a very tough macroeconomic period. As we look forward, we do not expect these continues to change in the near term. However, our pipeline continues to be at very high levels, and our executions remain strong. For Q4, we expect to increase earnings per share by ¢1 sequentially to ¢16, equal to current Wall Street consensus estimates. These results for Q4 will put our full year 2001 earnings per share at ¢56, within our original guidance of ¢55 to ¢60, achieving our original 2001 guidance which was first issued a year ago, quite an accomplishment during a year when business conditions deteriorated so dramatically. However, on reviewing the details of some of the street models, we expect slightly lower sequential growth in licenses fees, but we are forecasting lower costs and higher operating margins. Specifically, we are expecting license revenue growth in the 10% range, modest service revenue growth, and operating margins in the 13% to 14% range. As Craig noted, with each passing day, we being able to separate the impact of September 11th from the overall demand environment, and we look forward to providing detailed 2002 guidance during our Q4 conference call in January. Let me turn the call back over to Craig for some additional commentary.

謝謝你，Craig。正如 Craig 所指出的，PeopleSoft 在極端逆境期間仍交出非常強勁的財務季度表現。我們在這些充滿挑戰的時期，持續聚焦於業務的成長與獲利能力。我們的結果反映了這項聚焦，因為我們得以達成原先每股盈餘指引為每股 ¢15。回顧本季，總營收年增 15% 至 5.09 億美元；市場對我們 PeopleSoft 8 同儕網際網路應用與服務的持續需求，帶動授權收入、維護收入與專業服務收入的年增。第三季授權收入為 1.52 億美元，較去年同期成長 15%。檢視授權收入的地理分布，我們持續看到 PeopleSoft 8 在全球獲得接受，本季約有 35% 的授權收入來自國際市場。國際授權收入較前一季下降，部分原因為正常季節性因素。授權收入年增率在美國為 24%，國際為 3%。若以固定匯率計算，國際成長率將為 9%。雖然我們不按產品類別拆分授權收入，但序列性下滑的大部分與我們的財務產品線相關，因為我們在美國的銷售管線在某種程度上偏重於金融服務產業。即便如此，我們在其他所有產品線上仍看到強勁成果。本季我們贏得多筆大型交易，包括 Aon France、BNP Paribas、Burlington Resources、波士頓兒童醫院（Children's Hospital of Boston）、Chubb Group、Duraflame、Duke Energy、FedEx、哈佛大學（Harvard University）、Home Depot Ltd.、Mazda Motor Corp.、Office Depot、PepsiCo、Perot Systems、Phillips Petroleum、Sony Electronics、德州教育署（The Texas Education Agency）以及美國人口普查局（the US Census Bureau）。在第三季，我們簽下 27 筆超過 100 萬美元的交易，平均交易規模超過 70 萬美元。我們本季也新增 103 家新客戶。新客戶貢獻了 43% 的授權收入，高於近期季度約 37% 的平均水準。值得注意的是，自 2000 年 9 月推出 PeopleSoft 8 以來，我們已新增超過 600 家新客戶。過去 3 個月中，上線使用 PeopleSoft 8 的客戶數量增加一倍以上，倍增至超過 350 家，我們預期年底前將高於 500 家。我們也看到授權毛利率顯著改善，從第二季的 89% 提升至 92%。檢視服務收入，第三季服務收入為 3.33 億美元，較去年同期成長 21%，但較前一季略為下降。服務收入的主要組成—維護與專業服務—年增率分別為 19% 與 23%。維護收入較前一季增加，而專業服務收入較第二季下降。該下降主要與 9 月 11 日攻擊事件後，交易與可計費顧問天數流失有關。儘管如此，第三季服務毛利率提升至 49%，高於第二季的 45%，也優於 2000 年第三季的 44%。此提升歸因於本季整體利用率改善，以及成本管理提升。檢視整體營業費用，我們的總費用年增率遠低於總營收。我們持續聚焦於以獲利方式管理業務。我們的招募仍鎖定能帶來營收的人力配置，包括業務代表與可計費顧問。除審慎管理人力外，我們也持續密切關注所有費用。最能清楚看出此聚焦成果的方式，是我們營業利益率的擴張：本季營業利益率較 2000 年第三季增加一倍以上，達到 13.4%。今年以來我們每一季都呈報更高的營業利益率，這是我們非常自豪的成就，尤其是在如此艱困的環境中。第三季銷售與行銷費用由 2000 年第三季的 1.17 億美元增加至 1.26 億美元。增加原因在於我們持續投資行銷活動，以及新增業務代表以掌握 PeopleSoft 8 的機會。過去一年，我們直銷業務代表人數增加超過 50%。第三季銷售與行銷費用占總營收 25%，與近期季度一致。產品開發費用（含開發服務成本）為 9,300 萬美元，較去年同期下降 16%，較前一季下降 7%。下降主要因為在我們完成 PeopleSoft 8 於所有產品區隔的全面推廣之際，與版本測試相關的成本降低。以營收百分比計，產品開發費用（含開發服務成本）降至營收的 18%，低於 2000 年第三季的 25%，也低於 2001 年第二季的 19%。我們仍預期產品開發費用占營收比重將在未來幾季持續下降，最終達到 15%。本季一般及行政（G&A）費用為 4,100 萬美元。G&A 占營收比重約 8%，與第二季持平。其他收入（主要為利息收入）在第三季降至 800 萬美元。下降直接歸因於我們現金餘額所賺取的利息降低，以及外匯損失。就獲利能力而言，我們本季取得顯著進展。來自持續營運的營業利益年增 166% 至創新高的 6,800 萬美元。來自持續營運的營業利益率占營收比重為 13.4%，高於 2000 年第三季的 5.8%。來自持續營運的淨利年增 113% 至 5,000 萬美元，同樣創下紀錄。來自持續營運的每股盈餘為 ¢15，符合我們 7 月提供的指引。此結果較華爾街一致預估高出 ¢3，較前一季增加 ¢1，較 2000 年第三季增加 ¢7。依 GAAP 報告的每股盈餘（包含兩項一次性項目稅後淨有利影響）本季為 ¢16。聚焦資產負債表，本季重要亮點包括：現金與投資在本季增加超過 1 億美元，至 9 月 30 日超過 15 億美元。這反映我們持續聚焦於維持穩健的現金流與強健的資產負債表。事實上，在過去 12 個月中，我們的現金與投資餘額增加超過 5 億美元，增幅 51%。本季營運活動現金流為 1.22 億美元，較 2000 年第三季成長 213%。第三季末應收帳款週轉天數（DSO）降至創紀錄低點 63 天，較上季的 68 天顯著改善。本季我們在幾乎所有地區與所有類別的應收帳款帳齡均見改善。到現在不言而喻的是，我們本季未進行任何應收帳款保理（factoring），未來也無意進行。我們非常高興，因為我們對收款的聚焦已將 DSO 降至同業最佳水準；展望未來，我們預期 DSO 將維持在 70 天左右。遞延收入總額在第三季較前一季下降 4% 至 5.01 億美元。與先前指引一致，遞延授權收入本季下降 900 萬美元，9 月 30 日剩餘餘額為 1,700 萬美元。同樣與先前指引一致，遞延授權收入未來可能仍會小幅下降。我想花一點時間談談資本化軟體。第三季我們的淨資本化軟體增加 300 萬美元；第二季也增加 800 萬美元。這兩次增加都與收購取得的軟體相關，而非將我們自身的營運成本資本化。事實上，我們在第二季或第三季都未將任何內部開發軟體成本資本化。總結本季結果，我們對於在非常艱困的總體經濟期間仍能持續展現強勁表現感到非常滿意。展望未來，我們不預期短期內這些情況會改變。然而，我們的銷售管線仍維持在非常高的水準，執行力也依然強勁。第四季我們預期每股盈餘較前一季增加 ¢1 至 ¢16，與目前華爾街一致預估相同。第四季的結果將使我們 2001 全年每股盈餘達到 ¢56，落在我們原先 ¢55 至 ¢60 的指引範圍內；在商業環境如此劇烈惡化的一年中，仍能達成一年前首次發布的 2001 年原始指引，實屬不易。然而，在檢視部分市場模型的細節後，我們預期授權費用的序列性成長略低，但我們預測成本更低、營業利益率更高。具體而言，我們預期授權收入成長約在 10% 左右，服務收入溫和成長，營業利益率約在 13% 至 14% 區間。如 Craig 所言，隨著時間推移，我們愈來愈能將 9 月 11 日事件的影響與整體需求環境區分開來；我們也期待在 1 月的第四季電話會議中提供 2002 年的詳細指引。接下來我把電話交回給 Craig，請他補充一些評論。

Thanks Kevin. I would like to close by saying that I continue to be very optimistic about the future. The industry is in the middle of a very fundamental change, as companies move their enterprise applications onto the Internet. This represents a huge cost reduction and a dramatically increased productivity for most companies, and the return on investment is very short. These advantages are attractive to companies, particularly in a difficult economy. PeopleSoft is well positioned to take advantage of this architecture change. At the same time, we're investing the proceeds of our success in new product areas. We're not immune from a macroeconomic environment, but you've seen in our Q3 numbers, the results of a well-managed company successfully operating in a difficult environment. Open it up to questions.

謝謝你，Kevin。最後我想說，我對未來仍然非常樂觀。整個產業正處於一個非常根本性的變革之中，因為企業正把其企業應用程式移轉到網際網路上。這對大多數公司而言代表巨大的成本降低與生產力的大幅提升，而且投資報酬期非常短。這些優勢對公司很有吸引力，特別是在經濟艱困的情況下。PeopleSoft 已做好準備，能夠把握這次架構轉變所帶來的機會。同時，我們也把成功所帶來的收益投入到新的產品領域。我們並非不受總體經濟環境影響，但你們已在我們第三季的數字中看到，一家管理良好的公司如何在艱困環境中成功營運的成果。現在開放提問。

Thank you. At this time, if you would like to ask a question, please press '*1' on your touch-tone phone. You will be announced prior to asking your question. Again, if there are any questions at this time, please press '*1' on your touch-tone phone. If you would like to withdraw your question, you may press '*2' to withdraw your question. Our first question will come from Tom Berquist of Goldman Sachs. You may ask your question.

謝謝。此時若您想提問，請在您的按鍵式電話上按「*1」。在您提問前，我們會先報出您的名字。再次提醒，若此時有任何問題，請在您的按鍵式電話上按「*1」。若您想撤回問題，可按「*2」撤回。第一個問題來自高盛的 Tom Berquist。您可以提問了。

Good quarter guys in a tough environment.

在艱困的環境下，這一季表現不錯，各位。

Thanks Tom.

謝謝你，Tom。

With respect to Momentum, I know there's been a lot of scuttlebutt recently. We got a press release that came out a few weeks ago. Could you give us an update on what you are planning on doing there in the first quarter and what the potential impact might be?

關於 Momentum，我知道最近有很多傳聞。我們幾週前看到一則新聞稿。你們能否更新一下第一季打算在那邊做什麼，以及可能的影響會是什麼？

I'm Kevin. As we've said all along, we expect to make a decision with regard to our relationship with Momentum Business Applications towards the end of this year or the beginning of next year, and we're sticking with that commitment. As we look at the P&L impact, we largely expect it will be P&L neutral to us. We have a royalty that we pay Momentum. If we were to exercise our call provision on the shares, that royalty would go away. But that in turn would be replaced by amortization of the acquired assets, which would, in our view, completely offset that royalty. So a P&L neutral transaction with no real gross margin impact.

我是 Kevin。正如我們一直以來所說，我們預期會在今年年底或明年年初，針對我們與 Momentum Business Applications 的關係做出決定，我們也會遵守這項承諾。就損益表（P&L）影響來看，我們大致預期對我們而言將是損益表中性。我們目前支付給 Momentum 一筆權利金。若我們行使對其股份的買權條款，該權利金將會取消。但相對地，會由所收購資產的攤銷所取代，而在我們看來，這將完全抵銷該權利金。因此這是一筆損益表中性的交易，對毛利率也不會有實質影響。

Great, okay. And then separately with respect to guidance for 'O2, from your comments, it sounds like you're going to defer that until the end of this quarter. Is that correct?

很好，了解。然後另外關於 2002 年的財測，從你的評論聽起來，你們會延後到本季末再提供。是這樣嗎？

That's correct. I think that's really served in our best interests and the best interests of both analysts and shareholders. As we mentioned, everyday our visibility continues to improve, and we're more clearly separating the events of September 11th, and that's really what we've done as a normal business practice as well. So we look forward to providing clear and articulate guidance in January.

沒錯。我認為這確實符合我們的最佳利益，也符合分析師與股東的最佳利益。正如我們提到的，我們的能見度每天都在改善，而且我們也更清楚地把 9 月 11 日事件的影響區隔開來；這也是我們一貫的正常營運作法。因此我們期待在一月提供清楚且明確的指引。

Okay, and then one final question. Can you give us any sense as to what Toyota business looked like the first couple of weeks of this quarter?

好的，最後一個問題。你能否讓我們大概了解一下，本季前幾週 Toyota 的業務情況如何？

Phil, there's a caller here. Phil Wilmington who is our EVP of North American operations is also on a call with us as well. Phil that's probably a question best answered by you.

Phil，這裡有位來電者。Phil Wilmington，我們北美營運執行副總裁也在線上。Phil，這個問題可能由你來回答最合適。

Tom, I believe that what we're seeing in the competitive landscape and in the business right now is people kind of regaining their balance and focusing on ways to improve their organizations. We're seeing very strong pipeline levels, actually the strongest ever in Q4 in the history of the company. Kevin has stated the numbers that we feel financially that that will be able to produce, but we see a balance to cross our product lines and are confident about the ability to achieve Q4 objectives.

Tom，我認為我們目前在競爭態勢與業務上看到的是，大家正在逐漸恢復平衡，並把焦點放在如何改善其組織。我們看到非常強勁的商機管線水準，事實上第四季的管線是公司歷史上最強的一次。Kevin 已經說明了我們在財務上認為這些能帶來的數字；而我們也看到各產品線之間的均衡，並對達成第四季目標的能力充滿信心。

All right, thank you very much.

好的，非常感謝。

Thank you. Our next question comes from Neil Herman of Lehman Brothers. You may ask your question.

謝謝。下一個問題來自雷曼兄弟的 Neil Herman。您可以提問。

Hey guys. Nice job. If you could give us a sense as to what specifically you're seeing from, I guess, your 3 major competitors being SAP, Oracle, and Siebel. And then on that last note with respect to Siebel, could you talk about any specific CRM wins in the quarter versus Siebel? And then one followup question.

嗨，各位。做得不錯。你們能否讓我們了解一下，你們具體看到三大主要競爭對手——SAP、Oracle 和 Siebel——目前的情況？另外延續最後一點，關於 Siebel，你們能否談談本季有哪些相對於 Siebel 的具體 CRM 得標案例？然後我還有一個追問。

Okay, well I think, I didn't listen into the SAP call this morning. I understand that they reported weakness in the US. We've certainly seen weakness in SAP in the US. They continue to be a strong international competitor. We believe we are winning most deals against Oracle now, and relative to Siebel, we had a very successful introduction of PeopleSoft 8 CRM. Our pipeline immediately quadrupled, and we did announce some significant wins in Q3, and we'll continue to announce those wins in Q4, not only as they happen, but as we work out the agreements with the companies to allow us to do that. But we were pleased with the contribution of every product line in Q3, with the exception of financial applications, which were most directly impacted by the September 11th attacks.

好的，我想我今天早上沒有收聽 SAP 的電話會議。我了解他們回報美國市場疲弱。我們確實也看到 SAP 在美國的疲弱；他們在國際市場仍然是強勁的競爭對手。我們相信現在在多數交易中我們都能贏過 Oracle；至於 Siebel，我們非常成功地推出了 PeopleSoft 8 CRM。我們的商機管線立刻成長到四倍，我們也在第三季宣布了一些重要的得標案，並會在第四季持續宣布這些得標，不僅在其發生時，也會在我們與客戶公司完成協議、允許我們對外公布之後再行宣布。不過，除了財務應用（financial applications）之外，我們對第三季每一條產品線的貢獻都感到滿意；財務應用是受 9 月 11 日攻擊事件影響最直接的部分。

And then as a follow-on question. In a normalized economic environment, taking a very long-term view, what do you think the kind of sustainable 3, 4, 5-year underlying revenue growth rate is for PeopleSoft? And then secondly, if you were to take your timeless business model, what do you think are reasonable goals and objectives from an operating margin perspective?

接著作為追問：在一個正常化的經濟環境下，從非常長期的角度來看，你認為 PeopleSoft 可持續的、未來 3、4、5 年的基礎營收成長率大概會是多少？其次，如果以你們長期不變的商業模式來看，從營業利益率的角度，你認為合理的目標與指標會是什麼？

Well I'll have Kevin talk about operating margins. The rest of your question, Neil, was it's such an enormous what if question, that I'm not sure it's answerable. We're just now putting together the 2002 business plan here in October, and we'll be finished with that first week or two of November. I have a personal goal of PeopleSoft achieving $5 billion by 2005, but it has no greater data or statistics around it other than almost a personal goal on my part. We think we're gaining market share. As a matter of fact, we think we're pulling away from our competitors. If you look at their financial results this quarter, we're the only company that's increasing in total revenue and profitability and operating income, and decreasing DSO. Every metric you look at shows PeopleSoft pulling away. So we'll take that data study in October-November, come up with a 2002 business plan, and hope to project out in the next few years, but this is a tough industry to project 3, 4 or 5 years down the line.

我會請 Kevin 談談營業利益率。至於你問題的其餘部分，Neil，那是一個非常巨大的「如果」問題，我不確定是否能回答。我們現在才剛在十月開始制定 2002 年的營運計畫，預計在十一月的第一或第二週完成。我個人的目標是 PeopleSoft 在 2005 年達到 50 億美元，但除了這是我個人的目標之外，並沒有更多數據或統計支撐。我們認為我們正在提升市占；事實上，我們認為我們正在拉開與競爭對手的差距。若你看他們本季的財務結果，我們是唯一一家總營收、獲利與營業收入都在成長，同時應收帳款週轉天數（DSO）在下降的公司。你看到的每一項指標都顯示 PeopleSoft 正在拉開差距。因此我們會在十月到十一月做這些資料研究，制定 2002 年營運計畫，並希望能對未來幾年做出推估，但這個產業要預測 3、4 或 5 年後的情況確實很困難。

And in terms of a steady state business model, Neil, what we've been talking about I think publicly is that the steady state business model really has an operating margin in the high teens, call it 16%, 17%, 18%, and that's really a return to PeopleSoft's historic profit levels, and that's really our objective in a steady state business.

至於穩態（steady state）的商業模式，Neil，我想我們對外公開談到的是：穩態商業模式的營業利益率大約在 10% 後段，約 16%、17%、18%；這基本上是回到 PeopleSoft 歷史上的獲利水準，也是我們在穩態業務中的目標。

I think by design if it could go higher, we wouldn't let it go higher because what we've learnt in this business is you have to plough a significant amount of your revenue back into research and development. Maybe not to 27%, we plough to get PeopleSoft date-to-market, but certainly in that 15% to 20% range is kind of a maximum-minimum all put together.

我認為從設計上來說，即使它能更高，我們也不會讓它更高，因為我們在這個產業學到的是：你必須把相當大一部分營收再投入研發。也許不需要到 27%——我們曾投入那麼多以讓 PeopleSoft 更快上市——但大致在 15% 到 20% 的區間，算是一個把上限與下限綜合起來的範圍。

A third one, quickie last one in, and that is in terms of growing your sales force, are you still adding net head to your quarter carrying sales force?

第三個，最後一個快問快答：就擴大你們的銷售團隊而言，你們是否仍在對你們按季配額的銷售隊伍增加淨人頭？

Phil why don't you answer that question?

Phil，你來回答這個問題好嗎？

I think the direct answer to your question is yes. Unlike the other players in the marketplace, PeopleSoft is continuing to grow its sales force. Back in the April call, we committed to do that, and we're doing that. But I think we've got two other key factors as it relates to our staffing. One, given the market conditions and the way that it has impacted many other companies, this is a fantastic opportunity for PeopleSoft to upgrade the sales force that it has in place, not only continue to grow it. Sales force, sales people do flock to the lead product and the stable companies when market conditions get difficult. We have the advantage of having both of those in place, so we've definitely done that. The other is we're being very successful in recruiting directly from our competition, and while there have been reductions in other staffs, that's not the competitive force that I'm referring to. I'm referring to actually being able to go in and take out some top performers from our direct competitors Siebel, Oracle, etc.

我想對你問題的直接答案是：是的。不同於市場上的其他業者，PeopleSoft 仍在持續擴編其銷售團隊。回到四月的電話會議上，我們承諾會這麼做，而我們正在這麼做。不過我認為就我們的人力配置而言，還有兩個關鍵因素。第一，鑑於市場狀況以及它對許多其他公司的影響，這對 PeopleSoft 來說是個絕佳機會，不僅是持續擴編，也能升級現有的銷售團隊。當市場狀況變得困難時，銷售團隊、銷售人員會湧向領先產品與穩健的公司。我們同時具備這兩點優勢，所以我們確實做到了。第二，我們在直接從競爭對手那裡招募方面非常成功；雖然其他團隊有人力縮減，但那不是我所指的競爭力量。我指的是我們實際上能夠進去，從我們的直接競爭對手 Siebel、Oracle 等挖走一些頂尖業績者。

Thank you gentlemen.

謝謝各位先生。

Thanks Neil.

謝謝你，Neil。

Thank you. Our next question is from Jim Mendelson of SoundView Tech Group. You may ask your question.

謝謝。下一個問題來自 SoundView Tech Group 的 Jim Mendelson。您可以提問。

Thanks. Craig, could you talk a little bit about your feelings with regard to deferrals as it relates to 1 quarter, 2 quarters, 3 quarters? I know it's a difficult question, but it would be very interesting to have some framework relative to some of the situations that you saw slip, kind of a guesstimate as to what the average timeframe might be for them to eventually be realized.

謝謝。Craig，你能否談談你對遞延（deferrals）的看法，分別就 1 季、2 季、3 季的情況？我知道這很難回答，但若能就你看到的一些延後案例提供一個框架，並大致估計它們最終實現的平均時間範圍，會非常有意思。

You're talking about the deals that were impacted by the September 11th terrorist attacks?

你指的是那些受到 9 月 11 日恐怖攻擊影響的交易嗎？

While why don't we exclude perhaps the immediate companies that were perhaps impacted, but talk more from the broader sense, companies that paused because of the impact, but weren't directly hurt.

那麼我們或許先排除那些可能直接受影響的公司，改從更廣泛的角度談：那些因影響而暫停、但並未直接受創的公司。

To me it seems, I think of it as a pyramid. The top of the pyramid are companies that were absolutely physically impacted by the September 11th terrorist attacks, and I'm not sure those deals we'll ever see. I wouldn't call those deals, deals that have been pushed forward. I would call those deals, deals in question. I think the next layer of the pyramid are companies whose businesses have been impacted so severely that the businesses moved out and may move out more than a quarter. And then I think there's the rest of the pyramid that are companies that are just nervous, and as Kevin said, I am not sure that there's any near-term improvement in the business environment that any of us see. I mean I'm only suspect when I'm listening to Bloomberg and I hear some companies say that they see an improvement mid next year. I am not quite sure how anybody can make that statement. What data are they using? It's always interesting to me that the date that they pick for turnaround is always 6 months out. So it is close enough to be interesting but far enough not to be accountable to. I think that we continue to find ways to achieve our financial objectives through a broad product line, through a sales organization that is executing pretty well, both domestically and internationally, and I am not actually sure, I am not trying to dodge the question, but I am not actually sure how to predict those 3 levels. I am trying to be honest, but the top level are not deals we kind of count on at all. The mid level are even suspect, at least for a quarter or two. I am talking about the airline industry. I am talking about the hospitality industry. But that lowest level, which is also the biggest part of the pyramid, is a group that represents the largest amount of the market, and I think it is nervous. But I think it is receptive to the traction of lower cost and higher productivity that results from moving enterprise applications to the Internet. And if they can do it with a short enough ROI, I think they will move ahead with it.

對我來說，我把它想成一個金字塔。金字塔頂端是那些在 9 月 11 日恐怖攻擊中確實受到實體衝擊的公司，我不確定我們是否還會看到那些交易。我不會把那些交易稱為被往後推的交易；我會稱之為存疑的交易。我認為金字塔的下一層，是那些業務受到嚴重衝擊、因此把案子往後移，且可能移動超過一季的公司。然後我認為金字塔其餘部分，是那些只是緊張不安的公司；正如 Kevin 所說，我不確定我們任何人是否看到商業環境在短期內會有改善。我的意思是，當我聽 Bloomberg，聽到有些公司說他們看到明年年中會改善時，我就會存疑。我不太確定任何人怎麼能做出那樣的陳述。他們用的是什麼數據？對我來說總是很有趣：他們選的轉折點日期永遠是 6 個月之後——近到足以引起興趣，但又遠到不必負責。我認為我們會持續透過廣泛的產品線、透過在國內與國際都執行得相當不錯的銷售組織，來找到達成財務目標的方法；而我其實不確定——我不是要迴避問題——但我真的不確定要如何預測那三個層級。我試著誠實回答：頂層那些我們根本不太會去指望。中間那層至少在一到兩季內也很可疑。我指的是航空業，我指的是旅宿業。但最底層、同時也是金字塔最大的一部分，是代表市場最大份額的一群，我認為他們很緊張。但我認為他們也願意接受把企業應用移到網際網路所帶來的「更低成本」與「更高生產力」的動能。若他們能以足夠短的投資回收期（ROI）做到，我認為他們會繼續推進。

And one final question. In driving this quarter's growth in a difficult period, obviously the US was remarkably strong despite the disruption, and I guess, I am curious at the margin. How do you rank things like the additional product availability versus just the architecture driver that's helping you in competitive situations?

最後一個問題。在這個艱難時期推動本季成長時，顯然美國市場在干擾之下仍然非常強勁；我想在邊際上我很好奇：你如何在「新增產品可用性」與「架構驅動（architecture driver）在競爭情境中幫助你」之間做排序？

Yeah, I don't have the numbers, but I would say it's probably a half to two-thirds the core architecture advantage of PeopleSoft to cross all their product lines, and I'd say it's a third to maybe as high as a half new product developments that we've invested in and that are resulting in real revenue. When I came to the company 21/2 years ago, we were in a heavy investment cycle on business analytics, and that was a category that was very, very new at the time, and enterprise software vendors were largely absent, and we were putting a ton of resources behind it. Today, analytics is a significant amount of our quarterly revenue. I made a place in the CRM space. It is now a significant amount of our revenue. The Enterprise Service Automation space was an investment we made, as you might recall, about a year ago, and Enterprise Service Automation has become a significant contributor to revenue. So it's anywhere from 50-50 core advantages of our architecture to new products to maybe 65-35.

是的，我手上沒有數字，但我會說大概有一半到三分之二來自 PeopleSoft 核心架構優勢，橫跨所有產品線；另外大概三分之一、甚至高到一半，來自我們投入的新產品開發，並且正在帶來實際營收。當我在 2 年半前加入公司時，我們正處於商業分析（business analytics）的重度投資週期；那在當時是一個非常、非常新的類別，而企業軟體供應商大多缺席，我們在其上投入了大量資源。今天，分析已占我們單季營收的相當一部分。我在 CRM 領域也建立了立足點，現在它也占我們營收的相當一部分。企業服務自動化（Enterprise Service Automation）領域是我們大約一年前做的投資（你可能還記得），而企業服務自動化已成為營收的重要貢獻者。所以大概是 50-50：我們架構的核心優勢對新產品；或是 65-35。

Okay. Thank you. Good job.

好的。謝謝。做得很好。

Thank you.

謝謝。

Thank you. Before we take our next question I would like to remind all participants to please limit yourself to one question. Again, please limit yourself to one question. Our next question will come from Gretchen Teagarden of Salomon Smith Barney. You may ask your question.

謝謝。在我們進入下一個問題之前，我想提醒所有與會者，請將自己限制在一個問題。再次提醒，請限制在一個問題。下一個問題來自 Salomon Smith Barney 的 Gretchen Teagarden。您可以提問。

Great, thanks, a question for Phil Wilmington. Phil when, based on your competitive intelligence, do you think that Siebel and SAP will be caught up to PeopleSoft from the architecture standpoint alone?

太好了，謝謝。這個問題問 Phil Wilmington。Phil，根據你們的競爭情報，單就架構面而言，你認為 Siebel 和 SAP 何時會追上 PeopleSoft？

Gretchen, we believe that we still have an 18 to 24-month technology lead over the rest of the software market including Siebel. We right now have hundreds of customers live on PeopleSoft's Internet technology, which we've shipped a year ago. The competition is still talking and actually shifting dates when it may be available to the marketplace. I think one of the things that was a key contributor to our performance this quarter and our increased advantage from a competitive landscape is not only now the architecture itself but the referencability of the customer base, and that certainly will take the 18 to 24-month period that I mentioned for our competitors to catch even when they do rollout a product. So we are very excited about the duration, which we think will continue to enjoy this competitive advantage.

Gretchen，我們相信我們在技術上仍領先軟體市場其他業者（包括 Siebel）18 到 24 個月。我們目前有數百家客戶已在 PeopleSoft 的網際網路技術上線，而該技術我們在一年前就已出貨。競爭對手仍在討論，甚至不斷調整它何時能提供給市場的日期。我認為本季表現的一個關鍵貢獻因素，以及我們在競爭版圖上擴大的優勢，不僅是架構本身，還包括客戶基礎的可參考性（referencability）；而即使競爭對手推出產品，要追上這點也確實需要我提到的 18 到 24 個月。因此我們對這段期間非常振奮，並且認為我們將能持續享有這項競爭優勢。

Right. Thank you.

好的。謝謝。

Thank you. Our next question will be from Craig Wood of Merrill Lynch. Thank you, you may ask your question.

謝謝。下一個問題將來自 Merrill Lynch 的 Craig Wood。謝謝，您可以提問。

Okay, thanks very much. On that same subject, can you provide some numbers about your go-lives for PeopleSoft 8? Can you just talk about PeopleSoft 8 CRM and what progress is being made in getting customers live now that that product has been in the market for about 4 months? And what your expectations are to have live customers by the end of the year?

好的，非常感謝。就同一個主題，您能否提供一些關於 PeopleSoft 8 上線（go-live）的數字？能否談談 PeopleSoft 8 CRM，以及在該產品上市約 4 個月後，讓客戶目前上線的進展如何？另外，您對於在年底前能有上線客戶的預期是什麼？

Well, PeopleSoft 8 CRM just started shipping in the last 90 days or so. So the go-lives on PeopleSoft 8 CRM are in process. We do have several companies live and they are referencable, and so we can give you the names of van Thomson Financials, Polycom, and just a few others. The bulk of PeopleSoft 8 CRM companies going live will probably start to kick-in in Q4 and continue to ramp from there.

嗯，PeopleSoft 8 CRM 大約在過去 90 天內才開始出貨。因此 PeopleSoft 8 CRM 的上線正在進行中。我們確實已有幾家公司已上線，而且可作為參考案例；我們可以提供 van Thomson Financials、Polycom，以及其他幾家的名稱。PeopleSoft 8 CRM 公司上線的主力應該會在第四季開始明顯增加，並從那時起持續加速。

Okay, thank you.

好的，謝謝。

Thank you. Our next question will come from Brent Thill of Credit Suisse First Boston. You may ask your question.

謝謝。下一個問題來自 Credit Suisse First Boston 的 Brent Thill。您可以提問。

Thanks. If you could just give us a quick update on you're seeing in the mid market?

謝謝。您能否快速更新一下您在中型市場（mid market）看到的情況？

We have targeted the mid market again in 2002 as a strategic objective of PeopleSoft's. We are doing about 40% of our deals each quarter now in companies that are $250 million and below. We think that's going to go up, and we have restructured a program to specifically target them that ranges from special license pricing to packages to implement on a guaranteed fixed base, fixed time basis. We have a specialized sales organization that has been targeting the mid market, and it continues to be one of the segments of the business that is expanding and certainly not contracting. So we continue to put a lot of emphasis on it. We also have most of our eCenter customers, our hosted customers, come from the mid market as well. So that's another portion of PeopleSoft that's directed squarely at the mid market.

我們在 2002 年再次將中型市場列為 PeopleSoft 的策略目標。我們現在每季約有 40% 的交易來自營收 2.5 億美元及以下的公司。我們認為這個比例還會上升，而且我們已重整一個專門鎖定他們的方案，涵蓋從特殊授權定價到套裝方案，以及以保證固定成本、固定時程為基礎的導入方案。我們有一個專門的銷售組織鎖定中型市場，而它仍然是業務中正在擴張、而非萎縮的區隔之一。因此我們持續投入大量重點。此外，我們多數 eCenter 客戶、也就是託管（hosted）客戶，也來自中型市場。所以這也是 PeopleSoft 另一個直接面向中型市場的部分。

Thanks.

謝謝。

Thank you. Our next question comes from Tim Getz of Prudential Securities. You may ask your question.

謝謝。下一個問題來自 Prudential Securities 的 Tim Getz。您可以提問。

Thank you. Just looking for a little bit of color on the ASPs. I know that there were some pricing decreases during the quarter around the mid marking products and also the portal products. Yet ASPs continue to increase. So can you just give us an idea on what's actually driving that? Is it the new customers? Are they taking more modules? Are they buying full suites? Thanks.

謝謝。我想多了解一下 ASP（平均售價）的情況。我知道本季在中型市場產品以及入口網站（portal）產品方面有一些降價，但 ASP 仍持續上升。您能否說明實際上是什麼在驅動？是新客戶嗎？他們採購了更多模組？還是購買完整套件？謝謝。

Phil you're probably closer to that than anyone. Phil?

Phil，你可能比任何人都更清楚。Phil？

Yeah. Tim, I think that it's really driven by a couple of key factors. One is the breadth and balance of our product line. We had 55 deals during the quarter, which were multi-suite deals, and they brought 2 PeopleSoft product suites or more, as they became new PeopleSoft customers. So these were 55 transactions that were over $500,000 in value. So as you look at new customers coming on board, they are really buying into and embracing the end-to-end eBusiness product set that PeopleSoft brings to the marketplace. So we're very excited about that and that was probably the most direct impact on the ASP during the quarter. We did, as Kevin indicated, over 103 new customers, and we saw that be the driver in that segment of the market space. The other transactions that we did, which were nearly 400 other additional transactions, were a combination of best-of-breed evaluations where we went head-to-head with our competition and won, or as we had hoped in previous conversations in previous quarters, we saw our existing customers begin to add PeopleSoft 8 additional modules onto what they had already licensed from PeopleSoft. So it created a nice balance in terms of the blend of transactions. But the ASP was actually increased by the multi-suite deals that we saw from many of the new customers.

是的。Tim，我認為主要是由幾個關鍵因素驅動。第一是我們產品線的廣度與均衡。本季我們有 55 筆交易是多套件（multi-suite）交易，這些新成為 PeopleSoft 客戶的公司購買了 2 套或以上的 PeopleSoft 產品套件。因此這 55 筆交易的金額都超過 50 萬美元。當你看新客戶加入時，他們確實是在購買並採納 PeopleSoft 提供給市場的端到端 eBusiness 產品組合。我們對此非常興奮，這大概是本季對 ASP 最直接的影響。正如 Kevin 所指出的，我們新增了超過 103 家新客戶，我們看到這成為該市場區隔的驅動因素。至於我們做的其他交易（另外將近 400 筆），則是由兩部分組成：一是最佳單項（best-of-breed）的評估，我們與競爭對手正面交鋒並勝出；二是如同我們在先前幾季的對話中所期待的，我們看到既有客戶開始在原本已向 PeopleSoft 授權的基礎上，新增採購 PeopleSoft 8 的其他模組。這使得交易組合呈現良好的平衡。但 ASP 的提升，實際上是由我們在許多新客戶身上看到的多套件交易所帶動。

And Phil I will add to that. Keep in mind that the traction moving enterprise applications, the Internet, is really two-fold. One is the reduction in cost of the installation, administration, ongoing support of Internet-based applications, their accessibility all over the world, anywhere, anytime. But the second advantage is once you have extended your enterprise applications directly out to your customers and suppliers, your employees over the Internet, you can establish collaboration between them. If you agree that that is an advantage of Internet-based enterprise applications, you tend to want to take advantage of that with your customer relationship management applications and your financial applications and your supply chain management applications and your HR management applications. So almost by definition, if you buy into the vision of a collaborated enterprise, you will wind up licensing multiple suites of products.

Phil，我再補充一點。請記住，企業應用往網際網路移動的動能其實有兩個面向。第一是降低安裝、管理與持續支援網際網路型應用的成本，並且能在全球任何地方、任何時間存取。第二個優勢是，一旦你透過網際網路把企業應用直接延伸到你的客戶與供應商、以及員工，你就能在他們之間建立協作。如果你同意這是網際網路型企業應用的優勢，你就會傾向在客戶關係管理、財務、供應鏈管理與人力資源管理等應用上加以利用。因此幾乎可以說是必然的：如果你認同「協作型企業」的願景，你最後會授權多個產品套件。

Thank you.

謝謝。

Thank you. Our next question will be from Jon Ekoniak of US Bancorp Piper Jaffray. You may ask your question.

謝謝。下一個問題來自 US Bancorp Piper Jaffray 的 Jon Ekoniak。您可以提問。

Hi, great quarter. Can you comment on the success of your ability to turn a PeopleSoft 8 upgrade customer into a revenue event, especially on the license side? And if a customer is buying additional modules with the upgrade, do they typically buy it upfront or are they waiting for the upgrade to be fully installed first before making those purchases? And then finally, if you could comment on some of the stats in terms of upgrades both on the eBusiness product suite, as well as the CRM, that'd be great. Thanks.

嗨，本季表現很棒。你能否評論一下，你們將 PeopleSoft 8 升級客戶轉化為一次營收事件（revenue event）的能力有多成功，特別是在授權（license）端？另外，如果客戶在升級時購買額外模組，他們通常是一次在前期就買，還是會等到升級完全安裝完成後才購買？最後，如果你能就升級的一些統計數據做些評論，包括 eBusiness 產品套件以及 CRM，那就太好了。謝謝。

Phil?

Phil？

I think what we are seeing is that it is a revenue event when people choose to begin the upgrade process to PeopleSoft 8. I mean many of the, and I apologize I don't have the exact number in front of me, but of the 350 plus customers that are live on PeopleSoft 8, those discussions all began with what is the landscape of applications that they have, and they do use that as a foundation to license additional products. And the implementation of those products, many times, are done in conjunction with that conversion effort. So it is a revenue-generating event. It is an event at which time the customer takes stock of or reviews their ability to become the collaborative enterprise that Craig just spoke off. So we have directly seen that.

我認為我們看到的是：當客戶選擇開始升級到 PeopleSoft 8 的流程時，這確實會成為一次營收事件。我的意思是，很多——抱歉我手邊沒有精確數字——但在 350 多家已在 PeopleSoft 8 上線的客戶中，這些討論一開始都會先盤點他們現有的應用版圖，而他們也會以此作為基礎去授權額外產品。而這些產品的導入，很多時候會與那次轉換（conversion）工作同步進行。所以這是一個能帶來營收的事件。這也是客戶重新盤點或檢視其成為 Craig 剛才所說的協作型企業能力的時點。因此我們確實直接看到了這點。

And typically, just a quick followup, how many modules do they usually purchase and do they purchase at the beginning of the upgrade or do they wait till the product is already upgraded?

另外，快速追問一下：他們通常會買多少個模組？他們是在升級一開始就買，還是等到產品已完成升級後才買？

I apologize. I don't have the exact statistics for the first half of the question. The second part of the question is that many of them are licensing at the beginning of the upgrade process because they actually do the implementation of the additional modules during that conversion effort.

抱歉，第一個問題我沒有精確統計數據。第二個部分是：很多客戶會在升級流程一開始就進行授權，因為他們實際上會在那次轉換工作期間，同步導入額外模組。

Okay, great. Thanks.

好的，很棒。謝謝。

Thank you. Our next question will come from Rehan Syed of SG Cowen. You may ask your question.

謝謝。下一個問題來自 SG Cowen 的 Rehan Syed。您可以提問。

Hi folks, nice quarter. Help me understand your approach to operating margin expansion versus investing for growth in terms of what kind of hiring do you plan to do, where do you think headcount will finish up end of the year, and in what areas can you trim expenses without cutting into muscle?

嗨，各位，本季表現不錯。請幫我理解你們在營業利益率擴張與為成長投資之間的取捨：你們計畫進行哪些類型的招募？你們認為年底人力編制（headcount）會落在什麼水準？以及在哪些領域可以在不傷及核心戰力的情況下削減費用？

Hi, this is Kevin, Rehan. In terms of operating margin expansion, just looking across the entire company, we continue to believe there is ways that we can operate substantially more efficiently than we do today. We have really focused our headcount, as I mentioned, from the beginning of this year, and we will continue to focus on revenue generating headcount, and that's really where we have seen most of the additions across the year, and our headcount will probably will not grow as quickly in Q4 as it has, perhaps from Q1 to Q2 or Q2 to Q3. We expect it to increase modestly, but something probably less than a 100 people in total across the entire company. We think that gives us a good balance, and we will continue to invest in R&D and continue to have R&D including the cost of the development services in the neighborhood of something in excess of $90 million, between $90 and $100 million in the fourth quarter.

嗨，Rehan，我是 Kevin。就營業利益率擴張而言，從整個公司來看，我們仍然相信有一些方式能讓我們的營運效率比現在顯著更高。正如我提到的，我們從今年年初開始就非常專注於人力編制的聚焦，並且會持續把重點放在能帶來營收的人力上；而我們今年大部分的人力增加也確實來自這個方向。因此，我們在第四季的人力成長速度，可能不會像第一季到第二季或第二季到第三季那樣快。我們預期人力會小幅增加，但全公司合計可能會少於 100 人。我們認為這能帶來良好的平衡；同時我們也會持續投資研發，並讓研發（包含開發服務成本）在第四季維持在約 9,000 萬美元以上、介於 9,000 萬到 1 億美元之間的水準。

It is really a tough question. This is Craig, Rehan. It is really tough question because there is no question you can't sail your way to a leadership position in any industry. And if you attempt to just keep cutting cost, you will, as you put it, cut into muscle. And so we look at that question as kind of a multidimensional exercise, and we start at the normal line items that you believe you can cut without impacting your development to your sales effort, and then go from there. But it is very difficult, and it is kind of difficult to run in this market. As I mentioned in my remarks, we still believe there are other areas in the coming quarter or two that we will continue to reduce expenses, but there is a point at which you just can't do that anymore without selling the future vis-à-vis new product development.

這真的是個很難的問題。Rehan，我是 Craig。這確實很難，因為毫無疑問，你不可能靠「順風航行」就取得任何產業的領導地位。而如果你只是試圖不斷削減成本，你會像你說的那樣，削到「肌肉」。因此，我們把這個問題視為一個多維度的課題：先從一般你認為可以在不影響研發與銷售投入的前提下削減的費用項目著手，然後再往下推進。但這非常困難，在這個市場中經營也相當不容易。正如我在發言中提到的，我們仍相信在接下來一到兩個季度，還有其他領域可以持續降低費用；但到某個點之後，如果不以犧牲未來（相對於新產品開發）為代價，你就再也無法繼續這麼做。

Great, thanks.

很好，謝謝。

Thank you. Our next question comes from Robert Maina of CIBC World Markets. You may ask you question.

謝謝。下一個問題來自 CIBC World Markets 的 Robert Maina。您可以提問。

Yes, thank you. I have two questions. One, you talked a little bit about financial services obviously being a very weak quarter for you guys by vertical. Can you tell us a little bit about what verticals were the strongest? I suppose government was particularly strong, maybe you can elaborate on that. And then two, can you talk a little bit about the uptake in ESA and how quickly, when should we see that being a meaningful revenue contributor?

是的，謝謝。我有兩個問題。第一，你們提到金融服務按垂直產業來看顯然是你們非常疲弱的一季。能否談談哪些垂直產業表現最強？我想政府部門特別強，或許你可以多說一些。第二，能否談談 ESA 的採用情況，以及我們應該在多快之後、何時會看到它成為有意義的營收貢獻來源？

Phil?

Phil？

Well, I think, certainly we saw education in government component of our business have a healthy quarter. We saw a very strong quarter from retail. We had many accounts. Kevin mentioned a few, the Limited Home Depot, Office Depot, very influential retailers that have embraced PeopleSoft products during the course of last quarter. We did have a strong and balanced quarter in financial services, and I think Craig's comments were, but obviously that area was most dramatically impacted by the events of the quarter. So I think those business units or those industries were the strongest across the board for us. We also had strong performance in the mid market, which is really a blend of industries, but a key strategic drive for us where we had, as Craig said, about 40% of the new customers actually in that mid market. So we were pleased with the balance across the industries, and those were some of the leaders.

我想，當然我們看到業務中的教育與政府組成部分在本季表現健康。我們也看到零售業非常強勁的一季。我們有很多客戶，Kevin 提到了一些：Limited、Home Depot、Office Depot，這些非常具影響力的零售商在上一季期間採用了 PeopleSoft 產品。我們在金融服務方面也有強勁且均衡的一季；我想 Craig 的評論是——但顯然該領域受到本季事件的影響最為劇烈。因此，我認為這些事業單位或產業是我們整體表現最強的部分。我們在中型市場也有強勁表現；那其實是多種產業的混合，但對我們而言是關鍵的策略推動方向，正如 Craig 所說，約 40% 的新客戶實際上來自中型市場。所以我們對各產業間的均衡感到滿意，而以上是其中一些領先者。

And on the ESA?

那 ESA 呢？

ESA. At our user conference, I shared a couple of statistics on ESA, which I guess I could share on the call then. We had in the last 6 months taken over 80 deals, 80 sales for ESA and that is without great a deal of marketing promotion or formal product introductions. So that will give you an idea of the attractiveness of the ESA product line to PeopleSoft and probably also imply something about the financial impact that we are getting from that area. That is a unique area and one that we think we are almost uniquely positioned to address because it is a combination of human resource management. Because after all, that is what services are. They are human resources that have to be tracked and managed. Financial applications, because that's in essence where the management is going to be reflected, and then also eProcurement because when you are procuring service resources you are doing it every single day and doing it online and from an almost an eProcurement point of view, not an MRO eProcurement, but a service eProcurement approach is the best way to do it. And I think we are the only company that brings all 3 of those things together, and so we're a natural for that industry. I have said before, I think, that industry is where CRM was 5 years ago, based on the customer interest that we experience that when we take product line out to market. So we are pretty bullish on that category.

ESA。在我們的用戶大會上，我分享了幾個關於 ESA 的統計數據，我想也可以在電話會議上分享。我們在過去 6 個月內拿下了超過 80 筆交易、80 筆 ESA 銷售，而且這是在沒有大量行銷推廣或正式產品發表的情況下完成的。這能讓你了解 ESA 產品線對 PeopleSoft 的吸引力，也可能暗示我們從該領域獲得的財務影響。這是一個獨特的領域，我們認為我們幾乎具備獨特的定位來解決，因為它結合了人力資源管理——畢竟服務的本質就是人力資源，需要被追蹤與管理；財務應用——因為管理成果本質上會反映在財務上；以及 eProcurement——因為當你採購服務資源時，你每天都在做，而且是線上進行；從幾乎 eProcurement 的角度來看，不是 MRO 的 eProcurement，而是「服務 eProcurement」的方法才是最佳做法。我認為我們是唯一一家把這三者整合在一起的公司，因此我們對這個產業是很自然的選擇。我之前也說過，我認為就我們把產品線推向市場時所感受到的客戶興趣而言，這個產業現在的位置就像 CRM 在 5 年前一樣。所以我們對這個類別相當看多。

Okay. Thank you.

好的，謝謝。

Thanks.

謝謝。

Thank you. Our next question will come from Chuck Phillips of Morgan Stanley. You may ask your question.

謝謝。下一個問題來自 Morgan Stanley 的 Chuck Phillips。您可以提問。

Thanks. I was just wondering in terms of how many customers have upgraded. I think one of the market research firms put out a note or a comment that 50% of PeopleSoft customers had already upgraded, which is a little bit higher number than I had been using. I am just kind of wondering how you've tracked it in the past? Do you have that level of detail, I know you've [_______________], where you are on the base and what is left?

謝謝。我只是想了解一下，就有多少客戶已經升級而言。我想有一家市場研究公司發了一份備忘錄或評論，說有 50% 的 PeopleSoft 客戶已經升級，這個數字比我之前使用的略高。我想問你們過去是如何追蹤的？你們有那種細節層級嗎？我知道你們已經 [_______________]，在客戶基礎中目前進展到哪裡、還剩下多少？

In terms of tracking the upgrades, what we have said, Chuck, is that we know that about 50% of our customers have either upgraded themselves, ordered the CDs, contacted us or one of our partners about the plans to upgrade. And we know from history that a year out of this chute with PeopleSoft 8 that is a faster traction that we've seen historically moving from 5 to 6 or 6 to 7. In terms of the actual upgrade, that's included as a component of the 350 customers that we have that are live at the moment, and we continue to see a lot of forward progress there. But still there is plenty of room and plenty of opportunity in front of us in terms of the upgrade and the follow-on sales that are associated with that.

就追蹤升級而言，Chuck，我們一直說的是：我們知道大約 50% 的客戶已經自行升級、訂購了光碟、聯絡了我們或我們的合作夥伴以討論升級計畫。根據過往經驗，在 PeopleSoft 8 推出後的一年內，這樣的採用速度比我們歷史上從 5 升到 6、或從 6 升到 7 時看到的更快。就實際完成升級而言，這包含在我們目前已上線的 350 家客戶之中，而且我們仍持續看到很多正向進展。不過，在升級以及與之相關的後續銷售方面，我們前方仍有很大的空間與機會。

And the reason it's a little bit difficult to assess, Chuck, is that some companies order the CDs on a new release just to start playing with them, and we don't see the follow-on sales or, I should say, associated module sales until they get ready to get serious about deploying. So half our customer base has actually ordered and received the CDs. 350 are live today. 600 will be live 60 days from now. And the figure we don't know is how many of the remaining or what percentage of the remaining are in active conversion, and as they convert, we do try to go in and sell them additional modules. I don't know what the exact percentage is, but I could comfortably say most customers as they upgrade order another module or two or three.

而之所以有點難評估，Chuck，是因為有些公司在新版本推出時會先訂購光碟，只是為了開始試用；在他們準備認真部署之前，我們不會看到後續銷售，或者我應該說，相關模組的銷售。因此，我們的客戶基礎中有一半實際上已經訂購並收到光碟。今天有 350 家已上線。60 天後會有 600 家上線。而我們不知道的數字是：剩餘客戶中有多少、或剩餘客戶的百分比正處於積極轉換中；當他們轉換時，我們確實會嘗試進去向他們銷售額外模組。我不知道確切百分比，但我可以很有把握地說，大多數客戶在升級時會再訂購一到兩個或三個模組。

Okay. So of the 350, that's the target base you're saying most customers have taken that on module?

好的。所以在那 350 家之中，你說的大多數客戶都已經採用那個模組，這就是你所說的目標基礎嗎？

Yes.

是的。

Okay, and then the last question was in the supply chain management area, which I guess has not received quite as much attention as you've emphasized on the area, what are you doing kind of headcount-wise in that area? Are you scaling back given where we are in the cycle?

好的，最後一個問題是在供應鏈管理領域。我想相較於你們強調的其他領域，這塊受到的關注可能沒那麼多；在人力配置方面，你們在那個領域大概在做什麼？考量到我們目前所處的景氣循環階段，你們有在縮減規模嗎？

Phil, why don't you talk about it from the distribution point of view?

Phil，你要不要從通路／配送的角度來談談？

Actually, Chuck, supply chain management figured very heavily in the multi-suite deals that were part of the success of the quarter. If you look at it as a sample size, the 55 multi-suite deals that were over $500,000 in the new customer base, 80% of those included supply chain management. It is a key to our ability to have the end-to-end eBusiness approach which we've talked about many times in the call. When you look at CRM, it doesn't just track what's going on in the sales force, but it creates an order and it does demand planning, etc. Supply team management is a key component of that. It was in over 80% of the deals that were represented in the multi-suite deals to our new customers. So certainly, we still have sales people, which are focused on supply chain. We're seeing increased interest in activity in our CRM sales force in terms of working and including successfully supply chain, as well as our other products suites, but certainly supply chain and the success of our multi-suite transactions.

其實，Chuck，供應鏈管理在本季成功的多套件交易中占了非常重要的比重。若以樣本來看，在新客戶基礎中，55 筆超過 50 萬美元的多套件交易裡，有 80% 包含供應鏈管理。這是我們能夠提供端到端 eBusiness 方法的關鍵，而我們在電話會議中已多次談到。當你看 CRM 時，它不只是追蹤銷售團隊正在發生什麼，還會建立訂單、進行需求規劃等等。供應鏈管理是其中的關鍵組成。它出現在超過 80% 的、代表我們新客戶多套件交易的案子中。所以當然，我們仍然有專注於供應鏈的業務人員。我們也看到在 CRM 銷售團隊的活動與興趣正在增加，包含在推進並成功納入供應鏈，以及我們其他產品套件；但可以確定的是，供應鏈以及我們多套件交易的成功。

Thanks a lot, good quarter.

非常感謝，本季表現很棒。

Thank you. Our next question will come from Cameron Steele of Dain Rauscher Wessels. You may ask your question.

謝謝。下一個問題來自 Dain Rauscher Wessels 的 Cameron Steele。你可以提問。

Thanks very much. I was just curious, there's been a lot of marketing hype around the ERM market space, and I was just wondering if you could give us your perspective on this market opportunity and how you guys figure you stack up compatibility there?

非常感謝。我只是好奇，關於 ERM 市場領域一直有很多行銷炒作；我想請你們談談對這個市場機會的看法，以及你們認為自己在相容性方面的競爭力如何？

Well, I think we gave birth to that concept, although the terminology was born recently. The idea of having an employee self-service capability available via the Internet is something we've been promoting for years, and there are two ways to look at ERM. One is the interface for employers, which is of course a portal, and there are many, many, many companies that offer a portal for basically employee self-service applications. And the second way to look at ERM is what about the applications themselves. What are employees actually doing when they get on the portal? We offer a portal, and we offer the enterprise employee applications, and we don't think there's anybody else that even comes close to delivering on both of those. Some competitors actually offer the portal and then try to coapt the term ERM. It is kind of like CRM became a year or two ago is when CRM got very hot, everybody decided to hang a shingle out that says what we do is really CRM. And I think that's what's happened with ERM is companies realized that there is an employee relationship management market. It happens to be one that we have been promoting for several years, and whether you're in the portal business or the scheduler business or the appointment date book business or whatever little application you might contribute to that or whatever user interface you believe is one that should be a standard if you are a portal company, you have now staked out the term ERM. ERM is the portal. It is the user interface. It's every application that constitutes the employee experience, virtually all of which we sell. So we think it's a broad name, but when it comes down to it, we are very strong, if not the strongest, in all directions looking at that market. I would urge you to pick up some of the reports from the analyst firms on ERM. I think most of them are actually quite good in separating out this hype. We live in an industry that loves hype. We can't wait to find the next acronym so we can start funding companies to go after it. If you look at the analyst reports on ERM, you'll see a very cogent delineation of what it really means and who really does what, and I think virtually all of the analyst reports conclude that that market's PeopleSoft's to lose.

我想我們其實催生了這個概念，雖然這個術語是最近才出現的。透過網際網路提供員工自助服務能力的想法，是我們多年來一直在推廣的；而 ERM 有兩種看法。第一種是雇主端的介面，當然就是入口網站（portal），而有非常非常多公司提供入口網站，基本上用於員工自助服務應用。第二種看法是：那些應用本身呢？員工登入入口網站後實際在做什麼？我們提供入口網站，也提供企業級員工應用，我們不認為還有任何其他公司能在這兩方面的交付上接近我們。有些競爭對手其實提供入口網站，然後試圖挪用 ERM 這個詞。這有點像一兩年前 CRM 變得非常火熱時，大家都決定掛個招牌說「我們做的其實就是 CRM」。我認為 ERM 也是同樣的情況：公司意識到存在一個員工關係管理市場，而這恰好是我們推廣了好幾年的市場。不論你是在入口網站業務、排程器業務、行事曆／約會簿業務，或任何你可能為此貢獻的小型應用，或你認為應該成為標準的使用者介面（如果你是一家入口網站公司），你現在都把 ERM 這個詞圈了起來。ERM 是入口網站，是使用者介面，也是構成員工體驗的每一個應用，而其中幾乎全部都是我們在賣的。所以我們認為這是一個很廣泛的名稱，但回到本質來看，我們在各個方向上看這個市場都非常強，甚至可能是最強的。我建議你去看看分析師機構關於 ERM 的一些報告；我認為多數報告在釐清這些炒作方面其實做得相當好。我們身處一個熱愛炒作的產業。我們迫不及待想找到下一個縮寫，然後開始資助公司去追逐它。如果你看分析師對 ERM 的報告，你會看到對其真正含義以及誰真正做什麼的非常清晰的界定；而我想幾乎所有分析師報告都得出結論：那個市場是 PeopleSoft 的，除非 PeopleSoft 自己把它搞丟。

Right, thanks very much.

好的，非常感謝。

Thanks Cameron.

謝謝你，Cameron。

Thank you. Our next question will come from Bill Chappell of Robinson-Humphrey. You may ask your question. WILLIAM B. CHAPPELL, JR.: Yeah, just a quick question on the margins going forward and kind of the services margin last quarter. I mean taking out September 11th, I don't think that's tough thing to do, would you see gross margins for services go in excess of 50%? And I mean is it something that's sustainable over the next 2-3 quarters?

謝謝。下一個問題來自 Robinson-Humphrey 的 Bill Chappell。你可以提問。WILLIAM B. CHAPPELL, JR.: 是的，關於未來的毛利率以及上季服務毛利率，我有個簡短問題。我的意思是，把 9 月 11 日的影響排除掉——我知道這不太容易——你們是否會看到服務的毛利率超過 50%？而且這在接下來 2 到 3 個季度是否可持續？

It's an unusual what if. We're very pleased with the progress that we've made so far. We set out at the beginning of the year to really focus on the profitability of our overall services business, and I think the results quite reflect that. On a going forward basis, I think 50%. We're 49 now. 49% to 50% is a pretty reasonable target, and as I said, we've been very successful at improving it over the course of the year, and we're happy with the progress.

這是一個不尋常的假設題。我們對目前取得的進展非常滿意。我們在年初就設定目標，要真正聚焦於整體服務業務的獲利能力，我想結果也相當反映這點。展望未來，我認為 50%——我們現在是 49%。49% 到 50% 是相當合理的目標；如我所說，我們在今年的過程中非常成功地改善了它，我們對這個進展感到高興。

And I wanted to add a clarification, and I don't want to come across too outspoken or confident, but September 11th had a very significant impact on every part of our business, and we sit around and only wonder what our business would have looked like without it. And I think it's fair to say that every component of our business, even though it's extremely attractive sitting on this call, would have been better. Now whether it could have been held quarter-to-quarter in the future, I think, is a valid question and one that Kevin I think has answered accurately. But every metric in our company, I believe, would have been better had it not been for September 11th, and they all came out pretty good as it was. So we feel very fortunate. We also feel there is more there. WILLIAM B. CHAPPELL, JR.: Thanks. Congratulations.

我想再補充一點澄清。我不想顯得太直言或太有自信，但 9 月 11 日對我們業務的每一個部分都有非常重大的影響；我們只能坐在那裡想像，如果沒有它，我們的業務會是什麼樣子。我認為可以公平地說，我們業務的每一個組成部分——即使在這通電話會議上看起來已經非常亮眼——本來都會更好。至於未來是否能在季度之間維持，我認為這是個合理的問題，而 Kevin 我想也已經準確回答了。但我相信，如果不是因為 9 月 11 日，我們公司每一項指標都會更好；而在那樣的情況下，它們現在的表現也已經相當不錯。所以我們覺得非常幸運。我們也覺得還有更多潛力。WILLIAM B. CHAPPELL, JR.: 謝謝，恭喜。

Thank you.

謝謝。

Thank you. Our next question will be from Jamie Friedman of Fulcrum Global Partners. You may ask your question.

謝謝。下一個問題來自 Fulcrum Global Partners 的 Jamie Friedman。你可以提問。

Hi. A couple of quick questions, and I know that these have been asked previously, we got in late in the call here, but I'm going to phrase them, I think, slightly at a different angle, if you will. One, at PeopleSoft Connect, you gave some general color about the take-up rates of CRM 8 and the analytics of the ESA. I was wondering, do you think those could be as high as 30% of next year's revenues? And then second, in terms of the selling opportunities that you typically speak of, the new customer cross-sell and up-sell, I think is the way you phrase it, could you provide some additional color specifically to the sales and marketing strategy that's enabled you to win in the competitive bids over the CRM point solutions? So first question, CRM, ESA, and analytics as a percentage of revenues next year, and second competitive wins in CRM over the point solution. Thank you.

嗨。我有幾個簡短問題；我知道這些之前可能已經有人問過了，我們比較晚才加入這通電話會議，但我想我會用稍微不同的角度來表述。第一，在 PeopleSoft Connect 上，你們對 CRM 8 的採用率以及 ESA 的分析（analytics）提供了一些概略的說明。我想請問，你們認為這些是否可能高達明年營收的 30%？第二，就你們通常提到的銷售機會——你們稱之為新客戶的交叉銷售與向上銷售（cross-sell and up-sell）——能否更具體說明一下，究竟是什麼樣的銷售與行銷策略，讓你們能在競標中勝過 CRM 的單點解決方案（point solutions）？所以第一個問題是：明年 CRM、ESA 與 analytics 占營收的比例；第二個問題是：在 CRM 領域相對於單點解決方案的競爭勝出。謝謝。

Jamie the answer to the first question is yes, I would expect those products could represent as much as 30% of the total next year because CRM is already contributing a healthy amount this year. So you don't have to add too much more ESA or analytics to get to that number. That race I hope is a spirited race because we are not sitting on our hands in the HR category or the financial applications category either, and we think those markets, although they're very large numbers, will continue to grow. And so I hope that percentage race is a good one, but at the current trajectory, the answer to the first part of the question is yes. PeopleSoft in the CRM space, while we best of breed, I would say more than 50% of the reason is the architecture. I would say that 25% of the reason is the integration with other enterprise applications. A decision to the point of best of breed CRM product is a decision to buy middle wear. It is a decision to have 2 shifts, one with the best of breed CRM provider and with middle wear company. So if you can prove that the CRM product offering you have is competitively best of breed, there is a high attraction to an integrated suite provider, and I'd say that's the total of those 2, and it's anywhere from 75% to 90%. I think the last component is companies want a choice. Not everybody wants to buy from the leading market share CRM provider. There are characteristics about companies that would just like a choice, and I think that plays a role in maybe as much as 10% or 15% of our wins. They just like PeopleSoft better.

Jamie，第一個問題的答案是肯定的。我預期那些產品明年可能占總體的多達 30%，因為 CRM 今年已經貢獻了相當可觀的比重。所以你不需要再額外增加太多 ESA 或分析（analytics）就能達到那個數字。我希望那場競賽會是一場有活力的競賽，因為我們在 HR 類別或財務應用類別也沒有袖手旁觀，而且我們認為那些市場雖然規模非常大，仍將持續成長。因此我希望那個占比的競賽會是個好競賽，但以目前的走勢來看，第一部分問題的答案是肯定的。PeopleSoft 在 CRM 領域，雖然我們是同級最佳（best of breed），但我會說超過 50% 的原因在於架構。我會說 25% 的原因在於與其他企業應用的整合。就同級最佳 CRM 產品而言，做出購買決策其實就是決定要買中介軟體（middleware）。這代表要有兩套配合：一套跟同級最佳 CRM 供應商，另一套跟中介軟體公司。所以如果你能證明你所提供的 CRM 產品在競爭上也是同級最佳，那麼整合式套件供應商就會非常有吸引力；我會說這兩項加總起來大約占 75% 到 90%。我認為最後一個因素是：企業想要選擇。不是每個人都想向市占率最高的 CRM 供應商購買。有些公司的特質就是希望有選擇，我認為這在我們的勝出案例中可能占到 10% 或 15%。他們就是比較喜歡 PeopleSoft。

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

接線員，我們大概還有時間再問一個問題。

Thank you. Our final question comes from Timothy Dolan of Deutsche Bank Alex.Brown. You may ask your question. Actually it looks like Mr. Dolan's line just disconnected. It looks like that was our final question.

謝謝。我們最後一個問題來自德意志銀行 Alex.Brown 的 Timothy Dolan。您可以提問。實際上看起來 Dolan 先生的線路剛剛斷線了。看起來那就是我們的最後一個問題。

Why don't we end there.

那我們就到這裡結束吧。

Some closing comments from Craig, before we head out, and thank you very much for joining us on the call.

在我們結束之前，Craig 會做一些結語，也非常感謝各位參加這通電話會議。

Again, I feel very optimistic about the year ahead. I might be the only human being in the software industry that does, but I feel very optimistic about our position in Q4 and our plan for 2002. There is no question it's a difficult business environment. I've tried to say as many times as I can that we're not immune from it, but I think we're also pretty proud of the performance of our product line, our sales organization, our marketing organization, our G&A organization. I think we are managing well in a difficult environment, and I expect that to continue. Thank you very much.

再次強調，我對接下來的一年感到非常樂觀。也許我是軟體產業裡唯一這麼想的人，但我對我們在第四季（Q4）的定位以及 2002 年的計畫非常樂觀。毫無疑問，這是一個艱難的商業環境。我已經盡可能多次地說過，我們並非不受影響，但我也認為我們對於產品線、銷售組織、行銷組織，以及一般與行政（G&A）組織的表現感到相當自豪。我認為我們在艱難環境下管理得很好，而且我預期這種情況會持續。非常感謝。

Thank you for participating in the PeopleSoft conference call. Goodbye.

感謝您參與 PeopleSoft 電話會議。再見。