Feeds

Oracle Delivers in Q4

But cautious on upturn

  • alert
  • submit to reddit

The Essential Guide to IT Transformation

ComputerWire: IT Industry Intelligence

Oracle Corp said it did not expect any short term rebound in the corporate IT market yesterday as it delivered fourth quarter yesterday that surpassed expectations.

The Redwood City, California-based software giant said that as the economy continues to turn around, it expects its business to pick up. However, this is not likely to feed through to its market until next year.

Sales for the quarter ending May 31 were down 15.7% to $2.8bn. However, license sales dropped sharply, down 29.2% to $1.2bn. The company's services revenues came in at $1.6bn, compared to $1.63bn a year ago.

Operating profits were down 5.3% to $1.2bn, while net income was off 23.3% to $655.9m. This meant earnings per share of $0.12, or $0.14 once an impairment charge on the company's investment in Liberate Technologies was excluded. Wall Street had been expecting the company to turn in $0.12 per share, on revenues of $2.5bn.

The better than expected performance came just a few weeks after Oracle CEO Larry Ellison was forced to dampen down rumors the company was set to turn in a worse than expected performance.

Despite the better than expected performance, Oracle's CFO Jeff Henley was loath to predict any early upturn in the industry. He said the firm anticipated the US economy would improve gradually, which would feed through to an improvement in IT spending.

However, he said IT spending would not feel the impact for around six months, and the company does not expect to see growth until the second half of its fiscal year. However, this does mean the company expects its 2003 fiscal full year to show some growth.

Henley said the company expected to see license revenues slip 15% to 25% in the first quarter, with earnings per share coming in at $0.07, or $0.06 if license revenues are at the low end of expectations. Wall Street was expecting earnings of $0.09 per share.

In the meantime, Ellison was concerned to quash any impression the company was losing market share to IBM. He detailed a number of ways in which market surveys which showed IBM gaining share could be misconstrued. "I feel we're gaining share from IBM," he insisted, saying that people were if anything, buying more Oracle software.

When asked about rumors that the company was casting around for a new head of sales or chief operating officer, he said no such search was underway, although he joked "it's possible I don't know."

For the full year, Oracle's sales were down 11.8% to $9.7bn. Net profits were down 13.2% to $2.2bn.

© ComputerWire

The Essential Guide to IT Transformation

More from The Register

next story
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Sonos AXES support for Apple's iOS4 and 5
Want to use your iThing? You can't - it's too old
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Too many IT conferences to cover? MICROSOFT to the RESCUE!
Yet more word of cuts emerges from Redmond
Joe Average isn't worth $10 a year to Mark Zuckerberg
The Social Network deflates the PC resurgence with mobile-only usage prediction
Chips are down at Broadcom: Thousands of workers laid off
Cellphone baseband device biz shuttered
Feel free to BONK on the TUBE, says Transport for London
Plus: Almost NOBODY uses pay-by-bonk on buses - Visa
Amazon says Hachette should lower ebook prices, pay authors more
Oh yeah ... and a 30% cut for Amazon to seal the deal
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.