Feeds

Ellison rules out M&A breather

Got to circle around those SAP wagons

Build a business case: developing custom apps

Oracle loves buying companies and it simply can't break/won't break the habit. It's got ambitious growth targets to meet and rivals' market share to take.

Chief executive Larry Ellison and president and chief financial officer Safra Catz today re-committed the company to more mergers and acquisitions to help it hit its goal of 20 per cent earnings annual growth for the next 10 years. In an earnings call today, they announced that Oracle had actually closed fiscal 2007 with a number closer to 30 per cent than 20.

"I expect the [acquisition] pace to continue," Ellison sharply told one curious Wall Street analyst. "Just because we are way ahead doesn't mean we are going to take a nap here," Catz told another sheepish analyst. "The overall goal is the 20 per cent annually. Because we are ahead is not an excuse for not hitting it next year."

The strategy is one of stealth - to surround SAP's applications with Oracle-owned software and convince customers to switch over time, Oracle president Charles Phillips explained. Oracle has bought 30 companies in five years.

SAP, of course, took its usual position along with BEA, IBM and Microsoft in the competitive shooting gallery that has become Oracle's quarterly results call. Oracle claimed growth at the expense of all four. New license revenues for Oracle's database and middleware increased 18 per cent and applications 13 per cent for the fourth quarter. For the year, database and middleware grew 16 per cent and applications 32 per cent.

Either management was bored or tired on Tuesday's call, as all three steered clear of the customary repeated and personal digs at rivals, and stuck instead to a well-rehearsed market share and customer win recital.

For the three months to May 31, Oracle reported a 23 per cent increase in net income to $1.6bn on revenue that grew 20 per cent to $5.8bn. New software licenses increased 17 per cent to $2.4bn while earnings per diluted share increased seven cents to $0.31. For the year, Oracle reported net income of $4.2bn, up 26 per cent, on revenue that increased 25 per cent to $17.9bn. New software licenses grew 20 per cent to $5.8bn with EPS of $0.81 - an increase of 17 cents.

Catz forecast software sales would grow between 20 and 30 per cent during the first quarter, more than double the number expected and excluding income from the Agile purchase. First-quarter EPS is expected at $0.21 per share, excluding charges.®

Boost IT visibility and business value

More from The Register

next story
KDE releases ice-cream coloured Plasma 5 just in time for summer
Melty but refreshing - popular rival to Mint's Cinnamon's still a work in progress
Leaked Windows Phone 8.1 Update specs tease details of Nokia's next mobes
New screen sizes, dual SIMs, voice over LTE, and more
Mozilla keeps its Beard, hopes anti-gay marriage troubles are now over
Plenty on new CEO's todo list – starting with Firefox's slipping grasp
Apple: We'll unleash OS X Yosemite beta on the MASSES on 24 July
Starting today, regular fanbois will be guinea pigs, it tells Reg
Another day, another Firefox: Version 31 is upon us ALREADY
Web devs, Mozilla really wants you to like this one
Secure microkernel that uses maths to be 'bug free' goes open source
Hacker-repelling, drone-protecting code will soon be yours to tweak as you see fit
Cloudy CoreOS Linux distro declares itself production-ready
Lightweight, container-happy Linux gets first Stable release
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.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
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.
Maximize storage efficiency across the enterprise
The HP StoreOnce backup solution offers highly flexible, centrally managed, and highly efficient data protection for any enterprise.