| Oracle FAQ | Your Portal to the Oracle Knowledge Grid | |
 |
 | |||
| Oracle FAQ | Your Portal to the Oracle Knowledge Grid | |
|
| |||
Home -> Community -> Mailing Lists -> Oracle-L -> RE: Oracle Licensing
ha,
thank-god they save 1 billion dollars on using there own software.
p-
*>-----Original Message-----
*>From: root_at_fatcity.com [mailto:root_at_fatcity.com]On Behalf Of Eric D.
*>Pierce
*>Sent: Wednesday, March 07, 2001 11:07 AM
*>To: Multiple recipients of list ORACLE-L
*>Subject: RE: Oracle Licensing
*>
*>
*>
*>Oracle profit warning spells doom:
*>
*>http://www.zdnet.co.uk/news/2001/8/ns-21312.html
*>
*>---excerpt---
*> Lowered spending for software has hit Oracle
*> where it hurts
*>
*> Oracle, the world's second largest software
*> company, on Thursday joined the list of
*> technology bellwethers warning that a slowing
*> economy would cause profits to come in lower
*> than expected.
*>
*> Oracle had been one of the few industry titans to
*> appear unscathed by corporate America's
*> reluctance to commit to big-ticket technology
*> purchases.
*>
*> With Thursday's announcement after the close of
*> trading, Oracle joined the growing list of high-tech
*> companies, including Cisco Systems, Microsoft
*> and Sun Microsystems -- that have issued profit
*> warnings or indicated that deteriorating economic
*> conditions likely will make for a difficult business
*> climate during the first half of the calendar year.
*>
*> "We're seeing a very substantial slowdown in the
*> US economy that is making people cautions in all
*> of their spending, including spending for
*> software," Oracle chairman and chief executive
*> Larry Ellison said.
*>
*> Oracle said its formerly bullish forecasts began to
*> crumble when senior executives in the United
*> States were reluctant to give final approvals as
*> Oracle pushed to close sales for its fiscal third
*> quarter, which ended on Wednesday.
*>
*> "We didn't see a slowdown and that was
*> consistent up until about last Friday," Oracle chief
*> financial officer Jeff Henley said.
*>
*> "After that, every day it got worse. Literally the
*> last day of the quarter we had a number of
*> transactions that didn't happen," he said.
*>
*> Oracle shares, which had rallied $2-3/8 to close
*> at $21-3/8, fell to a new year-low of $16.94 in
*> after-hours trading on the Island system. The stock
*> is well off its year-high of $46-7/16.
*>
*> Based on the slowing sales, Oracle now expects
*> to report earnings per share at 10 cents, up 25
*> percent from 8 cents a year ago, excluding
*> investment gains. The company had been expected
*> to earn 12 cents a share, according to First
*> Call/Thomson Financial.
*>
*> Ellison said Oracle's operating income would be
*> about $900m, compared with Wall Street's
*> forecast of $1bn.
*>
*> Oracle executives also said the company did not
*> yet see evidence that sales were slowing in Japan,
*> Asia and Europe.
*>
*> "Through the third quarter, at least, there didn't
*> appear to be any leakage abroad, but that doesn't
*> mean it couldn't happen," Henley said.
*>
*> "It's just going to bring down the whole software
*> sector. Obviously, no one's immune. I think the
*> whole group is vulnerable. This is the spill over
*> of technology," Credit Suisse First Boston analyst
*> Brent Thill said. "Software was the last standing
*> soldier."
*>
*> The software vendor said total revenue grew
*> around 9 percent for the quarter and software
*> license sales revenue rose by 6 percent. Of the
*> company's two software product lines, Oracle
*> said its applications business of enterprise and
*> front office software grew 50 percent while its
*> database business was flat to slightly negative.
*> Oracle is slated to give detailed fourth-quarter
*> financial guidance when it reports third-quarter
*> earnings on 15 March.
*>
*> In the months leading up to the warning, Oracle
*> said applications revenue would increase by 75
*> percent or more in the third quarter.
*>
*> Analysts had been lowering forecasts for Oracle's
*> database revenue -- which accounted for more
*> than one-third of the company's second-quarter
*> revenues -- citing a slowing economy and dot-com
*> failures. Nevertheless, many thought it would
*> grow by at least 10 percent.
*>
*> "I was expecting things to not be great. But I was
*> not expecting it to be this bad. I still thought the
*> database business would exhibit some growth,"
*> Epoch Partners senior analyst Mark Verbeck, said.
*>
*> While the warning marks the second time in a
*> decade that Oracle's earnings are expected to miss
*> forecasts, Ellison said the company's
*> year-over-year profit and margins show
*> improvement despite the tough economic
*> atmosphere.
*>
*> Oracle's operating margin improved to 33 percent,
*> an increase from 31 percent a year ago, said
*> Ellison, who added that the company also will
*> continue to manage expenses by allowing its head
*> count to fall through natural attrition.
*>
*> "As long as the economy doesn't get worse, we
*> think we're going to be just fine. We think we're
*> better equipped to deal with the slowdown than
*> any other company on earth," Ellison said.
*>
*> Analyst Thill, however, sees more disappointment
*> to come.
*>
*> He said the software industry has been in a slump
*> for the past six months but stock prices haven't
*> bottomed out yet.
*>
*> Thill said he would not be surprised if shares of
*> some software companies slide another 15 percent
*> to 25 percent.
*>
*> "I don't know what's going to fix this," Verbeck
*> said.
*>
*> "We're in this vicious circle where there's
*> unprecedented interest by consumers in the stock
*> market. Even though the numbers in the economy
*> aren't bad, the sentiment is terrible. It becomes
*> self-fulfilling. It's not good," he said.
*>
*>---end---
*>
*>--
*>Please see the official ORACLE-L FAQ: http://www.orafaq.com
*>--
*>Author: Eric D. Pierce
*> INET: PierceED_at_csus.edu
*>
*>Fat City Network Services -- (858) 538-5051 FAX: (858) 538-5051
*>San Diego, California -- Public Internet access / Mailing Lists
*>--------------------------------------------------------------------
*>To REMOVE yourself from this mailing list, send an E-Mail message
*>to: ListGuru_at_fatcity.com (note EXACT spelling of 'ListGuru') and in
*>the message BODY, include a line containing: UNSUB ORACLE-L
*>(or the name of mailing list you want to be removed from). You may
*>also send the HELP command for other information (like subscribing).
-- Please see the official ORACLE-L FAQ: http://www.orafaq.com -- Author: Patrick Housholder INET: housholder_at_ualfltctr.com Fat City Network Services -- (858) 538-5051 FAX: (858) 538-5051 San Diego, California -- Public Internet access / Mailing Lists -------------------------------------------------------------------- To REMOVE yourself from this mailing list, send an E-Mail message to: ListGuru_at_fatcity.com (note EXACT spelling of 'ListGuru') and in the message BODY, include a line containing: UNSUB ORACLE-L (or the name of mailing list you want to be removed from). You may also send the HELP command for other information (like subscribing).Received on Wed Mar 07 2001 - 17:57:44 CST
 |
 |