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Home -> Community -> Mailing Lists -> Oracle-L -> RE: Oracle Licensing
*>thank-god they save 1 billion dollars on using there own software.
ooppss...their
===============================
*>-----Original Message-----
*>From: root_at_fatcity.com [mailto:root_at_fatcity.com]On Behalf Of Patrick
*>Housholder
*>Sent: Wednesday, March 07, 2001 4:32 PM
*>To: Multiple recipients of list ORACLE-L
*>Subject: RE: Oracle Licensing
*>
*>
*>ha,
*>
*>thank-god they save 1 billion dollars on using there own software.*>
*>p-
*>
*>===============================
*>Patrick Housholder
*>Sr. Staff Anl Tech Spt Design
*>United Airlines Flight Training Center
*>Denver CO
*>
*>
*>*>-----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
*>*>--------------------------------------------------------------------
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*>*>(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).
-- 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 - 20:22:53 CST
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