Oracle (ORCL) met $0.22 EPS expectations, although as noted they have beat in each of the last 3 quarters and some were hoping for more. Revenues were $4.16 Billion instead of the $4.15 Billion estimate. Here is the break down (in new orders):
-software revenues were up 23% to $3.2B;
-database and middleware revenues up 9%;
-applications revenues up 28%;
-services revenues were up 41%.
Oracle President and CFO, Safra Catz: "We are now halfway through our five year plan targeting EPS growth at 20% per year. For the first two-and-a-half years we are comfortably ahead of that target."
He also noted that they are taking share from SAP in applications, from BEA in middleware, and from IBM in database. Its reference to BEA Suystems (BEAS) and the fact that they expect to take more from them and pass them later in the year doesn’t really telegraph a buyout is in the company’s mind. Ellison himself has pledged to only do buyouts that would actually assist the company meet its 20% bottomline growth.
We’ll have to see what the guidance is for the company before giving this a thumbs up or thumbs down. Shares are down 1.15% at $17.70 in after-hours trading, although shares were initially down about 2% after the report.
Jon C. Ogg
December 18, 2006
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