The most popular and comprehensive Open Source ECM platform
Let us know more
Oracle: Strong Growth, But Analysts Not Satistifed
Third quarter results for Oracle were just announced. But Oracle failed to impress analysts. Many had expected to see stronger growth by Oracle in their applications business. Oracle reported 7 percent growth to $451 million for the quarter, compared to $533 million targeted by a Bank of America equities analyst. Many fear that the financial sector’s IT funds are drying up in the wake of the global credit crunch. After hearing the news, Oracle’s stock fell 7 percent.
Typical of commentary on the announcement were assessments like:
Oracle, the third largest software firm, reported disappointing third-quarter results late Wednesday, causing its shares to fall by the most since November.
But while analysts and the market drubbed Oracle, digging into the numbers, one can see a really solid performance. Oracle reported 30% growth of net income for the quarter.
One phenomenon that may have contributed to the lower than expected numbers is the changing way that customers license their Oracle software. Because many customers now license more than one Oracle software product, they’re bundling that software into a single contract. The deals are bigger and so often are the discounts that customers can negotiate. But a side-effect of the Oracle jumbo contract is that the length of contract talks has also gotten longer, and the time that it takes to close deals is getting longer.
