Volume 17, Number 26 -- July 7, 2008

Oracle Firing on All Cylinders Again in Fiscal Q4

Published: July 7, 2008

by Timothy Prickett Morgan

While database, application software, and middleware software provider Oracle missed the growth expectations that Wall Street had in its fiscal third quarter ended in February, the company seems to have more than made up for it with a strong finish in the fourth quarter ended in May. Oracle's sales rose by 24 percent to $7.24 billion, and even at constant currency, the company's global sales rose by 18 percent. This is real growth, and the kind of growth that Oracle was after when it did what seemed like a zillion acquisitions over the past couple of years.

For the three month period, Oracle's software sales came to $5.97 billion, up 26 percent as reported and up 19 percent at constant currency, with new software licenses accounting for $3.14 billion (up 27 percent) and software updates and product support amounting to $2.83 billion (up 25 percent). Currency effects came to an average of about 7 percent of the company's growth, thanks in large part to the combination of a weak U.S. dollar and strong sales overseas. Oracle's services sales were actually a bit of a lag on the quarter, up 19 percent to $1.27 billion, or 12 percent at constant currency. Oracle was able to bring just a little over $2 billion to the bottom line, an increase of 27 percent compared to the fourth quarter of fiscal 2007, but at constant currency, net income only grew by 14 percent. By geographical region, Oracle booked $3.57 billion in sales in the Americas, $2.68 billion in Europe, the Middle East, and Africa, and $986 million in the Asia/Pacific region.

By product area, new application software sales, which includes the Oracle, Siebel, JDE, PeopleSoft, and a slew of other smaller application stacks, Oracle posted $989 million in new application software license sales, up 36.2 percent, a large jump compared to the essentially flat sales (and about half this level) Oracle had in the fiscal third quarter for application software. The company sold $1.04 billion in application updates and support in the quarter, up 25.5 percent. The other major product category for Oracle is database and middleware, which Oracle lumps together. Oracle sold $2.16 billion in new software licenses for databases and middleware in Q4, up 22.8 percent, with support and updates for these products generating $1.79 billion in sales, up 24 percent. New license sales for database and middleware products increased by only 16 percent in the Americas region, which is a sign of weakness in the U.S. economy, by new application license sales rose by 33 percent, which is encouraging.

Database/middleware and application sales (again, new licenses only in these geographical stats) were up 42 percent and 41 percent, respectively, in Q4 in the EMEA region, but at constant currency that works out to 27 percent and 31 percent, so don't get too excited. Still, that is really good growth. Ironically, new license sales for databases and middleware rose by only 6 percent in Asia/Pacific in Q4, and actually declined by 1 percent when reckoned in local currencies. But application license sales rose by 37 percent in the quarter (27 percent at constant currency). Something is going on in Asia, for sure, which is odd considering how strongly the Indian and Chinese economies are growing.

Charles Phillips, Oracle's president, conceded in a conference call with Wall Street analysts that execution was not good in Asia/Pacific, but did not elaborate. He did, however, try to explain why Oracle was growing so much against a macoeconomic climate that is dicey at best and in recession at worst. "I think it is more a market share gain than anything else," Phillips said. "Our strategy is resonating with customers. We also have tremendous up-selling and cross-selling opportunities because we have a lot of customers who are new to Oracle--at least on an enterprise-wide basis--and so they have a lot of Oracle products now and the ability for us to come in and tell a different story and the value they can get by adding to that. It's just different than it was a couple years ago."

For the fiscal 2008 year, Oracle racked up $22.43 billion in sales, up 25 percent, with $17.84 billion in software sales comprised of $7.51 billion in new software licenses and $10.33 billion in software updates and product support. Services sales for the year at Oracle came to $4.59 billion, and grew just a little bit less for the year that software and support sales. Oracle brought $5.52 billion to the bottom line for the year, an increase of 29 percent compared to fiscal 2007. Clearly, a lot of that dough came in the final quarter of the year.


Oracle's Business Grows in Fiscal Q3, But Not As Much as Expected

Oracle Sales Go Boom in Its First Fiscal Quarter

Oracle Says 11g Database Is Better, Cheaper, and Faster

Oracle Buys Tangosol for Data Caching

Oracle Sues SAP Over 'Corporate Theft on a Grand Scale'

Oracle Buys Hyperion Solutions for $3.3 Billion

Oracle Updates Five Application Stacks

                     Post this story to
               Post this story to Digg
    Post this story to Slashdot

Sponsored By


snap's plug and play approach means you can snap your i application components into virtually any other leading platform, without having to change a line of code.

This snap webcast demonstrates:
Creating component level access to traditional i apps, without changing a line of code
Reusing existing applications using UI containers and web services
Plugging traditional i apps into leading front-ends like Microsoft Outlook and SharePoint

Benefits include:

1) Reuse of existing i investments, thereby:
reducing the risk associated with change
reducing training costs
increasing productivity
reducing implementation times
improving project success
reducing carbon emissions

2) Easy integration with:
leading front-ends, MS Office, SharePoint, Lotus Notes, Websphere Portal and Google
other apps like SAP, MS Dynamics and any application that supports web services
web service compliant systems and devices like Unified Communication Systems

3) Reuse snap components in any web services compliant development environment including .NET and J2EE

4) Improve acceptance of i applications

5) Unified view, improved UX

6) Streamline workflow and automate business processes

Register here to view the video NOW

Editor: Timothy Prickett Morgan
Contributing Editors: Dan Burger, Joe Hertvik, Brian Kelly, Shannon O'Donnell,
Mary Lou Roberts, Victor Rozek, Kevin Vandever, Hesh Wiener, Alex Woodie
Publisher and Advertising Director: Jenny Thomas
Advertising Sales Representative: Kim Reed
Contact the Editors: To contact anyone on the IT Jungle Team
Go to our contacts page and send us a message.

Sponsored Links

ARCAD Software:  Dynamic, world-class ALM on and around the System i
PowerTech:  Interact 3.0, the leading solution for real-time monitoring of IBM i security events
COMMON:  Join us at the Focus 2008 workshop conference, October 5 - 8, in San Francisco, California



IT Jungle Store Top Book Picks

Easy Steps to Internet Programming for AS/400, iSeries, and System i: List Price, $49.95
Getting Started with PHP for i5/OS: List Price, $59.95
The System i RPG & RPG IV Tutorial and Lab Exercises: List Price, $59.95
The System i Pocket RPG & RPG IV Guide: List Price, $69.95
The iSeries Pocket Database Guide: List Price, $59.00
The iSeries Pocket Developers' Guide: List Price, $59.00
The iSeries Pocket SQL Guide: List Price, $59.00
The iSeries Pocket Query Guide: List Price, $49.00
The iSeries Pocket WebFacing Primer: List Price, $39.00
Migrating to WebSphere Express for iSeries: List Price, $49.00
iSeries Express Web Implementer's Guide: List Price, $59.00
Getting Started with WebSphere Development Studio for iSeries: List Price, $79.95
Getting Started With WebSphere Development Studio Client for iSeries: List Price, $89.00
Getting Started with WebSphere Express for iSeries: List Price, $49.00
WebFacing Application Design and Development Guide: List Price, $55.00
Can the AS/400 Survive IBM?: List Price, $49.00
The All-Everything Machine: List Price, $29.95
Chip Wars: List Price, $29.95

The Linux Beacon
The Top 500 Super Ranking Now Counts Watts as Well as Flops

Red Hat Launches oVirt Embedded KVM Hypervisor Project

openSUSE 11.0 Out the Door and On the Street

As I See It: Flights of Fancy

HP Donates the Guts of Tru64 Unix's File System to Linux

Four Hundred Stuff
DRV Cleans Up i OS Spool Files with ReportFlex

Agilysys Introduces New Software for Hotels

Subversion SCM Tool Becomes More Robust with Version 1.5

Cast Iron Simplifies NetSuite Integration with Appliance

Virtual Servers Keep On A Rollin', Thanks to uptime software

Big Iron
HP Launches NonStop Blade to Chase Mainframes and Unix Apps

Top Mainframe Stories From Around the Web

Chats, Webinars, Seminars, Shows, and Other Happenings

Four Hundred Guru
Keeping Time with NTP

What Happened to My Key?

Stopping Your System i from Starting Up

System i PTF Guide
June 21, 2008: Volume 10, Number 25

June 14, 2008: Volume 10, Number 24

June 7, 2008: Volume 10, Number 23

May 31, 2008: Volume 10, Number 22

May 24, 2008: Volume 10, Number 21

May 17, 2008: Volume 10, Number 20

The Windows Observer
Bye Bye Bill

Supercomputers' Need for Speed Satisfied with Windows HPC Server '08

Patches? We Don't Need No Stinkin' Patches: Survey

Windows Boss Discusses 'Downgrade Rights' for XP, Windows 7 Compatibility

The Top 500 Super Ranking Now Counts Watts as Well as Flops

The Unix Guardian
HP Donates the Guts of Tru64 Unix's File System to Linux

Fujitsu Lands Monster Unix Deal with China Mobile

Virtual Servers Keep On A Rollin', Thanks to uptime software

As I See It: Flights of Fancy

Agilysys Hires JPMorgan for Possible Sale

Four Hundred Monitor
Four Hundred Monitor's
Full iSeries Events Calendar


Computer Measurement Group
Guild Companies

Printer Friendly Version

The Power Systems 550 M50 Versus Its Predecessors

IBM Rejiggers Development Tools on Entry Power 520 i Editions

Job Word Cloud Redux: The AS/400 Sees Some Improvement

As I See It: The Digital Leader

WebSphere Portal Remains the Industry Leader, Says Gartner

But Wait, There's More:

Big Blue's Power Systems Painted Green at OCEAN Tech Conference . . . The Relational Database Market Grows Decently in 2007 . . . Oracle Firing on All Cylinders Again in Fiscal Q4 . . . IBM's AS/400 20th Birthday Party Pictures . . . Initial Uptake of JS12 Blades for i Platform Seems Good . . .

The Four Hundred


Subscription Information:
You can unsubscribe, change your email address, or sign up for any of IT Jungle's free e-newsletters through our Web site at

Copyright © 1996-2008 Guild Companies, Inc. All Rights Reserved.
Guild Companies, Inc., 50 Park Terrace East, Suite 8F, New York, NY 10034

Privacy Statement