"Things are getting worse, not better, at PeopleSoft," Ellison said. "The managements plan is to take existing PeopleSoft business, which is under considerable stress, and merge with J.D. Edwards. We believe that J.D. Edwards is in worse shape than PeopleSoft. ... Craig Conway said our offer is designed to disrupt PeopleSofts strong momentum in the market. Im not sure how you can describe going down 39 percent to $80 milllion as strong momentum." Besides continuing the ongoing catfight with Craig Conway, Oracle officials used the earnings report to report earnings. Despite the stormy seas surrounding its pursuit of PeopleSoft, Oracle managed to beat analysts estimates by $.02 per share, the company reported.Fourth-quarter net income was $.16 per share, or $858 millionan increase of 31 percent over the year-ago figure of $656 million or $.12 per share net income for fourth quarter 2002. Year-ago results included an equity securities impairment charge of $104 million net of tax, or $.02 per share, related to Oracles investment in Liberate Technologies.Total revenues in Q4 2003 increased 2 percent to $2.83 billion. New software license and other revenues rose 1 percent to $1.2 billion. Software license updates and product support increased 12 percent to $1.1 billion. Services declined 11 percent to $580 million. Operating margin in the quarter reached a record high of 45 percent, beating the previous record of 44 percent in the fourth quarter of 2002. For the full fiscal year 2003, net income increased 4 percent to $2.31 billion, or $.43 per share, compared with net income of $2.22 billion or $.39 per share a year ago. Total revenues declined 2 percent to $9.5 billion. The annual operating margin was 36 percent. Database sales were $933 million for the quarter.