Growing through Buyouts

By John Pallatto  |  Posted 2004-07-15 Print this article Print

Oracle will continue to acquire companies that provide access to new customer segments in existing markets, provide access to new markets and allow it to extend its product offerings or provide technical or management expertise in vertical markets, Catz said.

Oracle officials said they saw little evidence of a slowdown in enterprise software sales, as the company reported a 9 percent increase in revenue in its fourth fiscal quarter and a 15 percent increase in profits.

While competitors such as PeopleSoft and Siebel Systems Inc. both reported lower sales this month, Oracles business "turned the corner" in fiscal 2004 to show significant improvement, Henley said. Barring any unforeseen changes in the world economy, "we are in a position to do better next year," he said.

While database license sales increased by 11 percent in 2004, applications software sales grew by only 2 percent. For the quarter, database license revenue grew 15 percent while application software license revenue actually declined 6 percent.

The company reported increased revenue from most major business lines in its fourth quarter. New software licenses totaled $1.31 billion, an increase of 11 percent from the same quarter a year earlier. Revenue for license upgrades and product support totaled $1.2 billion, a 13 percent increase.

But services revenues, including consulting and training, declined 4 percent to $558 million in the quarter.

Click here to read about why PeopleSoft believes the prolonged fight to fend off Oracles hostile bid is hurting its business.

For 2005, Oracle expects a modest improvement in IT spending as companies continue to make conservative and carefully planned purchases of computer hardware and software, Henley said.

Oracle expects that steady growth in the use of Linux, particularly in the Asia-Pacific region, will provide major new opportunities for sales growth in 2005 and beyond, company officials said.

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John Pallatto John Pallatto is's Managing Editor News/West Coast. He directs eWEEK's news coverage in Silicon Valley and throughout the West Coast region. He has more than 35 years of experience as a professional journalist, which began as a report with the Hartford Courant daily newspaper in Connecticut. He was also a member of the founding staff of PC Week in March 1984. Pallatto was PC Week's West Coast bureau chief, a senior editor at Ziff Davis' Internet Computing magazine and the West Coast bureau chief at Internet World magazine.

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