Oracle Corporation (NASDAQ: ORCL)
F4Q08 Earnings Conference Call
June 25, 2008 5:00 PM ET

Management Summary

Operator

Good day, everyone and welcome to today's Oracle Corporation quarterly conference call. Today's conference is being recorded. At this time, I would like to introduce Roy Lobo, Head of Investor Relations of Oracle. Please go ahead, sir.

Roy Lobo, Investor Relations

Thank you, operator. Good afternoon, everyone and welcome to Oracle's fourth quarter and fiscal year 2008 earnings conference call. This is Roy Lobo, Head of Investor Relations. With me on the call are Oracle's Chief Executive Officer Larry Ellison; Oracle's President and Chief Financial Officer Safra Catz; and Oracle's President Charles Phillips.

We will begin with a few prepared remarks and then take a few questions from the audience.

Let me begin by reminding everyone that today's discussions may include predictions, estimates, or other information that might be considered forward looking. While these forward-looking statements represent our current judgment on what the future holds, they are subject to risks and uncertainties that can cause actual results to differ materially.

You are cautioned not to place undue reliance on these forward-looking statements which reflect our opinion only as of the date of this presentation. Please keep in mind that we are not obligating ourselves to revise or publicly release the results of any revisions of these forward-looking statements in light of new information or future events.

MAJOR PAPERS:

• A newly published report by Standard & Poor's said that the performance of organizations such as Federal National Mortgage Association (NYSE: FNM), or Fannie Mae, and Federal Home Loan Mortgage Corporation (NYSE: FRE), or Freddie Mac, could directly affect the U.S. economy and the country's credit rating, especially if they have to be rescued by the government, according to the Wall Street Journal's "Credit Markets" column.
• Seagate Technology LLC (NYSE: STX), a hard drive maker, filed a patent infringement suit in San Francisco against STEC Inc (NASDAQ: STEC) over four patents related to technology used to store data on computer chips, the Wall Street Journal reported.
• The Financial Times reported that Citigroup Incorporated (NYSE: C) is allowing private equity groups such as Apollo, The Blackstone Group LP (NYSE: BX) and TPG that are bidding for up to $12B of its leveraged loans to 'cherry-pick' from a wide range of assets with different credit ratings and prices.

• According to analysts, Reuters reported that technology industry leaders that include International Business Machines Corporation (NYSE: IBM), Oracle Corporation (NASDAQ: ORCL), Cisco Systems Inc (NASDAQ: CSCO) and Hewlett-Packard Company (NYSE: HPQ) are among the companies with large cash reserves that could be used to fund acquisitions.

Oracle Corporation (NASDAQ: ORCL) is the world's largest enterprise software company, providing database, infrastructure, and computer application software for managing business data and supporting business operations. Essentially, the programs facilitate functions in data storage/access, analytics, customer relationship management, supply chain management and software development. The firm provides a wide variety of consulting, training and license updating services. Products are sold through internet service providers, network integrators, resellers and independent software vendors.

Oracle pleased investors last week, when it reported Q2 EPS of 31 cents and revenues of $5.36 billion. Analysts had been expecting 27 cents and $5.04 billion. Database and middleware new license revenues were up 28% and applications new license revenues grew 63%. Management also guided Q3 EPS to 29-30 cents (29 cents consensus) and Q3 revenues to about $5.338 billion ($5.19B consensus). ORCL shares popped on the news and then moved into a bullish "pennant" consolidation pattern. Prices frequently exit pennants moving in the same direction they were traveling on entry. In this case, that would be to the upside.

The efficient management of information is a vital component of business success. The world's leading supplier of information management software is headquartered in Redwood Shores, California. Its technology supports the work of 98 of the firms in the Fortune 100.

Oracle Corporation (NASDAQ: ORCL) provides database, middleware, and computer application software for managing business data and supporting business operations. Essentially, the programs facilitate functions in data storage/access, analytics, customer relationship management, supply chain management and software development. The firm provides a wide variety of consulting, training and licensing services. Products are sold through Internet service providers, network integrators, resellers, independent software vendors and system integrators.

Oracle pleased investors late last month, when it reported Q3 EPS of 25 cents and revenues of $4.4 billion. Analysts had been expecting 22 cents and $4.33 billion. Management also guided Q4 revenues to $5.43-5.63 billion, versus consensus of $5.53 billion.