Oracle Keeps Its Cool In Tech Spending Crunch - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

IoT
IoT
News

Oracle Keeps Its Cool In Tech Spending Crunch

Oracle just finished the first fiscal year in its history in which sales declined, and the company doesn't expect IT spending to pick up much during the next six months. But it's predicting enough of a recovery in the first half of next year to avoid a repeat of its sales decline.

Oracle's not hitting any panic buttons. CFO Jeff Henley says the company has about 4% less staff than it did during its peak employment level of several years ago, and it's focused on holding onto employees for the day when IT spending picks up. The company's research and development staff has 12% more people compared with last year.

Oracle's Bumpy Ride
FY '02 FY '01 Change
Revenue $9.7 B $11.0 B -12%
Net income $2.2 B $2.6 B -13%
Data: Oracle
The company's fourth quarter, ended May 31, saw software license sales slide nearly 30% from the year before, while total revenue was down 15% to $2.8 billion. That led to a 23% decline in net income, to $655.9 million. New license sales were down 29% for database software and 27% for applications. The only upside was an 11% jump in upgrade sales, to $643 million. But big deals with new customers are hard to come by: Deals valued at more than $500,000 accounted for 43% of sales, down from 52% a year earlier. "We've definitely seen less of an appetite among customers to take on large projects," Henley says.

For the current quarter, Oracle expects license revenue to fall between 15% and 25% from the same period last year. But Henley is still predicting modest growth in 2003 revenue. One reason: With the Oracle9i database on the market for 18 months, he says more customers will opt for upgrades early next year.

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
The State of Cloud Computing - Fall 2020
The State of Cloud Computing - Fall 2020
Download this report to compare how cloud usage and spending patterns have changed in 2020, and how respondents think they'll evolve over the next two years.
News
Top 10 Data and Analytics Trends for 2021
Jessica Davis, Senior Editor, Enterprise Apps,  11/13/2020
Commentary
Where Cloud Spending Might Grow in 2021 and Post-Pandemic
Joao-Pierre S. Ruth, Senior Writer,  11/19/2020
Slideshows
The Ever-Expanding List of C-Level Technology Positions
Cynthia Harvey, Freelance Journalist, InformationWeek,  11/10/2020
Register for InformationWeek Newsletters
Video
Current Issue
Why Chatbots Are So Popular Right Now
In this IT Trend Report, you will learn more about why chatbots are gaining traction within businesses, particularly while a pandemic is impacting the world.
White Papers
Slideshows
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Sponsored Video
Flash Poll