Oracle Corporation F2Q09 (Qtr End 11/30/08) Earnings Call Transcript

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2008-12-18 16:35:30.0

Tags: Maintenance, Oracle Corp., Call Transcript, Earnings, Larry Ellison, Morgan Stanley, Storage, Databases, Middleware, Hardware, Enterprise Software, Software, Data Management, Seeking Alpha

Question-and-Answer Session

Operator

(Operator Instructions) Your first question comes from the line of Adam Holt - Morgan Stanley

Adam Holt - Morgan Stanley

On the maintenance revenue it sounds like there was a currency impact on the quarter on a year-on-year basis obviously can you talk about the currency impact sequentially and maybe drill down on your comment about renewal rates being consistent, was there any change on the pricing side or any other mechanics around the maintenance stream.

Jeff Epstein

The renewal rates were consistent and in non-GAAP constant currency year-on-year license updates and support was up 21%. I think that’s the right way to look at it.

Larry Ellison

There’s a little bit of seasonality in support but, so year-on-year it’s the appropriate metric.

Adam Holt - Morgan Stanley

And on the technology business it sounds like middleware was an area of strength, you still grew on a constant currency basis despite how tough the market was can you talk a bit about the other areas, the core database, and maybe some of the options, what you saw from a segment perspective.

Larry Ellison

In the core database business we were—

Charles Phillips

Work it down on a combined basis, of course we don’t break out the numbers between middleware and database. What I’d say to that, obviously the options continue to do very well. With the database machine out there obviously we have a strong pipeline building there. All the components of middleware we’re doing well also.

So I think we’ve been fairly consistent with recent quarters.

Jeff Epstein

Twelve percent in currency and database and middleware all together compared to 22% last year.

Operator

Your next question comes from the line of Sarah Friar - Goldman Sachs

Sarah Friar - Goldman Sachs

On maintenance again, because clearly that’s what we love about the Oracle model is the maintenance line, but as customers came back through the quarter did you find that they were trying to negotiate down maintenance, maybe taking a lower service level, just broadly how resilient do you think that line can be as we go into the teeth of this recession.

Larry Ellison

We only offer one service level for maintenance. We offer, seven days a week, 24 hours a day enterprise level maintenance so there’s, we offer a full service system and we don’t have different levels, we don’t have a gold, silver, platinum kind of maintenance.

 

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