Friday, June 16, 2006

Oracle shocks with improved forecasts!

Orac le today preannounced stronger-than-expected 4th quarter earnings and revenue, as growth across its businesses prompted a rare upwards earnings revision for the software maker.

Oracle also said it expects its revenue totaled $4.85 billion, up 25% from $3.88 billion a year ago, exceeding previous guidance of 13% to 17% growth.

Oracle said it expects to post strong growth in both its core database business and its newly expanded business of selling application software. The company predicts sales of new software licenses grew 32% to $2.12 billion, exceeding the company's previous guidance of 8% to 18% growth.

This is a real shocker announcement and one that has caught most analysts on the hop. It will no doubt put a bunch of pressure on SAP. Maybe corporate customers are starting to buy into Oracle's strategy - and that would be an early turn-up for the books!

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