Oracle's China market growing at 50%................................
scmp.com
TuesdayÿÿDecember 16ÿÿ1997
Shaken Oracle still positive on China
DANYLL WILLS
The world's biggest database company, Oracle Corp, has shaken the computer industry after reporting disappointing earnings that saw its stock drop nearly 30 per cent in a day.
The official explanation for last week's results was that the financial crisis in Asia had hurt sales figures. Oracle reported US$187 million in profits on revenue of $1.6 billion this quarter.
Whatever the case, Oracle Hong Kong and greater China managing director, P. W. Pong, was not worried about his own responsibilities, with Oracle alive and well in greater China, despite problems in other markets in Asia.
Although not unconcerned about the rest of the region, Mr Pong was positive about Oracle's results, both in the SAR and the mainland.
"We have about 600 people in greater China but the biggest revenues are still in Hong Kong. China itself, however, is growing and becoming increasingly important," he said.
The currency crisis in some Southeast Asian countries had had an effect on Oracle, but not on the company's sales in the region.
The devaluations of the South Korean won and the Taiwanese dollar had had an impact on the company, Mr Pong said.
"Nevertheless, we are still growing."
As proof of Oracle's well-being, Mr Pong cited a recent signing with Cable & Wireless that was worth millions of dollars.
Most of the deal would be put to use by Hongkong Telecom. Oracle also had a system up and running at Hong Kong's City University in only four months, he said.
Another key project in operation was at the Airport Authority, which was using Oracle financial and human resources software.
Overall growth in the Asia-Pacific region had been only 1 per cent, Mr Pong said, so it was hardly surprising that demand for some products had declined.
Mr Pong said that his job was considerably safer than some of his colleagues in other parts of Asia.
"My job is easier than those who work in Asean [Association of Southeast Asian Nations] countries," he said.
Nevertheless, it was always necessary to be cautious and watch what others were doing. Japan would be scrutinised with considerable care, he said. "If Japan has a cold, we have a fever."
The recent upheavals in Japan were a concern for many, not just Oracle, he said.
The mainland might be the biggest market for Oracle some day, but not yet. "Everyone is keeping an eye on China," he said. "China is a big market for us and it is growing by 50 per cent every year."
Oracle was supplying software to 50 mainland customs offices at the end of last month and also had signed a deal worth $3 million with the Industrial and Commercial Bank of China.
Mr Pong stressed that Oracle was not simply a database company, and already had branched out into such areas as finance, human resources and services.
"We have been doing well in the services area for quite some time. When we sell a product we have people to help with the implementation," he said. |
