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Technology Stocks : Oracle Corporation (ORCL) -- Ignore unavailable to you. Want to Upgrade?

To: OverSold who wrote (11099)	6/15/1999 7:30:00 PM
From: Joe Smith	Respond to of 19079

Is LE trying to make good on his word???

To: OverSold who wrote (11099)	6/15/1999 7:47:00 PM
From: Richard Habib	Respond to of 19079

Here is my synopsis of the cc. You can get replay at 402- 222-9939. All the numbers are in the PR on the oracle site. Net income growth was 35% which is the same as 5 yr compounded annual growth. 4th consecutive qtr of margin improvement Cost of goods was flat which is the beginning of a trend change from up. Tax rate was 35% for the year which is what they expect for coming year. For the qtr was actually about 36%. Looking at growth of apps. CRM & Procurement had very strong growth, 138% and 163% respectively. If you back both out "traditional" ERP growth was about 7%. They believe their competitors are still showing decreasing ERP growth. Believe their internet based products making for wins. In CRM they have passed everyone but Siebel in marketshare and are 2x number 3 and greater market share than 3 & 4 combined. Q1 is always weak vs Q4. Very difficult to predict with Y2K but the pipeline is strong. In fact CRM pipeline Q1 vs Q1 compared to Q4 vs Q4 pipeline is about 75% stronger heading into the qtr. They are optimistic and expect a "good" qtr. Feel things are "getting better and better." Pointed out that products like CRM and Procurement not particularly Y2K sensitive in a sales sense and that nothing they have installs in less than 30 days so customers still interested and sense a "panic" among customers to implement ebusiness. Also they implemented their sales software and were able to get quotas out within 1st week of June vice normally August to be complete so they are way ahead already. Also Japan improving. Q3 clearly an anomaly. Services growth appears to be reaching a bottom. May decline a little more. Book to bill has risen to 1.3 vs 1.1 Went over the IDC DB numbers that were in the press release showing little effective competition in NT and Unix where bulk of worldwide ecommerce growth is. Mentioned don't even monitor Sybase and Infomix anymore. MSFT has scalablilty problems and IBM only strong in mainframe DB. Check out press release for IDC numbers but roughtly 4x IBM on NT and 8x IBM on unix for DBs. Cost reductions. This refers to Oracle adopting all their products to become an ebusiness with target completion date of June 2000. They have a target of increasing pre-tax margins from 20% (which is bad for software company) to 30% in next 18 months. Will be increasing R&D and Sales coverage while cutting the $1B that LE stated. By July web store will sell all products globally. By spring 2000 they will implement their call center products and unify tele-sales, web sales and field sales. By June of 2000 will complete services moving to internet and unify tele and web. I'll continue question portion on next post.