To: zc66 who wrote (8937 ) 12/9/1998 3:12:00 PM From: Mapache Read Replies (1) | Respond to of 19080
cbs.marketwatch.com Oracle profit expected to rise 26% Sybase close to unveiling data-warehousing deal By Brenon Daly, CBS MarketWatch Last Update: 2:53 PM ET Dec 9, 1998 NewsWatch REDWOOD SHORES, Calif. (CBS.MW) -- Oracle is expected to show earnings growth of about 26 percent when it reports fiscal second quarter results on Thursday, as services lift results at the database titan. The world's second-largest software company (ORCL) is expected to earn 24 cents per share, up from 19 cents per share in the same quarter last year. Revenue is expected to rise to $2.75 billion from $1.6 billion in the same quarter last year. Oracle rates a "strong buy" from Edward Jones analyst Art Russell, who sees the company earning 23 cents per share. Russell, who serves primarily retail investors, equates the Internet phenomena with the Gold Rush about a century and a half ago. At the time, he said, there was two ways to make money: either pan around in the hills in hopes of striking it rich, or selling goods and services to the folks looking for gold. "Oracle is selling the picks and maps" for the Internet gold rush, Russell added. Last month, the company launched Oracle8i, which it billed as "the world's first Internet database." Nine of the 10 largest e-commerce sites on the Web use Oracle software. On the other side, Prudential Securities cut its rating on the stock, citing valuation. Since the investment bank picked up coverage, the stock has risen 60 percent to just under a 52-week high. On Wednesday afternoon, shares added 1/2 to 35 13/16. Oracle said it has begun testing Oracle8i Lite on Tuesday, a move that puts it directly head-to-head against Sybase, said David Card, an analyst at Jupiter Communications in New York City. Sybase, which announced a reorganization last week, is slated to release earnings next Monday. Between now and then, Sybase (SYBS) is expected to report a "large deal" with an unknown device maker for the company's mobile data warehousing product, according to an executive close to the deal. Sybase shares added 1/16 to 7 15/16, but are still less than half their 52-week high.