Oracle Earnings Call Insights: Software Side Details and Cloud Offerings

Oracle Corporation (NASDAQ:ORCL) recently reported its fourth quarter earnings and discussed the following topics in its earnings conference call.

Software Side Details

Kash Rangan – Bank of America Merrill Lynch: Good to see the hardware product and the Fusion Reference do well, but on the software side typically Oracle has had very strong May quarter finish as we’ve always called it the magic of May quarter. I’m wondering if you could give us a little bit more color, Safra, Mark or Larry, on if you saw any slippage that was specific more so to the applications business, large ticket items, economically more sensitive if these deals are put on hold? How is the linearity shaping up in June? As you exited the quarter did you feel little bit better about how the trends were getting better? Because we’ve been hearing about software companies facing difficulties in the month of March and April. I’m just curious how things shaped up and how you exited the quarter. Sorry for the bunch of questions, but I really appreciate the color.

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Safra A. Catz – President and CFO: I don’t know which one of us should start. As I mentioned in my prepared remarks, we saw some weakness in specific regions, especially Asia Pacific, especially parts of Latin America, that were – that came up right at the end on us. That was extremely disappointing for us, because May is usually our very, very big and important month, and it’s our big quarter; it sort of (lazed out) where it did. We had a pretty good start actually in the other regions, but it’s just soon to tell on and that’s why my guidance is where it is.

Lawrence J. Ellison – CEO: Let me add. It was no specific product. I mean, when we saw weakness, we saw weakness in database, middleware, applications, in all of our software lines. So it was clearly an economic issue, not a product competitive issue. The products performed kind of as we expected. It’s just that they didn’t reach the feeling we thought we were going to reach in the quarter…

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