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Oracle Corporation (ORCL)

  • Jul. 29, 2014, 1:38 PM
    • Oracle (ORCL +0.8%) has awarded Larry Ellison 3M stock options for 2014, well below the 7M he has been awarded over each of the prior 8 years. Likewise, Mark Hurd and CFO Safra Catz have seen their awards drop to 2.25M from 5M.
    • The award cuts follow mounting criticism of Oracle's executive compensation from shareholders and proxy advisers. In a non-binding vote, shareholders voted against Oracle's proposed compensation plan at last October's annual meeting.
    • Ellison still owns 25% of Oracle, a stake worth $45B at current levels.
  • Jul. 29, 2014, 7:14 AM
    • Oracle (NYSE:ORCL) has cut back on its yearly stock grants given to its top execs, including CEO Larry Ellison and co-Presidents Mark Hurd and Safra Catz.
    • The cuts follow waves of shareholder opposition against the excessive compensation paid to the company's senior management.
    • Ellison's stock-option grants were decreased from 7M to 3M options, while Hurd's and Catz's were cut from 5M to 2.25M shares.
  • Jul. 25, 2014, 4:52 AM
    • The European Comission has announced that EU antitrust regulators will determine whether to clear Oracle's (NYSE:ORCL) $5.3B bid to buy Micros (NASDAQ:MCRS) by August 29.
    • Oracle is looking to continue its fast-expanding cloud business through the new acquisition, and it will be the company's biggest purchase in five years.
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  • Jul. 15, 2014, 7:07 PM
    • Oracle's (NYSE:ORCL) new Big Data SQL software allows users to run joint queries across both SQL databases such as Oracle's flagship 12c, and semi-structured and unstructured data stores such as the Hadoop big data framework and NoSQL databases.
    • Hadoop and NoSQL are widely used in big data projects due to their scalability and support for a variety of data formats. The Oracle solution runs on top of the company's Big Data Appliance - 3rd-party hardware support will be added if demand is strong. The appliance runs a Hadoop distribution from Cloudera, which recently received funding from Intel at a $4.1B valuation.
    • Microsoft has also shown an interest in developing hardware/software bundles that support joint SQL/unstructured data queries. Both Microsoft and Oracle are hoping SQL databases, which still offer advantages in data consistency and complex query support, play a role in a healthy percentage of big data projects as spending on them takes off.
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  • Jul. 1, 2014, 12:29 AM
    • A week after announcing a $5.3B deal to buy Micros, Oracle (ORCL) has sold $10B in debt. Maturity dates range from 3 years to 30. 5-year notes yield just 2.3%, and 30-year notes 4.5%. The sale is the 2nd-largest dollar-denominated corporate bond offering in 2014, behind Apple's $12B April offering.
    • Aside from financing the Micros deal, there's a good chance some of the funds will be used on buybacks. Oracle spent $2B on buybacks in both the February and May quarters.
    • The software giant had $38.8B in cash/investments at the end of May (much of it offshore), and $24.2B in debt.
  • Jun. 23, 2014, 8:16 AM
    • Earlier rumors had Micros (MCRS) going for about $5B, and final deal for $5.3B works out to $68 per share.
    • The purchase is expected to be immediately accretive to Oracle's non-GAAP earnings and to "expand over time," says Oracle CFO Safra Catz.
    • MCRS +2.2% premarket to $67.20. ORCL +0.3%.
    • Source: Press Release
    • Previously: Bloomberg: Oracle close to buying Micros for ~$5B
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  • Jun. 23, 2014, 2:02 AM
    • Oracle (ORCL) is expected to announce a $5B acquisition of MICROS Systems (MCRS) this morning. The deal values MICROS at more than $67 a share, a slight premium to its $65.77 Friday close.
    • If confirmed, the acquisition would be Oracle's largest deal since it bought Sun Microsystems for $5.6B in 2009.
    • ORCL +0.1% AH
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  • Jun. 20, 2014, 11:00 AM
    • The license growth worries that plagued Oracle (ORCL -5.7%) much of last year are back with a vengeance following yesterday's FQ4 miss, in spite of the in-line guidance that followed it.
    • Citi has cut shares to Neutral, arguing SaaS (cloud app) strength isn't reflected in earnings. Before the downgrade, the firm noted estimated total license revenue of $4.09B missed its $4.3B estimate.
    • But Oracle also has its defenders. BMO (Outperform) asserts Oracle's cloud transition efforts are still going well, and that "new product releases across the board should be a tailwind to growth."
    • The firm attributes the FQ4 miss to an apparent "thousand cuts" that include deal slippage, Asia-Pac weakness (an ongoing issue), a shift from up-front license payments to cloud subscriptions, and potential order delays ahead of Oracle's 12c database launch (previous).
    • Separately, Oracle has announced it's buying LiveLOOK, a developer of co-browsing/screen sharing tech for Web customer support apps. Terms are undisclosed.
    • Oracle, which bought cloud customer support firm RightNow in 2011, plans to integrate LiveLOOK's offerings with its Service Cloud platform. Rival LivePerson (LPSN -0.9%) recently announced a deal to buy co-browsing tech developer Synchronite.
    • Prior coverage. CC transcript.
  • Jun. 20, 2014, 9:14 AM
  • Jun. 19, 2014, 5:37 PM
    • Top gainers, as of 5:15 p.m.: ETE +5.2%. MACK +4.6%. SBGI +4.5%. CVT +3.5%. ITC +3.2%.
    • Top losers, as of 5:15 p.m.: ORCL -5.4%. EXL -4.1%. EOX -2.9%. NLNK -2.8%. SSE -1.8%.
  • Jun. 19, 2014, 5:26 PM
    • Oracle (ORCL) expects FQ1 revenue growth of 4%-6% Y/Y, and EPS of $0.62-$0.66. That's in-line with a consensus of 4.8% growth and $0.64.
    • New software license/cloud revenue is expected to be up 6%-8% Y/Y, an improvement from FQ4 and driven by an expected 25%-35% increase in SaaS/PaaS revenue. Hardware systems revenue is expected to see -1% to +3% growth.
    • CFO Safra Catz noted a $102M forex loss (Venezuela-related) pressured FQ4 EPS by $0.02.
    • FQ4 results, details
  • Jun. 19, 2014, 4:22 PM
    • With cloud competition continuing to take a toll, Oracle's (ORCL) new software license revenue was flat Y/Y in FQ4 at $3.77B. Cloud app (SaaS) and app platform (PaaS) revenue rose 25% to $322M, and cloud infrastructure (IaaS) revenue 13% to $128M.
    • Altogether, new license/cloud revenue rose 2% Y/Y to $4.22B. Oracle had guided for 0%-10% new license/cloud subscription growth.
    • License update/product support revenue (stems from existing deals, relatively stable) rose 7% to $4.7B after growing 5% in FQ3. Hardware product sales +2% to $870M, near the low end of a 0%-10% guidance range. Hardware support +2% to $596M.
    • $2B was spent on buybacks, even with FQ3 and boosting EPS. GAAP opex +8% Y/Y - sales/marketing +6%, R&D +7%.
    • CC at 5PM ET, guidance will be provided. FQ4 results, PR.
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  • Jun. 19, 2014, 4:05 PM
    • Oracle (ORCL): FQ4 EPS of $0.92 misses by $0.03.
    • Revenue of $11.32B (+3.4% Y/Y) misses by $160M.
    • Shares -8.26% AH.
    • Press Release
  • Jun. 18, 2014, 5:35 PM
  • Jun. 17, 2014, 12:05 PM
    • Bloomberg reports Oracle (ORCL +0.9%) is close to buying leading point-of-sale hardware/software vendor Micros (MCRS +17.6%) for ~$5B.
    • Micros has soared on the report; its market cap is currently at $5.05B. Peers NCR (NCR +3.4%), VeriFone (PAY +2.2%), and PAR Technology (PAR +4.6%) are also up. Oracle has ticked higher.
    • If the report holds, Oracle will be paying ~24x FY15E (ends June '15) EPS. Micros has a long list of retail/hospitality industry clients that Oracle could offer integrated CRM hardware/software solutions to.
    • IBM and SAP have each shown an interest in growing software sales to retailers. However, Big Blue sold its POS hardware business to Toshiba in 2012.
  • Jun. 10, 2014, 6:42 PM
    • The in-memory version of Oracle's (ORCL) flagship 12c database, first detailed last September, has officially launched. Oracle continues to promise major gains in query speeds and transaction-processing rates relative to a standard database, as well as easy integration with both regular Oracle databases and 3rd-party apps.
    • The launch is aimed squarely at SAP's Hana in-memory database, which saw its sales rise 61% last year to €633M ($855M) and has developed a strong ecosystem.
    • As one might expect, Oracle argues integration with standard 12cand mature database feature set give it an edge - Larry Ellison claims data can be moved in-memory "within minutes." Ellison adds 12c in-memory is only meant to handle active data; all other data is left on cheaper flash memory or hard drives.
    • In April, Microsoft updated its SQL Server database (has gained share against Oracle in recent years) to include in-memory features.
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Company Description
Oracle Corporation develops, manufactures, markets, hosts and supports database and middleware software, application software, cloud infrastructure, hardware system including computer server, storage and networking products and related services.
Sector: Technology
Country: United States