Oracle’s most recent quarterly earnings must offer some insight on how government and corporate grants have been affected by the re-election of President Barack Obama. The results will also shed light on the worries surrounding the fiscal cliff that is looming over the US economy currently.
The quarterly results will be covering three months ending on 30th November.
Oracle will be the first major technology company to report how it has been doing with business customers after the presidential election on 6th November and the starting of negotiations to crack a deal that would stop triggering high rates of tax and automatic government expenses cuts starting on 1st January. The phantom of higher taxes together with reductions in government budgets is being called the fiscal cliff that has the potential of pushing the unstable US economy into recession.
Oracle specializes in business software. It has given its word to its shareholders that its fiscal second quarter would be better than the first quarter figures that were revealed in September. Revenue had gone down during the first quarter, raising fears that big companies and government enterprises were becoming thrifty amid the economic improbability.
FactSet had polled analysts in which they have expressed anticipation of a modest improvement in the latest quarter. Revenue has gone up 2% from the same time the previous year to $9 billion. Not taking into account the charges of Oracle for past acquisitions and other costs, analysts are anticipating that the company will earn 61 cents per share.
Oracle’s executives have guaranteed investors in September that the speed of business would increase towards the end of 2012. The company has predicted its software licenses and online memberships that were sold during the second quarter will shoot up by 5% from what it was a year back. Growth of licensing is considered important since it creates a flow of future revenue from software updates and maintenance.