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.
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