PeopleSoft costs slash Oracle third quarter profits

MyCustomer.com

Oracle won the battle for PeopleSoft, but there's a price to be paid as it saw when its fiscal third-quarter earnings were dragged down by its bitterly $10.3-billion takeover of the rival software firm.

Charges related to that purchase, which closed in January, pushed net income down 15 per cent to $540 million in the quarter ended Feb. 28 from $635 million a year earlier. Boosted by PeopleSoft sales, revenue rose 18 per cent to $2.95 billion.

CEO Larry Ellison was upbeat about Oracle's ability to grow and compete. "Solid growth in our database business has enabled Oracle to take market share from IBM all year long," Ellison said. "Oracle's gain in market share highlights the accelerating acceptance of Oracle as replacements for IBM mainframes."

Meanwhile Oracle's chief financial officer Harry You has quit after less than a year in the job to become chief executive of BearingPoint. Safra Catz, Oracle's co-president, will act as CFO until a replacement is hired.

"We wish Harry good fortune in his new job," said Ellison.

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