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Oracle Set To Announce Q4 Earnings After Closing Bell

ORCL 062508

Software giant Oracle Corp. (ORCL) is scheduled to report its fourth quarter financial results after the close of trading on Wednesday, with the company expected to report earnings growth compared to the same quarter last year.

The company's financial results will be examined closely, as investors will look at Oracle's for an indication of which direction the technology sector is heading.

Analysts expect the company to report a profit of $0.44 a share, up from last year's $0.37 per share. Analysts also anticipate the company to report revenue in between $6.63 billion and $7.07 billion, with an average estimate of $6.86 billion.

In late March, Oracle reported third quarter earnings that rose 30% from last year, helped by strong growth in database and middleware new software license sales and higher revenues from software license updates. The company's quarterly earnings per share, excluding items, came in line with analysts' expectations but its quarterly revenue fell short of analysts' forecast.

The world's largest enterprise software company reported net income for the third quarter of $1.34 billion or $0.26 per share, compared to $1.03 billion or $0.20 per share for the year-ago quarter and $1.30 billion or $0.25 per share for the previous quarter.

Excluding acquisition costs, employee stock option expense, amortization of intangible assets and other items, net income for the third quarter was $1.59 billion or $0.30 per share, compared to $1.30 billion or $0.25 per share in the prior year quarter and $1.61 billion or $0.31 per share for the prior quarter.

On average, 20 analysts polled by First Call / Thomson Financial expected the company to earn $0.30 per share for the third quarter.

Earlier this week, Oracle revealed that it agreed to acquire Skywire Software. The acquisition was made to obtain Skywire's insurance software and document management business applications.

In late April, Oracle closed its deal to acquire BEA Systems Inc. (BEA). BEA Systems received shareholder approval for the proposed merger with Oracle earlier that month.

Oracle went forth with the merger with expectations that the addition of BEA products and technology will significantly enhance and extend its Fusion middleware software suite.

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