Oracle's Friday financials predicted

Oracle’s shareholders and head honchos are sure to be happy on Friday when it releases its quarterly earnings, with predictions that the results will “be pretty good”.

That’s according to Martin Mutch, ex Oracle employee and head of Rocela, who has also told TechEye that the results,due to be issued at the end of this week, will match up to analyst expectations.

He predicts that the company will report around $8.75 billion dollars of revenue, which is around 35 percent growth year-on-year, while shares will also rise.

“All of this is positive considering the issues in Japan and complexities in Oracle’s Sun server business,” he told TechEye.

Oracle’s previous financial figures show the company is sitting tidy. In December it said its turnover had risen 47 percent to $8.58 billion, thanks to a 21 percent increase in software licence sales and the takeover of Sun.

It also made $1.87 billion in quarter two of its 2011 fiscal year and recorded a net profit of $1.35 billion for the previous quarter.

Mutch claims the company’s large enterprise servers will continue to grow, although it won’t be as much as analysts reckon. Mid server growth won’t be as large as the likes of IBM and Dell.

Oracle is also triumphing over HP, which recently missed analyst expectations. The reason behind at least some of its success, according to Mutch, is because Oracle takes on ULA agreements with its clients.

“These are hard to break and come out of, it’s hard for clients to cancel contracts and means Oracle can top up its profits every quarter with these software sales. It smooths out the market more than HP,” Mutch reckons.

He added that Oracle understands how to get clients – it offers big discounts and then once the client is reeled in, it has contracts a client finds it difficult to get out of or it’s made too expensive to leave.

Mark “I did not sleep with that woman” Hurd is also helping along wheelings and dealings. He’s adopted a “much more aggressive approach and jumped on the corporate jet, putting clients under pressure to sign contracts on big deal and giving less discount”.