Oracle: Barclays Trims Ests, Target; But Stays Bullish

Barclays Capital software analyst Israel Hernandez this morning trimmed EPS estimates for Oracle (ORCL), while cutting his price target on the stock to $22 from $27. His EPS estimate for the May 2009 fiscal year drops to $1.44 from $1.55; for FY 2010, he goes to $1.55, from $1.76. The new numbers are below the Street at $1.49 and $1.66, respectively.

For FY Q2 ending November, he now sees 33 cents, down from 36 cents, and below the Street at 35 cents.

Hernandez wrote in a research note that the lower estimates reflect - surprise! - the deteriorating macro environment and currency headwinds. He sees ‘09 license growth down 4%; he previously had been expecting 10% growth. But Hernandez says that maintenance growth should provide offset to a decline in new license.

Hernandez asserts that “it is prudent” to lower estimates here, given “lower closure rates” anbd a contraction in IT spending over the next several quarters. He also notes that the current Oracle guidance for Q2 came in mid-September, before the height of the financial and credit crisis.

Nonetheless, he maintains an Overweight rating on the stock.

ORCL today is up 39 cents, or 2.4%, to $16.77.

Source: Eric Savitz @ blogs.barrons.com

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Universities to employ Oracle software program

Vietnam’s education ministry recently signed an agreement with an international software corporation on applying advanced computer science into information technology teaching at a select group of universities.

Under the agreement signed on Tuesday, 25 universities will be able to access the technical curriculum and students can gain exposure to modern software as part of the Oracle Academy program developed by Oracle Corporation.

Students will also have opportunities to develop their business and technology skills, giving them an edge when entering the world labor force in the 21st century, said Ho Thanh Tung, general director of Oracle Vietnam and Indochina, at the signing ceremony in Hanoi.

The agreement was signed between the Administration for Information Technology under the Ministry of Education and Training and Oracle Vietnam Pte. Ltd. – a subsidiary of Oracle Corporation.

The universities participating in the program include Hanoi University of Technology, Da Nang University of Technology, and member schools of Vietnam National University-Hanoi and Vietnam National University-Ho Chi Minh City.

Oracle Corporation is one of the world’s leading software companies. The California-headquartered company specializes in developing and marketing enterprise software products.

Oracle Vietnam was established in 1995 in Hanoi and now has a representative office in HCMC.

Source: www.thanhniennews.com

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Court says Oracle must pay Arizonans by California standards

Arizonans working in California are covered by the Golden State’s overtime laws, according to the U.S. Ninth Circuit Court of Appeals.

The Ninth Circuit said in a ruling in the case Sullivan v. Oracle Corp. that employees living in Arizona and Colorado but working in the company’s home state are subject to California’s employment rules.

Workers had sued Oracle arguing they should receive more compensation based on California’s overtime rules. Oracle contended the employees were subject to compensation laws in their home states.

The Ninth Circuit ruling overturns a California district court decision siding with Oracle.

James Hart, an employment attorney with the law firm Littler Mendelson PC who is familiar with the case, said businesses with California operations need to examine payroll and other practices to make sure they adhere to that state’s overtime and labor laws.

Source: phoenix.bizjournals.com

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