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Breaking News - General:

Ellison Points To Grid As Reason For Strong Fourth Quarter

Oracle Corp announced financial results for its fiscal fourth quarter and for its full fiscal year 2004.

Fourth quarter net income increased 15 percent to $990 million, or 19 cents per share, compared to $858 million and 16 cents per share last year. Total revenue increased 9 percent to $3.1 billion in the quarter with software revenue up 12 percent to $2.5 billion, and services revenue down 4 percent to $558 million. The Q4 operating margin was 46 percent, an all time high.

For the full fiscal year 2004 net income was up 16 percent to $2.7 billion while earnings per share increased from 43 cents to 50 cents. Total revenue increased 7 percent to $10.2 billion for the year with software revenue up 12 percent to $8.1 billion while services revenue was down 8 percent to $2.1 billion. Operating margin for the year was 38 percent, also an all time record.

"Operating income was $1.4 billion in the fourth quarter and $3.9 billion for the full year," said Oracle Chairman and CFO Jeff Henley. "That's the best operating profit we've ever delivered; even better than our best year during the Internet bubble. We had a very strong finish to a very good year."

"Since we introduced Grid technology six months ago, our database new license sales have been growing at a rate of 15 percent," said Oracle CEO Larry Ellison. "We're still early on in the adoption cycle but the Oracle 10g database is off to a fast start. The market is just beginning the move to databases and application servers running on Grids of low cost computers and Oracle is leading the way."

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