Tuesday, March 16, 2010

Sun boost to Oracle assuages fears

Since Oracle’s acquisition of Sun Microsystems, speculation over the future of the company has been intense, but new figures released in February have gone a long way to calming fears over future business for Sun.

Oracle CEO Larry Ellison pledge in January 2009 that Sun would contribute to both Oracles top and bottom lines. Despite competition from IBM, that promise appears to be on track.

Oracle has already benefited from Sun by $636 million according to USB analyst Brent Thill. Further UBS analysis claims that Sun has the potential to yield up to $0.15 in EPS if Oracle continues to utilise its new subsidiary well. Growth is expected to be slow and steady, with Sun predicted to bring in £2.2 billion in the second and third quarters, $2.3 billion by November, $2.4 billion in February next year, and $2.6 billion in May 2011.

In January, Oracle spokesman Charles Phillips announced that Oracle would pump $1.5 billion into research and development in order to maintain Sun Microsystems’ success.

No comments: