Google Says It Doesn’t Owe Oracle More Than $8 Billion in Damages

The ongoing copyright battle between Google GOOG -0.74% and Oracle ORCL -0.15% is more contentious than ever, now that there’s a price tag.

In a recent court filing, Google objected to an independent assessment that could value damages owed to Oracle at nearly $9 billion, according to Bloomberg. The 6-year-long court battle is set to go before a jury in May.

The lawsuit concerns whether Google should be allowed to use parts of Oracle’s Java software under fair use. The more than $8.8 billion that Oracle is claiming was estimated from profits that Google has made from Android, which integrates Java into its operating system.

In a court filing Wednesday, Google urged the U.S. district judge in San Francisco to disregard the court-appointed expert’s assessment, “as unreliable opinion testimony that is divorced from the guidance of copyright law, and is highly likely to mislead and confuse,” Bloomberg reported.

The multi-billion-dollar damages Oracle is seeking are worth even more than it cost the company to buy Sun Microsystems, which developed Java.

The case heads to district court after Google’ petition to be heard by the Supreme Court was rejected last year.

What Analysts Are Saying About Oracle’s Upcoming Earnings

Oracle To Report Quarterly Earnings

Changing customer purchasing habits and the rise of the cloud may cause revenue to decline.

Oracle is slated to report earnings for its fiscal third quarter of 2016 on Tuesday, and analysts aren’t expecting much.

Amid changing customer purchasing habits and the rise of cloud computing, the business technology giant—along with other legacy enterprise companies like IBM IBM 0.03% and Hewlett Packard Enterprise HPE 0.99% —has seen its sales slump in recent years. Analysts expect that trend to continue when Oracle ORCL 2.14% gives its investors an update on its financials.

Oracle is expected to report earnings of 62 cents per share on $9.13 billion in revenue, according to analyst estimates. This a bit of a drop from the 68 cents per share on $9.3 billion in sales that the company reported last year during its third quarter.

Oracle derives the bulk of its sales on its database technology, but as Fortune reported in December, that business unit has seen its sales flatten year over year.

To compensate, the company has been busy building up its cloud computing business unit, which the company said earned $652 million during its second quarter, representing a 30% year-over-year increase.

On Monday, JMP Securities issued a research report on Oracle’s upcoming earnings and noted that although Oracle’s cloud business is seeing progress, its overall business still facing significant challenges from the big cloud-computing providers like Amazon AMZN -1.32% and Microsoft MSFT -2.31% .

From the JMP Securities report:

Stepping back, we believe Oracle’s problem is this: while it is seeing strong growth in its SaaS cloud applications, demand is shifting away from its database, middleware, and hardware businesses as enterprises move workloads out of corporate data centers and into cloud infrastructure vendors like Amazon Web Services (AWS) and Microsoft Azure.

The JMP Securities research report echoes a recent analyst report issued last week from the financial firm Nomura. Nomura analyst Frederick Grieb wrote, “While metrics for cloud revenue growth have been solid, investors remain concerned by what the potential cost will be to the legacy business, as well as the potential impact to margins during the transition.”

Still, not everyone is down on Oracle.

According to a Monday report in TheStreet, Evercore Partners analyst Kirk Materne recently upgraded the company to “buy.” Unlike the other analysts, he believes that Oracle’s cloud business will grow quickly enough to “more than offset any weakness in the company’s legacy software license business when projecting out to fiscal 2017,” said the report.

Will Oracle Corporation’s $13 Billion Buyback Plan Pay Off?

Last month, Oracle (NYSE: ORCL ) shocked the investing world as longtime Chairman and CEO Larry Ellison announced a huge corporate shakeup, vacating the CEO spot in favor of co-chief executives Mark Hurd and Safra Catz. Between the shift in the C-suite and the company’s disappointing financial results for the quarter, most analysts paid little attention to Oracle’s announcement that it had authorized a stock repurchase plan under which it could spend as much as $13 billion on its shares. Given the software giant’s struggles in the industry, though, some wonder whether buybacks are the best use for Oracle’s capital. Let’s take a look at Oracle’s past share repurchases and whether the new buyback plan is likely to pay off.

Has Oracle done a good job with its past buybacks?

When you look back 10 years, you can see that Oracle has done a pretty good job of timing its buybacks. Major repurchases in 2005 and 2006 took advantage of relatively low share prices immediately before a run-up that resulted in Oracle stock doubling, and the company also took advantage of the 2008 bear market to increase its buybacks as well.

Since the financial crisis, Oracle has also been sensitive to its share price in timing buybacks. Huge increases to buyback activity in 2012 came at a time of weakness for the stock. In fact, this most recent repurchase authorization is a departure from past practice as it comes when the stock has been strong.

Should Oracle actually spend its money on buybacks?

A big stock buyback can help drive share prices up in the short run. But if they lead to less money being available for internal growth, then buybacks can backfire.

Recently, Oracle has faced some major challenges. Growth in revenue has slowed to a standstill in recent years, in stark contrast to software rival Microsoft (NASDAQ: MSFT ) and its stronger sales growth since 2010. Moreover, even though Oracle still sports high gross margins, they’ve also largely stopped climbing, even as IBM (NYSE: IBM ) has pushed its own margins higher by refocusing its efforts on more lucrative business segments.

One obvious area that Oracle could emphasize is its presence in cloud computing. The cloud segment is one of Oracle’s fastest-growing market niches, but it also gets just a tiny amount of its overall revenue from the cloud. Compared to the pace at which IBM and Microsoft have shifted their attention to cloud-based solutions, Oracle has been slowing coming out of the starting block. By acquiring hospitality- and retail-industry technology provider MICROS Systems for about $5 billion, Oracle hopes to jump-start its cloud business. Buybacks don’t appear to be hampering Oracle’s acquisition efforts.

Moreover, despite an increase in debt over the past couple of years, Oracle still has a healthy balance sheet with plenty of cash and short-term investments on hand. Even with a large buyback program, Oracle should still have a full range of potential strategic options at its disposal should the right opportunities arise.

Should Oracle boost its dividend?

Another option Oracle would have to return capital to shareholders would be to pay a dividend. With a current yield of just 1.3%, Oracle looks stingy from an income perspective compared to Microsoft, IBM, and other large tech companies.

Still, Oracle has made big strides on the dividend front since making its first payout in 2009. Since then, the company has more than doubled its quarterly dividend payments. Yet one thing the company hasn’t embraced is the practice of regularly increasing its dividend every year. Ellison’s huge stake in the company explains some of that reluctance, given the tax impact of dividends on his portfolio. Yet at least small dividend increases would be enough to satisfy many investors.

Will Oracle’s buyback pay off?

The key to remember with this latest buyback authorization is that Oracle doesn’t have to repurchase shares if it doesn’t want to. If the stock keeps climbing, Oracle might be better off leaving its authorized funds untouched, especially in light of the overall market’s shakiness. If a broad correction hits Oracle shares, though, following through on the buyback at that point could be hugely profitable.

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One Put, One Call Option To Know About for Oracle


As a result, one of the most popular criteria that people enter your list of stock options Stock options channel is 0.4% ORCL Oracle Corp. ( NYSE: ORCL ) . So this week we report an interesting contract of sale contract and an interesting call from December to ORCL maturity.
The contract of sale YieldBoost our algorithm identified as particularly interesting, in the year is $ 33, which is an offer at the time of writing 81 cents. Compiling the prize flow and return is 2.5% for the commitment of $ 33, or 3.7% annualized rate of return (which we call channel YieldBoost Stock Options).

Selling a put option gives the ‘ investors’ access is not a potential upside of owning shares would ORCL road, because the seller only sale ends shares held on the stage in which the contract is exercised. So, unless Oracle Corp. saw its shares fall 18% and a contract is exercised (resulting in a cost basis of $ 32.19 per share , gross of brokerage commissions , subtracting 81 cents to $ 33 ), the only positive aspect of this seller information is from the collection of the premium for the annualized rate of return of 3.7% .
It is interesting to note that the 3.7 % annualized actually exceeds the 1.2% annual dividend paid by Oracle Corp. 2.5%, based on the current share price of $ 40.22. Yet, if an investor was to purchase the shares at the market price in order to collect the dividend, no serious drawback because the ‘ action is expected to fall 18:01 % at the exercise price of $ 33.

Always important when it comes to dividends is that, in general, dividend amounts are not always predictable and tend to follow the ups and downs of profitability of each company. In the case of Oracle Corp., looking at the chart of historical dividend ORCL below can help in judging whether the most recent dividend is likely to continue, and in turn whether it is a reasonable expectation to expect a 2 % annualized 1 dividend yield.

Trying to increase their income beyond the ‘ action back 1.2 % : Across the option string , called a contract of particular interest to the deadline of December , the shareholders of Oracle Corp. ( ORCL NYSE) stand dividend annualized. The sale of covered call around the year of $ 45 and collect the prize based on the offer of $ 1.12 ; annualizes at an additional rate of return of 4.2% compared to the current price (this is what options YieldBoost refer to as the Canal ) , for a total of 5.4 % annualized in the scenario where the action is not called away. Any increase above $ 45 would be lost if the stock goes up there and was forced to leave, but ORCL shares would increase by 11.8% compared to current levels for that to happen, which means that in the scenario the stock is called, the ‘ shareholder has earned a return of 14.6% from this level of trade, as well as dividends received before the name of the mother.

The following table shows the last twelve months of trading history for Oracle Corp., highlighting in green where the $ 33 strike on the story , and highlighting the year of $ 45 in red:

The table above and the historical volatility of the action, can be a useful guide in conjunction with fundamental analysis to assess whether the December sale or sale of options present in this article provide a rate of return that is a good reward to risk. Volatility estimate twelve months after Oracle Corp. (considering the last 251 days of negotiation ORCL historical stock prices using the closing values , as well as the current price of $ 40.22) 21%.

In trading on Monday afternoon, the sales volume of the S & P 500 was 648 750 contracts of components, with a call volume to 1.19 m, for a put: call ratio of 0.55 for the day today. Compared to the long-term average selling: call ratio of 0.65, which represents a very high volume of calls relating to the put; In other words, buyers prefer to call options trading today.

Oracle 1z0-209 Oracle Sample Question


Which of the following statements about Facility Modules is FALSE?

A. Portal Standard FMs are customizable
B. FMs are linked to the CM
C. Portal Policy FMs contain opcodes that implement Portal business logic
D. Portal Policy FMs are customizable
E. New FMs called Custom FMs can be created

Answer: A


Which of the following statements about a Product object in Portal pricing is TRUE?

A. Each event in a Product can only be mapped to one rate plan
B. An Item Product can contain the Cycle Forward Monthly Event
C. Default priority for a product is 1
D. The higher the priority number, the higher the priority is for that product
E. A and C

Answer: D