Oracle Financial Services Software (532466) Q4 03/04 earnings summary

Executive summary

• FY04 consolidated Indian GAAP revenue rose 28% to Rs 7,881.3 million; net income increased 5% to Rs 1,787.9 million.

• US GAAP revenue rose 26% to Rs 8,053.3 million, while net income was Rs 1,778.5 million versus Rs 1,770.7 million.

• Global reach expanded to 480 customers in 108 countries; 76 new customers were added during FY04.

Financial highlights

• Consolidated Indian GAAP revenue was Rs 7,881.3 million, up 28% YoY; profit before tax reached Rs 2,314.6 million, up 18%.

• Consolidated Indian GAAP net income was Rs 1,787.9 million, up 5% YoY; basic EPS was Rs 24.36 and diluted EPS Rs 23.26.

• US GAAP revenue was Rs 8,053.3 million, up 26%; operating income increased 9% to Rs 2,096.6 million.

• US GAAP net income was Rs 1,778.5 million versus Rs 1,770.7 million; reported basic EPS was Rs 24.24 versus Rs 24.94.

• Standalone Indian GAAP revenue increased 20% to Rs 6,844.6 million, while net income edged up 1% to Rs 1,758.9 million.

Outlook and guidance

• Priorities across financial institutions include core legacy replacement, packaged software, better customer management, operating efficiency, risk controls and IT outsourcing.

• IBM alliance plans to take FLEXCUBE retail banking to WebSphere and DB2 platforms, supporting a push toward Tier 1 and Tier 2 banks.

• Expanded portfolio, global alliances and market penetration were positioned to address demand; no numeric FY05 earnings guidance was stated.