Oracle Financial Services Software (532466) Q4 04/05 earnings summary

Executive summary

• FY05 consolidated Indian GAAP revenue rose 44% to ₹11,385.9 million; net income increased 30% to ₹2,324.3 million. Services growth and international expansion drove the year.

• Served 544 customers in 112 countries; total workforce reached 4,747, with 2,540 professionals added during the year.

Financial highlights

• Consolidated Indian GAAP revenue was ₹11,385.9 million, up 44% YoY; income before tax rose 28% to ₹2,951.4 million.

• Consolidated Indian GAAP net income increased 30% to ₹2,324.3 million from ₹1,787.9 million; EPS was ₹31.08 basic and ₹30.16 diluted.

• US GAAP consolidated revenue rose 42% to ₹11,404.4 million; net income was ₹2,031.4 million versus ₹1,778.5 million.

• US GAAP operating income increased 16% to ₹2,433.0 million; basic EPS was ₹27.34 and diluted EPS ₹26.48.

Outlook and guidance

• Financial institutions’ focus on legacy-system replacement, packaged applications, customer management, outsourcing and regulatory compliance was expected to support IT demand.

• FLEXCUBE, Basel II and risk/compliance offerings, combined with PrimeSourcing, were positioned to address anticipated demand for core banking modernization and regulatory technology.

• Expansion needs were expected to be funded by operating cash flow and remaining IPO proceeds; management considered foreseeable working-capital and capital needs covered.