Oracle Corp ORCL
Q3 2013 Earnings Call Transcript

Transcript Call Date 03/20/2013

Operator: Good day, everyone and welcome to today's Oracle Corporation Quarterly Conference Call. Today's conference is being recorded.

At this time, I would like to introduce Ken Bond, Vice President of Investor Relations, Oracle. Please go ahead sir.

Ken Bond - IR: Thank you, Elizabeth. Good afternoon, everyone and welcome to Oracle's third quarter fiscal year 2013 earnings conference call. A copy of the press release and financial tables, which includes a GAAP to non-GAAP reconciliation and other financial information can be viewed and downloaded from our Investor Relations website.

On the call today are Chief Executive Officer, Larry Ellison; President and CFO, Safra Catz; and President, Mark Hurd.

As a reminder, today's discussion will include forward-looking statements including predictions, expectations, estimates, or other information that might be considered forward-looking. Throughout today's discussion we will present some important factors relating to our business, which may potentially affect those forward-looking statements. These forward-looking statements are also subject to risks and uncertainties that may cause actual results to differ materially from statements made today.

As a result, we caution you against placing undue reliance on these forward-looking statements and we encourage you to review our most recent reports including our 10-K and 10-Q, and any applicable amendments for a complete discussion of these factors, and other risks that may affect our future results or the market price of our stock.

Finally, we are not obligating ourselves to revise our results or publicly release any revisions of these forward-looking statements in light of new information or future events. Before turning to questions, we'll begin with a few prepared remarks.

With that, I'd like to turn the call over to Safra.

Safra A. Catz - President and CFO: Thanks Ken. I'm going to focus on our non-GAAP results for Q3. I'll then review the guidance for Q4 and turn the call over to Mark and Larry for their comments.

While our overall business remains very healthy and we saw excellent pipeline growth, we're not at all pleased with our revenue growth this quarter. Though it didn't help that our quarter ended on the same day as the sequester deadline, what we really saw is the lack of urgency we sometimes in the sales force as Q3 deals fall into Q4.

Since we've been adding literally thousands of new sales reps around the world, the problem was largely sales execution especially with the new reps as they ran out of runway in Q3. As expected, many of the pushed out deals have already closed.

Our product portfolio is as strong as it has ever been and we won more than our fair share of deals. Our discussions with customers continue to be elevated to the most strategic level. There is a lot of enthusiasm around our leadership in software, engineered systems, and our real world approach to mixed public-private cloud deployment.

Looking forward, we're encouraged by the tremendous pipeline growth, but clearly we have work to do in training new reps on managing the sales process and the importance of establishing a quarterly rhythm with their deals. As such, I'll be conservative in my Q4 guidance, even though Q4 is the quarter the sales force is, in fact, geared to.

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