I've been a critic of Oracle's
Oracle's third-quarter sales came in at $6.4 billion, a 17% jump year over year. But that includes a month of Sun contributions that weren't there a year ago; when you back that component out, you get a 7% annual boost, because Sun pulled $596 million of revenue back to the Oracle anthill. GAAP earnings per share, where it's entirely fair to include restructuring costs Sun brought to the table because some acquisition indigestion was expected, fell 11% to $0.23 per share.
Sun is expected to contribute to earnings next quarter as Oracle trims some fat. I don't mean cutting back Sun's product lines, but simply making Sun a more efficient operation. Sun used to resell things like Hitachi
Moreover, Sun used to pre-build tons of server systems to have them ready to ship when a customer ordered them, but the new Sun is a build-to-order operation in the classic mold of Dell
So the whole Sun idea seems to be working out OK so far, as Larry Ellison brings a measure of common sense to a sloppy operation. That's one way to unlock value from a buyout. Now let's see if Oracle can keep it up and integrate all of Sun before the clash of the corporate culture titans sets in, right after the honeymoon.
In other news, Oracle management took every opportunity to badmouth software rivals IBM
Will Sun become great once again as part of Oracle -- or not? The comment box is open for discussion.
Fool contributor Anders Bylund doesn't hold a position in any of the companies discussed here. salesforce.com is a Motley Fool Rule Breakers recommendation. The Fool owns shares of Oracle. Try any of our Foolish newsletters today, free for 30 days. You can check out Anders' holdings and a concise bio if you like, and The Motley Fool is investors writing for investors.