Oracle Corporation (NASDAQ: ORCL) is an American multinational computer technology corporation that specializes in developing and marketing hardware systems and enterprise software products — particularly database management systems. Headquartered in Redwood Shores, California, United States and employing 105,000 people worldwide as of 1 July 2010,[3] it has enlarged its share of the software market through organic growth and through a number of high-profile acquisitions. By 2007 Oracle had the third-largest software revenue, after Microsoft and IBM.[4]
The corporation has arguably become best-known for its flagship product, the Oracle Database. The company also builds tools for database development and systems of middle-tier software, enterprise resource planning software (ERP), customer relationship management software (CRM) and supply chain management (SCM) software.
As of 2010, Larry Ellison, a co-founder of Oracle Corporation, has served as Oracle's CEO throughout its history. He also served as the Chairman of the Board until his replacement by Jeffrey O. Henley in 2004. On August 22, 2008 the Associated Press ranked Ellison as the top-paid chief executive in the world.
Oracle Corporation is the number one supplier of information management software, and the second largest independent software firm in the world. Government agencies and corporations, large and small, use Oracle's database management software for an ever increasing range of business applications. Oracle also provides an array of services, from product support to consulting and educational tools in its quest to provide innovative global business solutions. Oracle continually updates its proprietary software, researches and develops new applications, and even publishes two magazines--the aptly named Oracle and Profit--to supply its customers with the latest and best data collection and management systems possible.
O’Reilly Automotive, Inc. and its subsidiaries (collectively O’Reilly), incorporated in 1957, are specialty retailers of automotive aftermarket parts, tools, supplies, equipment and accessories in the United States, selling its products to both do-it-yourself (DIY) customers and professional service providers. At December 31, 2010, it operated 3,570 stores in 38 states. Its stores offer products, including new and remanufactured automotive hard parts, such as alternators, starters, fuel pumps, water pumps, brake system components, batteries, belts, hoses, chassis parts and engine parts; maintenance items, such as oil, antifreeze, fluids, filters, wiper blades, lighting, engine additives and appearance products, and accessories, such as floor mats, seat covers and truck accessories. Its stores offer services, including used oil and battery recycling, battery diagnostic testing, electrical and module testing, loaner tool program, drum and rotor resurfacing, custom hydraulic hoses, and machine shops.
O’Reilly’s stores, on average, carry approximately 22,000 stock keeping units (SKUs) and average approximately 7,100 total square feet in size. At December 31, 2010, it had a total of approximately 25.3 million square feet in its 3,570 stores. The Company’s stores offer DIY and professional service provider customers a range of brand name and private label products for domestic and imported automobiles, vans and trucks. It does not sell tires or perform automotive repairs or installations. Its merchandise consists of products, such as AC Delco, Armor All, Bosch, BWD, Cardone, Castrol, Gates Rubber, Monroe, Moog, Pennzoil, Prestone, Quaker State, STP, Turtle Wax, Valvoline, Wagner, and Wix. In addition to name brand products, its stores carry a variety of private label products under its BestTest, BrakeBest, Master Pro, Micro-Gard, Murray and Omnispark, O’Reilly Auto Parts, Power Torque, Super Start, and Ultima brand names. It also added O’Reilly branded chemicals and commodities, as well as private label products to all converted and nonconverted, acquired CSK stores.
The Company competes with AutoZone, Inc., Advance Auto Parts, NAPA, CARQUEST, the Pep Boys- Manny, Moe and Jack, Inc., Bumper to Bumper, Auto Value and Wal-Mart Stores, Inc.
In early 2000 Oracle established multiple joint ventures, including one with Texas-based Entrust Technologies, Inc. for a new database program called Oracle Advanced Security. The program included the latest technological advances in online encryption and authentication. Other partnerships involved Novistar, which teamed up with Oracle to provide broad-based e-business software to the energy industry, and Sears Roebuck & Company and Carrefour S.A. signed with Oracle to produce a worldwide business-to-business e-commerce marketplace for retailers. Called GlobalNet-Exchange, the Internet system was intended to replace the electronic data interchange (EDI) used by retailers. Sears CEO and Chairman Arthur Martinez commented to Women's Wear Daily (February 29, 2000), "This is a revolution in retail. It will forever redefine supply-chain processes, increase collaboration with suppliers and reduce supply-chain costs." Sears and Carrefour owned majority stakes in GlobalNet-Exchange, Oracle held only a minority share of the startup.
Oracle finished fiscal 2000 with revenues of $10.2 billion and earnings at an all-time high of $6.3 billion due to an extra $4 billion from selling shares in Oracle Japan. By the following year, Oracle prospered like its former self of the 1980s with soaring sales, new product releases, and a myriad of new ventures both in the United States and abroad. The company finished the year with sales close to $11 billion and $2.6 billion in earnings.
Courting Controversy: 2002 and Beyond
For the early 2000s Oracle concentrated on doing what it did best: creating new software management systems for the world's businesses. In 2001 the company's Oracle Small Business Suite was considered "Best of the Web" by Forbes magazine; while Pipeline magazine declared Oracle the "Best International IT Company" of the year. Ellison received an award himself in 2002 from the Executive Club of Chicago, which deemed him International Executive of the Year. Honors and awards aside, Oracle was determined to stay at the top of its game; to this end, the company increased its research and development spending from 11 percent in 2002 (just under $1.1 billion on revenues of $9.7 billion) to 13 percent in 2004 (almost $1.3 billion), which it considered "essential to maintaining our competitive position."
Another facet of Oracle's competitive edge was its consulting and educational businesses, which were not faring as well as hoped. Oracle, however, could afford to give these segments time to develop further, since its software division (both new product licensing and updates) continued to bring in the lion's share of revenues at 73 percent for 2002 ($7.1 billion), 76 percent for 2003 ($7.2 billion), and 79 percent ($8.1 billion) for 2004.
In mid-2003 Oracle initiated a hostile takeover of PeopleSoft Inc. for $5.1 billion. The Pleasanton, California-based PeopleSoft, was in the process of acquiring J.D. Edwards & Company and was not amused by Oracle's takeover bid, no matter how attractive the offer. For its part, Oracle raised its offer several times in the succeeding months, to as high as $9.4 billion, only to be met by a storm of controversy. Few, it seemed, save Ellison were in favor of the takeover--shareholders of both firms were unhappy and the Department of Justice got involved over antitrust issues. By the end of 2003, Ellison appeared determined to win the battle whatever the cost. This single-mindedness echoed the hubris of the last decade when Oracle went from being the darling of Wall Street to a pariah. Stock prices fluctuated from a low of $10.53 in the third quarter to a high of $13.26 in the fourth, and year-end revenues fell for the second year in a row to $9.5 billion.
In 2004 most mentions of Oracle were followed by comments over its bid to buy PeopleSoft. Despite the imbroglio, however, it was business as usual. Other innovations included the latest version of its database management software, Oracle 10g, which was released with built-in self-diagnostics and fine-tuning measures. Oracle 10g, like its predecessors, won awards from a number of IT magazines and organizations. Oracle Customer DataHub was also making news as the first program capable of providing a single customer view from several different databanks. In addition, Oracle partnered with Dell Inc. to have its database software bundled with Dell's PowerEdge servers for small and midsized companies, and with bitter rival Microsoft for limited integration between Oracle 10g and Windows.
In late 2004 Oracle was still hoping to bring PeopleSoft into its fold. Not only were there injunctions and suits in the way, but PeopleSoft had poison pill measures in place. While awaiting a resolution, Oracle shuffled its top management by separating the roles of CEO and chairman. Ellison remained chief executive and a director, while Executive Vice-President and CFO Jeff Henley, who had been with the company since 1991, moved up to chairmanship. Further, after three years of falling revenues, Oracle rebounded in fiscal 2004 with sales of $10.2 billion and earnings of $2.7 billion, with stock prices reaching a high of $14.89 in the third quarter to a low of $11.23 in the fourth quarter.
Oracle was in flux in late 2004 and early 2005; acquiring PeopleSoft would add dramatically to its software capabilities but at a very steep price. Oracle already had 55 marketing and sales offices throughout the United States and 70 international locations; if combined with PeopleSoft the assets of the two companies would indeed control a significantly larger portion of the database management and related software markets.
Principal Subsidiaries: Datalogix International, Inc.; Oracle Credit Corporation; Oracle China, Inc.; Oracle Corporation Canada, Inc.; Oracle Corporation Ireland Ltd.; Oracle Corporation Japan; Oracle Corporation United Kingdom Limited (U.K.); Oracle Danmark ApS; Oracle Deutschland GmbH (Germany); Oracle do Brasil (Brazil); Oracle France S.A.; Oracle Corporation South Africa Proprietary Ltd.; Oracle Iberica S.R.L.; Oracle Kft; Oracle Mexico S.A. de C.V.; Oracle Nederland B.V. (Netherlands); Oracle Norge A.S. (Norway); Oracle Portugal Sistemas de Informacao Lda.; Oracle Publishing; Oracle Svenska AB (Sweden); Oracle Systems China (Hong Kong) Limited.
Principal Competitors: IBM Corporation; Microsoft Corporation; Borland Software Corporation; Business Objects S.A.; Cognos Incorporated; Hyperion Solutions Corporation; NCR Corporation; PeopleSoft, Inc.
OVERALL
Beta: 0.42
Market Cap (Mil.): $8,378.38
Shares Outstanding (Mil.): 137.87
Annual Dividend: --
Yield (%): --
FINANCIALS
ORLY.O Industry Sector
P/E (TTM): 20.37 9.56 18.75
EPS (TTM): 21.00 -- --
ROI: 11.28 8.56 1.62
ROE: 14.17 9.34 2.48
Statistics:
Public Company
Incorporated: 1977 as System Development Laboratories
Employees: 41,650
Sales: $10.2 billion (2004)
Stock Exchanges: NASDAQ
Ticker Symbol: ORCL
NAIC: 511210 Software Publishers; 514210 Data Processing Services
Key Dates:
1977: System Development Laboratories, the precursor to Oracle, is founded.
1978: The Oracle Relational Database Manager Program is developed.
1982: Oracle forms its first international subsidiary, Oracle Denmark.
1983: The company becomes Oracle Corporation.
1986: Oracle goes public on NASDAQ and debuts its SQL*Star software.
1987: Oracle ranks as the world's largest database management software company.
1991: The company experiences its first fiscal loss.
1992: Nippon Steel Corporation buys a stake in Oracle Japan; Oracle7 makes its debut.
1997: Network Computer Inc. is established.
1999: Oracle Japan goes public.
2000: Oracle E-Business Suite 11i and Technology Network (OTN) Xchange are introduced.
2001: Oracle's database system is the first to pass nine industry standard security evaluations.
2003: Oracle attempts a hostile takeover of rival PeopleSoft.
2004: Department of Justice files multiple antitrust lawsuits to prevent Oracle's takeover of PeopleSoft.
Name Age Since Current Position
O'Reilly, David 61 2005 Chairman of the Board
Henslee, Gregory 50 2005 Co-President, Chief Executive Officer
Wise, Ted 60 2005 Co-President, Chief Operating Officer
O'Reilly, Lawrence 64 2005 Vice Chairman of the Board
O'Reilly, Charles 71 1999 Vice Chairman of the Board
McFall, Thomas 40 2006 Chief Financial Officer, Executive Vice President - Finance
Shaw, Jeff 48 2004 Senior Vice President - Sales and Operations
Swearengin, Michael 50 2004 Senior Vice President - Merchandise
Johnson, Gregory 45 2007 Senior Vice President - Distribution Operations
Johnson, Randy 55 2010 Senior Vice President - Inventory Management
Lederer, Paul 71 2002 Lead Independent Director
O'Reilly-Wooten, Rosalie 69 2002 Director
Burchfield, Jay 64 1997 Independent Director
Murphy, John 60 2003 Independent Director
Rashkow, Ronald 70 2003 Independent Director
Hendrickson, Thomas 56 2010 Independent Director
Address:
500 Oracle Parkway
Redwood Shores, California 94065
U.S.A.
The corporation has arguably become best-known for its flagship product, the Oracle Database. The company also builds tools for database development and systems of middle-tier software, enterprise resource planning software (ERP), customer relationship management software (CRM) and supply chain management (SCM) software.
As of 2010, Larry Ellison, a co-founder of Oracle Corporation, has served as Oracle's CEO throughout its history. He also served as the Chairman of the Board until his replacement by Jeffrey O. Henley in 2004. On August 22, 2008 the Associated Press ranked Ellison as the top-paid chief executive in the world.
Oracle Corporation is the number one supplier of information management software, and the second largest independent software firm in the world. Government agencies and corporations, large and small, use Oracle's database management software for an ever increasing range of business applications. Oracle also provides an array of services, from product support to consulting and educational tools in its quest to provide innovative global business solutions. Oracle continually updates its proprietary software, researches and develops new applications, and even publishes two magazines--the aptly named Oracle and Profit--to supply its customers with the latest and best data collection and management systems possible.
O’Reilly Automotive, Inc. and its subsidiaries (collectively O’Reilly), incorporated in 1957, are specialty retailers of automotive aftermarket parts, tools, supplies, equipment and accessories in the United States, selling its products to both do-it-yourself (DIY) customers and professional service providers. At December 31, 2010, it operated 3,570 stores in 38 states. Its stores offer products, including new and remanufactured automotive hard parts, such as alternators, starters, fuel pumps, water pumps, brake system components, batteries, belts, hoses, chassis parts and engine parts; maintenance items, such as oil, antifreeze, fluids, filters, wiper blades, lighting, engine additives and appearance products, and accessories, such as floor mats, seat covers and truck accessories. Its stores offer services, including used oil and battery recycling, battery diagnostic testing, electrical and module testing, loaner tool program, drum and rotor resurfacing, custom hydraulic hoses, and machine shops.
O’Reilly’s stores, on average, carry approximately 22,000 stock keeping units (SKUs) and average approximately 7,100 total square feet in size. At December 31, 2010, it had a total of approximately 25.3 million square feet in its 3,570 stores. The Company’s stores offer DIY and professional service provider customers a range of brand name and private label products for domestic and imported automobiles, vans and trucks. It does not sell tires or perform automotive repairs or installations. Its merchandise consists of products, such as AC Delco, Armor All, Bosch, BWD, Cardone, Castrol, Gates Rubber, Monroe, Moog, Pennzoil, Prestone, Quaker State, STP, Turtle Wax, Valvoline, Wagner, and Wix. In addition to name brand products, its stores carry a variety of private label products under its BestTest, BrakeBest, Master Pro, Micro-Gard, Murray and Omnispark, O’Reilly Auto Parts, Power Torque, Super Start, and Ultima brand names. It also added O’Reilly branded chemicals and commodities, as well as private label products to all converted and nonconverted, acquired CSK stores.
The Company competes with AutoZone, Inc., Advance Auto Parts, NAPA, CARQUEST, the Pep Boys- Manny, Moe and Jack, Inc., Bumper to Bumper, Auto Value and Wal-Mart Stores, Inc.
In early 2000 Oracle established multiple joint ventures, including one with Texas-based Entrust Technologies, Inc. for a new database program called Oracle Advanced Security. The program included the latest technological advances in online encryption and authentication. Other partnerships involved Novistar, which teamed up with Oracle to provide broad-based e-business software to the energy industry, and Sears Roebuck & Company and Carrefour S.A. signed with Oracle to produce a worldwide business-to-business e-commerce marketplace for retailers. Called GlobalNet-Exchange, the Internet system was intended to replace the electronic data interchange (EDI) used by retailers. Sears CEO and Chairman Arthur Martinez commented to Women's Wear Daily (February 29, 2000), "This is a revolution in retail. It will forever redefine supply-chain processes, increase collaboration with suppliers and reduce supply-chain costs." Sears and Carrefour owned majority stakes in GlobalNet-Exchange, Oracle held only a minority share of the startup.
Oracle finished fiscal 2000 with revenues of $10.2 billion and earnings at an all-time high of $6.3 billion due to an extra $4 billion from selling shares in Oracle Japan. By the following year, Oracle prospered like its former self of the 1980s with soaring sales, new product releases, and a myriad of new ventures both in the United States and abroad. The company finished the year with sales close to $11 billion and $2.6 billion in earnings.
Courting Controversy: 2002 and Beyond
For the early 2000s Oracle concentrated on doing what it did best: creating new software management systems for the world's businesses. In 2001 the company's Oracle Small Business Suite was considered "Best of the Web" by Forbes magazine; while Pipeline magazine declared Oracle the "Best International IT Company" of the year. Ellison received an award himself in 2002 from the Executive Club of Chicago, which deemed him International Executive of the Year. Honors and awards aside, Oracle was determined to stay at the top of its game; to this end, the company increased its research and development spending from 11 percent in 2002 (just under $1.1 billion on revenues of $9.7 billion) to 13 percent in 2004 (almost $1.3 billion), which it considered "essential to maintaining our competitive position."
Another facet of Oracle's competitive edge was its consulting and educational businesses, which were not faring as well as hoped. Oracle, however, could afford to give these segments time to develop further, since its software division (both new product licensing and updates) continued to bring in the lion's share of revenues at 73 percent for 2002 ($7.1 billion), 76 percent for 2003 ($7.2 billion), and 79 percent ($8.1 billion) for 2004.
In mid-2003 Oracle initiated a hostile takeover of PeopleSoft Inc. for $5.1 billion. The Pleasanton, California-based PeopleSoft, was in the process of acquiring J.D. Edwards & Company and was not amused by Oracle's takeover bid, no matter how attractive the offer. For its part, Oracle raised its offer several times in the succeeding months, to as high as $9.4 billion, only to be met by a storm of controversy. Few, it seemed, save Ellison were in favor of the takeover--shareholders of both firms were unhappy and the Department of Justice got involved over antitrust issues. By the end of 2003, Ellison appeared determined to win the battle whatever the cost. This single-mindedness echoed the hubris of the last decade when Oracle went from being the darling of Wall Street to a pariah. Stock prices fluctuated from a low of $10.53 in the third quarter to a high of $13.26 in the fourth, and year-end revenues fell for the second year in a row to $9.5 billion.
In 2004 most mentions of Oracle were followed by comments over its bid to buy PeopleSoft. Despite the imbroglio, however, it was business as usual. Other innovations included the latest version of its database management software, Oracle 10g, which was released with built-in self-diagnostics and fine-tuning measures. Oracle 10g, like its predecessors, won awards from a number of IT magazines and organizations. Oracle Customer DataHub was also making news as the first program capable of providing a single customer view from several different databanks. In addition, Oracle partnered with Dell Inc. to have its database software bundled with Dell's PowerEdge servers for small and midsized companies, and with bitter rival Microsoft for limited integration between Oracle 10g and Windows.
In late 2004 Oracle was still hoping to bring PeopleSoft into its fold. Not only were there injunctions and suits in the way, but PeopleSoft had poison pill measures in place. While awaiting a resolution, Oracle shuffled its top management by separating the roles of CEO and chairman. Ellison remained chief executive and a director, while Executive Vice-President and CFO Jeff Henley, who had been with the company since 1991, moved up to chairmanship. Further, after three years of falling revenues, Oracle rebounded in fiscal 2004 with sales of $10.2 billion and earnings of $2.7 billion, with stock prices reaching a high of $14.89 in the third quarter to a low of $11.23 in the fourth quarter.
Oracle was in flux in late 2004 and early 2005; acquiring PeopleSoft would add dramatically to its software capabilities but at a very steep price. Oracle already had 55 marketing and sales offices throughout the United States and 70 international locations; if combined with PeopleSoft the assets of the two companies would indeed control a significantly larger portion of the database management and related software markets.
Principal Subsidiaries: Datalogix International, Inc.; Oracle Credit Corporation; Oracle China, Inc.; Oracle Corporation Canada, Inc.; Oracle Corporation Ireland Ltd.; Oracle Corporation Japan; Oracle Corporation United Kingdom Limited (U.K.); Oracle Danmark ApS; Oracle Deutschland GmbH (Germany); Oracle do Brasil (Brazil); Oracle France S.A.; Oracle Corporation South Africa Proprietary Ltd.; Oracle Iberica S.R.L.; Oracle Kft; Oracle Mexico S.A. de C.V.; Oracle Nederland B.V. (Netherlands); Oracle Norge A.S. (Norway); Oracle Portugal Sistemas de Informacao Lda.; Oracle Publishing; Oracle Svenska AB (Sweden); Oracle Systems China (Hong Kong) Limited.
Principal Competitors: IBM Corporation; Microsoft Corporation; Borland Software Corporation; Business Objects S.A.; Cognos Incorporated; Hyperion Solutions Corporation; NCR Corporation; PeopleSoft, Inc.
OVERALL
Beta: 0.42
Market Cap (Mil.): $8,378.38
Shares Outstanding (Mil.): 137.87
Annual Dividend: --
Yield (%): --
FINANCIALS
ORLY.O Industry Sector
P/E (TTM): 20.37 9.56 18.75
EPS (TTM): 21.00 -- --
ROI: 11.28 8.56 1.62
ROE: 14.17 9.34 2.48
Statistics:
Public Company
Incorporated: 1977 as System Development Laboratories
Employees: 41,650
Sales: $10.2 billion (2004)
Stock Exchanges: NASDAQ
Ticker Symbol: ORCL
NAIC: 511210 Software Publishers; 514210 Data Processing Services
Key Dates:
1977: System Development Laboratories, the precursor to Oracle, is founded.
1978: The Oracle Relational Database Manager Program is developed.
1982: Oracle forms its first international subsidiary, Oracle Denmark.
1983: The company becomes Oracle Corporation.
1986: Oracle goes public on NASDAQ and debuts its SQL*Star software.
1987: Oracle ranks as the world's largest database management software company.
1991: The company experiences its first fiscal loss.
1992: Nippon Steel Corporation buys a stake in Oracle Japan; Oracle7 makes its debut.
1997: Network Computer Inc. is established.
1999: Oracle Japan goes public.
2000: Oracle E-Business Suite 11i and Technology Network (OTN) Xchange are introduced.
2001: Oracle's database system is the first to pass nine industry standard security evaluations.
2003: Oracle attempts a hostile takeover of rival PeopleSoft.
2004: Department of Justice files multiple antitrust lawsuits to prevent Oracle's takeover of PeopleSoft.
Name Age Since Current Position
O'Reilly, David 61 2005 Chairman of the Board
Henslee, Gregory 50 2005 Co-President, Chief Executive Officer
Wise, Ted 60 2005 Co-President, Chief Operating Officer
O'Reilly, Lawrence 64 2005 Vice Chairman of the Board
O'Reilly, Charles 71 1999 Vice Chairman of the Board
McFall, Thomas 40 2006 Chief Financial Officer, Executive Vice President - Finance
Shaw, Jeff 48 2004 Senior Vice President - Sales and Operations
Swearengin, Michael 50 2004 Senior Vice President - Merchandise
Johnson, Gregory 45 2007 Senior Vice President - Distribution Operations
Johnson, Randy 55 2010 Senior Vice President - Inventory Management
Lederer, Paul 71 2002 Lead Independent Director
O'Reilly-Wooten, Rosalie 69 2002 Director
Burchfield, Jay 64 1997 Independent Director
Murphy, John 60 2003 Independent Director
Rashkow, Ronald 70 2003 Independent Director
Hendrickson, Thomas 56 2010 Independent Director
Address:
500 Oracle Parkway
Redwood Shores, California 94065
U.S.A.