Oracle Buys Enterprise Performance Management Leader Hyperion Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Aron Schwartz - JPMorgan Chase & Co. - Analyst : Hi, this [Aron Schwartz] for Adam Holt, and thanks for taking my call. My first question is, maybe you could touch a little bit on where you see the clearest opportunities for cost synergies? And particularly, I'm just wondering about how you're looking at integrating the sales teams as you've done a number of different things with front-end transactions Siebel and PeopleSoft?

Question: Aron Schwartz - JPMorgan Chase & Co. - Analyst : Great. And a follow-up question if I could, will you plan to use the cash on your balance sheet to do this? Or, will you look at any changes there?

Question: Aron Schwartz - JPMorgan Chase & Co. - Analyst : Okay, understood. Thanks for taking my questions.

Question: Peter Kuper - Morgan Stanley - Analyst : Great, thanks very much. Charles, maybe specifically for you, I know in prior conversations, presentations, you had mentioned that Oracle had definitely planned to be the leader in BI by the end of the decade, 2010, I believe. As this clearly puts you on the path, does this accelerate that plan? Or, do we need to see a couple of, maybe fill-in acquisitions, to really solidify the opportunity here?

Question: Peter Kuper - Morgan Stanley - Analyst : Okay, great. Thank you.

Question: Heather Bellini - UBS - Analyst : Hi, thank you. This question is for Safra. I just -- this transaction does seem different in that with PeopleSoft and Siebel, I don't think you specifically called out revenue synergies from the beginning. So, I guess the question is here, I think you guys have mentioned in the past, it takes about four to six quarters for the companies -- for the acquisitions you've made to really start contributing to the top line. I was wondering, given the revenue synergies that you're calling out, should we expect it to take less time than that for these companies to kind of rebuild their pipeline, and for the sales force to get refocused as the deal closes?

Question: Heather Bellini - UBS - Analyst : Okay, great.

Question: Heather Bellini - UBS - Analyst : Could I just ask a follow-up then? So, if based on both of your comments, should we assume that you're not going to see the step down in license revenues that -- I guess just using Siebel as a better barometer, like we saw there?

Question: Heather Bellini - UBS - Analyst : Okay, great. Thank you both. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 01, 2007 / 1:30PM, ORCL.N - Oracle Buys Enterprise Performance Management Leader Hyperion

Question: Jason Maynard - Credit Suisse - Analyst : Hey Charles, can you maybe talk a little more about plans for Essbase and how you're going to integrate that into current -- Oracle's current BI offering, both from a sales and product perspective?

Question: Jason Maynard - Credit Suisse - Analyst : And how about from a sales perspective, -- will the BI sales force from Hyperion tie into the Oracle BI overlay group?

Question: Jason Maynard - Credit Suisse - Analyst : Okay, thank you.

Question: Brent Thill - Citigroup - Analyst : Good morning. Just regarding the current overlap in the product suite with Siebel and your current Oracle product, can you just talk about -- I think you mentioned there really is no overlap. I think you have guys have been talking about product here for a while.

Question: Brent Thill - Citigroup - Analyst : And just as a follow-up, can you just talk about the timing of the transaction? There have been some concerns on the street over slowing organic application growth.

Question: Brent Thill - Citigroup - Analyst : Safra, I guess my question was just in terms of the timing of doing the deal now. What were -- were there any particular drivers that drove it to happen now?

Question: Brent Thill - Citigroup - Analyst : Thank you.

Question: Steve Ashley - Robert W. Baird & Co. - Analyst : I'm sorry if this question is redundant, but what products does Oracle offer today in the BI tools segment of the BI market?

Question: Steve Ashley - Robert W. Baird & Co. - Analyst : Perfect, thank you.

Question: John DiFucci - Bear Stearns & Co. - Analyst : Yes. Following up on the question on overlap, what happens to the PeopleSoft EPM product you have and the customer base there? We've been hearing some pretty good things about that product.

Question: John DiFucci - Bear Stearns & Co. - Analyst : Okay, thanks.

Question: Kirk Materne - Banc of America Securities LLC - Analyst : Thanks. Just two questions for Charles, real quickly, Charles, any impact on sort of just Fusion development around with this acquisition? And then second question is, obviously Hyperion has a strong presence in the CFO office. I guess, how important was that to you as you looked at doing this acquisition in terms of being able to get there on your own versus bringing these guys in?

Question: Kirk Materne - Banc of America Securities LLC - Analyst : Thanks, very much.

Question: Kash Rangan - Merrill Lynch - Analyst : Hi, thank you very much. Congrats on the [transaction]. One question for you, Safra, on the financial side, I was just looking at our Hyperion model that got roughly 17%, 18% operating margin. I know that's kind of roughly consistent with the operating margin structure that PeopleSoft, Siebel, and you were able to integrate them without really impacting your margins. What's your strategy to do the same here, because your operating margins are considerably --? Or, I know that you don't think of this as cost reduction merger, but more of a revenue synergy merger. How should we think about the risk profile of your margin structure, especially with an acquisition like this now of [puts and takes]? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 01, 2007 / 1:30PM, ORCL.N - Oracle Buys Enterprise Performance Management Leader Hyperion

Question: Kash Rangan - Merrill Lynch - Analyst : Good. And then for Charles and Godfrey, just a final question, I know that [software analysts who launch] many of these acquisitions, although you guys have done a better job than most software companies, the concern that most investors would have is the ability to retain sales people, marketing people, management from acquired companies, etcetera. How should we think about any special retention plans, especially since you're creating this BI-based sales force that's going to be standalone? What are you doing exactly to retain these people, ensure that they're able to deliver the revenue targets to you guys? Thanks.