Thursday, September 23, 2004
Oracle bullish on China after "record" quarterly sales
Reuters Shanghai, September 23
Oracle Corp, the world's number two software company, said it expected strong growth in China this year after "record" first quarter sales, days after a rival said Oracle's business in the country had "disintegrated".
"As far as China is concerned, our business has never been stronger," Oracle's Asia-Pacific executive vice-president, Derek Williams told reporters on a conference call on Thursday.
China is Oracle's third-biggest market and the fastest-growing in the Asia-Pacific, after Japan and South Korea. The firm has said record growth could make China its number two market in the region within three years.
Williams was responding to SAP AG's Greater China chief Klaus Zimmer, who told the Reuters Asia Tech Summit on Monday that Peoplesoft and Oracle had vanished as major rivals in the Chinese market due to their messy takeover battle.
"Whichever way you look at it, we're the clear leader in the core technology business. I think our business has never been stronger in China," Williams said.
"We're looking forward to a strong year there."
China's untapped potential is a magnet for foreign software firms despite problems with software piracy and intense competition with local rivals such as Kingsoft International Software.
Software sales on the mainland are forecast to hit $30.5 billion by 2005, according to consulting firm International Data Corp.
Revenues for the Asia Pacific region rose 11 per cent from a year earlier to $346 million in the first quarter ended August 31, and accounted for 16 per cent of global revenues, Williams said. The company does not divulge China figures.
© HT Media Ltd. 2004.