Stock crash or no, software giant Oracle late last week said it was sticking to its game plan and that meant more acquisitions.
Oracle's Larry Ellison
Credit: CNET News
"My feeling is we are better positioned than our peers, the other software companies, to do well in tough times," Oracle CEO Larry Ellison said during a question and answer session at Oracle's annual shareholders meeting on Friday in the US.
The company has made more than 50 acquisitions in the last 45 months. Despite the massive stock sell-off in the last few weeks, Ellison said Oracle would try to take advantage of the drop in equity prices to pick up acquisitions on the cheap.
"If times are tough, there are other opportunities ... including making acquisitions that cost less," he said, adding that "acquisitions that we've been looking at for some time are less expensive for us."
While Ellison did not get specific about his plans, he said Oracle would be interested in buying "small companies that are fast-growing" as well as in acquisitions of larger software firms.
The severe battering meted out to technology stocks partly reflected investor concern about a spending falloff by financial firms, traditionally big consumers of IT products and services. Still, Ellison said that he expected Oracle would remain profitable even if times turn tough.
"We've been through this once before when the tech bubble burst ... This is quite different, but this management is experienced," he said. Ellison added that Oracle would emerge from the downturn stronger than before, compared with its rivals.
Meanwhile, fellow board member Michael Boskin, who also is an economics professor at Stanford, let it be known to the audience that yes, this is a downturn, and maybe even worse.
"The economy is in a recession," he said, adding that a "financial panic" has compounded the uncertainty about the duration and impact of a slowdown.
He predicted that unemployment would rise and that it "will be unpleasant" for the next few quarters. But echoing Ellison, Boskin said that Oracle was "far better positioned than any other software company" to deal with the expected reduction in capital spending.
Oracle's stock finished the day at US$16.68, compared with its 52-week low of US$16.
