Oracle Corp’s stock is on the up after the company reassured Wall Street analysts that its cash flow situation is under control. According to Computer Systems News, Oracle expects to be near a break-even cash flow this quarter, and to be cash positive by the year-end in May. The company reported a $36m loss in the first quarter, and there was speculation that having exhausted a $170m line of credit, it would have to dip into cash reserves of $46m while negotiating a new credit agreement (CI No 1,605). However, keeping a hold on expenses and cutting back on customer credit has restored some confidence in Oracle’s future, and that has been boosted by rumours that an outside party is about to provide additional funding. Larry Ellison, founder and chairman, won’t provide any details on the anonymous investor except to stress it isn’t a hardware manufacturer. There are still some doubting Thomases who believe that Oracle is not addressing its underlying problems, but most commentators agree that Oracle’s market share and product portfolio is a very sound safety net still.
