The Company’s fiscal first quarter results also include a record high sales bookings backlog of $238 million dollars and strong client renewal rates....The Company over-achieved both its new client contract sales target, completing 23 transactions, and its client renewal target in the first quarter. Rimini Street closed new client transactions in each of its Oracle and SAP product lines, and delivered more than $30 million in sales bookings for the quarter. Sales bookings were the most ever for any Q1, at nearly a 100 percent increase on a year-over-year basis, with an average contract term of more than 11 years. First quarter revenue was more than $7.5 million, a new company quarterly revenue record.
Rimini Street remains bullish about prospects for 2011 in picking up disaffected Oracle customers. While its revenue is tiny in comparison to Oracle's gargantuan maintenance stream, Rimini Street should benefit from continuing delays in the general availability of Oracle Fusion and the need for Oracle to assure customers that support for what are now ageing and legacy applications will continue well into the future.
My current understanding of Oracle's position is that Fusion is unlikely to go into general release much before this year's end. Customers on existing products have five years' premium (standard 22%), then three years extended support at an additional 10% of support, i.e. 24.2% for year one and 26.4% for years two and three, then sustaining support back at 22%. EBS is on release 12, the previous release 11.5.10, went into extended support last December. However, the number of customers on the older version were so high Oracle waived the additional fee for the first year, keeping them at 22%.
All of which would suggest that while Oracle would like to see customer move early to Fusion, there is plenty of life left in legacy applications. In turn, those numbers give Rimini Street plenty of opportunity, despite Oracle's best efforts at knocking them out of the game.