Rimini chief executive Seth Ravin must pay $14 million out of the total damages.
As noted previously, Rimini's future could have rested on the trial. In any case, the verdict is likely to be appealed. As of March 31, 2014--the last date of Rimini Street's regulatory filings for an IPO--the company had $12.4 million in cash and equivalents.
Earlier on Tuesday, Rimini Street said it delivered $30.8 million in third quarter revenue, up 38 percent from a year ago, with 1,164 signed clients. Deferred revenue in the quarter topped $89 million.
The trial wasn't about the legality of third party support. Maintenance and support are a cash cow for Oracle and SAP and players like Rimini are a big threat. Oracle was seeking $245.9 million in damages based on customers that defected to Rimini. Rimini countered that damages should be more like $10 million based on the value of the licenses.
Oracle spokesperson Deborah Hellinger said in a statement: "This decision against Rimini Street and Seth Ravin reinforces long established rules of fairness and honesty in business and the principles protecting investments in innovation. Oracle is committed to delivering outstanding support services for our products to enable our customers' success and we look forward to the next stage of our legal proceedings with Rimini Street."
Rimini Street's Ravin countered with his own statement:
We were pleased to finally get our day in court. As Oracle and Rimini Street agree, there is no dispute that third party support for enterprise software is permitted for Oracle licensees to purchase and for Rimini Street to offer. This case was about a good-faith license dispute regarding processes no longer in use. The global Rimini Street team remains focused on providing excellent service to our clients, innovating the enterprise support industry and expanding our worldwide service capabilities
Correction: Fixed cash figure from billion to million.