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CLAIM #47265 · ORCL (ORCL) · 2024Q1 earnings call · Sep 11, 2023 · due May 31, 2024

Also on the business side of things, we -- again, we think that Cerner business is going to get stronger and stronger again, Safra made the point.

Lawrence Ellison · Chairman/CTO

CANNOT_DETERMINE
versus commitment · official band 5 percent
Committed
the Cerner business is going to get stronger and stronger again
Reported
it will begin to grow modestly throughout the year in both revenue and operating margin

In context

phase shift to the cloud, we are well on our way. The next is replace feature after feature after feature of the older Cerner system with a new Cerner system, new Millennium, which we are not coding in Java, like we usually do. The new Cerner system is being generated, as you know, generative AI generates code. We have an application generator called APEX. And we are not writing code for the new Cerner. We are generating that code in APEX, and it's going extremely well. Again, one of the great things about code generators is they don't make mistakes. Well, either they make the same mistake over and over again or once you fix the mistake, you fix it everywhere. So the code gen -- we are using a code generator, and to write the new features in Cerner and it's coming along very, very nicely. Also on the business side of things, we -- again, we think that Cerner business is going to get stronger and stronger again, Safra made the point. The old Cerner business you'd sell licenses. You sell a big contract and you get a big chunk of revenue in that quarter. Our new business model, as you know is cloud, so we get a big Cerner award and we get that money now over time rather than all upfront. So that's, if you will, a bit of a revenue headwind, but the Cerner business is doing extraordinarily well. Safra Catz: And on the expense side, we still have a ways to go, but I think it will become more obvious to you next quarter the changes we've made, as they play out through the income statement more clearly. And so you'll have a better comparison, Q2 to Q2, which will be a full non-deal quarter for you to look at. But you know us, we are always looking to save as much as we can, and to spend as little while still really transform

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SEC filings for ORCL · Claim quote is verbatim from the 2024Q1 earnings call.