Database Giant Oracle’s strategic interest is in building out its communications vertical market offering, particularly in voice over IP with upcoming demand for LTE, rather than signaling any intention to enter the software defined networking space in competition with Cisco or Juniper. Oracle already delivers database, infrastructure software and applications software to the telecom vertical. Oracle is usually opportunistic in its acquisitions, and further details on why this acquisition is taking place at this particular time may become clear with disclosures upcoming in the proxy statement.
With the acquisition announcement, Acme Packet reported 4Q numbers that beat expectations for both product and total revenues. For the full year, product revenues declined 17%, while total revenues were down 11% over the prior year. For 2012, ACME Packet had a gross margin of 82% and an operating margin of 19%. The Street was modeling 9% revenue growth for CY-13.
The Oracle – Acme deal is expected to close in the first half of the year.