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Oracle lawsuit doesn't slow Rimini Street's momentum

Chris Kanaracus | Jan. 11, 2011
Oracle's lawsuit against Rimini Street is not slowing the smaller company's momentum, as it logged its best-ever performance in the fourth quarter, according to an announcement Tuesday.

FRAMINGHAM 11 JANUARY 2011 - Oracle's lawsuit against Rimini Street is not slowing the smaller company's momentum, as it logged its best-ever performance in the fourth quarter, according to an announcement Tuesday.

Rimini Street provides third-party support for Oracle and SAP applications. Oracle sued the company last January, alleging it essentially recreated the business model of TomorrowNow, a former SAP subsidiary. In November, a jury awarded Oracle a landmark $1.3 billion judgment in a corporate-theft lawsuit the company had brought against SAP and TomorrowNow.

SAP accepted liability for illegal downloads made by TomorrowNow workers. But Rimini Street, which is led by TomorrowNow co-founder Seth Ravin, has vigorously denied any wrongdoing and filed a countersuit against Oracle.

While Oracle's case against SAP has garnered bigger headlines lately, the vendor has been going after Rimini Street with gusto.

For one, Oracle has subpoenaed about 25 of the Las Vegas company's customers, a court filing made late last year in U.S. District Court for the District of Nevada shows.

The subpoenas "seek documents concerning several subjects related to Oracle's claims, such as: how Rimini provides software and support materials to that customer, whether Rimini uses unauthorized crawlers or scrapers to obtain Oracle software for that customer, agreements between the customer and Rimini that Rimini contends in its answer authorize some or all of its conduct, customer login credentials that Rimini used to access Oracle's computer systems, and whether the customer provided Rimini with Oracle source code or installation media," according to the filing.

Oracle has also filed "sunshine act" requests with "44 public entities that may have had significant contact with Rimini," it adds.

Rimini Street investors have also been subpoenaed, according to the filing.

But those actions have appeared to have little effect on Rimini Street's business, with the company logging roughly $7 million in fourth-quarter revenue, a 37% increase year over year and the best quarter in the company's history, according to a statement. Still, the privately held company remains tiny in comparison to Oracle, which recorded $26.8 billion in revenue in its last fiscal year.

Rimini Street's "sales booking backlog" stood at $220 million by the end of the year, and the average contract term grew from nine to 11 years.

Rimini Street also retained more than 95% of its clients, and customer satisfaction rates were 99%, according to the announcement. It reports having more than 400 customers, including 25 members of the Fortune 500.

 

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