Oracle Revenues Rise 17% In 3Q - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

IoT
IoT
Software // Operating Systems
News
3/26/2010
02:07 AM
Connect Directly
Twitter
RSS
E-Mail
50%
50%

Oracle Revenues Rise 17% In 3Q

License and maintenance revenues are up; operating margins off slightly as Oracle concludes its third quarter and acquisition of Sun.

With a boost from Sun, Oracle revenues in the third quarter of its fiscal 2010 were up 17% to $6.4 billion. Discounting the contributions of Sun Microsystems, which was merged into Oracle Jan. 26, Oracle's revenues for the quarter were up 7%.

New software license revenues were up 13% or $1.7 billion, including Sun software licenses. Excluding Sun, software license revenues were up 10%, but the total remains $1.7 billion, according to Oracle's earnings report yesterday. Maintenance revenues were up 13% to $3.3 billion, said Jeff Epstein, chief financial officer, in the report.

GAAP net income was down 10% to $1.2 billion; non-GAAP net income was up 9% to $1.9 billion. GAAP earnings per share were $.23, down 11% compared to last year. Non-GAAP earnings per share were up 9% to $.38.

Non-GAAP operating margins in the third quarter were 45%. Oracle reported in its second quarter that its non-GAAP operating margins were 49%, the highest in its history.

"The Sun integration is going even better than expected," said Oracle President Safra Catz in the report. "We believe that Sun will make a significant contribution to our fourth quarter earnings per share as well as meet our profitability goals for next year," she said.

Oracle President Charles Phillips said the Oracle Exadata database machine was Oracle's fastest growing product introduction ever and $100 million in orders are forecast for the fourth quarter. "This strengthens both sales growth and profitability in our Sun server and storage businesses," he said. Oracle CEO Larry Ellison said Oracle's application revenue grew 21% in the quarter, while chief application rival SAP's application revenue declined. "Every quarter we grab huge chunks of market share from SAP. But SAP is well ahead of us in number of CEOs for this year, announcing their third and fourth, while we only had one," said the CEO. SAP named co-CEOs Bill McDermott and Jim Hagemann Snabe last month to replace Leo Apotheker, who resigned Feb. 7.

Oracle's Board of Directors declared a dividend of $.05 per common share to be paid May 5.

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
News
IT Spending Forecast: Unfortunately, It's Going to Hurt
Jessica Davis, Senior Editor, Enterprise Apps,  5/15/2020
Commentary
Helping Developers and Enterprises Answer the Skills Dilemma
Joao-Pierre S. Ruth, Senior Writer,  5/19/2020
Slideshows
Top 10 Programming Languages in Demand Right Now
Cynthia Harvey, Freelance Journalist, InformationWeek,  4/28/2020
White Papers
Register for InformationWeek Newsletters
Video
Current Issue
Key to Cloud Success: The Right Management
This IT Trend highlights some of the steps IT teams can take to keep their cloud environments running in a safe, efficient manner.
Slideshows
Flash Poll