Oracle has posted a drop in its second quarter net
profits but it says new licence revenues are up.
The company reported a 19% year-on-year increase in sales for
the quarter of £3.3bn (£1.95bn). But quarterly net profits dropped
2% to $798m (£450m).
The shortfall was partly down to currency fluctuations affecting
the dollar, said the company. Second quarter total software
revenues were up 18% to $2.6bn (£1.5bn).
New database and middleware licence revenues were up 5% to $785m
(£445m), while new applications licence revenues jumped 24% to
$266m (£150m). Services revenues were up 26% to $675m (£380m).
“In spite of currency moving during the quarter nearly 5% in the
wrong direction, we reported revenues of $3.4bn [£1.9bn],” said
Oracle president and CFO Safra Catz. “Our subscription base is now
over 300,000 contracts with a total annual value of $7.3bn
[£4.2bn].”
Oracle CEO Larry Ellison said the PeopleSoft integration with
Oracle since the acquisition was going well.
Ellison said, “Since our acquisition, customers running
PeopleSoft products have registered substantially improved
satisfaction levels. As a result those customers are now renewing
their support contracts at a higher rate than when PeopleSoft was a
standalone company.
“Nobody predicted that. They're happy; we're happy.”