News

Oracle beats forecasts with $7.59bn quarter earnings

Oracle has reported sales of $7.59bn in the three months ending 31 August, up 50% on the same period the year before and above average analyst forecasts of $7.32bn.

Earnings of 42 cents a share were up 38% on the previous year, beating the forecast average of 37 cents.

Net income rose 20%, new software license sales rose 25% to $1.29bn, sales of new database and middleware licenses rose 32%to $937m, and business applications licensing revenues increased 10% to $349m.

The results restored faith to technology sector investors shaken by Intel's recent revenue shortfall warning, according to the Financial Times.

Oracle's shares rose 4% in extended trading in New York to $26.40.

Oracle's earnings indicate corporate spending has supplanted consumers as the main driver of demand for computers and software, analysts said.

Corporate technology spending will increase 2.9% in 2010 to more than $2.4 trillion, after a 5.9% decline in 2009, according to research firm Gartner.

Chief executive Larry Ellison (pictured) said Oracle had achieved its aim of profitability at Sun Microsystems, which it acquired in January for $7.3bn.

"We can dramatically improve margins and double the top line," chief executive officer Larry Ellison said, without giving a timeframe.

According to analysts, Oracle is counting on hardware to bring growth and is assembling more pre-packaged systems that combine its software with Sun servers.


Email Alerts

Register now to receive ComputerWeekly.com IT-related news, guides and more, delivered to your inbox.
By submitting you agree to receive email from TechTarget and its partners. If you reside outside of the United States, you consent to having your personal data transferred to and processed in the United States. Privacy
 

COMMENTS powered by Disqus  //  Commenting policy