Oracle profits slump but new licences up

Oracle has posted a drop in its second quarter net profits but it says new licence revenues are up.

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.”

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