Oracle beats third quarter estimates with strong software sales


Oracle beats third quarter estimates with strong software sales

Warwick Ashford

Oracle Corporation reported revenues of $9.1bn for the third fiscal quarter, up 3% from the same period the year before, beating analysts' expectations.

Oracle said software license revenues rose 7% to $2.4bn, while analysts expected only 3% growth for the quarter.

Software license updates and product support revenues were up 8% to $4.1bn, but hardware systems product revenues were down 16% to $869m.

Mark Hurd, Oracle president said: “Hardware revenue for our engineered systems grew 139% this quarter and going into Q4, we have a record pipeline.”

Safra Catz, Oracle president and chief financial officer, said Oracle is on track to deliver the highest operating margins in its history in 2012. 

“Oracle can achieve these record margins as an integrated hardware and software company because we are focusing on high margin systems where hardware and software are engineered to work together,” Catz said.

Operating income was up 8%, to $4.2bn; net income was up 13%, to $3.1bn billion; and earnings per share were up 15% to 62 cents – again beating analysts' expectations.

Oracle's results indicated strong demand for software that helps companies organise data and run operations, according to the New York Times.

Oracle shares rose 1.5% in after-hours trading after the earnings report. They had gained 1.1% to $30.10 at the close in New York, leaving them 17% higher than the beginning of the year.

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