Oracle’s 2013 revenue flat, operating profitability up

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Oracle’s 2013 revenue flat, operating profitability up

Brian McKenna

Oracle’s end of fiscal year 2013 revenues of $37bn were flat compared with 2012, but the supplier indicated a record operating margin of 47%.

Oracle also announced a quarterly cash dividend of 12 cents per share of outstanding common stock, doubling the current quarterly dividend of six cents.

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Its third quarter total sales were down 1% to $9bn, compared with Q3 in its last financial year. But operating profitability was, in that quarter, up and free cash flow in good shape

GAAP [generally accepted accounting principles] total revenues for fiscal year ending 2013 were $37.2bn, non-GAAP revenues $37.3bn.

On the bottom line, GAAP net income was up 9% to $10.9bn, while non-GAAP net income was up 3% to $13.0bn. The supplier has, it said, doubled its dividend to shareholders.

GAAP new software licenses and cloud software subscriptions revenues were up 4% to $10.3bn, while non-GAAP revenues in the cloud category were up 4% to $10.4bn.

GAAP software license updates and product support revenues were up 6% to $17.1bn, while non-GAAP revenues were up 6% to $17.2bn.

Hardware systems products revenues were $3.0bn. GAAP operating income was up 7% to $14.7bn, and GAAP operating margin was 39%. Non-GAAP operating income was up 2% to $17.6 billion, and non-GAAP operating margin was 47%.

Ellison looks to hardware

Oracle CEO, Larry Ellison said: “Exadata, Exalogic,Exalytics, SPARC SuperCluster and our other engineered systems grew at a rate of 45% in Q4 as we took considerable market share from our primary competitor – IBM P-Series – which declined 32% in their most recent quarter.

“We sold over 1,200 engineered systems in the quarter and over 3,000 during the year. Our fast growing engineered systems business is now more than one-third of our overall hardware business which is one of the reasons we believe hardware will be a growth story in Oracle’s FY14”.

Oracle President and CFO, Safra Catz said, in a statement: “A record level non-GAAP operating margin of 47% in FY13 enabled us to generate over $14bn in operating cash flow during the year.

“We returned almost 90% of that to shareholders through dividends and share repurchases while increasing the cash on our balance sheet to $32bn. Consistently increasing our margins, cash flow and cash balance has allowed us to double our current quarterly dividend.”

Oracle President Mark Hurd said: “Oracle’s HCM Cloud, CRM Cloud and ERP Cloud grew 50% as we added over 500 new SaaS customers in Q4 alone.

“Our annualised SaaS revenue run rate is over $1bn, making us a strong number two [to Salesforce.com] in cloud applications – we are larger than SAP and Workday combined", he said.


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