Oracle reports strong third fiscal quarter results

Enterprise IT supplier Oracle has reported total revenue of $8.8bn for the third fiscal quarter, up 37% on the same period a year ago.

Enterprise IT supplier Oracle has reported total revenue of $8.8bn for the third fiscal quarter, up 37% on the same period a year ago.

New software licence revenues were up 29% to $2.2bn and software licence updates and product support revenues were up 13% to $3.7bn.

Hardware systems products revenues were $1bn, operating income was up 62% to $3bn, and operating margin was 34%.

Net income was up 78% to $2.1bn, and earnings per share were $0.41, up 75% compared with last year.

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Oracle co-president Safra Catz said hardware product gross margins increased to 55% in the quarter. "We are now completely confident that we will exceed the $1.5bn profit goal we set for the overall Sun business for the current fiscal year," she said.

Catz said the group's success was due to a series of new software products and the integration of Sun Microsystems, rather than a broader recovery in IT spending, according to the Financial Times.

Oracle co-president Mark Hurd said the sequential revenue growth for Exadata and Exalogic was up over 50%. "We expect to see an even higher growth rate for these two game-changing technologies in Q4," he said.

Oracle chief executive Larry Ellison said the company had signed several large hardware and software deals in the quarter with some of the biggest names in cloud computing.

"For example,'s new multi-year contract enables it to continue building virtually all of its cloud services on top of the Oracle database and Oracle middleware. Oracle is the technology that powers the cloud," he said.

Ellison is phasing out lower-margin products from Sun, acquired last year, to get more profit from high-end hardware, according to Bloomberg.

Oracle announced that its board of directors declared a quarterly cash dividend of $0.06 per share of outstanding common stock, reflecting a 20% increase over the previous quarter's dividend of $0.05.

Oracle's shares climbed 3% in after-market trading in addition to a more than 2% rise earlier in the day.

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Picture by Peter Kaminski

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