Macroeconomic Worries? Pffft. Oracle Beats the Street.
The company just reported earnings for its fourth fiscal quarter. Sales were $10.78 billion, slightly ahead of the $10.75 billion that had been the consensus of Wall Street analysts, and up 13 percent. Per-share profits were 75 cents, up 36 percent, and beating the consensus of 71 cents.
Revenue from new software licenses was up 19 percent to $3.7 billion. Software license updates and product support revenue was up 15 percent to $4 billion. Hardware sales were down 6 percent to $1.2 billion.
The weakness in hardware sales appeared to cause a sell-off of Oracle shares in after-hours trading. As of 4:26 New York time, shares were trading at $30.49, down more than $2, or more than 6 percent.
CEO Larry Ellison described the database software business as having its “fastest growth in a decade,” and that Oracle has been adding features to the software to exploit opportunities in cloud computing and big data.
Sales of Exadata machines — the ones that combine computers from the old Sun business with Oracle software — “made a strong contribution” in the quarter, president Mark Hurd said in a statement. He said that Oracle has sold 1,000 of the machines worldwide, and that the goal is to triple that number in the next fiscal year.
In a statement, CFO Safra Catz said that software license revenue grew 19 percent “with almost no help from acquisitions.” That helped push operating margins to 48 percent on a non-GAAP basis.
For the fiscal year, Oracle finished the year with $35.6 billion in sales and a per-share profit of $2.22 non-GAAP.