Oracle reports strong Q4, despite light hardware sales

24 Jun 2011

Database and application sales surged at Oracle during the fourth quarter, but the business software and hardware systems company’s hardware system revenue fell short of expectations.

Oracle yesterday reported strong fourth-quarter earnings of $3.2bn, or 62 cents a share, on revenue of $10.8bn, up 13pc from a year ago. Non-GAAP earnings were 75 cents a share. Wall Street had been expecting earnings of 71 cents a share on revenue of $10.75bn.

Hardware system revenue was below expectations, down 6pc to $1.2bn.

However, the company’s core software sales performed well, with new software licence revenue in the fourth quarter up 19pc from a year ago to $3.7bn. Software update and product support revenue was up 15pc to $4bn.

“This strong organic growth combined with continuously improving operational efficiencies enabled us to deliver a 48pc operating margin in the quarter,” said Oracle president and CFO, Safra Catz.