Software giant Oracle posts an US$8.6bn quarter

17 Dec 2010

Business software player Oracle has reported second-quarter revenues of USUS$8.6bn – a 47pc increase. Demand for new software licences and healthy product support revenues contributed to the boost.

New software licence revenues were up 21pc to US$2.0bn while hardware systems products revenues were US$1.1bn.

“Since joining Oracle I’ve met with and visited many customers that have expressed a high level of enthusiasm around our strategy of engineering hardware and software that works together,” said Oracle president Mark Hurd.

“That enthusiasm translates into an Exadata pipeline that has now grown to nearly US$2bn. That number is a good leading indicator that customers are planning to increase their investment in Oracle technology.”

Operating income was up 27pc to US$2.8bn while net income was up 28pc to US$1.9bn.

Oracle’s board of directors declared a cash dividend of US$0.05 per share of outstanding common stock.

Disciplined business management

“Strong revenue performance plus disciplined business management enabled a 33pc increase in non-GAAP earnings per share to US$0.51,” said Oracle president Safra Catz. “Our new licence growth of 21pc demonstrates the strength of the company-specific momentum we are seeing.”

Catz said Oracle’s new Sun business continues to improve with hardware gross margins increasing to 53pc.

“Sun’s new SPARC Supercluster computer shattered the world record for database transaction processing performance by running three times faster than IBM’s fastest computer, and a stunning 7.5 times faster than HP’s best ever database performance,” said Oracle CEO Larry Ellison.

“Our new generation of Exadata, Exalogic and SPARC Supercluster computers deliver much better performance and much lower cost than the fastest machines from IBM and HP,” said Ellison.

John Kennedy is a journalist who served as editor of Silicon Republic for 17 years