Strong sales lift Oracle’s Q1 profits

21 Sep 2011

Strong sales in Oracle Corp.’s core software business have bumped the company’s first-quarter profits up 36pc.

The maker of databases and other business software said yesterday its new software sales increased 17pc in the fiscal quarter ended 31 August.

“This strong organic growth coupled with disciplined business management enabled yet another increase in our operating margin in Q1,” said Oracle president and CFO, Safra Catz. “Operating cash flow increased this quarter to $5.4bn, up $1.6bn from $3.8bn in Q1 of last year.”

New software licence sales, a predictor of future revenue, increased 16pc to US$1.5bn. Hardware sales, however, decreased by 1.4pc to $1.67bn.

Oracle’s revenue also rose, by 12pc from a year earlier to US$8.4bn. The company predicted continued growth in the current quarter, albeit at a slower rate.

Net income in Q1 rose 36pc to US$1.84bn, or 36 cents a share, from US$1.35bn, or 27 cents, a year earlier. Analysts had predicted US$1.79bn, or 35 cents a share.