Oracle Q3 revenues hit US$5.3bn

27 Mar 2008

Highly acquisitive software giant Oracle this morning reported that third-quarter revenues increased 21pc to US$5.3bn, driven by strong database and middleware sales.

The company also re-iterated its aims to steal software market share away from Microsoft and IBM.

Oracle said operating profits rose 35pc to US$1.9bn and net profits were up 30pc to US$1.3bn.

Total software revenues at Oracle were up 21pc to US$4.2bn, with middleware and new licence revenues up 20pc and applications new licences up 7pc.

For the past four years, Oracle has been highly acquisitive, snapping up major enterprise software players like PeopleSoft and Siebel.

At the start of this year, the company acquired BEA Systems for US$8.5bn in cash and last year bought Irish telecoms software company Netsure for an undisclosed sum.

Oracle, one of the largest software companies in the world, employs 1,000 people in Ireland.

Oracle president, Charles Phillips, confirmed the company is intent on stealing software market share away from IBM and Microsoft.

“Database and middleware new software licence revenues growth accelerated to 20pc in the third quarter,” said Phillips. “We continue to grow faster and take market share from IBM.”

CEO Larry Ellison (pictured) was equally bullish. “Software licence updates and product support revenues were up 23pc on a non-GAAP [generally accepted accounting principles] basis to US$2.6bn. By next quarter, we expect to pass US$10bn for the year.

“Our non-GAAP operating income grew to US$2.2bn with our margins increasing nearly 200 basis points to 41pc, up from 39pc in Q3 of last year.

“Our operating margins are now substantially higher than our competitors, including Microsoft, reflecting the unique leverage in our business.”

By John Kennedy