Oracle revenues hit US$3.5bn

21 Sep 2007

Oracle will challenge IBM for the number one position in middleware by the end of this year, claimed Larry Ellison as the enterprise software player today reported a 26pc increase in first quarter revenues.

Oracle, which employs 1,000 people in Ireland, reported profits of US$840m, up 25pc on last year.

In particular, new software license revenues were up 35pc to US$1.1bn. Database and middleware new license revenues were up 23pc and applications new license revenues were up 65pc. Services revenues were up 25pc to US$1.1bn. Earnings per share (EPS) at the company were up 28pc to 16 cents.

“We reported new software license revenues up 35pc, the strongest growth of any quarter in 10 years,” said Oracle President and CFO, Safra Catz, “and that software sales growth is translating nicely into EPS growth.”

She said the company completed 13 quarters of a five-year EPS growth plan of 20pc per year and is delivering earnings growth well ahead of that target.

Oracle president Charles Phillips claims the company continues to take applications market share from SAP

“In Q1 Oracle’s applications new license sales grew 65pc compared to SAP’s new license sales growth rate of 18pc in their most recently completed quarter. We like our growth strategy of expanding into high-end industry specific vertical software as opposed to SAP’s growth strategy of moving down market to sell software to small companies.”

Oracle founder and CEO Larry Ellison said that database and middleware new license sales growth of 23pc was the highest in seven years.

“Oracle passed IBM to become the number one database company a long time ago,” said Ellison. “If we continue to grow our middleware software business at the same rate we grew it this quarter, Oracle will challenge IBM for the number one position in middleware by the end of this year.”

By John Kennedy