Oracle revenue up, but charges drag down profit
- 26 March, 2010 08:01
Fueled by growth in new software licenses, Oracle revenue for its fiscal third quarter, ended Feb. 28, increased 17 percent from the same period last year, hitting US$6.4 billion, though earnings declined due in part to restructuring charges incurred by the company's purchase of Sun Microsystems.
Oracle reported third-quarter earnings of $1.2 billion, a drop of 10 percent compared to the same period last year.
Excluding special charges, earnings per share grew 9 percent to $1.9 billion or $0.38 per share, with $6.5 billion in revenue. Analysts polled by Thomson Reuters had on average predicted earnings per share of $0.38 and $6.35 billion in revenue.
New software license revenues, which are considered a key indicator of growth and market temperament, grew 13 percent to $1.7 billion.
Oracle's work on integrating Sun Microsystems is going well, and Sun products will make "a significant contribution" to Oracle's fourth-quarter earnings, co-President Safra Catz said in a statement.
Oracle's Exadata data warehousing machine is "the fastest-growing product" in company history, with nearly $400 million in the sales pipeline, co-President Charles Phillips said in a separate statement.
(More to follow.)