Cloud boosts Oracle earnings but hardware continues to slide

Enterprise Applications

by Steve Evans| 19 December 2012

Cloud acquisitions paying off for Ellison


Software and cloud revenue gave Oracle's financial figures a boost, but hardware sales continued to decline.

For the second quarter of fiscal 2013 Oracle recorded revenue of $9.1bn, an increase of 3% compared to the same quarter a year ago. This beat analyst expectations, which stood at $9.01bn. Earnings per share also beat the Street's estimates, coming in at 64 cents, ahead of the predicted 61 cents.

Net income jumped 18% to $2.58bn.

The improvement in revenue and profit was driven by a big jump in software revenue.

The company recorded a 17% rise in new software licences and cloud software subscriptions. Larry Ellison's company has often been criticised for its slow approach to cloud computing, but these figures suggest it is beginning to make headway. That is to be expected given the investment made in cloud-based companies such as RightNow Technologies and Taleo.

Revenue for the software division as a whole, which includes licences and support, rose 10% to $6.5bn.

However hardware continues to be a struggle for Oracle following its acquisition of Sun Microsystems. Its products have been integrated with products such as Oracle's Exadata and Exalogic range, which combine hardware and software, but it is not yet having an impact on Oracle's financial figures. Revenue in the hardware division was $1.3bn, a 16% drop from the previous year.

Speaking about the results Larry Ellison was bullish about the Sun acquisition. "Sun has already proven to be one of the most strategic and profitable acquisitions we have ever made," he said, according to the Financial Times. Ellison was referring to Java as well as the high-end Exadata system.

Ellison went on to say that the integrated Sun products had reduced focus on low-end hardware such as commodity servers. "We're about to start growing our hardware business. In Q3, we will be turning the corner and in Q4, we expect top-line growth," Ellison said.

Comments
Post a comment

Comments may be moderated for spam, obscenities or defamation.

Join our network

755 people like this.
0 people follow this.

Enterprise Applications Intelligence

Suppliers Directory

  • dynaTrace

    The way applications are built today has fundamentally changed. A new generation of application performance management (APM) is required. dynaTrace...

  • Mimecast

    Mimecast is a rapidly expanding Software as a Service (SAAS) company. We provide an online technology platform that radically improves the way...

  • Alfresco - Open Platform for Document Management and Collaboration

    Alfresco is an open platform for business-critical document management and collaboration. Alfresco can automate document-intensive business...

  • Rackspace

    As the world’s leader and specialist in hosting, Rackspace Hosting is changing the way businesses worldwide buy IT. Rackspace delivers...


See more
Privcy Policy

We have updated our privacy policy. In the latest update it explains what cookies are and how we use them on our site. To learn more about cookies and their benefits, please view our privacy policy. Please be aware that parts of this site will not function correctly if you disable cookies. By continuing to use this site, you consent to our use of cookies in accordance with our privacy policy unless you have disabled them.