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

741 people like this.
0 people follow this.

Enterprise Applications Intelligence

Suppliers Directory

  • Webroot - Security Solutions

    Webroot provides industry leading security solutions for consumers, enterprises and small and medium businesses worldwide.

  • Capscan

    Capscan is a leading supplier of international address management solutions and data integrity services. Capscan has more than 1800 customers...

  • Teneo - Infrastructure Management, Performance and Virtualization Services

    Teneo is an infrastructure optimization company, providing solutions that help customers with the management, performance and virtualization of...

  • Neverfail Overview

    The Neverfail Group is dedicated to creating a world where business applications are continuously available. High Availability, Disaster Recovery...


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.