Incurs restructuring charges of $306m during the quarter
Oracle has reported an increase of 17% in total revenues to $6.4bn in the third quarter of fiscal 2010, compared to $5.45bn in the same period last year. Excluding the impact of Sun Microsystems, which Oracle acquired on January 26, 2010, total revenue grew by 7%.
Safra Catz, president of Oracle, said: “The Sun integration is going even better than we expected. We believe that Sun will make a significant contribution to our fourth quarter earnings per share as well as meet the profitability goals we set for next year.”
Oracle’s acquisition related charges were $34m while the restructuring charges were $306m. For the quarter ended February 28, 2010, operating income was down 5% to $1.8bn, compared to $1.9bn in the second quarter of 2009. Operating margin was 29%.
The company reported a net profit of $1.19bn, down 10% compared to $1.33bn in the same period a year ago. Earnings per share were $0.23, down 11% compared to same period last year.
Software license revenues were up by 13% to $1.7bn, while software license updates and product support revenues were up 13% to $3.3bn.
Jeff Epstein, CFO of Oracle, said: Our solid top line growth, coupled with disciplined expense management, was key in generating $8bn of free cash flow over the last twelve months.”