Q1 software new license sales up 17%; hardware systems products revenues down 5%
Oracle’s net income has surged 36% to reach $1.8bn in the first quarter of fiscal 2012.
The company said that its total revenues grew 12% to reach $8.4bn. New software license revenue contributed to the growth, with both GAAP and non-GAAP new software license revenues up 17% to $1.5bn. Software license updates and product support revenues were up 17% to $4.0bn, said Oracle.
However, hardware systems products revenues were down 5% to $1.0bn.
While, the company’s operating income was up 40% to $2.7bn, and operating margin was 32%, Orcale posted a net income growth of 36% to reach $1.8bn.
Oracle’s earnings per share were $0.36, up 34% compared to last year. Operating cash flow on a trailing twelve month basis was $12.8bn, up 46% from last year.
Oracle President and CFO, Safra Catz said the growth of new software license sales benifitted the company.
Catz said, "This strong organic growth coupled with disciplined business management enabled yet another increase in our operating margin in Q1. Operating cash flow increased this quarter to $5.4bn, up $1.6bn from $3.8bn in Q1 of last year."
"Our high-end server business – Exadata, Exalogic, and SPARC M-Series – delivered solid double digit revenue growth in Q1," said Oracle president Mark Hurd.
"In contrast, revenue declined in our low-end server business. By moving away from low-margin commodity hardware and focusing on high-end servers, we increased our hardware gross margins from 48% to 54%. Our strategy to grow the profitable parts of our hardware business is paying off."
"Next week Oracle will announce a new high-performance SPARC microprocessor, and a new high-end server called a SPARC SuperCluster," said Oracle CEO Larry Ellison.
"The new SPARC T4 microprocessor is up to 5 times faster than the T3 microprocessor it replaces. The new SuperCluster is engineered to use the SPARC T4 microprocessor and the Exadata flash and disk storage system to deliver extreme record-breaking performance."
Oracle also announced that its Board of Directors declared a quarterly cash dividend of $0.06 per share of outstanding common stock.