Oracle has announced first quarter revenue of $2.027 billion and net income of $386 million excluding an impairment charge related to Oracle’s investment in Liberate Technologies. This compares to revenue of $2.265 billion, and net income of $511 million a year ago.
Including the impairment charge related to Oracle’s investment in Liberate Technologies, net income on a GAAP basis was $343 million. New software license and license updates revenues were $1.2 billion, down 9%. New software license sales were $549 million, down 23% while software license update revenues were $620 million, up 9%. Product support revenue was $349 million, consulting revenue was $432 million, and education revenue was $63 million. First quarter operating margin was 29% versus 33% last year
The true sign of the underlying strength of our business is that even in these difficult economic times Oracle’s operating cash flow remains strong and our profitability remains at high levels, said Oracle CFO Jeff Henley. Our installed base of customers continues to grow and as a result our revenues from license update rights and support continue to grow. In addition we are continuing the multi-billion dollar stock buy back we have had in place for the past few years.
We are pleased by the continued adoption of the Oracle database and the rapid increase in market share, said Oracle CEO Larry Ellison. According to the new AMR study released in August, Oracle’s database share under enterprise applications has increased by 12%, while Microsoft’s increased by 4% and IBM’s DB2 decreased by 27%. This was consistent with Morgan Stanley’s CIO survey in June 2002 showing Oracle as the Strategic Database Standard 64% of the time, with IBM DB2 only 15% of the time. In addition, Oracle has the highest user loyalty with far more customers moving to it than either Microsoft or IBM.