Oracle profit slips, but software revenue rises

Mar 25, 2010 By JORDAN ROBERTSON , AP Technology Writer
In this June 26, 2007 file photo, the exterior of Oracle Corp. headquarters in Redwood City, Calif. is seen. Oracle Corp. will release quarterly earnings after the market close Thursday, March 25, 2010. (AP Photo/Paul Sakuma, file)

(AP) -- Oracle Corp.'s profit fell 10.5 percent in the latest quarter as the business software maker absorbed Sun Microsystems and its expenses for building and supporting computer servers.

Still, Oracle's profit edged past Wall Street's estimates and its revenue from new software licenses ratcheted higher for the second quarter in a row. That is an encouraging sign that big companies are steadily increasing their spending on new technology projects.

New licenses are key for Oracle, the world's No. 1 maker of , because customers often lock into technical-support contracts that fuel Oracle's growth for years down the road. Oracle gets more than half its total revenue from those contracts.

Oracle said after the market closed Thursday that its net income was $1.2 billion, or 23 cents per share, in the three months ended Feb. 28. That compares with $1.3 billion, or 26 cents per share, in the year-ago period.

Revenue jumped 17 percent to $6.4 billion.

Excluding one-time items, the company earned 38 cents per share. On that basis, analysts polled by Thomson Reuters had expected Oracle to earn 37 cents per share, on $6.3 billion in revenue.

The latest numbers include about a month of contributions from , the struggling server and that Oracle bought for $7.4 billion as part of Oracle CEO Larry Ellison's push to more deeply challenge rival IBM Corp. The deal was completed in January after months of wrangling in Europe over whether the deal would violate antitrust laws.

Oracle said that without Sun its revenue would have risen 7 percent. Oracle also said it expects Sun to make a "significant contribution" to its profit in the current quarter.

Oracle's revenue from new software licenses rose 10 percent, excluding Sun. The company had predicted it would rise as much as 9 percent. The September-November quarter, which Oracle reported in December, marked the first time in a year that figure had risen.

For the current quarter, the company predicts:

- Revenue from new software licenses will be up 3 percent to 13 percent over last year.

- It will post profit of 52 cents per share to 56 cents per share, excluding items, in line with analysts' estimates for 53 cents per share

- Revenue will be up 35 percent to 40 percent over last year, including contributions from Sun, which translates to $9.3 billion to $9.6 billion and is in line with analysts' forecasts for $9.6 billion

Before the earnings report, Oracle shares rose 28 cents, 1.1 percent, to close the regular trading session at $26.04. The stock was down 34 cents, or 1.3 percent, to $25.70 in after-hours trading.

Explore further: Sony: PlayStation back online after 3-day outage

not rated yet
add to favorites email to friend print save as pdf

Related Stories

Oracle expects EU to approve Sun deal next month

Dec 17, 2009

(AP) -- Oracle Corp. said Thursday that its profit jumped 12.5 percent in the latest quarter and that it expects the European Union will finally approve its $7.4 billion purchase of Sun Microsystems Inc. ...

Oracle tops forecasts despite sales, profit dip

Jun 23, 2009

(AP) -- Software maker Oracle Corp.'s results topped Wall Street's forecast for the latest quarter Tuesday, despite a 5 percent drop in sales and a 7 percent decline in profit.

Oracle shares slip after 1Q revenue disappoints

Sep 17, 2009

(AP) -- Shares of Oracle Corp. slipped in premarket activity Thursday after the information technology company reported sales fell below analyst expectations in the latest quarter, showing that businesses ...

Sun absorbs $147M loss as Oracle deal looms

Aug 29, 2009

(AP) -- Sun Microsystems Inc. recorded a $147 million loss while sales eroded 31 percent in the April-June period, likely the server and software maker's last full quarter as an independent company.

Oracle manages 3Q feat: healthy contract signings

Mar 18, 2009

(AP) -- Oracle Corp.'s sales force pulled off a big feat in the business software maker's latest quarter, sustaining a healthy clip of contract signings amid a dreary time for technology spending.

As Oracle readies takeover, Sun's loss widens

Apr 28, 2009

(AP) -- Sun Microsystems Inc.'s loss ballooned in the latest quarter as restructuring charges and a 20 percent drop in sales compounded the financial woes Oracle Corp. is set to inherit by acquiring Sun for ...

Recommended for you

Sony's PlayStation 'gradually coming back'

Dec 27, 2014

Sony was still struggling Saturday to fully restore its online PlayStation system, three days after the Christmas day hack that also hit Microsoft's Xbox, reporting that services were "gradually coming back."

Uber broke Indian financial rules: central bank chief

Dec 27, 2014

India's central bank chief lashed out at Uber, already under fire over the alleged rape of a passenger, saying the US taxi-hailing firm violated the country's financial regulations by using an overseas payment ...

Taxi app Uber defies ban in Spain

Dec 26, 2014

Smartphone car-ride service Uber vowed Friday to keep operating in Spain despite a ban following a lawsuit by taxi drivers and said it would fight the case in court.

User comments : 0

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.