Oracle earnings show profit for Sun

Summary:Sales were in line with expectations, but the software giant's profit got a boost from better-than-expected hardware sales.

Oracle delivered a better-than-expected fourth quarter courtesy of strong hardware sales--notably an operating profit at Sun Microsystems and strong sales of Exadata database machines.

The company on Thursday reported earnings of US$2.4 billion, or 46 cents a share, on revenue of US$9.5 billion (statement, preview). Non-GAAP earnings were 60 cents a share, well ahead of the 54 cents a share expected by Wall Street. Sales were in line with expectations, but Oracle's profit got a boost from better-than-expected hardware sales.

Sun contributed about US$400 million in non-GAAP operating income. You could call the performance Oracle's Sun miracle. In a statement, Oracle CFO Jeff Epstein said Sun had US$1.2 billion in systems revenue. Oracle president Safra Catz said:

Now that Sun is profitable, we have increased confidence that we will meet or exceed our goal of Sun contributing US$1.5 billion to non-GAAP operating income in FY2011, and US$2.0 billion in FY2012.

Read more of "Oracle: Sun profitable; Exadata sales pipeline nears $1 billion" at ZDNet.com.

Topics: Software, Apps, Data Management, Hardware, IT Employment, Servers, Storage

About

Larry Dignan is Editor in Chief of ZDNet and SmartPlanet as well as Editorial Director of ZDNet's sister site TechRepublic. He was most recently Executive Editor of News and Blogs at ZDNet. Prior to that he was executive news editor at eWeek and news editor at Baseline. He also served as the East Coast news editor and finance editor at CN... Full Bio

zdnet_core.socialButton.googleLabel Contact Disclosure

Kick off your day with ZDNet's daily email newsletter. It's the freshest tech news and opinion, served hot. Get it.

Related Stories

The best of ZDNet, delivered

You have been successfully signed up. To sign up for more newsletters or to manage your account, visit the Newsletter Subscription Center.
Subscription failed.