Oracle's earnings see strength in software

Summary:The company has reported growth in software licences and product support revenue, although its hardware business saw a fall

Oracle reported strong fourth-quarter earnings on Thursday as database and application sales surged, but hardware system revenue was a bit light relative to expectations.

The company reported fourth-quarter earnings of $3.2bn (£2bn), or 62 cents a share, on revenue of $10.8bn, up 13 percent from a year ago. Non-GAAP earnings were 75 cents a share. Wall Street analysts were expecting earnings of 71 cents a share on revenue of $10.75bn.

Hardware revenue was below expectations, but Oracle's core software sales performed well. New software licence revenue in the fourth quarter was up 19 percent from a year ago to $3.7bn. Software update and product support revenue was up 15 percent to $4bn. Hardware system revenue was down six percent to $1.2bn.

For fiscal 2011, Oracle reported earnings of $8.5bn, or $1.67 a share, on revenue of $35.6bn, up 33 percent from a year ago.

For more on this ZDNet UK-selected story, see Oracle's fourth quarter strong, hardware sales light on ZDNet.com.


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Topics: Tech Industry

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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

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