Oracle reported strong fourth quarter earnings as database and application sales surged, but hardware system revenue was a bit light relative to expectations.
The company reported fourth quarter earnings of US$3.2 billion, or 62 cents a share, on revenue of US$10.8 billion, up 13 percent from a year ago. Non-GAAP earnings were 75 cents a share. Wall Street was expecting earnings of 71 cents a share on revenue of US$10.75 billion.
Hardware revenue was below expectations, but Oracle's core software sales performed well. New software license revenue in the fourth quarter was up 19 percent from a year ago to US$3.7 billion. Software update and product support revenue was up 15 percent to US$4 billion. Hardware system revenue was down 6 percent to US$1.2 billion. Barclays Capital analyst Israel Hernandez projected hardware sales of US$1.29 billion for the fourth quarter. Safra Catz, Oracle president and CFO, touted the company's organic growth--a notable point given the software outfit has typically been a serial acquirer of rivals.
Read more of "Oracle's fourth quarter strong, hardware sales light" at ZDNet.