Oracle's fourth quarter strong, hardware sales light

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

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.

Topics: IT Employment

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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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