Oracle beats Wall Street on fiscal Q4 earnings

Oracle beats Wall Street on fiscal Q4 earnings

Summary: UPDATED: As analysts predicted, a stronger U.S. dollar did hold Oracle back a bit, but the hardware giant pulled through in the end.

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Amid reports that a senior executive is announcing his or her departure later this week, Oracle reported better than expected earnings on Monday afternoon.

Oracle reported a fourth quarter net income of $3.5 billion, or 69 cents a share (statement). Non-GAAP earnings were 82 cents a share on a revenue of $11 billion.

Wall Street was expecting fourth quarter earnings of 78 cents a share on revenue of $10.9 billion.

For fiscal year 2012, GAAP total revenues were up 4 percent to $37.1 billion, while non-GAAP total revenues were also up by 4 percent to $37.2 billion.

CEO Larry Ellison commented in prepared remarks:

The development of Oracle Cloud is strategic to increasing the size and profitability of Oracle’s software business. Our Oracle Cloud SaaS business is nearly at a billion dollar revenue run rate, the same size as our engineered systems hardware business. The combination of engineered systems and the Oracle Cloud will drive Oracle’s growth in FY 2013.

As analysts predicted, a stronger U.S. dollar did hold Oracle back a bit, as noted in the report:

Without the impact of the US dollar strengthening compared to foreign currencies, Oracle’s reported Q4 GAAP earnings per share would have been $0.03 higher at $0.72, up 16%, and Q4 non-GAAP earnings per share would have been $0.04 higher at $0.86, up 15%. Both GAAP and non-GAAP total revenues also would have been up 5%, GAAP new software license revenues would have been up 11%, non-GAAP new software license revenues would have been up 12% and both GAAP and non-GAAP hardware systems products revenues would have been down 13%.

But software might have saved the day. Oracle president and CEO Safta Catz also commented in the statement that Oracle experience "several all-time highs" during the fourth quarter, including new software license sales at $4 billion and total software revenue of $8 billion.

UPDATE: Looking forward, Catz offered guidance figures during the conference call with investors on Monday. For the next quarter, Oracle is predicting revenue to fluctuate by -2 to 1 percent at 54 to 58 cents per share on a non-GAAP basis -- assuming exchange rates stay at current levels.

"I do read the same newspapers you all do," Catz acknowledged. "So I have tried to keep that in mind in my guidance regardless of our achievements in the fourth quarter."

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Topics: Oracle, Banking, E-Commerce, Enterprise Software

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5 comments
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  • This is a mixed bag.

    Looks like they trimed the op expenses ala Mark Hurd and benefited from cheap money while sold more of the bloated cloud/database. But sales costs were up to do that and they lost 1bil of on hand cash. Receivables are behind 500 mil too. Software and DB/middleware income decreased. So, this may be an accounting blip. While it is a Hurd special I wouldn't get excited just yet. Except for market price there are negative trends and there is only so much fat to cut.
    droidfromsd
  • Accounting special

    This report appears to be just "accounting" things that feel like bad things are about to surface...from a customer standpoint, the circles I work in appear to focus on reducing Oracle exposure going forward and making very good headway with a number of different approaches. Engineered systems are certainly on nobody's list as the Q4 earnings show. The run rate for this stuff is about the same as every other quarter to date and as more and more customers talk to one another it becomes apparent that there is really no need for this stuff in anyone's datacenter.
    mikies
  • this is a ability of Oracle

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  • Real reason for early release - trying to contain the "Sun baaaalllllooooow

    Wow. This one is just too wild to keep quiet.
    http://allthingsd.com/20120618/oracle-shares-down-on-word-of-sales-shakeup/

    ???Nobody talks about Sun, even the Sun customers???it???s dead dead dead???.Nobody wants to sell Sun???it baaaalllllooooooows???.pig with lipstick, at best.???

    I suspect them to start saying "Everything is Exa-Engineered Systems Now", and likely try to wiggle out of ever having used the Sun name.

    The more interesting part is that I would bet anyone selling Siebel and Oracle Apps, and maybe even the Weblogic aging middleware, has the same sort of reality comments that Keith Block had, about trying to sell them.

    I see way more downward drag on these guys than upward drag. The sail is flapping in the wind, and boat she is a takin on water...
    Surfbird
  • Good for investors.

    This is a good news for Oracle investors. Hope its ailing hardware business inherited through its acquisition of Sun Microsystems also boosts up soon.

    Sara
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    SaraParker23