Oracle: Sun integration 'better than expected;' Exadata pipeline swells
Oracle's fiscal third quarter earnings had a little bit of everything: The Sun Microsystems integration is going well, Exadata is a hit, SAP took its lumps and the bottom and top lines topped Wall Street expectations. For good measure, Oracle threw in a dividend.
Oracle's fiscal third quarter earnings had a little bit of everything: The Sun Microsystems integration is going well; Exadata is a hit; SAP took its lumps; and the bottom and top lines topped Wall Street expectations. For good measure, Oracle threw in a dividend.
The company reported third quarter net income of $1.2 billion, or 23 cents a share, on revenue of $6.4 billion, up 17 percent from a year ago. Non-GAAP earnings were $1.9 billion, or 38 cents a share. Wall Street was expecting Oracle to report third quarter earnings of 37 cents a share on revenue of $6.35 billion. Excluding Sun, Oracle delivered revenue growth of 7 percent.
Meanwhile, new software license revenue for the quarter was up 13 percent to $1.7 billion. Software license updates and product support revenue was up 13 percent to $3.3 billion.
On a conference call, Oracle president Safra Catz put revenue for the fourth quarter will rise 36 percent to 41 percent from a year ago. That's roughly in line with Wall Street's $9.55 billion target. Earnings will be between 52 cents a share and 56 cents a share. That's a bit higher than the 53 cents a share expected by analysts.
Exadata's pipeline is approaching $400 million with fourth quarter bookings nearing $100 million. Oracle is clearly aiming at IBM's high-end systems as a target.
CEO Larry Ellison took aim at SAP---again. Ellison said:
"Every quarter we grab huge chunks of market share from SAP. SAP's most recent quarter was the best quarter of their year, only down 15%, while Oracle's application sales were up 21%. But SAP is well ahead of us in the number of CEOs for this year, announcing their third and fourth, while we only had one."