Oracle's earnings hit target
Published: 12 Sep 2003 15:15 BST
Oracle reported on-target first-quarter earnings on Friday that rose 28 percent over the same period last year, despite a downturn in new software licence sales.
The company reported net income of $440m (£275m) on revenue of $2.07bn, or 8 cents per share for the quarter, compared to $342.7m on revenue of $2.03bn, or 6 cents a share, for the year-ago quarter. The earnings matched projections from analysts surveyed by First Call.
Oracle reported that software licence sales were down 7 percent to $525m in its fiscal first quarter, while software licence renewals and support contracts sales rose by 14 percent to $1m. First-quarter operating margin was 30 percent versus 29 percent last year, the company said.
"Once again, the quarter showed positive growth in total revenues, and we expect to see continued improvement in total revenue and new licence growth in (the second quarter) led by North America," said Oracle chief financial officer Jeff Henley, in a statement. "In addition, Oracle generated over $1.25bn in cash as our profitability continues to hit record levels."
The company spent this week playing up its new emphasis on grid computing at its OracleWorld conference in San Francisco. The technology -- which centres on using collections of computers or computer networks to allow for sharing of processing power, storage, applications and data -- is already being pursued by Oracle's main competitors, IBM and Microsoft. At the conference, Oracle launched a string of related products and plans to create an industry consortium around commercial usage of grid computing.
Oracle remains steadfast in its bid to acquire rival enterprise software maker PeopleSoft. At the conference, Oracle's chief executive, Larry Ellison, reiterated his determination to close the deal, but would not say whether he plans to raise the offer of $19.50 per share that's pending in the hostile takeover bid.
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