Oracle heralds end of IT glut
But is it enough for recovery
Oracle Corp played-up license renewals during its second quarter, reported yesterday, which it believes herald an end to the IT glut that has hampered customers' spending.
Redwood Shores, California-based Oracle reported $534m net income, down 3% year on year, on revenue that fell 3% to $2.3bn for the three-month period to November 30. Oracle reported unchanged diluted earnings per share of $0.10.
However, Oracle saw growth in its license updates business and product support, as revenue grew 8.2% to $953m.
Company chief financial officer Jeff Henley said during an analyst's conference call that customers had "worked off" excess database and application purchases. He expects a "modest improvement" in IT spending and the general economy next year and a return to revenue growth by Oracle during the current quarter.
For the six months to November 30, net income dropped 17.2% to $877m on total revenue that fell 6.6% to $4.3 bn. Diluted earnings per share fell two cents to $0.16.