Oracle's Q1 disappoints on flat database sales

Investors aren't hot-pluggable

vulture tv reporter

Oracle today handed investors an unimpressive first quarter report card, showing flat net income and only modest gains in database sales.

The software maker reported net income of $519m for the period, which matches up with a profit of $509m reported last year. More impressive gains were found by looking at first quarter revenue which surged 25 per cent to $2.77bn. The results arrived as Oracle closed out a customer conference being held this week in San Francisco.

"This week at Oracle OpenWorld, 35,000 customers and partners embraced our innovative next-generation Fusion Middleware with hot-pluggable components," said Oracle's president Charles Phillips. "Hot-pluggable interoperability with IBM middleware puts us in a strong and unique position in the middleware business."

But talk of hot-pluggable interoperability can only carry a company so far.

Oracle had a harder time explaining why database license revenue increased only 1 per cent year-over-year to $492m and why new software license revenue growth hit just 12 per cent. The company pointed to soft sales in Europe and a couple of delayed, large deals for the results. Investors showed their displeasure, knocking 4 per cent off Oracle's share price in the after-hours markets, at the time of this report.

Oracle is looking for second quarter revenue to come in between 22 per cent and 26 per cent higher or a range of $3.37bn to $3.46bn. ®

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