Feeds

Oracle's Q2 leaves Wall Street wanting more

Close those deals

Security for virtualized datacentres

Oracle today learned that buying double-digit growth doesn't impress investors like it used to.

The insatiable software maker did its best to wow shareholders with a 26 per cent rise in second quarter revenue to $4.2bn. Net income surged as well, hitting $1.17bn on a 20 per cent year-over-year rise. The results were aided by Oracle's numerous acquisitions.

But the cruelest of all indicators - new software licenses - smudged Oracle's otherwise shiny figures.

New software sales rose just 14 per cent year-over-year. Wall Street hoped Oracle could push that figure to between 15 per cent and 20 per cent. New database and middleware licenses rose 9 per cent - a drop from the first quarter - and new application licenses increased 28 per cent - missing a 40 per cent forecast from analysts.

So, investors chipped away at Oracle shares in the after-hours markets, nicking 2.5 per cent (at the time of this report) off Monday's $17.91 close.

Oracle's CFO Safra Catz blamed the new sales softness "on a number of deals that didn't close during the quarter."

Well played.

Oracle's total software revenue jumped 23 per cent during the second quarter to $3.2bn, while services charged higher 41 per cent to $949m.

CEO Larry Ellison cheered his vigorous acquisition strategy, saying Oracle "has strengthened our competitiveness in several industries including retail, banking, telecommunications and utilities."

President Charles Phillips was relegated to rival bashing duties.

"We continue to gain market share in applications from SAP, in middleware from BEA, and in database from IBM," he said. "In Q2 our middleware new license growth was exceptionally strong. We expect to pass BEA in total middleware new license sales later this year." ®

Providing a secure and efficient Helpdesk

More from The Register

next story
Facebook pays INFINITELY MORE UK corp tax than in 2012
Thanks for the £3k, Zuck. Doh! you're IN CREDIT. Guess not
Facebook, Apple: LADIES! Why not FREEZE your EGGS? It's on the company!
No biological clockwatching when you work in Silicon Valley
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
Sysadmin with EBOLA? Gartner's issued advice to debug your biz
Start hoarding cleaning supplies, analyst firm says, and assume your team will scatter
YARR! Pirates walk the plank: DMCA magnets sink in Google results
Spaffing copyrighted stuff over the web? No search ranking for you
Don't bother telling people if you lose their data, say Euro bods
You read that right – with the proviso that it's encrypted
Apple SILENCES Bose, YANKS headphones from stores
The, er, Beats go on after noise-cancelling spat
prev story

Whitepapers

Cloud and hybrid-cloud data protection for VMware
Learn how quick and easy it is to configure backups and perform restores for VMware environments.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Three 1TB solid state scorchers up for grabs
Big SSDs can be expensive but think big and think free because you could be the lucky winner of one of three 1TB Samsung SSD 840 EVO drives that we’re giving away worth over £300 apiece.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.