Oracle reports bumper results
Price hikes yet to kick in
Oracle's decision to buy 40 software companies continues to pay off, as it announced annual and quarterly earnings growth of nearly a third.
The company, which this month hiked prices of core products by up to 20 per cent, announced Wednesday robust sales of its databases, applications and middleware.
For the three months to May 31 the company posted a 27 per cent increase in net income to $2bn on revenue that increased 24 per cent to $7.2bn. Earnings per diluted share grew 27 per cent to $0.39.
For the fiscal year, Oracle reported a 29 per cent increase in net income to $5.5bn following a 25 per cent jump in total revenue to $22bn, with earnings per diluted share growing 30 per cent to $1.06.
Oracle's applications, database and middleware businesses all grew. Applications increased 30 per cent for the quarter and the year, coming in at $2bn and $6.2bn respectively. Database and middleware saw 23 per cent growth for the fourth quarter and the year, coming in at $3.9bn and $11.6bn respectively. Middleware was boosted by the purchase of one-time rival BEA Systems, whose $1.4bn in annual revenues now belong to Oracle.
Earnings per share will be of most interest to both Oracle's management and those watching Oracle. Chief executive Larry Ellison in 2006 committed his company to 20 per cent growth in earnings each year until the end of the decade.
Wall Street rewarded Oracle in after-hours trading as its shares jumped 27 cents, or 1.2 per cent, to $22.50.®