Cloud // Platform as a Service
News
9/19/2013
08:34 AM
Connect Directly
Google+
LinkedIn
Twitter
RSS
E-Mail
50%
50%

Oracle Earnings Rebound: All Eyes On OpenWorld

Oracle's first quarter financials showed some strength amid mixed results. Hurd promises SAP Hana-killer announcement at next week's Oracle Open World.

20 Great Ideas To Steal In 2013
20 Great Ideas To Steal In 2013
(click image for larger view)
Oracle on Wednesday reported mixed financial results for its first fiscal quarter of 2014 ended August 31, with software up, hardware down and net income and earnings per share improving.

Oracle returned to growth after two quarters that fell short of earnings estimates. The company reported new software licenses and cloud software subscriptions increased 4% year-over-year to $1.6 billion. License renewal and support revenues increased 7% to $4.4 billion. Oracle database, Goldengate data-integration software and BI software led software growth.

Hardware sales continued to lag, falling 14% to $669 million. The company said sales of engineered systems, including Exadata, continue to grow, but it acknowledged that top-of-the-line Sparc M series (Unix) server sales are lagging.

Oracle's total quarterly revenues increased 2% year over year (4% in constant currencies) to $8.3 billion, beating Wall Street estimates, according to Reuters.

Oracle's profit picture improved, with net income increasing 6% from Q1 2012 (8% in constant currencies) to $2.1 billion. The first quarter performance initially raised the company's stock price in after-hours trading, but downbeat estimates for the second quarter ultimately weighed on shares.

[ Want more on the cloud computing invasion? Read Salesforce.com, Workday Keep Cloud Momentum Rolling. ]

Oracle co-president Safra Catz said the company faces particularly tough comparables to the company's best quarter in 2012, so she issued cautious guidance for a 4% decline to 6% increase in revenue for the second quarter. She cited government austerity measures and lukewarm economic conditions as curbing growth, but competition from fast-growing cloud rivals including Salesforce.com in CRM and Workday in HCM and ERP is also a factor.

Co-president Mark Hurd claimed that Oracle is gaining share against its rivals, which may be the case with competitors in on-premises software. SAP's software revenue for the second quarter ended in June was 982 million euros ($1.28 billion), down 7% year-over-year and 3% in constant currencies. But Salesforce, Workday and other cloud vendors continue to rack up double-digit gains. In their most recent respective quarters, Salesforce revenues were up 31%, Workday revenues were up 71% and NetSuite revenues increased 35%.

Hurd also took advantage of the Wednesday conference call with analysts to highlight announcements expected at next week's Oracle OpenWorld conference in San Francisco. The company's in-memory-database answer to SAP Hana was the first thing mentioned.

Oracle CEO Larry Ellison was absent from Wednesday earnings call, attending a "very important Americas Cup Race," Catz reported. But in a prepared statement, Ellison offered what sounds like a preview for his opening keynote at next week's Oracle OpenWorld event in San Francisco.

Touting the coming in-memory option for Oracle database, Ellison said, "Virtually every existing application that runs on top of the Oracle database will run dramatically faster by simply turning on the new In-Memory feature. Our customers don't have to make any changes to their applications whatsoever; they simply flip on the in-memory switch."

That's a clear shot across SAP's bow, though we're sure to hear more pointed barbs from the captain of Oracle.

Comment  | 
Print  | 
More Insights
Comments
Threaded  |  Newest First  |  Oldest First
D. Henschen
50%
50%
D. Henschen,
User Rank: Author
9/19/2013 | 4:19:43 PM
re: Oracle Earnings Rebound: All Eyes On OpenWorld
Gotta say, Wednesday's Oracle conference call with analysts was pretty lackluster without Ellison on the call to keep things edgy. Catz was all caution and "I read the same news stories and accounts of the economy that you do." Hurd was the salesman as usual -- "Taleo is doing great, RightNow is doing great, Engineered Systems are doing great."

Ellison was off watching his America's Cup team. The race happens every seven years and he has big bucks sunk into crews and yachts. I can't blame him for ducking out of a conference call with financial analysts. Those happen every quarter - and it's not like this was the fourth quarter. I can't recall hearing an IBM CEO on an analyst call. It's always CFO Mark Loughridge on his own.
Laurianne
50%
50%
Laurianne,
User Rank: Author
9/19/2013 | 4:56:39 PM
re: Oracle Earnings Rebound: All Eyes On OpenWorld
Brace yourselves for lots of sailing metaphors from Oracle next week.
Google in the Enterprise Survey
Google in the Enterprise Survey
There's no doubt Google has made headway into businesses: Just 28 percent discourage or ban use of its productivity ­products, and 69 percent cite Google Apps' good or excellent ­mobility. But progress could still stall: 59 percent of nonusers ­distrust the security of Google's cloud. Its data privacy is an open question, and 37 percent worry about integration.
Register for InformationWeek Newsletters
White Papers
Current Issue
InformationWeek Tech Digest, Dec. 9, 2014
Apps will make or break the tablet as a work device, but don't shortchange critical factors related to hardware, security, peripherals, and integration.
Video
Slideshows
Twitter Feed
InformationWeek Radio
Archived InformationWeek Radio
Join us for a roundup of the top stories on InformationWeek.com for the week of December 14, 2014. Be here for the show and for the incredible Friday Afternoon Conversation that runs beside the program.
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.