/// Oracle Earnings Meet The Street, As Profits Rise, Sales Drop

September 20, 2012  |  All Things Digital


Oracle just reported its earnings results for the quarter ended in August, and the headline is that sales are down, though net profits on a GAAP basis are up. On a non-GAAP basis, which is the number everyone looks at first, Oracle earned 53 cents a share, up 11 percent, on sales of $8.2 billion, which were down 2 percent. The results met the consensus view of analysts you had expected Oracle to earn 53 cents a share on $8.4 billion in sales. Oracle shares fell 49 cents or about 1.5 percent during the regular trading session on the NASDAQ exchange to $32.23 a share. The shares fell by 59 cents or nearly 2 percent after hours after the earnings results were released. Oracle has been arguing that as it works on transitioning on the hardware business it absorbed when it acquired Sun Microsystems in 2010, sales will fall and profits will rise as it moves toward selling fewer products that command higher profit margins. As CEO Larry Ellison put in an interview at D: All Things Digital in June : “Sales are going down in hardware, but the unprofitable part is going away. Our margins are the highest of anyone in the server business. The sales are down 20 percent, but the profits are up.” The company also declared a cash dividend of 6 cents a share. Here’s Oracle’s announcement: Oracle Reports Q1 GAAP EPS Up 15% to 41 Cents; Q1 Non-GAAP EPS Up 11% to 53 Cents Trailing Twelve Month Operating Cash Flow Up 9% to $14.0 Billion REDWOOD SHORES, CA–(Marketwire – Sep 20, 2012) – Oracle Corporation today announced that both fiscal 2013 Q1 GAAP and non-GAAP total revenues were down 2% to $8.2 billion. GAAP new software licenses and cloud software subscriptions revenues were up 5% to $1.6 billion, while non-GAAP new software licenses and cloud software subscriptions revenues were up 6% to $1.6 billion. Both GAAP and non-GAAP software license updates and product support revenues were up 3% to $4.1 billion. Both GAAP and non-GAAP hardware systems products revenues were down 24% to $779 million. GAAP operating income was up 7% to $2.9 billion, and GAAP operating margin was 35%. Non-GAAP operating income was up 1% to $3.6 billion, and non-GAAP operating margin was 44%.

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Oracle Earnings Meet The Street, As Profits Rise, Sales Drop


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