Oracle today announced a drop in its first-quarter fiscal revenue, reporting software sales that were strong but not strong enough to offset the continual decline of its hardware business.
Quarterly revenue slipped 2 percent year on year to $US8.2 billion, Oracle said, though its net income saw an 11 percent jump to $US2 billion.
Revenue for Oracle's hardware systems products group plummeted 24 percent compared to the same period last year, pulling in $US779 million for the quarter. Sales in Oracle's hardware systems support unit fell 11 percent year on year to $US574 million, and total hardware systems revenue slipped 19 percent to $US1.4 billion.
Despite reporting similarly bleak hardware sales last quarter, Oracle said sales for its Exadata, Exalogic and Exalytics servers -- products the company refers to as its "engineered systems" -- grew more than 100 percent during its first quarter. For the full year, Oracle projects engineered system sales will double to pull in "well over" $US1 billion.
"Where we release new products, we see growth, and we drive share," said Oracle President Mark Hurd, during a conference call Thursday with investors.
Oracle CFO Safra Catz assured analysts and investors that the company will start seeing the same operating margins it saw in its "pre-hardware" days, or prior to its 2010 acquisition of Sun Microsystems, "very soon."
Meanwhile, Oracle's software licenses and cloud software subscription revenues grew 5 percent during its first quarter, accounting for $US1.6 billion. Software license updates and product support revenues were also up, rising 3 percent year on year to $US4.1 billion. Software revenue in total jumped 4 percent compared to the same period last quarter, accounting for $US5.7 billion.
Oracle's first-quarter earnings results fall just one week before the tech giant will host its annual OpenWorld event in San Francisco. Oracle said more announcements related to Oracle Cloud, along with new CRM, ERP and HCM applications as a service can be expected. Updates related to Oracle's Java and social network platform services will also be revealed at the event.
This article originally appeared at crn.com
Issue: 329 | July 2014
Access CRN's extensive online resources including; email bulletins, community discussions and unique online news.
Processing registration... Please wait.
This process can take up to a minute to complete.
A confirmation email has been sent to your email address - SUPPLIED GOES EMAIL HERE. Please click on the link in the email to verify your email address. You need to verify your email before you can log on to the CRN website or start posting comments on articles.
If you do not receive your confirmation email within the next few minutes, it may be because the email has been captured by a junk mail filter. Please ensure you add the domain '@crn.com.au' to your white-listed senders.