Oracle Q1 Profit Year-on-year increase of 11% integrated machine and cloud services show "Twin Towers" effect

Oracle announced its first-quarter financial results for fiscal year 2013 by the end of August in Thursday. In terms of earnings performance, it is a modest answer, the revenue of 8.181 billion U.S. dollars, the year-on-year decline of 2%; net profit of 2.034 billion U.S. dollars, an increase of 11%. Its highlights in one machine, cloud services business, and the acquisition of Sun's hardware business, and has been the Oracle is not optimistic about the service revenue, has been continuously depressed.

Net profit of 2.034 billion dollars year-on-year increase 11%
Oracle's total revenue for the first quarter was $8.181 billion, down 2% from $8.374 billion a year earlier, with a net profit of 2.034 billion dollars, up 1.84 billion from the same period last year.

From the product line, software revenue is 5.714 billion dollars, up 4% from the same period last year; hardware revenues are 1.353 billion dollars, down 19% from a year earlier; service revenue is 1.114 billion dollars, down 6% per cent year-on-year.

Geographically, revenues from the Americas are $4.324 billion trillion, revenues from Europe, the Middle East and Africa are $2.383 billion, and revenues from the Asia-Pacific region are 1.474 billion dollars.

From this earnings performance, profits exceeded Wall Street expectations, and revenues did not meet Wall Street expectations. But operating cash flow grew to $5.7 billion trillion in the first quarter, a record high.

All-in-one revenue Growth 100% Cloud service acceleration
Earnings showed that Oracle Exadata, Exalogic, Exalytics and other All-in-one products grew more than 100% in the quarter. Mark Hurd, chief executive of Oracle, said: "We expect to double our Hurd sales over 1 billion dollars throughout the fiscal year."

In the cloud, Oracle now has a common cloud, a private cloud, a hybrid cloud, and full coverage of SaaS, PAAs, and IaaS, and the new cloud business achieves nearly 1 billion dollars in annual revenue operations. The first quarter of the new software and cloud software subscriptions authorized revenue of 1.6 billion U.S. dollars, an increase of 5%, the proportion of total revenue accounted for 19%.

"One-machine and cloud-product operations will boost Oracle's revenue growth over the next few years," Hurd stressed. ”

"After one weeks, we're going to launch a lot of new features for the Oracle cloud," says Larry Ellison, Oracle's chief executive. These new products will include more CRM, ERP and HCM applications as services, and more Oracle database, Java, and social networking platform services. Our new Laas (infrastructure as a service) is currently available both on Oracle Cloud and in our customer's data center as a private cloud with unique performance that can be applied back and forth between managing software and services. ”

Hardware revenues fall 19% year-on-year
In terms of hardware revenues, performance continues to be sluggish. The quarter's hardware system revenue of 1.353 billion U.S. dollars, down 19% from the same period last year, accounted for 16% of the total revenue, the same period last year, hardware system revenue of 1.674 billion U.S. dollars, the proportion of total revenue accounted for 20%.

Relative to the whole machine product sales all the way red, the continuing slump in hardware revenue leads us to two conclusions: on the one hand, Oracle has gradually abandoned its lower-margin hardware to focus on the development of higher-margin high-end all-in-one products;

But there is a reporter does not understand the details, in one machine product sales, the hardware revenue and software revenue in what manner, what proportion of the income account of their respective business units mentioned? Does this affect the revenue situation in the software and hardware sectors?

Service income fell 6% from a year earlier, not a consultant role
In terms of earnings, Oracle's first-quarter service revenue was 1.114 billion U.S. dollars, down 6% per cent, representing 14% of total revenue. Oracle's service performance has been less impressive than Oracle's friends have served and consulted as a major way to improve their business.

Hurd, President of the answer to CNET reporter's question is: "Oracle's service consulting business is divided into two parts, one part is product Support services, the other part is consulting services." "And not long ago, Oracle Global vice president and Greater China Technology general manager Sishing to this explanation is:" Oracle is not intended to be consulted as the main revenue of the manufacturers, the current Oracle consulting business is more important to the existing Oracle line of products support. ”

By implication, Hurd mentioned two parts of Oracle's service consulting business: The former is heavy and the latter is light.

(Responsible editor: The good of the Legacy)