Oracle earns 1.35 billion dollars in first quarter

According to foreign media reports, Oracle in Thursday released the first quarter of fiscal year 2011 earnings. Oracle achieved total revenue of 7.5 billion U.S. dollars in the quarter, an increase of 48% year-on-year, achieving net profit of 1.35 billion U.S. dollars per share earnings of 27 cents, a year-on-year increase of 20%. Revenue and net profit figures double Ultra analysts expect.

Oracle's reported revenue includes deferred revenue from the acquired company and was not calculated in accordance with the GAAP guidelines. According to the GAAP benchmark of $7.59 billion trillion, analysts surveyed by Bloomberg had an average forecast of $7.32 billion trillion. Earnings per share, excluding acquisition costs and other fees, are 42 cents above the analyst's average expected 37 cents.

Oracle also reported that revenue from new software licenses rose 25% to $1.3 billion in the first quarter, with both GAAP and non-GAAP software license updates and product support revenues rising 11% to 3.5 billion dollars year-on-year. GAAP operating profit rose 10% to $1.9 billion a year, operating at a 26% profit margin. Non-GAAP operating profits rose 27% per cent to $2.9 billion a year, operating at a 39% profit margin. GAAP net profit of 1.4 billion U.S. dollars per share earnings 27 cents, an increase of 20%. Non-GAAP net profit of 2.1 billion U.S. dollars per share earnings 42 cents, an increase of 38%.

Oracle expects the current second-quarter non-GAAP revenue to grow 39-43% at variable exchange rates, up from a year-on-year growth of 43-47%, according to unchanged exchange rates. GAAP revenue is growing 38-43% year-on-year, according to the variable exchange rate, with a year-on-year growth of 42-47%. The new software license revenue was increased 6-16% according to the variable exchange rate, year-on-year growth 9-19% According to unchanged exchange rate calculation.

Gartner said global corporate spending on information technology fell 5.9% per cent last year and will grow 2.9% to more than 2.4 trillion dollars this year. Since the beginning of 2005, Oracle's chief executive, Ellison, has bought more than 65 companies. The acquisition provided Oracle with a stable source of profit by increasing the number of software offerings that could be sold and the customers who would eventually buy support contracts.

Oracle hired HP's former chief executive, Hurd, to serve as co-CEO on September 6 for sales, marketing and customer support. David Hilal, an analyst at FBR Capital Markets, said: "Hurd is very much in line with Oracle's demands for new challenges – competition in the integrated hardware and software Systems Market" (David Hillar). He rated Oracle stock as "outperform".

Oracle's shares fell 38 cents on the day, closing at $25.36/share, or 1.48%, after the shares rose 1.22 to 26.58 dollars/shares, or 4.81%.