Oracle's Q1 another strong financial showing
Revenue from new apps rises, as licenses and service contribute strong growth
Follow @infoworldOracle Corp. declared another strong quarter of financial results, exceeding both its own expectations and analysts' predictions, in what the database, applications and middleware software vendor has typically defined as a tough time period.
In results for Oracle's first quarter of fiscal 2007 issued Tuesday for the period ended Aug. 31, the company saw its net income climb 29 percent over the year-ago quarter to US$670 million on revenue up 30 percent to $3.6 billion. Earnings per share (EPS) grew 28 percent to $0.13.
Discounting the impact of recent acquisitions and other factors, Oracle's net income rose 26 percent to $931 million compared with the first quarter of fiscal 2006, while revenue was also up 26 percent to $3.7 billion, and EPS grew 24 percent to $0.18.
A consensus estimate of Thomson Financial analysts had predicted that Oracle would report revenue of $3.5 billion on an EPS of $0.16.
The figures were better than what Safra Catz, co-president and chief financial officer at Oracle, estimated back in June when the company issued its fourth-quarter results for fiscal 2006. She predicted then that total fiscal 2007 first-quarter revenue would rise 19 percent to 20 percent on an EPS of $0.16, without accounting for any specific charges likely to be taken in the quarter.
"We exceeded our guidance on every metric and delivered strong revenue growth across all product lines and geographies," Catz said in an Oracle release.
In the first quarter of fiscal 2007, Oracle gained $2.7 billion of its revenue from software sales, with new software licenses accounting for 22 percent of revenue or $804 million, while software license update and product support contributed 54 percent or $1.9 billion to Oracle's bottom line. Services made up the remaining $846 million or 24 percent of revenue.
Revenue from new applications shot up by 80 percent compared to the same quarter last year, with new database and middleware license revenue growing by a more modest 15 percent, while service revenue rose by 33 percent.
