- Al Sharpton, Trayvon Martin’s parents rally against Fla. ‘stand your ground’ law
- Hillary Clinton campaign got illicit funds from D.C. scandal figure
- Obama administration backs off plan to cut prescription-drug program
- Tickets linked to stolen passports purchased by Iranian middleman
- More than 3,500 police planned for Boston Marathon
- Ottawa day care suspends 2-year-old for ‘outside’ cheese sandwich
- Liam Neeson tells NYC mayor to ‘man up’ in horse carriage fight
- Real-life Dr. Doolittle to reveal how to talk to animals
- Climate change could bring back smallpox, researchers say
- Shoe-bomb witness to speak from London at N.Y. trial
Oracle reports profit jump, bucking industry fears
SAN FRANCISCO (AP) - Oracle Corp.’s net income jumped 28 percent in the latest quarter, its biggest increase in more than two years and another sign that companies are spending more liberally on technology.
The company also forecast net income and revenue in the current quarter above analysts’ expectations, and its shares rose 4 percent in extended trading.
Oracle’s strong performance arrived amid worries about the industry’s recovery. Other technology big shots, such as Cisco Systems Inc. and Intel Corp., stirred fears with recent earnings reports that showed sluggish demand from consumers and state governments in the U.S.
Oracle, one of the world’s biggest software makers, demonstrated in its latest numbers that it is shielded somewhat from sudden market swings because nearly half of its revenue comes from support contracts that provide consistent revenue throughout the year. The results were reported Thursday after the market closed.
Locking in new customers so they’ll buy those support contracts is critical to Oracle. A key measure of how well the company is doing that _ the sale of new software licenses _ was higher than Oracle had earlier predicted.
Oracle also cited improving profitability at the Sun Microsystems business it bought nearly a year ago for $7.3 billion as another reason for its better-than-expected results. That acquisition gave Oracle a computer-server business and transformed the company into more of a one-stop shop for technology.
Oracle’s outspoken CEO, Larry Ellison, used a conference call with analysts as an opportunity to slap Oracle’s new foe, Hewlett-Packard Co., whose servers Ellison called “slow” and “expensive” and “extremely vulnerable” to losing market share.
An HP representative noted that HP is the world’s No. 1 server seller, a spot it frequently trades off with IBM Corp., and said “Sun customers are running to HP in droves because they recognize we deliver superior technology, performance and pricing.”
The results, and Ellison’s barbs, underline the changing face of a company that over the past 6 years has spent more than $40 billion snapping up more than 70 companies, transforming itself into a clearinghouse for databases, business applications and the servers to power the software.
Oracle’s net income in the three months ended Nov. 30 was $1.87 billion, or 37 cents per share, compared with $1.46 billion, or 29 cents per share, a year ago. The last time Oracle’s net income grew by such a large margin was in 2008.
Excluding items, the company earned 51 cents per share in the latest period, topping the 46 cents per share that analysts polled by Thomson Reuters expected.
Revenue jumped 47 percent to $8.58 billion, higher than the $8.34 billion analysts expected. The increase in revenue was so large because Oracle didn’t own Sun at this time last year.
Revenue from new software licenses rose 21 percent to $2.0 billion. The company had predicted only as much as a 16 percent rise.
For the current quarter, Oracle sees that figure growing 10 to 20 percent over last year, translating to a range of $1.89 billion to $2.06 billion.
Total revenue is expected to rise 32 to 36 percent over last year, to $8.45 billion to $8.71 billion, higher than the $8.41 billion analysts expected.
TWT Video Picks
By David Keene
Conference showed that the values Reagan cherished still endure
- FCC targets black conservative in TV station fight
- Hillary Clinton campaign received funds from Jeffrey Thompson
- Kim Jong-un calls for execution of 33 Christians
- Senate Democrats, Republicans spar over restoring unemployment benefits
- Unanimous Senate passes bill on military sex assault to give victims more say in prosecution
- 80 people publicly executed across North Korea for films, Bibles
- U.S. pilot scares off Iranians with 'Top Gun'-worthy stunt: 'You really ought to go home'
- Bill Clinton poses for photo with Bunny Ranch prostitutes
- Sharyl Attkisson resigns from CBS after months of talks
- Liam Neeson tells NYC mayor to 'man up' in horse carriage fight
Pope Francis meets his 'mini-me'
Celebrity deaths in 2014
Winter storm hits states — again