Oracle (ORCL) Tops Q1 Views as License Segment Shows Strong Growth
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Oracle Corp. (Nasdaq: ORCL) shares are pushing higher late Tuesday following strong first-quarter earnings results after the close.
Total revenue in the quarter rose 11.6 percent from $7.502 billion in the same period last year to $8.374 billion.
Net income for Oracle increased 36 percent to $1.840 billion, or 36 cents per diluted share. Adjusting for certain items and net income came in at a stronger 48 cents per share.
The Street was expecting revenue of $8.36 billion and earnings of 47 cents per share.
Oracle President Safra Catz reported GAAP license revenue increased 17 percent to $5.520 billion in the quarter. Organic growth and strong business management led to an increase in its operating margins, Catz said. Software revs accounted for 66 percent of overall revenue at Oracle.
"Our high-end server business... delivered solid double digit revenue growth in Q1," commented President Mark Hurd. "In contrast, revenue declined in our low-end server business. By moving away from low-margin commodity hardware and focusing on high-end servers, we increased our hardware gross margins from 48% to 54%." Hardware Systems revenue fell 8 percent on a constant currency basis to $1.674 billion.
Oracle shares are currently up just under 1 percent in the post-market session. The stock last traded at $28.57.
Total revenue in the quarter rose 11.6 percent from $7.502 billion in the same period last year to $8.374 billion.
Net income for Oracle increased 36 percent to $1.840 billion, or 36 cents per diluted share. Adjusting for certain items and net income came in at a stronger 48 cents per share.
The Street was expecting revenue of $8.36 billion and earnings of 47 cents per share.
Oracle President Safra Catz reported GAAP license revenue increased 17 percent to $5.520 billion in the quarter. Organic growth and strong business management led to an increase in its operating margins, Catz said. Software revs accounted for 66 percent of overall revenue at Oracle.
"Our high-end server business... delivered solid double digit revenue growth in Q1," commented President Mark Hurd. "In contrast, revenue declined in our low-end server business. By moving away from low-margin commodity hardware and focusing on high-end servers, we increased our hardware gross margins from 48% to 54%." Hardware Systems revenue fell 8 percent on a constant currency basis to $1.674 billion.
Oracle shares are currently up just under 1 percent in the post-market session. The stock last traded at $28.57.
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