Oracle Posted 28% Jump in Net Income
September 2nd 2015 Posted at Databases
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Oracle Corp. (NASDAQ: ORCL), one of the world\’s biggest software makers, reported profit jump in the three months ended Nov. 30, which indicated a sign that companies are spending more liberally on technology.
Oracle’s net income rose 28 percent, the biggest increase over two years. Its net income in the latest quarter was $ 1.87 billion, or 37 cents per share. Revenue rose 47 percent to $ 8.58 billion while analysts had projected revenue of $ 8.34 billion. Revenue from new software licenses jumped to $ 2.0 billion, up 21 percent, higher than expectation.
Oracle expects revenue and net income in the fourth quarter above. The company projects that its total revenue will rise 32 to 36 percent compared to one year earlier and net income will be 48 cents to 50 cents per share.
According to Yun Kim, an analyst with Gleacher & Co., there is growth in spending on new information technology products and services. This brings benefits many companies including Oracle and excluding companies with aging product lines.
Yun Kim said that the pace of new IT initiative appeared to be healthy, adding that tech bellwethers which did not have the right products were struggling.
Oracle’s strong performance arrived while there were concerns on the industry’s recovery. Networking dealer Cisco Systems Inc. (NASDAQ: CSCO) and Intel Corp. (NASDAQ: INTC), the world’s largest semiconductor chip maker, were just two among many technology companies stirred the industry. Their recent earning reports indicated sluggish demand from the state governments and consumers in the U.S.
Oracle’s better-than-expected results were partly from its profitability at the Sun Microsystems business. The company acquired the Sun Microsystems in early 2010. The purchase helped transform the company from solely a software company to a manufacturer of both software and hardware.
On January 27, 2010, Oracle announced it had acquired Sun Microsystems for over $ 7 billion. The acquisition was significant to some companies as they feared that the company might end Sun’s traditional support of open source projects.
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