The company boosted profits by 35 percent during the third quarter of fiscal 2007, which ended Feb. 28, compared with the same period last year, Oracle said Wednesday.
March 21, 2007 (Press Release) --
Last fall, Oracle had a tough time closing some deals before the end of its fiscal second quarter, and the company failed to meet its own sales predictions. But Safra Catz, the Redwood City software maker's president and chief financial officer, promised to make up for it in in the third quarter.
The company boosted profits by 35 percent during the third quarter of fiscal 2007, which ended Feb. 28, compared with the same period last year, Oracle said Wednesday. It earned $1.03 billion, or $0.20 a share, beating the prediction of analysts surveyed by Thomson Financial by a penny.
"Oracle had a very strong quarter, with outstanding performance across all product lines and all geographies," Catz told financial analysts during a conference call.
The company said its total revenue rose 27 percent to $4.4 billion, with new license revenue for its software applications business climbing by 57 percent.
Oracle has spent well over $20 billion during the past three years buying companies that sell application software, which helps businesses manage functions like human resources and finance.Two large acquisitions included PeopleSoft of Pleasanton and Siebel Systems of San Mateoin 2005 and 2006, respectively. Although Oracle often experiences up-and-down quarters, the high revenues indicate the acquisition strategy is working well.
Oracle also grew its new license sales for middleware, or software that helps other programs communicate, by 82 percent. Although the company didn't provide a dollar figure, Chief Executive and founder Larry Ellison told analysts that Oracle's sales of middleware were larger than those of BEA, the San Jose middleware company that sold $392 million worth of software in its most recent quarter.
One potential trouble spot for Oracle might be its services business, which pulled in $916 milllion in sales during the quarter. Although it grew 21 percent compared with 2006, the service unit's costs increased 18 percent.
Oracle's fourth quarter has traditionally been its strongest, but Catz cautioned that the copany probably wouldn't beat the blockbuster 2006 fourth quarter by much. That spring, Oracle increased its new software license revenue by 32 percent; during fourth quarter 2007, Catz said, Oracle will grow the same figure by between 5 and 15 percent.
"Last year's final quarter was a blowout," said Brad Manuilow, an analyst at American Technology Research. "That makes the comparison pretty tough."
The company's stock closed up 37 cents to $17.55 in regular trading and rose an additional 55 cents to $18.10 in after-hours trading. Shares of Oracle had dropped steadily from a high of $19.75 in late November, but ascended slightly on Monday and Tuesday. The company's shares were trading in the $13 range a year ago.
Author: Ryan Blitstein
Source: http://www.mercurynews.com/
The company boosted profits by 35 percent during the third quarter of fiscal 2007, which ended Feb. 28, compared with the same period last year, Oracle said Wednesday. It earned $1.03 billion, or $0.20 a share, beating the prediction of analysts surveyed by Thomson Financial by a penny.
"Oracle had a very strong quarter, with outstanding performance across all product lines and all geographies," Catz told financial analysts during a conference call.
The company said its total revenue rose 27 percent to $4.4 billion, with new license revenue for its software applications business climbing by 57 percent.
Oracle has spent well over $20 billion during the past three years buying companies that sell application software, which helps businesses manage functions like human resources and finance.Two large acquisitions included PeopleSoft of Pleasanton and Siebel Systems of San Mateoin 2005 and 2006, respectively. Although Oracle often experiences up-and-down quarters, the high revenues indicate the acquisition strategy is working well.
Oracle also grew its new license sales for middleware, or software that helps other programs communicate, by 82 percent. Although the company didn't provide a dollar figure, Chief Executive and founder Larry Ellison told analysts that Oracle's sales of middleware were larger than those of BEA, the San Jose middleware company that sold $392 million worth of software in its most recent quarter.
One potential trouble spot for Oracle might be its services business, which pulled in $916 milllion in sales during the quarter. Although it grew 21 percent compared with 2006, the service unit's costs increased 18 percent.
Oracle's fourth quarter has traditionally been its strongest, but Catz cautioned that the copany probably wouldn't beat the blockbuster 2006 fourth quarter by much. That spring, Oracle increased its new software license revenue by 32 percent; during fourth quarter 2007, Catz said, Oracle will grow the same figure by between 5 and 15 percent.
"Last year's final quarter was a blowout," said Brad Manuilow, an analyst at American Technology Research. "That makes the comparison pretty tough."
The company's stock closed up 37 cents to $17.55 in regular trading and rose an additional 55 cents to $18.10 in after-hours trading. Shares of Oracle had dropped steadily from a high of $19.75 in late November, but ascended slightly on Monday and Tuesday. The company's shares were trading in the $13 range a year ago.
Author: Ryan Blitstein
Source: http://www.mercurynews.com/
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