Oracle Earnings Solid but Hardware Sales Slip

By Chris Preimesberger  |  Posted 2011-06-23 Print this article Print

The company brought in total quarterly revenue of $10.8 billion, an increase of 12 percent on the same period last year, and a tad above analysts' projections of $10.75 billion.

When all the numbers were tallied, Oracle turned in a record-breaking fourth quarter and fiscal year financial report June 23.

However, a second consecutive quarter of weak data center hardware sales caused its stock to slip more than 6 percent in after-hours trading.

Two hours after the markets closed, Oracle was selling at about $31 per share, down about $1.25 (4 percent).

Investors can't argue with the bottom-line results, however. The full-service IT hardware and software maker brought in total quarterly revenue of $10.8 billion, an increase of 12 percent on the same period last year, and a tad above analysts' projections of $10.75 billion.

For the fiscal year, Oracle brought in revenue of $35.9 billion, a jump of 33 percent from the previous year and a notch over Wall Street's estimate of $35.77 billion. The company  earned $2.22 per share, an increase of 33 percent on the prior year -- exceeding consensus forecasts of $2.18.

The enterprise database maker earned 75 cents a share, up from 60 cents in Q4 2010. Analysts surveyed by Thomson Reuters were expecting earnings of 71 cents per share.

Chris Preimesberger Chris Preimesberger was named Editor-in-Chief of Features & Analysis at eWEEK in November 2011. Previously he served eWEEK as Senior Writer, covering a range of IT sectors that include data center systems, cloud computing, storage, virtualization, green IT, e-discovery and IT governance. His blog, Storage Station, is considered a go-to information source. Chris won a national Folio Award for magazine writing in November 2011 for a cover story on and CEO-founder Marc Benioff, and he has served as a judge for the SIIA Codie Awards since 2005. In previous IT journalism, Chris was a founding editor of both IT Manager's Journal and and was managing editor of Software Development magazine. His diverse resume also includes: sportswriter for the Los Angeles Daily News, covering NCAA and NBA basketball, television critic for the Palo Alto Times Tribune, and Sports Information Director at Stanford University. He has served as a correspondent for The Associated Press, covering Stanford and NCAA tournament basketball, since 1983. He has covered a number of major events, including the 1984 Democratic National Convention, a Presidential press conference at the White House in 1993, the Emmy Awards (three times), two Rose Bowls, the Fiesta Bowl, several NCAA men's and women's basketball tournaments, a Formula One Grand Prix auto race, a heavyweight boxing championship bout (Ali vs. Spinks, 1978), and the 1985 Super Bowl. A 1975 graduate of Pepperdine University in Malibu, Calif., Chris has won more than a dozen regional and national awards for his work. He and his wife, Rebecca, have four children and reside in Redwood City, Calif.Follow on Twitter: editingwhiz

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