Oracle Jumps Gun, Preannounces Profit Surge in Q4 2012 Earnings

By Chris Preimesberger  |  Posted 2012-06-18 Print this article Print

Net income increased 8 percent to $3.5 billion, or 69 cents a share, and revenue rose modestly by 1 percent to $11 billion. Ellison says cloud initiative will be a billion-dollar business.

In a rare jump-the-gun earnings announcement, Oracle on June 18 took its good news to Wall Street and its investors three days earlier than scheduled, reporting that its fiscal Q4 2012 net income increased 8 percent to $3.5 billion, or 69 cents a share.

Thanks to the better-than-expected results, Oracle's shares moved higher in online trading after the bell. The stock had closed down 2 percent at $27.12 prior to the news announcement, but afterward it zoomed up 84 cents, equating to a 3 percent increase in after-hours trading.

Revenue rose 1 percent to $11 billion, compared to year-ago sales of $10.81 billion. New software license revenues rose 7 percent to $4 billion, as software license updates and support revenues rose 5 percent to $4.2 billion; hardware systems revenue fell 16 percent to $977 million.

Oracle had scheduled its earnings report for June 21.

Thomson Reuters analysts had predicted earnings of 78 cents a share on revenue of $10.89 billion. The company pointed to the relevance of its new Oracle Cloud to the future growth and profitability of Oracle€™s software division.

"Our Oracle Cloud SAAS business is nearly at a billion-dollar revenue run rate, the same size as our engineered systems hardware business," Oracle Chief Executive Officer and co-founder Larry Ellison said in a statement. 

"The combination of engineered systems and the Oracle Cloud will drive Oracle's growth in FY 2013."

Ellison had introduced the Oracle Cloud in a media event on the company's Redwood City campus on June 6.

The company€™s board of directors also declared a quarterly cash dividend of 6 cents a share to be paid Aug. 3. The board also authorized a share buy-back program of up to $10 billion in common stock.

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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