Oracle Surprises Wall Street with Record Q1 Revenue

By Chris Preimesberger  |  Posted 2010-09-16 Print this article Print

Oracle reports record first-quarter profits of $1.4 billion, or 27 cents per share, on total revenue of $7.5 billion, up a whopping 48 percent from the first quarter of 2009.

Oracle may have had some digestive troubles swallowing huge Sun Microsystems earlier in 2010, but Sun's financial woes certainly aren't showing in its new owner's quarterly reports.

Sun was losing more than $100 million per month in 2009 before the January acquisition.

No matter. To the surprise of many market observers, Oracle easily exceeded Wall Street expectations in both earnings and revenue in its first-quarter 2010 report to analysts, media and shareholders Sept. 16.

Oracle reported record first-quarter profits of $1.4 billion (27 cents a share) on total revenue of $7.5 billion, which was up a whopping 48 percent from first-quarter 2009. Non-GAAP (Generally Accepted Accounting Principles) earnings were 42 cents a share. Wall Street had been looking for non-GAAP earnings of 37 cents a share on revenue of $7.3 billion.

The bottom line: Oracle earned about $200 million more than many analysts figured.

Key to this good news, CEO and co-founder Larry Ellison said on the conference call, was that Oracle's hardware and software businesses grew faster than expected.

New Oracle Co-president Mark Hurd, who joined the company in August after leaving Hewlett-Packard Aug. 6, made his first public statement as an Oracle employee. Hurd said the company will invest more than $4 billion in research and development this year, adding that "our already robust product portfolio is only going to get stronger."

He also said, "Next week at Oracle OpenWorld, we will announce two new high-end systems that combine Sun hardware with Oracle software."

Hurd was well-known for cutting R&D budgets at NCR and at HP, where he served as CEO for five years.

Oracle, which following the $7.4 billion Sun deal is a systems vendor on the same tier as IBM, Hewlett-Packard and Dell, calls its data center stack of hardware, software and services its Red Stack.

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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