Close
  • Latest News
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
Read Down
Sign in
Close
Welcome!Log into your account
Forgot your password?
Read Down
Password recovery
Recover your password
Close
Search
Logo
Logo
  • Latest News
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
More
    Home Applications
    • Applications
    • Cloud
    • Database
    • Networking
    • Servers

    Oracle Income Flatlines: Hardware, Services Still Hurting

    By
    Chris Preimesberger
    -
    June 21, 2013
    Share
    Facebook
    Twitter
    Linkedin

      Oracle, which is seeing some of its business level off—and in some cases erode—in the face of less-expensive cloud-based competition, on June 20 reported a tidy profit to go with flat overall income for the financial quarter that ended May 31.

      Its stock price took a fall after the session close, slipping an alarming 8 percent to $30.59, most likely because revenue is not showing signs of growth.

      In its Q4 2013 report, Oracle revealed a profit of $3.81 billion (80 cents per share), which was up from $3.45 billion (69 cents a share) a year earlier. Revenue edged up one-third of a percent to $10.95 billion.

      Per-share earnings rose to 87 cents from 82 cents a year ago. Oracle had projected adjusted earnings of 85 cents to 91 cents a share and revenue to range from a decline of 1 percent to growth of 4 percent.

      Total revenue in Oracle’s bread-and-butter software division increased 3.6 percent, but income fell more than 9 percent in its services and hardware groups each—services 9.5 percent, hardware 9.3 percent.

      Oracle has been struggling in the hardware business for more than three years since it acquired servers, storage and networking from Sun Microsystems in January 2010. It was Oracle hardware’s eighth consecutive quarter of revenue decline.

      In good news for stockholders, Oracle doubled its quarterly dividend to a payout of 12 cents a share and authorized repurchase of up to an additional $12 billion of common stock. The company also said that it has applied to transfer its shares to the New York Stock Exchange from the Nasdaq.

      Web-based service companies such as Salesforce.com and a number of smaller players have cut substantially into Oracle’s traditional CRM and other software businesses. Oracle didn’t launch its own subscription-based cloud services division until June 2012, long after many others had already been established as market leaders.

      “We don’t see revenue growth at all. … ORCL technology is too ancient in light of what Amazon.com is doing with AWS; Redshift; Pivotal; and VoltDB,” analyst Trip Chowdhry of Global Equities Research wrote in a media advisory.

      Chris Preimesberger
      https://www.eweek.com/author/cpreimesberger/
      Chris J. Preimesberger is Editor Emeritus of eWEEK. In his 16 years and more than 5,000 articles at eWEEK, he distinguished himself in reporting and analysis of the business use of new-gen IT in a variety of sectors, including cloud computing, data center systems, storage, edge systems, security and others. In February 2017 and September 2018, Chris was named among the 250 most influential business journalists in the world (https://richtopia.com/inspirational-people/top-250-business-journalists/) by Richtopia, a UK research firm that used analytics to compile the ranking. He has won several national and regional awards for his work, including a 2011 Folio Award for a profile (https://www.eweek.com/cloud/marc-benioff-trend-seer-and-business-socialist/) of Salesforce founder/CEO Marc Benioff--the only time he has entered the competition. Previously, Chris was a founding editor of both IT Manager's Journal and DevX.com and was managing editor of Software Development magazine. He has been a stringer for the Associated Press since 1983 and resides in Silicon Valley.

      MOST POPULAR ARTICLES

      Cybersecurity

      Visa’s Michael Jabbara on Cybersecurity and Digital...

      James Maguire - May 17, 2022 0
      I spoke with Michael Jabbara, VP and Global Head of Fraud Services at Visa, about the cybersecurity technology used to ensure the safe transfer...
      Read more
      Cloud

      Yotascale CEO Asim Razzaq on Controlling Multicloud...

      James Maguire - May 5, 2022 0
      Asim Razzaq, CEO of Yotascale, provides guidance on understanding—and containing—the complex cost structure of multicloud computing. Among the topics we covered:  As you survey the...
      Read more
      Applications

      Cisco’s Thimaya Subaiya on Customer Experience in...

      James Maguire - May 10, 2022 0
      I spoke with Thimaya Subaiya, SVP and GM of Global Customer Experience at Cisco, about the factors that create good customer experience – and...
      Read more
      IT Management

      Intuit’s Nhung Ho on AI for the...

      James Maguire - May 13, 2022 0
      I spoke with Nhung Ho, Vice President of AI at Intuit, about adoption of AI in the small and medium-sized business market, and how...
      Read more
      Big Data and Analytics

      GoodData CEO Roman Stanek on Business Intelligence...

      James Maguire - May 4, 2022 0
      I spoke with Roman Stanek, CEO of GoodData, about business intelligence, data as a service, and the frustration that many executives have with data...
      Read more
      Logo

      eWeek has the latest technology news and analysis, buying guides, and product reviews for IT professionals and technology buyers. The site’s focus is on innovative solutions and covering in-depth technical content. eWeek stays on the cutting edge of technology news and IT trends through interviews and expert analysis. Gain insight from top innovators and thought leaders in the fields of IT, business, enterprise software, startups, and more.

      Facebook
      Linkedin
      RSS
      Twitter
      Youtube

      Advertisers

      Advertise with TechnologyAdvice on eWeek and our other IT-focused platforms.

      Advertise with Us

      Menu

      • About eWeek
      • Subscribe to our Newsletter
      • Latest News

      Our Brands

      • Privacy Policy
      • Terms
      • About
      • Contact
      • Advertise
      • Sitemap
      • California – Do Not Sell My Information

      Property of TechnologyAdvice.
      © 2021 TechnologyAdvice. All Rights Reserved

      Advertiser Disclosure: Some of the products that appear on this site are from companies from which TechnologyAdvice receives compensation. This compensation may impact how and where products appear on this site including, for example, the order in which they appear. TechnologyAdvice does not include all companies or all types of products available in the marketplace.

      ×