Summary
Oracle Corporation (ORCL) reported its fiscal third-quarter 2010 results for the period ending November 30, 2009. The company demonstrated resilience in its software business, with total revenues showing a modest increase, driven by growth in software license updates and product support, partially offset by a decline in new software licenses. The services business experienced a notable contraction, reflecting broader economic headwinds impacting IT services demand. Despite revenue pressures in certain segments, Oracle maintained strong operating margins and generated robust cash flow from operations, underscoring its operational efficiency and financial discipline. A significant development during the quarter was the ongoing regulatory review of Oracle's proposed acquisition of Sun Microsystems, which was a key focus alongside its core business performance. The company also continued its share repurchase program and declared a dividend, signaling its commitment to returning value to shareholders.
Financial Highlights
52 data points| Revenue | $5.86B |
| Cost of Revenue | $0 |
| Gross Profit | $5.86B |
| Operating Expenses | $3.68B |
| Operating Income | $2.18B |
| Interest Expense | $188.00M |
| Net Income | $1.46B |
| EPS (Basic) | $0.29 |
| EPS (Diluted) | $0.29 |
| Shares Outstanding (Basic) | 5.01B |
| Shares Outstanding (Diluted) | 5.06B |
Key Highlights
- 1Total revenues increased slightly by 4% to $5.86 billion, with software revenues growing by 9% year-over-year, while services revenues declined by 15%.
- 2New software license revenues saw a modest increase of 2% to $1.65 billion, with the Americas region showing growth while EMEA and Asia Pacific experienced declines.
- 3Software license updates and product support revenues demonstrated strong performance, increasing by 14% to $3.25 billion, indicating continued customer retention and demand for ongoing support.
- 4Operating income increased by 10% to $2.18 billion, and operating margin expanded to 37% from 35% in the prior year period, highlighting improved operational efficiency.
- 5Net income rose by 12% to $1.46 billion, resulting in diluted earnings per share of $0.29, up from $0.25 in the same period last year.
- 6Cash and cash equivalents significantly increased to $14.92 billion as of November 30, 2009, bolstered by strong operating cash flows and recent debt issuance.
- 7The company continued its significant share repurchase activity, repurchasing 11.6 million shares for approximately $250 million during the quarter.