Summary
Oracle Corporation (ORCL) reported strong financial results for the third quarter and the first nine months of fiscal year 2011, ending February 28, 2011. Total revenues saw a significant increase of 37% year-over-year in the third quarter, reaching $8.76 billion. This growth was driven by a substantial contribution from the hardware systems business, which more than doubled its revenue, and continued strength in the software and services segments. Net income also rose considerably, reflecting improved operational efficiencies and the integration of recent acquisitions, particularly Sun Microsystems. Key drivers for the quarter included robust performance in new software licenses, up 29% in reported currency, and a strong uptick in software license updates and product support, growing 13%. The company highlighted a significant increase in hardware systems revenue, up 274% year-over-year, demonstrating progress in integrating Sun Microsystems into its operations. Oracle continues to focus on innovation and strategic acquisitions to maintain its market leadership and expand its offerings across software, hardware, and services, positioning itself for continued growth.
Financial Highlights
57 data points| Revenue | $8.76B |
| Cost of Revenue | $465.00M |
| Gross Profit | $8.30B |
| R&D Expenses | $1.13B |
| Operating Expenses | $5.78B |
| Operating Income | $2.99B |
| Interest Expense | $204.00M |
| Net Income | $2.12B |
| EPS (Basic) | $0.42 |
| EPS (Diluted) | $0.41 |
| Shares Outstanding (Basic) | 5.06B |
| Shares Outstanding (Diluted) | 5.15B |
Key Highlights
- 1Total revenues increased by 37% to $8.76 billion for the third quarter of fiscal 2011, driven by strong performance across all business segments.
- 2Net income for the quarter grew significantly, reaching $2.12 billion, a substantial increase from $1.19 billion in the prior year period.
- 3New software license revenues increased by 29% to $2.21 billion in the third quarter.
- 4Software license updates and product support revenues rose by 13% to $3.74 billion, demonstrating sustained customer renewals and support.
- 5The hardware systems business showed exceptional growth, with revenues increasing by 274% to $1.66 billion, reflecting successful integration of the Sun Microsystems acquisition.
- 6Operating income increased by 62% to $2.99 billion, showcasing improved profitability and operational leverage.
- 7The company maintained a strong cash position, with cash and cash equivalents and marketable securities totaling $24.36 billion as of February 28, 2011.