Summary
Oracle Corporation's (ORCL) Form 10-Q for the period ending February 28, 2013, shows a stable revenue picture compared to the prior year, with total revenues at $8.96 billion for the quarter and $26.23 billion for the nine months. While new software license and cloud subscription revenues saw a slight dip in the quarter, overall software business revenue grew due to strong performance in license updates and product support. The company continues to execute its strategy of strategic acquisitions, notably the pending acquisition of Acme Packet for approximately $2.1 billion and the recent acquisition of Eloqua for $935 million. Oracle is actively returning capital to shareholders through share repurchases, with $8.2 billion spent in the nine-month period. Financially, Oracle maintains a strong liquidity position with $16.1 billion in cash and cash equivalents and $17.3 billion in marketable securities as of February 28, 2013. The company also generated robust operating cash flow of $9.66 billion for the nine months. Management anticipates continued investment in research and development and a strategic focus on integrating acquired technologies to drive future growth and maintain its competitive edge in the enterprise software and hardware markets.
Financial Highlights
56 data points| Revenue | $8.96B |
| R&D Expenses | $1.19B |
| Operating Expenses | $5.62B |
| Operating Income | $3.33B |
| Interest Expense | $205.00M |
| Net Income | $2.50B |
| EPS (Basic) | $0.53 |
| EPS (Diluted) | $0.52 |
| Shares Outstanding (Basic) | 4.74B |
| Shares Outstanding (Diluted) | 4.81B |
Key Highlights
- 1Total revenues for the nine months ended February 28, 2013, were $26.23 billion, flat compared to the prior year's $26.21 billion. The third quarter revenues were $8.96 billion, a slight decrease from $9.04 billion in the prior year.
- 2The software business remains the core revenue driver, with revenues of $19.04 billion for the nine months, up 5.8% year-over-year. Software license updates and product support showed strong growth, increasing by 5.7% to $12.74 billion for the nine months.
- 3Cloud software subscriptions revenue more than doubled year-over-year for the nine-month period, reaching $653 million, indicating a successful shift towards cloud offerings.
- 4Oracle announced a proposed acquisition of Acme Packet, a session border control technology provider, for an estimated $2.1 billion. The company also recently acquired Eloqua, a cloud-based marketing automation software provider, for approximately $935 million.
- 5The company repurchased approximately $8.2 billion of its common stock during the nine months ended February 28, 2013, demonstrating a commitment to returning capital to shareholders.
- 6Operating income for the nine months was $9.68 billion, an increase of 6.3% year-over-year, indicating improved operational efficiency and profitability.
- 7Cash and cash equivalents and marketable securities totaled $33.41 billion as of February 28, 2013, providing significant financial flexibility.