Oracle revenue down in Q4, but beats expectations
New licence revenue down, but maintenance up and gaining share from competitors says Oracle
Oracle saw a drop in income and revenue during the fourth quarter, although its figures beat market expectations.
The company posted a 7% drop in net income to $1.9 billion, down from $2 billion in the same quarter last year, with revenue down 5% to $6.9 billion.
The results were better than analyst predictions, sending Oracle shares up 12%.
Jeff Epstein, CFO of Oracle said: “We executed substantially better than we expected on both the top and bottom line for the quarter. We grew Q4 non-GAAP operating margins by a faster than expected 240 basis points to over 51%. That helped us generate $7.7 billion in free cash flow for fiscal 2009.”
Oracle saw revenue from new software licensing drop 13% to $2.7 billion, while updates and support revenues grew by 8% to $3.1 billion. The company also said that it continued to take market share from rivals, including SAP.
We grew faster and took market share from SAP in every region around the world. In Europe our applications business grew 5% in constant currency versus negative 27% growth for SAP in their most recent quarter. Historically Europe has been an SAP stronghold, but these results prove that we can compete and beat them everywhere.” said Charles Phillips, Oracle president.