Welcome!

Log Management Authors: Dana Gardner, Pat Romanski, Elizabeth White, David H Deans, Carmen Gonzalez

Related Topics: Recurring Revenue, Java IoT, Log Management

Recurring Revenue: Article

Oracle Has Good Numbers

Safra Catz Touts Momentum, Larry Ellison Knocks Autonomy

Oracle narrowly vaulted Wall Street's expectations Tuesday when it reported its first fiscal quarter. Its results encouraged people to think budgets aren't in lockdown mode. Revenues were up 12% to $8.37 billion returning a non-GAAP EPS of 48 cents a share, up 14%, against estimates of 46 cents on $8.35 billion.

On a GAAP basis EPS was 36 cents, up 36%, for a total net of $1.84 billion. Although there were no large deals, new software license revenues, a key metric, were up 17% to $1.5 billion. Analysts had predicted a 15% rise. The company's all-important software license updates and product support revenues were also up 17% to $4 billion.

Oracle co-president Safra Catz claimed "company-specific momentum." Despite the turmoil over there, European sales were up 60% in the quarter, an important number because Oracle gets 30% of its revenue from Europe.

However, hardware sales slouched 5% to $1 billion. Oracle still has faith though; it said it hired 350 salespeople in the quarter.

In a statement co-president Mark Hurd said, "Our high-end server business - Exadata, Exalogic and Sparc M-Series - delivered solid double-digit revenue growth in Q1. In contrast, revenue declined in our low-end server business. By moving away from low-margin commodity hardware and focusing on high-end servers, we increased our hardware gross margins from 48% to 54%. Our strategy to grow the profitable parts of our hardware business is paying off."

That means selling widgetry that's based solely on Oracle IP and that won't happen until fiscal year 2013, according to Oracle CEO Larry Ellison, when hardware should start showing top-line growth.

Meantime, he said, he doesn't care if "our commodity x86 business goes to zero." Oracle's not making any money selling other people's IP. He did not address Sun's server losses to competitors.

In a step towards Ellison's nirvana Oracle next week is supposed to announce a new high-performance Sparc microprocessor and a new high-end, Solaris 11-run, fault-tolerant server called a Sparc SuperCluster. Ellison said the new Sparc T4 chip is up to five times faster than the T3 part it replaces, and the new all-Oracle SuperCluster, engineered to use the T4 along with Exadata's flash and disk storage system, is supposed to be cheaper and faster than anything IBM's got. It'll apparently do data analysis in-memory.

Evidently Oracle is about to put out three other purely Oracle "engineered systems" at OpenWorld in a couple of weeks. The issue of unstructured data came up during the conference call, which gave Larry the chance to take out his switch blade and go for HP. He said Autonomy, the unstructured data company HP is buying, was shopped to Oracle and he was "shocked" by HP's "absurdly high" bid of $10.25 billion for the British software company.

He then explained that the Oracle Database hadn't been simply an RDBMS for 20 years and had absorbed object database methodology when it came along, then text search and XML, and now it's supposed to integrate unstructured data too and process it as well as Autonomy.

For its next trick the database will interface with anybody's Hadoop appliance and process the Big Data that Hadoop feeds it. After starting the widgetry six years ago Oracle is supposed to go GA with its Fusion apps by Christmas. Evidently Fusion already has 200 customers. Oracle is also going to start pushing CRM cloud apps (SaaS stuff like Salesforce) this quarter.

Oracle shares were tickled 3% after-hours after falling 2.3% during the day. It closed at $28.35. Nothing was said during the conference call about the court-ordered negotiations Ellison had Monday and Tuesday with Google CEO Larry Page to resolve Oracle's Java infringement suit.

Oracle guided to non-GAAP revenues up 4%-8% to $9 billion-$9.34 billion this quarter on new software license revenue up 6%-16% and hardware flat to down 5%. Non-GAAP profits should be 56 cents-58 cents a share. The Street figured revenues at $9.36 billion.

More Stories By Maureen O'Gara

Maureen O'Gara the most read technology reporter for the past 20 years, is the Cloud Computing and Virtualization News Desk editor of SYS-CON Media. She is the publisher of famous "Billygrams" and the editor-in-chief of "Client/Server News" for more than a decade. One of the most respected technology reporters in the business, Maureen can be reached by email at maureen(at)sys-con.com or paperboy(at)g2news.com, and by phone at 516 759-7025. Twitter: @MaureenOGara

Comments (0)

Share your thoughts on this story.

Add your comment
You must be signed in to add a comment. Sign-in | Register

In accordance with our Comment Policy, we encourage comments that are on topic, relevant and to-the-point. We will remove comments that include profanity, personal attacks, racial slurs, threats of violence, or other inappropriate material that violates our Terms and Conditions, and will block users who make repeated violations. We ask all readers to expect diversity of opinion and to treat one another with dignity and respect.


IoT & Smart Cities Stories
Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life settlement products to hedge funds and investment banks. After, he co-founded a revenue cycle management company where he learned about Bitcoin and eventually Ethereal. Andrew's role at ConsenSys Enterprise is a mul...
Nicolas Fierro is CEO of MIMIR Blockchain Solutions. He is a programmer, technologist, and operations dev who has worked with Ethereum and blockchain since 2014. His knowledge in blockchain dates to when he performed dev ops services to the Ethereum Foundation as one the privileged few developers to work with the original core team in Switzerland.
René Bostic is the Technical VP of the IBM Cloud Unit in North America. Enjoying her career with IBM during the modern millennial technological era, she is an expert in cloud computing, DevOps and emerging cloud technologies such as Blockchain. Her strengths and core competencies include a proven record of accomplishments in consensus building at all levels to assess, plan, and implement enterprise and cloud computing solutions. René is a member of the Society of Women Engineers (SWE) and a m...
Early Bird Registration Discount Expires on August 31, 2018 Conference Registration Link ▸ HERE. Pick from all 200 sessions in all 10 tracks, plus 22 Keynotes & General Sessions! Lunch is served two days. EXPIRES AUGUST 31, 2018. Ticket prices: ($1,295-Aug 31) ($1,495-Oct 31) ($1,995-Nov 12) ($2,500-Walk-in)
Digital Transformation and Disruption, Amazon Style - What You Can Learn. Chris Kocher is a co-founder of Grey Heron, a management and strategic marketing consulting firm. He has 25+ years in both strategic and hands-on operating experience helping executives and investors build revenues and shareholder value. He has consulted with over 130 companies on innovating with new business models, product strategies and monetization. Chris has held management positions at HP and Symantec in addition to ...
The challenges of aggregating data from consumer-oriented devices, such as wearable technologies and smart thermostats, are fairly well-understood. However, there are a new set of challenges for IoT devices that generate megabytes or gigabytes of data per second. Certainly, the infrastructure will have to change, as those volumes of data will likely overwhelm the available bandwidth for aggregating the data into a central repository. Ochandarena discusses a whole new way to think about your next...
CloudEXPO | DevOpsSUMMIT | DXWorldEXPO are the world's most influential, independent events where Cloud Computing was coined and where technology buyers and vendors meet to experience and discuss the big picture of Digital Transformation and all of the strategies, tactics, and tools they need to realize their goals. Sponsors of DXWorldEXPO | CloudEXPO benefit from unmatched branding, profile building and lead generation opportunities.
Dynatrace is an application performance management software company with products for the information technology departments and digital business owners of medium and large businesses. Building the Future of Monitoring with Artificial Intelligence. Today we can collect lots and lots of performance data. We build beautiful dashboards and even have fancy query languages to access and transform the data. Still performance data is a secret language only a couple of people understand. The more busine...
All in Mobile is a place where we continually maximize their impact by fostering understanding, empathy, insights, creativity and joy. They believe that a truly useful and desirable mobile app doesn't need the brightest idea or the most advanced technology. A great product begins with understanding people. It's easy to think that customers will love your app, but can you justify it? They make sure your final app is something that users truly want and need. The only way to do this is by ...
DXWorldEXPO LLC announced today that Big Data Federation to Exhibit at the 22nd International CloudEXPO, colocated with DevOpsSUMMIT and DXWorldEXPO, November 12-13, 2018 in New York City. Big Data Federation, Inc. develops and applies artificial intelligence to predict financial and economic events that matter. The company uncovers patterns and precise drivers of performance and outcomes with the aid of machine-learning algorithms, big data, and fundamental analysis. Their products are deployed...