Oracle's profit fell in it third quarter of 2010, although it was still better than estimates, and it increased its revenue from new software licences.
Total GAAP revenues for the quarter were up 17% to $6,4-billion, while non-GAAP total revenues were up 18% to $6,5-billion.
GAAP new software license revenues were up 13% to $1,7-billion, and up 10% to $1,7-billion. GAAP software license updates and product support revenues were up 13% to $3,3-billion, while non-GAAP software license updates and product support revenues were up 12% to $3,3-billion.
GAAP operating income was down 5% to $1,8-billion, and GAAP operating margin was 29%. Non-GAAP operating income was up 13% to $2,9-billion, and non-GAAP operating margin was 45%.
GAAP net income was down 10% to $1,2-billion, while non-GAAP net income was up 9% to $1,9-billion. GAAP earnings per share were $0,23, down 11% compared to last year while non-GAAP earnings per share were up 9% to $0,38. GAAP operating cash flow on a trailing 12-month basis was $8,2-billion.
"Our solid top line growth, coupled with disciplined expense management, was key in generating $8.0 billion of free cash flow over the last twelve months," says Oracle CFO Jeff Epstein.
"The Sun integration is going even better than we expected," says Oracle President, Safra Catz. "We believe that Sun will make a significant contribution to our fourth quarter earnings per share as well as meet the profitability goals we set for next year."
Oracle president Charles Phillips adds: "Exadata is the fastest growing product in Oracle’s history. Introduced a little over a year ago, the Exadata pipeline is now approaching $400-million with Q4 bookings forecast at nearly $100-million. This strengthens both sales growth and profitability in our Sun server and storage businesses."
Larry Ellison, CEO of Oracle, comments: "Every quarter we grab huge chunks of market share from SAP. SAP’s most recent quarter was the best quarter of their year, only down 15%, while Oracle’s application sales were up 21%. But SAP is well ahead of us in the number of CEOs for this year, announcing their third and fourth, while we only had one."
Oracle’s board of directors declared a cash dividend of $0,05 per share of outstanding common stock.