Oracle Grows Its Apps Business
Oracle (NASDAQ: ORCL) keeps on getting bigger.
The enterprise applications and database giant last night reported third-quarter 2011 revenues of $8.8 billion, a 37 percent year-over-year increase. Net income was $2.2 billion, a 78 percent year-over-year gain.
Earnings per share were up by 75 percent to 41 cents a share for the quarter, and non-GAAP EPS of 54 topped Wall Street forecasts. Moving forward, Oracle provided fourth-quarter guidance for total revenue growth on a GAAP basis to range from 10 percent to 14 percent at current exchange rates.
While growth came across a number of segments, one particular area highlighted by Oracle during its conference call was a 29 percent growth in their software license revenue stream.
“You can really see our momentum in our Apps business as we continue to take share from SAP,” Oracle President Safra Catz said during the call. “So over the last couple of years, our New License revenue for Applications has grown 53 percent in constant currency, or about more than 10x faster than SAP over the same period.”
In its earnings announcement, Oracle also highlighted its growing relationship with Salesforce.com (NYSE: CRM).
“In Q3 we signed several large hardware and software deals with some of the biggest
names in cloud computing,” Oracle CEO Larry Ellison said in a statement. “For example, Salesforce.com's new multi-year contract enables them to continue building virtually all of their cloud services on top of the Oracle database and Oracle middleware. Oracle is the technology that powers the cloud.”
Oracle also reported strong growth in its Exadata data warehousing and Exalogic cloud businesses.
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Sean Michael is a writer who focuses on innovation and how science and technology intersect with industry, technology Wordpress, VMware Salesforce, And Application tech. TechCrunch Europas shortlisted her for the best tech journalist award. She enjoys finding stories that open people's eyes. She graduated from the University of California.
