Oracle (ORCL) Delivers Q4 Early, But Strong; Adds $10B to Buyback Plan

June 18, 2012 5:30 PM EDT
Shares of Oracle (Nasdaq: ORCL) are sharply higher in Monday's after-hours session following the early release of the company's fourth-quarter results. Oracle wasn't expected to release earnings until Thursday, June 21st.

The company saw pro-forma sales rise 1 percent to $11 billion, better than the $10.9 billion expected by analysts on the Street. License revenue to Oracle's Software unit rose 7 percent to $4 billion, sales from updates and product support to the Software segment were up 5 percent to $4.2 billion, and sales to the company's Hardware Systems division were down 16 percent to $977 million.

GAAP and non-GAAP operating income were both up 5 percent to $4.6 billion and $5.5 billion, respectively. Adjusted net income jumped 7 percent to $4.1 billion. On a per-share basis, profit was up 10 percent to 82 cents. Analysts were anticipating a per-share profit of 78 cents from Oracle.

President and CFO Sabra Catz said, "Our record-breaking fourth quarter featured several all-time highs for Oracle: new software license sales of $4 billion, total software revenue of $8 billion, total revenue of $11 billion, and EPS of 82 cents. For the fiscal year, we also set all-time highs for operating margins of 46%, and operating cash flow of $13.7 billion."

The company's Mark Hurd added, "Our engineered systems business is now operating at well over a billion dollar revenue run rate. For the year, the Exadata, Exalogic, Exalytics, SPARC SuperCluster and the Oracle Big Data Appliance product group grew over 100% year-over-year."

And finally, CEO Larry Ellison said, "The development of Oracle Cloud is strategic to increasing the size and profitability of Oracle's software business. Our Oracle Cloud SaaS business is nearly at a billion dollar revenue run rate, the same size as our engineered systems hardware business. The combination of engineered systems and the Oracle Cloud will drive Oracle's growth in FY 2013."

Oracle's Board authorized the repurchase of up to an additional $10.0 billion of common stock under its existing share repurchase program.

The early earnings release could have been related to news VP Keith Block will leave the company, which was speculated on Wall Street earlier today. It has been suggested that he had problems with President Mark Hurd.

After closing at $27.12 Monday, the stock is now trading around $28.41, up about 4.5 percent.

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