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Oracle (ORCL) Reports In-Line Third Quarter Results, Takes Market Share from SAP

March 25, 2010 5:00 PM EDT
Oracle Corp. (NASDAQ: ORCL) said on Thursday that it benefited from businesses spending in the economic recovery as it reported results in-line with the street's view for the third quarter.

The world's No. 2 business software maker reported fiscal third-quarter earnings of $1.2 billion or 23 cents per share, down from the $1.3 billion or 26 cents per share in the same quarter last year.

Excluding one-time items, Oracle reported earnings for the quarter of 38 cents per share, in line with the market consensus.

Revenue for the company jumped 17 percent to $6.5 billion, slightly ahead of the analyst estimate of $6.35 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," said Oracle CFO Jeff Epstein.

Oracle's revenue from its new software licenses rose 10 percent, excluding Sun.

"The Sun integration is going even better than we expected," said 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 CEO, Larry Ellison, took some stabs at competitor SAP (NYSE: SAP). "Every quarter we grab huge chunks of market share from SAP," he commented. "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."

The company's board of directors also declared a cash dividend of 5 cents per share of outstanding common stock to be paid out on May 5 to shareholders of record as of April 14.

UPDATE: Click here to see some highlights from Oracle's Q3 conference call.

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