Oracle Q3 EPS In Line, But Revenues Light

Oracle (ORCL) Wednesday afternoon reported fiscal third quarter revenue of $5.3 billion, with non-GAAP EPS of 30 cents. The Street had been expecting $5.42 billion and 30 cents. The lower-than-expected revenues are weighing on the stock after hours.

Software revenues were up 21%; database and middleware new license revenues were up 20%; application new license revenues were up 7%. Software license update and product support revenues were up 25%. Service revenue was up 21%.

Update: In a post-earnings conference call, CFO Safra Catz said Oracle expects total revenue to be up 14%-18% year-over-year on a GAAP basis in the fiscal fourth quarter ending in May, or 15%-19% on a GAAP basis. She said the company expects EPS of 43-44 cents non-GAAP, 37-38 cents GAAP. The Street had been looking for $6.74 billion and 44 cents. She says the company sees new software revenues up 10%-20% year over year; she says there could be upside to guidance, but that the company wants to be cautious in the current economic environment.

Catz said customers got more cautious in the third quarter. “Deals took longer than anticipated at the end of the quarter, she said. Catz said it “wasn’t just banks…not just financial services or any one industry. We saw a few things just get delayed a little bit…in some cases it did not make our cut-off.”

Catz noted that the company’s third quarter results got about a six percentage point boost from currency; the current Q4 guidance includes seven points from currency.

The current guidance does not include a contribution from BEA; the acquisition of the company is expected to close in the fourth quarter.