Oracle's (ORCL) software license/cloud subscription revenue rose 4% Y/Y in FQ1 to $1.66B. The growth rate is better than FQ4's disappointing 1%, and hit a guidance range of -1% to +7%. But hardware product sales fell 14% Y/Y to $669M, missing a guidance range of -6% to +2%. 60% engineered system sales growth apparently failed to offset plunging SPARC/UNIX server sales.
Software license update/product support revenue (flows from existing license deals) rose 7% Y/Y to $4.43B, up from 6% in FQ4.
$3B was spent on buybacks, up from FQ4's $2.8B and allowing EPS to beat estimates in spite of a revenue miss.
Americas sales rose 4% Y/Y to $4.52B, aided by 14% growth in software licenses/cloud subscriptions. EMEA +2% to $2.44B, but with a 4% license/subscription drop. Thanks in large part to forex, Asia-Pac revenue -4% to $1.42B, licenses/subscriptions -5%.
Opex +4% Y/Y, outpacing rev. growth of 2%. An 11% increase in sales/marketing spend to $1.71B offset lower G&A and hardware-related expenses.
FQ1 results, PR