Oracle license growth hits guidance, hardware sales miss

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.

ORCL +0.8% AH. CC at 5PM ET, guidance should be provided.

FQ1 results, PR

From other sites
Comments (1)
  • Phil64
    , contributor
    Comments (23) | Send Message
    Note that Oracle's SPARC/UNIX server sales is NOT plunging as stated. Oracle's Engineered Systems are partly based on SPARC/UNIX which had a 60% sales growth and Oracle's SPARC T-Series as stated by Mark Hurd during the Q1 2014 Results Earnings Call stated "T was okay in the quarter, M was not. So as you know, in sort of Q4-ish timeframe, mid-Q4, we released a new set of M products (SPARC M5) we're pretty excited about. We've got a big installed base that we can move. It takes time to get those products certified and tested in customers' environments, but that's what happened in the numbers".
    19 Sep 2013, 10:21 AM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs