FSN: Oracle reports Q3 new license revenues up 77%

Oracle reports Q3 new license revenues up 77%

3rd April 2006
Oracle Corporation said last week that its 3 rd quarter results for 2006 GAAP showed earnings per share up 40% compared to the same quarter last year. Third quarter revenues were up 18% to $3.5 billion, while quarterly net income was up 42% to $765 million. Total software revenues were up 20% to $2.8 billion but whereas GAAP database and middleware new license revenues were only up 5%, new license revenues for applications were up 77%. Services revenues were up 9% to $671 million compared to the same quarter last year.

"We reported record revenues for the quarter and delivered non-GAAP EPS of 19 cents," said Oracle President and CFO Safra Catz. "Our non-GAAP operating margins reached record levels for the quarter as well, exceeding all previous third quarter results."

Taking a swipe at SAP, Oracle President Charles Phillips said, "SAP's strongest geographical region is Europe, so we are especially pleased that in Europe our applications new license revenue grew in excess of 100% year-over-year. It's very satisfying to be doing well right in SAP's backyard."

"Oracle's product strategy is based on a combination of innovations and acquisitions," said CEO Larry Ellison. "Over the last several weeks we announced our internally developed Secure Enterprise Search technology, and the completion of the Siebel acquisition. As a result, Oracle now has strong product offerings in both Search and Software as a Service. These two markets are red hot and will be engines for growth for Oracle and the entire software industry for years to come.

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