Oracle posts solid Q3 as software spending picks up

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Oracle posts solid Q3 as software spending picks up

Simon Quicke

Oracle boss Larry Ellison has talked up the strength of the software market as it unveiled its Q3 numbers which were bolstered by hikes in license sales and support deals.

The vendor has moved well beyond its software roots but the signs that its traditional market is picking up helped send shares up following the results.

For the three months ended 28 February new software license sales rose by 29% to $2.2bn and updates and support revenue increase by 13% to $3.7bn.

GAAP total revenues were up by 37% to $8.8bn and net income saw a 78% rise to $2.1bn, numbers which were ahead of expectations.

Software revenues still contribute 68% of the vendor's revenue but it saw an increase in the share taken by hardware products rising year-on-year to 12% from 4%.

Ellison said that it had managed to ink a few substantial deals in Q3 with suppliers looking for infrastructure for cloud computing.

The normally bombastic CEO presumably would have had more to say but was absent from an analyst call because of jury duty.

In a reference to Sun the vendor's president Safra Catz said it was on track to hit the targets it had set for that side of the business: "Our hardware product gross margins increased to 55% in the quarter so we are now completely confident that we will exceed the $1.5bn profit goal we set for the overall Sun business for the current fiscal year."

In his moment in the spotlight Mark Hurd, Oracle president, said that the third quarter had seen growth world wide.

"Q3 performance was broad based with all geographies reporting revenue growth of 30% or higher," he said.

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