Oracle Corp. Reports 1st Quarter Results
- Total software plus cloud revenue was up 6% to $6.6 billion.
- Software-as-a- service and Platform-as-a-service cloud revenue was up 32% to $337 million.
- Infrastructure-as-a-service cloud revenue was up 26% to $138 million.
- Hardware systems revenue was down 8% to $1.2 billion.
Net income was up 2% at $2.8 billion and adjusted earnings per share came in at $0.62, up 4%. Total revenue for the period was up 3% to $8.6 billion, but the Street was looking for revenue closer to $8.8 billion and per share net was less by two cents from expectations. Oracle declared its regular quarterly dividend of $0.12 per share and authorized the repurchase of up to an additional $13.0 billion of common stock under its existing share repurchase program in future quarters. In other news, Larry Ellison, a college dropout who built Oracle Corp. into one of America’s largest companies, is stepping down as chief executive, in one of the momentous corporate handovers in the history of Silicon Valley. Mr. Ellison, aged 70, has been the only CEO in the history of Oracle, which he founded in 1977 and turned into a dominant seller of database software with a market value of $182 billion. Mark Hurd and Safra Katz will be promoted to co-CEO. Larry Ellison will take on the role of Executive Chairman and Chief Technology Officer. A lot of other changes are also taking place at ORCL as it morphs from a server-based application software and hardware provider to cloud-based systems, but prospects are mostly sound and for the patient investor, I would continue to hold the shares in a conservative account for now.