Oracle Q4 profits up 10 per cent, but revenue flat

Hardware revenue continues to slide but cloud software revenue jumped 50 percent, according to Oracle

Oracle's revenue was flat year-over-year in its fourth quarter at $US10.9 billion, while profits rose 10 per cent to $US3.8 billion, as the company reported strong growth in sales for Software-as-a-Service (SaaS) subscriptions and "engineered systems" such as Exadata.

But overall hardware revenue continued to slide, falling 9 per cent to $US1.43 billion, according to Oracle's announcement.

Since buying Sun Microsystems, Oracle has continually emphasized that it is focused on higher-margin systems like Exadata, and not interested in competing with other companies in the commodity server market.

"Exadata, Exalogic, Exalytics, SPARC SuperCluster and our other engineered systems grew at a rate of 45 per cent in Q4," Oracle CEO Larry Ellison said in a statement. "We sold over 1200 engineered systems in the quarter and over 3000 during the year."

Engineered systems now represent more than a third of Oracle's hardware business, which is one of the reasons the company believes hardware will be "a growth story" in its 2014 fiscal year, Ellison added.

Meanwhile, new software licenses and cloud software subscriptions rose 1 per cent to $US4 billion. SaaS represents only a small portion of that total, but had a year-over-year growth rate of 50 per cent, according to Oracle.

"Oracle's HCM Cloud, CRM Cloud and ERP Cloud grew 50 percent as we added over 500 new SaaS customers in Q4 alone," Oracle President Mark Hurd said in a statement. "Our annualized SaaS revenue run rate is over $US1 billion," Hurd added.

Software license updates and product support revenues, otherwise known as maintenance fees, grew 6 per cent to $US4.4 billion. Maintenance revenue is the lifeblood of software vendors, carrying hefty profit margins and ensuring that money rolls in each year even if customers aren't buying new application licenses.

For the full fiscal 2013, Oracle posted $US37.2 billion in revenue, which was also flat compared to the previous year, while net income rose 9 per cent to $US10.9 billion.

Chris Kanaracus covers enterprise software and general technology breaking news for The IDG News Service. Chris' email address is Chris_Kanaracus@idg.com

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags cloud computinginternetOraclebusiness issuessoftwareSun Microsystemsfinancial resultshardware systemslarry ellisonmark hurdInternet-based applications and servicesSafra Catz

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Chris Kanaracus

IDG News Service
Show Comments

Father’s Day Gift Guide

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Luke Hill

MSI GT75 TITAN

I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it.

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Laura Johnston

MSI GS65 Stealth Thin

If you can afford the price tag, it is well worth the money. It out performs any other laptop I have tried for gaming, and the transportable design and incredible display also make it ideal for work.

Andrew Teoh

Brother MFC-L9570CDW Multifunction Printer

Touch screen visibility and operation was great and easy to navigate. Each menu and sub-menu was in an understandable order and category

Louise Coady

Brother MFC-L9570CDW Multifunction Printer

The printer was convenient, produced clear and vibrant images and was very easy to use

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Featured Content

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?