Menu
Oracle reverses decline in hardware revenue during Q3

Oracle reverses decline in hardware revenue during Q3

Engineered system sales push hardware product revenue up 8 percent

Oracle's third-quarter revenue rose 4 percent to US$9.3 billion while net income increased 2 percent to $2.6 billion, buoyed by growth in new software licenses and cloud subscriptions as well as a long-anticipated rise in hardware product revenue.

Hardware systems product sales, which had declined steadily since Oracle's acquisition of Sun Microsystems, were up 8 percent to $725 million in the quarter ended Feb. 28, while hardware systems support revenue increased 5 percent to $598 million. New software licenses and cloud subscription revenue rose a combined 4 percent to $2.4 billion.

Software license updates and product support revenue jumped 5 percent to $4.6 billion.

"Oracle Cloud Applications and Engineered Systems are both rapidly growing, billion dollar run-rate businesses," Oracle chief financial officer Safra Catz said in a statement. The company has focused its marketing efforts on such systems, which include the Exadata database machine, while de-emphasizing sales of lower margin commodity servers.

Oracle's engineered system line is experiencing rapid growth, "while throughout the industry traditional high-end server product lines are in steep decline," Oracle CEO Larry Ellison said in a statement.

Meanwhile, Oracle's quarterly cloud application revenue "is now approaching $300 million," company president Mark Hurd said in a statement. "All of our strategic Cloud Application Suites, including Fusion Enterprise Resource Planning, Fusion Human Capital Management and Fusion Customer Experience, posted triple-digit revenue growth."

Oracle executives are expected to discuss the third-quarter results further during a conference call on Tuesday.

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


Follow Us

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 IT managementCIO roleOraclebusiness issuessoftwarefinancial resultshardware systemsit strategy

Featured

Slideshows

Meet the leading female front runners of the Kiwi channel

Meet the leading female front runners of the Kiwi channel

Reseller News honoured the leading female front runners of the New Zealand channel at the 2018 Women in ICT Awards (WIICTA) in Auckland. The awards honoured standout individuals across seven categories, spanning Entrepreneur; Innovation; Rising Star; Shining Star; Community; Technical and Achievement.

Meet the leading female front runners of the Kiwi channel
Meet the top performing customer-centric Microsoft channel partners

Meet the top performing customer-centric Microsoft channel partners

Microsoft honoured leading partners across the channel following a year of customer innovation and market growth in New Zealand. The 2018 Microsoft Partner Awards recognised excellence within the context of the end-user, spanning a host of emerging and established providers.

Meet the top performing customer-centric Microsoft channel partners
Reseller News launches new-look Awards at 2018 Judges’ Lunch

Reseller News launches new-look Awards at 2018 Judges’ Lunch

Introducing the Reseller News Innovation Awards, launched to the channel at the 2018 Judges’ Lunch in Auckland. With more than 70 judges now part of the voting panel, the new-look awards will reflect the changing dynamics of the channel, recognising excellence across customer value and innovation - spanning start-ups, partners, distributors and vendors.

Reseller News launches new-look Awards at 2018 Judges’ Lunch
Show Comments