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

The making of an MSSP: a blueprint for growth in NZ

The making of an MSSP: a blueprint for growth in NZ

Partners are actively building out security practices and services to match, yet remain challenged by a lack of guidance in the market. This exclusive Reseller News Roundtable - in association with Sophos - assessed the making of an MSSP, outlining the blueprint for growth and how partners can differentiate in New Zealand.

The making of an MSSP: a blueprint for growth in NZ
Reseller News Platinum Club celebrates leading partners in 2018

Reseller News Platinum Club celebrates leading partners in 2018

The leading players of the New Zealand channel came together to celebrate a year of achievement at the inaugural Reseller News Platinum Club lunch in Auckland. Following the Reseller News Innovation Awards, Platinum Club provides a platform to showcase the top performing partners and start-ups of the past 12 months, with more than ​​50 organisations in the spotlight.​​​

Reseller News Platinum Club celebrates leading partners in 2018
Meet the top performing HP partners in NZ

Meet the top performing HP partners in NZ

HP has honoured its leading partners in New Zealand during 2018, following 12 months of growth through the local channel. Unveiled during the fourth running of the ceremony in Auckland, the awards recognise and celebrate excellence, growth, consistency and engagement of standout Kiwi partners.

Meet the top performing HP partners in NZ
Show Comments