Oracle announced first quarter results and profits are up by 29%.
Net income for the fiscal first quarter rose 29 percent to $670 million, or 13 cents per share, from $519 million, or 10 cents per share, a year ago. Revenue rose nearly 30 percent to $3.59 billion from $2.77 billion.
New software license sales rose nearly 28 percent to $804 million from $629 million last year. This a good indication of where the company is headed in the futured. It indicates that Oracle is able to hold on to the customers from the acquisitions. Quoting Kim Caughey
“It is one thing to just hold onto the customer,” she said. “It is another thing to get them to buy the next version as well. It looks like they are doing that.”
This is not entirely accurate since project fusion is still a few years away. But this is a good indicator of customer preference and that Oracle is able to hold on to customers. The applications business will be in a critical phase mid 2008 when the integrated product(Fusion) would be released. The challenge then would be convince the customers of the advantage of moving to SOA based architecture and justify the cost of the upgrade. Oracle stocks are up 13% in after hours trading.
