Oracle Q4 revenues up 39% to $9.5bn

Software giant exceeds expectations with big rise

Oracle has reported an increase of 39% in total revenues to $9.5bn in the fourth quarter of fiscal 2010, compared to $6.86bn in the same period last year.

During the quarter, new software license revenues rose by 14% to $3.1bn, while software license updates and product support revenues increased 12% to $3.4bn.

Safra Catz, president of Oracle, said: "We estimate that Sun contributed over $400m to non-GAAP operating income in our Q4. This compares with a loss in Sun's quarter ending June of last year, when Sun was an independent company.

"Now that Sun is profitable, we have increased confidence that we will meet or exceed our goal of Sun contributing $1.5bn to non-GAAP operating income in FY2011, and $2bn in FY2012."

The company posted an operating income of $3.3bn, an increase of 14% compared to $2.9bn in the same period a year ago. Operating margin was 35% during the quarter.

For the quarter ended May 31, 2010, net income rose by 25% to $2.4bn, compared to $1.89bn in the same period last year. Earnings per share were $0.46, up 24% compared to last year.

For the full year the company reported total revenues of $26.8bn, an increase of 15% compared to $23.25bn in fiscal year 2009. Net income was up 10% to $6.1bn, compared to $5.59bn in 2009.

Jeff Epstein, CFO of Oracle said: "We executed better than expected on both the top and bottom line for the quarter. This strong performance plus disciplined business management led to a non-GAAP operating margin of 46% in Q4, fully including the $1.2bn of Sun systems hardware that we sold in the quarter."