Monday, March 23, 2009

Oracle beats expectations

Oracle announced their FY09 third-quarter results last week, and the firm turned in an exceptional performance considering economic conditions. For the quarter that ended on Feb 28, 2009, total revenues were $ 5.4 billion, or $100 million more than the same period one year earlier. While their sales of new software licenses took a hit, dropping 6% in nominal terms over the prior year, even a modest increase is great news for the company. Taking into account the weakened dollar, Oracle can boast even excellent sales results for the period. Furthermore, the fact that they were able to grow their support revenues means that they have done a great job in cementing ongoing customer relationships. This is all the more impressive given the strong desire for technology leaders to trim expenses as rapidly as possible.

Looking a bit closer at the announcement, we see that Oracle has even managed to trim SG&A expenses compared to the prior year. The firm is certainly doing something right. And their customers are rewarding them.

Oracle Corporation ORCL (NASDAQ)
Oracle's press release: Oracle Reports 3Q Results

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