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Last Update: 21-Dec-11 09:45 ET
Oracle Down Almost 13% Following Earnings/Guidance Results Late Yesterday
Oracle (ORCL $25.43 -3.74) is trading significantly lower following its earnings/guidance results that were released after the close yesterday.
The company reported second quarter earnings of $0.54 per share, excluding non-recurring items, $0.03 worse than the Capital IQ Consensus Estimate of $0.57.
Revenues rose 1.9% year/year to $8.81 billion versus the $9.23 billion consensus.
Second quarter new software license revenue growth of 9% vs guidance in the range from 6% to 16%. "Non-GAAP operating margins increased to 45% in second quarter, and we expect those margins to keep growing... We have expanded our worldwide sales capacity by adding over 1,700 sales professionals in the first half of this fiscal year," said Oracle President, Mark Hurd. "We believe that this increase in our field organization combined with innovative new products like Fusion Cloud ERP and Cloud CRM will enable solid organic growth in the second half of this year... Sales of our engineered systems accelerated in second quarter. Exadata growth was well over 100% compared to last year, and Exalogic grew more than 100% on a sequential basis. We shipped our first SPARC SuperCluster in second quarter and expect to begin deliveries of our Exalytics system and the Oracle Big Data Appliance in third quarter."
Oracle announced that its Board of Directors authorized the repurchase of up to an additional $5.0 bln of common stock under its existing share repurchase program in future quarters.
On its conference call, the company said it sees third quarter Non-GAAP EPS of $0.55-0.58 vs. $0.59 CIQ Estimates. Company said it sees new software license growth ranging b/w 2-12% in constant currency and 0 to 10% in U.S. dollars. Sees hardware product revenue growth rate of (14%) to (4%), in constant currency or (15%) to (5%) in U.S. dollars and that does not include the hardware support revenue. Company sees total Non-GAAP revenue growth of 3-7% in constant currency, and 1-5% in U.S. dollars. On a GAAP basis co sees total revenue growth 4-7% in constant currency, and 2-5% in U.S. dollars.
The company reported second quarter earnings of $0.54 per share, excluding non-recurring items, $0.03 worse than the Capital IQ Consensus Estimate of $0.57.
Revenues rose 1.9% year/year to $8.81 billion versus the $9.23 billion consensus.
Second quarter new software license revenue growth of 9% vs guidance in the range from 6% to 16%. "Non-GAAP operating margins increased to 45% in second quarter, and we expect those margins to keep growing... We have expanded our worldwide sales capacity by adding over 1,700 sales professionals in the first half of this fiscal year," said Oracle President, Mark Hurd. "We believe that this increase in our field organization combined with innovative new products like Fusion Cloud ERP and Cloud CRM will enable solid organic growth in the second half of this year... Sales of our engineered systems accelerated in second quarter. Exadata growth was well over 100% compared to last year, and Exalogic grew more than 100% on a sequential basis. We shipped our first SPARC SuperCluster in second quarter and expect to begin deliveries of our Exalytics system and the Oracle Big Data Appliance in third quarter."
Oracle announced that its Board of Directors authorized the repurchase of up to an additional $5.0 bln of common stock under its existing share repurchase program in future quarters.
On its conference call, the company said it sees third quarter Non-GAAP EPS of $0.55-0.58 vs. $0.59 CIQ Estimates. Company said it sees new software license growth ranging b/w 2-12% in constant currency and 0 to 10% in U.S. dollars. Sees hardware product revenue growth rate of (14%) to (4%), in constant currency or (15%) to (5%) in U.S. dollars and that does not include the hardware support revenue. Company sees total Non-GAAP revenue growth of 3-7% in constant currency, and 1-5% in U.S. dollars. On a GAAP basis co sees total revenue growth 4-7% in constant currency, and 2-5% in U.S. dollars.
