Total revenue for the quarter, which is traditionally Oracle’s strongest, was up 26% at $3.88bn, producing net income of $1.02bn, an increase of 3% on last year. Total software revenue grew 24% to $3.12bn. Database and middleware new license sales were a contributor to growth with revenue up 16% at $1.26bn. The company said database sales in the US were particularly good.
New license revenue from business applications was $350m, a 52% increase over the previous year and above analysts’ expectations of approximately $305m. Total business software related sales came to $1.41bn for the quarter, a figure that includes sales of the former PeopleSoft applications as well as Oracle’s business software.
Although it is not possible to compare the total software sales for the quarter with a directly comparable year-ago figure, the $1.41bn is an improvement, which indicates that the integration of PeopleSoft has gone well. PeopleSoft plundered its future pipeline as part of its efforts to resist Oracle’s hostile takeover. The rapid integration of PeopleSoft into our business contributed to the strong growth in both applications sales and profits that we saw in the quarter, said Oracle president Safra Catz.
As Oracle indicated would be the case during its last quarterly earnings call, it no longer splits out PeopleSoft sales from the total. There is no way of breaking out PeopleSoft sales from Oracle sales, said Catz. The sales forces are totally integrated, there is no PeopleSoft sales force, there is no Oracle sales force.
The growth in database and middleware-related revenue to $2.7bn from $2.4bn in the year-ago quarter was the result of a high volume of small deals rather than large deals, with Oracle confirming that the largest deal during the quarter was for $16m.
