Eye on Oracle

Mar 20 2013   9:10PM GMT

Oracle reports down quarter all around

Mark Fontecchio Mark Fontecchio Profile: Mark Fontecchio

In past quarters, Oracle has had to explain why its hardware revenues continue to slide off a cliff. This quarter, however, revenues are down almost across the board.

Total revenue for the company was down about 1.5% compared to last quarter, and down about 1% compared to the same quarter last year. Even if you were to take hardware revenues off the ledger, the company’s revenue was still down compared to last quarter and only up 2% since last year.

Hardware revenue declines are sure to take up the bulk of the media reports. They are down about 8.5% just since last quarter, and down close to 23% compared to the same quarter last year. President Safra Catz said that in part had to do with Sparc customers waiting for new servers to come out before buying.

CEO Larry Ellison has repeatedly said that the company will see “growth in our hardware business” by the end of its fiscal year, which is the end of next quarter. (Edit: Ellison said during today’s earnings call that the big hardware turnaround would now happen in the second half of this calendar year…) Ellison may end up being right just because hardware revenues have hit such a long and extended valley. At some point you would think it has to level out and go up again. Its $1.24 billion in hardware systems and support is the lowest since the first quarter of 2010, which non-coincidentally is the same quarter that Oracle completed its acquisition of Sun Microsystems.

Here’s a quick line graph of Oracle hardware system and support revenues since it acquired Sun:

 Comment on this Post

There was an error processing your information. Please try again later.
Thanks. We'll let you know when a new response is added.
Send me notifications when other members comment.

Forgot Password

No problem! Submit your e-mail address below. We'll send you an e-mail containing your password.

Your password has been sent to:

Share this item with your network: