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Oracle revenues jump as Sun unit boosts profits

ORACLE posted quarterly profit that exceeded Wall Street projections yesterday, as its recently acquired Sun Microsystems hardware division added to earnings.

The company said Sun added more than $400m (£268m) to Oracle’s operating profit, excluding items.

Oracle posted profit, excluding items, of 60 cents per share, for its fiscal fourth quarter ended 31 May, handily beating the average Wall Street forecast of 54 cents.

Revenue rose 39 per cent to $9.5bn, in line with Wall Street estimates, after Oracle entered the hardware business following its January purchase of Sun for $5.6bn.

“We executed better than expected on both the top and bottom line,” chief financial officer Jeff Epstein said.
New software sales rose 14 per cent from a year ago to $3.1bn. Three months ago, the firm forecast sales of software would rise between three per cent and 13 per cent.

Oracle shares rose to $23.15 in extended trade from their Nasdaq close of $22.22. The stock has declined about 16 per cent since mid-April when it hit a nine-year high.