Oracle Blows Earnings, Stock Plunges 9% After Hours

Larry Ellison

Photo: Wikipedia

It looks like Marc Andreessen was on to something when he said Oracle was in trouble a few months back.The company just blew its latest quarter: earnings came in at $0.54 per share (non-GAAP) on $8.79 billion in revenue. Wall Street was expecting $0.57 on $9.23 billion.

The stock is down more than 9% after hours.

Revenue grew only 2% from last year. The company’s hardware business looked particularly weak — sales were down 14% to $953 million — and new software sales were up only 2% to $2.0 billion.

On the good side, operating margins were up to 45%, and President Safra Katz said they would continue to increase. Operating cash flow over the last 12 months was $13.1 billion, up 45% from the same time last year.

In other words, this looks a lot like a company milking its existing cash cows without signing up a lot of new customers or building new high growth businesses.

Oracle is also probably getting hurt by the new calls for austerity in government spending — governments areĀ  a big customer.

The company also said it had authorised a buyback of $5.0 billion worth of stock

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