Oracle seems to have taken criticism seriously and that too in a positive manner. Far exceeding the expectations of trade analysts, Oracle recently announced its quarterly earnings, which are up by 18 per cent. The overall sales of the offshore web development company have risen by a considerable 3 per cent.
On sales of $9.1 billion, the company registered a total profit of $2.6 billion in the second quarter of this fiscal year. The earnings per share of the company were around 53 per cent, which is 24 per cent more than its earnings during the same period last year. Analysts, however, had just expected earnings of 48 per cent per share.
Oracle President Mark Hurd, spoke to the analysts in a conference call and informed that they had a great quarter in the software field. Their performance has exceeded their expectation as there was a growth in double digits in every segment. Mark attributed this success partly to the strengthening of the sales force of the company in recent months, hinting that hiring is still on in this area.
Oracle’s stock price rose up by 56 cents before the company announced its earnings, closing at $32.88 in regular trading hours. Post announcement, in the after-hours, the shares went up by 51 cents touching applaud able $33.39.
Oracle is one of the leading software development firms, known across globe for its business-oriented database programs. Recently, it has acquired several offshore companies to strengthen its web application development domain, in order to help organizations across globe in better management of their businesses. It has, however, faced fierce competition from various software firms that are providing similar services.
Oracle also deals in the sales of storage equipment and servers, a unit which became functional after it acquired Sun Microsystems in 2010. Over these years, the sales of hardware products have been modest, but recently they have attracted a lot of attention from customers- Oracle’s Exadata line in specific. The Exadat line is known to combine hardware and software solutions to enable high-performance data processing.
The industry experts have a mixed bag of reviews for Oracle’s future prospects. Some find the future promising while others see troubling sign for the offshore web development company.
Recently, Credit Suisse analysts informed their clients that there has been a strong demand of Oracle’s products and they give thumbs up to its management for its execution policy and long term corporate strategy.
The analysts at Wells Fargo are also of a similar view. They noted that as Oracle integrates the products of its recently acquired companies- Taleo and RightNow- the company’s bottom line is likely to register improved gains.
There are others who don’t find the company’s future to be very promising.
Recently, Ross MacMillan, analyst at Jefferies noted that Oracle’s database business might be doing OK, but reports suggest that some of its potential clients are looking for alternative options that are more cost-effective.
Another report by tech analyst Rob Enderle suggested that IBM and EMC may lure away some potential business from Oracle as both firms are introducing products that can replace Oracle’s software and hardware solutions.