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Oracle Corporation (NASDAQ:ORCL) reported second-quarter fiscal-year 2013 results after the bell on Tuesday that beat expectations. Shares closed the regular session up 1.7 percent and gained as much as 1 percent in after-hours trading.
Total revenues for the quarter grew 3 percent year over year to $9.1 billion, bolstered by a 17 percent increase in new software licenses and cloud software subscriptions. This top-line growth is a good sign for the technology sector, which has taken a lot of flak recently for some weak performance from major players.
In the first quarter of fiscal 2013, Oracle reported a 2 percent year-over-year drop in revenues and 5 percent growth in new software licenses and cloud software subscription revenues.
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The company’s GAAP operating income climbed 12 percent year-over-year to $3.5 billion on a margin of 38 percent. This compares to a 7 percent year-over-year increase in the first quarter on a margin of 35 percent.
Minus the impact of the strengthening U.S. dollar, earnings per share would have grown 26 percent to $0.54. Including the impact, EPS is $0.53. This compares to 24 percent year-over-year EPS growth in the first quarter.
Shares of Oracle were down 2.12 percent for the three months preceding its second-quarter report. For comparison, shares of Microsoft (NASDAQ:MSFT) were down over 13 percent for the same period, while shares of IBM (NYSE:IBM) dropped 6.5 percent. Both competitors closed up over 1 percent on the Tuesday Oracle’s earnings were released.
“Q2 performance was strong and broad based as all geographies reported double digit revenue growth in new software license and cloud subscriptions,” said Oracle President, Mark Hurd in the statement. ”Our cloud offering of HCM, CRM and ERP applications plus the Oracle database and Java platform services is the strongest and most complete in the industry. Already approaching a one billion dollar run rate, our Cloud business will become much bigger over time.”
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