Oracle posted its financial results for Q2 of fiscal 2014, reporting better than expected quarter earnings.
On Wednesday, December 18, Oracle announced its financial reports for the quarter ended November 30, 2013 , saying revenue rose 2 percent to $9.28 billion, or 69 cents per share, beating Wall Street predictions. Analysts had estimated Oracle to report revenue of 9.18 billion, or 67 cents per share.
"We're very pleased with our results as new software license and cloud software subscription revenue grew 1% in constant currency over the 18% growth reported last year," said Safra Catz, Oracle President and CFO,. "Software revenue grew 5% helping drive our tremendous cash flow and for the first time ever, we generated more than $15 billion in operating cash flow over four quarters."
Catz says that new software and sales and subscriptions will grow between 2 percent and 12 percent in the current quarter.
Net Income for the company during Q2 of fiscal 2014 dropped by 1.1 percent to $2.55 billion, or 56 cents per share, when compared with $2.58 billion, or 53 cents per share, in Q2 of fiscal year 2013.
New software license and cloud subscription revenue remained flat at $2.38 billion for the quarter. However, revenue from the annual maintenance payments grew 6 by percent to $4.5 billion.
"Our billion dollar SaaS business delivered overall bookings growth of 35% in the quarter," said Larry Ellison, CEO of Oracle. "Our fastest growing cloud services were Fusion Human Capital Management and Fusion Salesforce Automation, each growing bookings at a triple-digit rate."
Oracle is currently the second largest maker of business applications and is just behind SAP AG. The company entered the computer server market in 2010 with the acquisition of Sun Microsystems. Oracle also announced that its total hardware systems revenue fell 3 percent to $714 million in Q2 of fiscal 2014.
Following the financial results announcement on December 18, shares of Oracle were up by 0.9 percent in the after hours of trading at $34.11 and closed up 2.88 percent at $34.60.
On Thursday, the shares were up 2.02 percent at $35.30 during pre-market hours, on the NYSE.
