NewsByte 17 September 2001

Oracle Delivers Record Profits in Q1

Earnings Per Share 9 Cents; Operating Margin Up 13%

Last Thursday, Oracle Corporation announced record first quarter income of $511 million on revenue of $2.2 billion. Earnings per share increased to $0.09 compared with $0.08 in Q1 last year. First quarter operating margins increased from 29% last year to 33% this year. New software license sales were down 8%, while software license renewals plus product support services were up 9%. Consulting was down 4%, and education was down 1%.

"Given the weak economy, we're pretty happy with our results this quarter," said Oracle CFO, Jeff Henley. "Last year, sales to Internet companies were booming. That boom is over and those sales have largely disappeared; yet our revenue was down only 1%, and we managed to deliver record profits by improving our margins. Our continuing margin improvement has come from using our E-Business Suite to automate more-and-more of our business processes, enabling us to run our business with fewer-and-fewer people. The cost savings have been huge."