Oracle has reported a decline of 5% in total revenues to $5.1 billion in its first quarter of fiscal 2010 compared to $5.3 billion in the same quarter of the prior year. Software license revenues were down 17% to $1billion. Software license updates and product support revenues were up 6% to $3.1 billion.
For the quarter, operating profit was up 14% to $1.7 billion compared to $1.5 billion in the first quarter of 2008. The company’s operating margin was up 590 basis points to 34% of revenues compared to 29% of revenues in the same period last year.
Oracle reported net profit of $1.1 billion compared to $1.07 billion in the same quarter of the prior year. Earnings per share were $0.22 up 8%, compared to the same period last year.
Safra Catz, president of Oracle, said: “By substantially improving operating margins we were able to increase Q1 earnings per share even though revenues decreased slightly. We grew non-GAAP operating margins by 570 basis points to 46% in our seasonally smallest quarter.”
Jeff Epstein, executive vice president and CFO of Oracle, said: “Software license updates and product support revenues grew 11%, to $3.1 billion, for the quarter when adjusted for the change in the US dollar since last year. This growth, coupled with our disciplined expense management, was key to our ability to generate a record $8.5 billion in free cash flow over the last twelve months.”
