Oracle Corporation (NASDAQ: ORCL) today announced fiscal 2009 Q3 GAAP earnings per share were $0.26, up 3% compared to last year. Third quarter GAAP total revenue was up 2% to $5.5 billion, while quarterly GAAP net income was down 1% to $1.3 billion. GAAP software revenue was up 5% to $4.4 billion, with new software licence revenue down 6% to $1.5 billion.
GAAP software licence updates and product support revenue was up 11% to $2.9 billion. GAAP services revenue was down 8% to $1 billion. GAAP operating income was up 4% to $1.9 billion and GAAP operating margin was up 54 basis points to 36%. GAAP operating cash flow on a trailing 12-month basis was $8.5 billion, up 17%.
Oracle's Q3 results were impacted by the dramatically reduced value of foreign currencies when compared to US dollars, reducing GAAP earnings by $0.05 per share. If currency exchange rates were the same as they were in Q3 of last year, Oracle's Q3 GAAP earnings per share would have been up 18% to $0.31 rather than up 3% to $0.26, with total GAAP revenue up 11% rather than up 2%, GAAP software revenue up 14% rather than up 5%, GAAP net income up 14% rather than down 1%, and GAAP operating income up 17% rather than up 4%.
Third quarter non-GAAP earnings per share were up 16% to $0.35, and non-GAAP net income was up 12% to $1.8 billion, compared to the same quarter last year. Non-GAAP total revenue was up 2% to $5.5 billion. Non-GAAP software revenue was up 5% to $4.5 billion and non-GAAP software licence updates and product support revenue was up 12% to $3 billion. Non-GAAP operating income was up 15% to $2.6 billion and non-GAAP operating margin was up 510 basis points to 46%.
If currency exchange rates were the same as they were in Q3 of last year, Oracle's non-GAAP earnings per share would have been up 29% to $0.40, rather than up 16% to $0.35, with total non-GAAP revenue up 12% rather than up 2%, non-GAAP software revenue up 14% rather than up 5%, non-GAAP net income up 24% rather than up 12% and non-GAAP operating income up 26% rather than up 15%.
Oracle also announced today that its Board of Directors intends to pay a quarterly cash dividend of $0.05 per share, or $0.20 per share annually, on its common stock. The board declared the first cash dividend of $0.05 per share of outstanding common stock to be paid to shareholders of record as of the close of business on 8 April 2009, with a payment date of 8 May 2009. Future declaration of quarterly dividends and the establishment of future record and payment dates are subject to the final determination of Oracle's Board of Directors.
“Our non-GAAP operating income was $2.6 billion in Q3, which was an increase of 15% over the same period last year, resulting in operating margins of 46%. In constant currency, non-GAAP operating income grew by 26%,” said Oracle Executive Vice-President and CFO, Jeff Epstein. “In addition, Oracle generated $8 billion in free cash flow in the past 12 months, up 14% over the same period last year.”
“We are committed to delivering value to our stockholders through technology innovation, strategic acquisitions, stock repurchases, and now through a dividend,” said Safra Catz, Oracle's President. “We generated $8 billion in free cash flow over the last 12 months and we are running our business at record operating margins. We have always been committed to rewarding our stockholders' investments in Oracle and the board has decided that it is the right time to declare a dividend for our stockholders.”
“If you look past the effect of exchange rates, our new software licence revenue for this quarter were higher than our new software licence revenue for Q3 of last year,” said Oracle President Charles Phillips. “Achieving constant currency growth in new software license sales in this very challenging economy shows that we continue to beat our competitors in both technology and applications.”
“But for the strengthening of the US dollar leading to unfavourable currency exchange rates, our non-GAAP earnings per share would have increased 29% in Q3,” said Oracle CEO, Larry Ellison. “This is a tremendous achievement in the face of the serious slowdown in the world economy.”
Q3 Earnings Conference Call and Webcast:
Oracle will hold a conference call and Web broadcast today to discuss these results at 2:00pm (PDT)/5:00pm (EDT). To access the live Web broadcast of this event, please visit the Oracle Investor Relations Web site at http://www.oracle.com/investor. Please hold down your control key while pressing refresh to ensure that the Web link is visible.
Supplemental financial tables
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