Welcome!

Related Topics: Java IoT, Microservices Expo

Java IoT: Article

Oracle Blows Q3; Blames Sales Execution; Stock Sinks

Stock dropped close to 8% after-hours to $35.76. Oracle blamed its salesforce for its poor showing.

Oracle, which was promising growth in its third fiscal quarter, missed across most product categories and all regions except, perversely, EMEA.

Its stock dropped close to 8% after-hours to $35.76.

It blamed its salesforce for its poor showing.

Co-president Mark Hurd, the former CEO of HP, has hired 4,000 new sales people in the last 18 months and Oracle says they’re not acculturated yet and displayed little urgency about the quarter, transferring their ambitions to Q4, historically Oracle’s biggest quarter.


Oracle co-president and CFO Safra Catz; Oracle has $33.4B in the bank

Guess we’ll see how this “new sales reps ran out of runway” story stands up soon enough. Hurd must need a whip.

Apparently a bunch of contracts that couldn’t be closed in Q3 slipped over into Q4 and CEO Larry Ellison said some of them are already locked and loaded.

Since Oracle is something of a barometer of tech spending, it claimed its issues were unique to the company and not a macro crisis.

It said it didn’t “help that the sequester deadline [was] on the last day of our quarter, and so that [had] a little bit of an impact here in North America, but not necessarily anywhere else.”

The taste of low government and corporate spending still lingers in many mouths because confidence is toast.

Overall Oracle’s revenue came in 1% short at $8.96 billion, but minus 4.4% by some calculations. It should have been good for $9.38 billion, Wall Street figured.

Earnings were flat at $2.5 billion or 52 cents a share. Adjusted earning were 65 cents, a penny short of punters’ expectations.

Oracle’s new software sales and cloud software subscriptions dropped 2% to $2.3 billion. It had promised they would be up 3%-13%. Hurd said Oracle’s

SaaS revenue grew well over 100% and Ellison claimed to be winning against Workday and Salesforce.com but allowed that the sector is still a small business. Oracle broke out its cloud results at $238 million.

Total software revenue was up 4% to $6.67 billion but hardware fell to a mere $671 million from $869 million this time last year though Oracle thought it would stay flat or fall no more than 10%.

Services revenue fell 8% to $1.045 billion.

In a statement and again on the conference call co-president and CFO Safra Catz bragged about the company’s 47% non-GAAP operating margin, which she expects to hit an all-time high this year. “Both operating cash flow and free cash flow were at record levels for a Q3,” she said, “with operating cash flow of $13.7 billion over the last 12 months.”

During the conference call Oracle predicted a return to growth this quarter citing a bulging pipeline. It figures it can muster a 1%-11% increase in new software licenses and cloud subscriptions.

Hardware sales, which are said to stand at 5,000 appliances since the beginning, and 800 units this past quarter, are supposed to see traction next week when Oracle announces its new T5 Sparc boxes but the company still forecast Q4 hardware revenues at minus 2% to minus 22% despite the 17 record benchmarks it’ll have in hand on Tuesday. Ellison said the hardware turnaround may have to wait for fiscal Q1, which started in June.

Total Q4 revenue it figures will work out to minus 1% to up 4% with GAAP earnings of 72 cents-78 cents; non-GAAP 85 cents to 91 cents.

Ellison said Oracle is going to focus on dominating telcos, financial services and retail.

Oracle has $33.4 billion in the bank.

More Stories By Maureen O'Gara

Maureen O'Gara the most read technology reporter for the past 20 years, is the Cloud Computing and Virtualization News Desk editor of SYS-CON Media. She is the publisher of famous "Billygrams" and the editor-in-chief of "Client/Server News" for more than a decade. One of the most respected technology reporters in the business, Maureen can be reached by email at maureen(at)sys-con.com or paperboy(at)g2news.com, and by phone at 516 759-7025. Twitter: @MaureenOGara

Comments (0)

Share your thoughts on this story.

Add your comment
You must be signed in to add a comment. Sign-in | Register

In accordance with our Comment Policy, we encourage comments that are on topic, relevant and to-the-point. We will remove comments that include profanity, personal attacks, racial slurs, threats of violence, or other inappropriate material that violates our Terms and Conditions, and will block users who make repeated violations. We ask all readers to expect diversity of opinion and to treat one another with dignity and respect.


Latest Stories
@DevOpsSummit at Cloud taking place June 6-8, 2017, at Javits Center, New York City, is co-located with the 20th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long developm...
SYS-CON Events announced today that Juniper Networks (NYSE: JNPR), an industry leader in automated, scalable and secure networks, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Juniper Networks challenges the status quo with products, solutions and services that transform the economics of networking. The company co-innovates with customers and partners to deliver automated, scalable and secure network...
Grape Up is a software company, specialized in cloud native application development and professional services related to Cloud Foundry PaaS. With five expert teams that operate in various sectors of the market across the USA and Europe, we work with a variety of customers from emerging startups to Fortune 1000 companies.
Financial Technology has become a topic of intense interest throughout the cloud developer and enterprise IT communities. Accordingly, attendees at the upcoming 20th Cloud Expo at the Javits Center in New York, June 6-8, 2017, will find fresh new content in a new track called FinTech.
In his keynote at 19th Cloud Expo, Sheng Liang, co-founder and CEO of Rancher Labs, discussed the technological advances and new business opportunities created by the rapid adoption of containers. With the success of Amazon Web Services (AWS) and various open source technologies used to build private clouds, cloud computing has become an essential component of IT strategy. However, users continue to face challenges in implementing clouds, as older technologies evolve and newer ones like Docker c...
SYS-CON Events announced today that Interoute, owner-operator of one of Europe's largest networks and a global cloud services platform, has been named “Bronze Sponsor” of SYS-CON's 20th Cloud Expo, which will take place on June 6-8, 2017 at the Javits Center in New York, New York. Interoute is the owner-operator of one of Europe's largest networks and a global cloud services platform which encompasses 12 data centers, 14 virtual data centers and 31 colocation centers, with connections to 195 add...
In his keynote at @ThingsExpo, Chris Matthieu, Director of IoT Engineering at Citrix and co-founder and CTO of Octoblu, focused on building an IoT platform and company. He provided a behind-the-scenes look at Octoblu’s platform, business, and pivots along the way (including the Citrix acquisition of Octoblu).
Cloud Expo, Inc. has announced today that Aruna Ravichandran, vice president of DevOps Product and Solutions Marketing at CA Technologies, has been named co-conference chair of DevOps at Cloud Expo 2017. The @DevOpsSummit at Cloud Expo New York will take place on June 6-8, 2017, at the Javits Center in New York City, New York, and @DevOpsSummit at Cloud Expo Silicon Valley will take place Oct. 31-Nov. 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
SYS-CON Events announced today that CollabNet, a global leader in enterprise software development, release automation and DevOps solutions, will be a Bronze Sponsor of SYS-CON's 20th International Cloud Expo®, taking place from June 6-8, 2017, at the Javits Center in New York City, NY. CollabNet offers a broad range of solutions with the mission of helping modern organizations deliver quality software at speed. The company’s latest innovation, the DevOps Lifecycle Manager (DLM), supports Value S...
Join IBM November 2 at 19th Cloud Expo at the Santa Clara Convention Center in Santa Clara, CA, and learn how to go beyond multi-speed it to bring agility to traditional enterprise applications. Technology innovation is the driving force behind modern business and enterprises must respond by increasing the speed and efficiency of software delivery. The challenge is that existing enterprise applications are expensive to develop and difficult to modernize. This often results in what Gartner calls ...
NHK, Japan Broadcasting, will feature the upcoming @ThingsExpo Silicon Valley in a special 'Internet of Things' and smart technology documentary that will be filmed on the expo floor between November 3 to 5, 2015, in Santa Clara. NHK is the sole public TV network in Japan equivalent to the BBC in the UK and the largest in Asia with many award-winning science and technology programs. Japanese TV is producing a documentary about IoT and Smart technology and will be covering @ThingsExpo Silicon Val...
Translating agile methodology into real-world best practices within the modern software factory has driven widespread DevOps adoption, yet much work remains to expand workflows and tooling across the enterprise. As models evolve from pockets of experimentation into wholescale organizational reinvention, practitioners find themselves challenged to incorporate the culture and architecture necessary to support DevOps at scale. In his session at @DevOpsSummit at 20th Cloud Expo, Anand Akela, Senior...
@GonzalezCarmen has been ranked the Number One Influencer and @ThingsExpo has been named the Number One Brand in the “M2M 2016: Top 100 Influencers and Brands” by Analytic. Onalytica analyzed tweets over the last 6 months mentioning the keywords M2M OR “Machine to Machine.” They then identified the top 100 most influential brands and individuals leading the discussion on Twitter.
The 20th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held June 6-8, 2017, at the Javits Center in New York City, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Containers, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportunity. Submit your speaking proposal ...
The age of Digital Disruption is evolving into the next era – Digital Cohesion, an age in which applications securely self-assemble and deliver predictive services that continuously adapt to user behavior. Information from devices, sensors and applications around us will drive services seamlessly across mobile and fixed devices/infrastructure. This evolution is happening now in software defined services and secure networking. Four key drivers – Performance, Economics, Interoperability and Trust ...