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Oracle Q3 Earnings Build On Sun

Oracle (NASDAQ:ORCL) is continuing to grow its business, with strong revenues for its third fiscal quarter. Growth is coming from all sectors, including hardware from its Sun Microsystem acquisition.

"We saw strength across all regions, industries and product segments," Oracle President, Mark Hurd, said during the company's earnings call. "Engineered systems have fundamentally changed the game. The systems actually changed the entire value proposition of both hardware and software."

Oracle reported third quarter 2011 revenues of $8.8 billion, a 37 percent year-over-year increase. Net Income was reported at $2.2 billion, representing a 78 percent year-over-year gain. Earnings per share were up by 75 percent to $0.42 per share for the quarter. Moving forward, Oracle provided fourth quarter revenue guidance for total revenue growth on a GAAP basis to range from 10 percent to 14 percent at current exchange rates.

While growth came across a number of segments, one particular area highlighted by Oracle during its earnings call was a 29 percent growth in their software license revenue stream.

"You can really see our momentum in our Apps business as we continue to take share from SAP," Oracle President, Safra Catz said during the call. "So over the last couple of years, our new license revenue for applications has grown 53 percent in constant currency or about more than 10x faster than SAP over the same period."

Growth is also coming from improved execution on the hardware side of Oracle's business. A key part of that business is the technology that Oracle acquired as part of the acquisition of Sun Microsystems.


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