EmailOracle (ORCL $34.08 +1.20) reported second quarter earnings of $0.64 per share, excluding non-recurring items, $0.03 better than the Capital IQ Consensus Estimate of $0.61. Revenues rose 3.4% year over year (+5% ex-FX) to $9.11 billion versus the $9.02 billion consensus. New software licenses and cloud software subscriptions revenues were up 17% to $2.4 billion versus guidance for +6-16% ex-FX (+5-15% as reported). Software license updates and product support revenues were up 7% to $4.3 billion. Hardware systems products revenues were $734 million. Non-GAAP operating income was up 9% to $4.3 billion, and non-GAAP operating margin was 47%.
"New software license sales and cloud subscriptions grew 18% in constant currency. Strong organic growth in our software business coupled with a focus on the highly profitable engineered systems segment of our hardware business enabled a second quarter non-GAAP operating margin of 47%. During the last four quarters operating cash flow was more than $13.5 billion -- $10.2 billion of which was returned to our shareholders as we repurchased nearly 350 million ORCL shares during that same twelve month period. Second quarter performance was strong and broad based as all geographies reported double-digit revenue growth in new software license and cloud subscriptions. Applications, middleware and database all had double-digit growth in new software license and cloud subscriptions, with applications leading the pack with growth of over 30%... Already approaching a one billion dollar run rate, our Cloud business will become much bigger over time... Sun has proven to be one of the most strategic and profitable acquisitions we have ever made."
