Software uplift saves Oracle as hardware sales fall
Cloud services and software helps Oracle beat expectations
Oracle has bounced back from disappointing sales last quarter by posting better-than-expected results on software sales and cloud services.
In its Q3 results, the company posted revenues of $9 billion, with new software license sales up 7% to $2.4 bilion.
Hardware sales were down 16%, the company said, but cloud services and software made up for the shortfall as the company bounced back from disappointing Q2 figures.
"The software business bounced back," Citigroup analyst Walter Pritchard told the Reuters news agency. "If you look at where the value is at Oracle, it would be the software business."
Oracle also said a focus on higher-margin systems helped its fortunes.
“Oracle is on track to deliver the highest operating margins in our history this year,” said Oracle CFO, Safra Catz.
“Oracle can achieve these record margins as an integrated hardware and software company because we are focusing on high-margin systems where hardware and software are engineered to work together.”