Previous Statements by ORCL
» Oracle Corporation, Rightnow Technologies Inc. - Special Call
» Oracle's CEO Discusses Q2 2012 Results - Earnings Call Transcript
» Oracle Corporation - Shareholder/Analyst Call
Before taking questions, we'll begin with a few prepared remarks. And with that, I'll turn the call over to Safra.Safra A. Catz Thanks, Ken. Well, as you can see, we had a very solid quarter, as new software license revenue was up 7%, $2.4 billion, and that's really on top of the enormous 29% increase last year. As I said last quarter, all we really needed to do was focus on our execution and that we did. We exceeded our forecast for new license guidance, we met our forecast for total revenue and we beat the high end of our EPS guidance. Technology new license revenues were $1.7 billion, up 10% in constant currency, 9% in U.S. dollars. Applications were $658 million, up 3% in constant currency and U.S. dollars. As you recall, we saw 34% growth in apps last year and 21% the year before that. So we're very pleased as we're just starting to see the early benefits of Fusion apps, and we've just closed on RightNow and we’ll close on Taleo in April. Our license revenue for applications is now 66% higher than it was just 3 years ago as compared to SAP, which is about 32% higher. Geographically, results were very good, as we saw double-digit license growth in the Americas and Asia Pacific, with new license growth of 11% in constant currency and U.S. dollars for the Americas and 11% in JPAC in constant currency, 13% in U.S. dollars. EMEA, not surprisingly given the environment, was essentially flat. But don't forget that a year ago, EMEA reported 19% new license revenue and 47% growth in applications. Once again, the quarter wasn't dependent on any large deals. Software license update and product support revenues were $4.1 billion, up 8%. Supported cash rates and software renewal rates continue at the usual very high levels. Hardware systems revenue was $869 million for the quarter, due to the continued reduction in some of our defocused product lines. Hardware gross margins were 51% for the quarter. Total revenue for the quarter was $9.1 billion, up 4% in constant currency, 3% in U.S. dollars. We're extremely pleased with our non-GAAP operating income of $4.2 billion, up 8% as we expanded Q3 margins to match a prior record level of 46.4%, and this now includes a hardware business. With operating margins essentially now back at pre-sung levels, I'm sure you want to know where margins go from here. And while I'm not providing specific guidance, we continue to see ample leverage in our business model.
The non-GAAP tax rate for the quarter was 22.5%, and the GAAP tax rate was 20.7%, both of which were below my guidance as a result primarily of an increase in income in subsidiaries and countries with lower rates than the United States. EPS for the quarter grew 15% to $0.62 on a non-GAAP basis. Operating cash flow increased to a record $13.5 billion over the last 4 quarters, while free cash flow grew 36% to a record $13 billion. We have nearly $30 billion in cash and marketable securities, this is after paying for our acquisitions and our $1.7 billion buyback executed in the quarter, where we bought back 59.1 million shares. And again, the board declared a dividend of $0.06 per share.Read the rest of this transcript for free on seekingalpha.com