Oracle managed to grow revenues and net income in its third fiscal quarter, but applications revenue is still on a downward path and new licence income is also on the wane.
Net profit for the quarter ended 29th February was $571 million, against net profit of $508 million for the comparable year before quarter. Total revenue rose 2.4 per cent to $2.31 billion from $2.25 billion, finally ending seven straight quarters of year-over-year revenue declines.
New database software license sales were $602.9 million, down 4 per cent from last year. Revenue from new sales of applications--software fell 5 per cent to $140 million. But the company was helped by a 16 per cent jump in revenue from software license updates and product support, which hit $1 billion.
Oracle’s European, Africa and Middle East (EMEA) region saw sales of new licenses decline particularly sharply, which the company attributes to Middle East sales grinding to a halt. "Business in the Middle East, including Turkey and Israel, has come to an almost total halt at the moment," said Oracle's European president, Sergio Giacoletto.
Ironically EMEA had been the only region to show growth in the second quarter. But in the third quarter new software license revenues declined by 14 per cent in local currencies. "My view is that the total software market in 2003 will continue to be flattish," predicted Giacoletto.