Oracle reports Q2 GAAP EPS of 25 cents, non-GAAP EPS of 34 cents

Second quarter GAAP total revenues were up 6% to $5.6bn, while quarterly GAAP net income was down 1% to $1.3bn. GAAP software revenues were up 8% to $4.5bn with new software license revenues down 3% to $1.6bn. GAAP software license updates and product support revenues were up 14% to $2.9bn. GAAP services revenues were down 2% to $1.1bn. GAAP operating income was up 11% to $2.0bn and GAAP operating margin was up 166 basis points to 35%. GAAP operating cash flow on a trailing twelve month basis was $8.1bn, up 16%.

Without the $0.04 per share impact of the US dollar strengthening compared to foreign currencies, Oracle's reported Q2 GAAP earnings per share would have been up 11% to $0.29, with total GAAP revenues up 12%, quarterly GAAP net income up 10%, GAAP software revenues up 14%, GAAP new software license revenues up 5%, GAAP software license updates and product support revenues up 20%, GAAP services revenues up 5%, and GAAP operating income up 20%.

Second quarter non-GAAP earnings per share were up 9% to $0.34, and non-GAAP net income was up 8% to $1.7bn, compared to the same quarter last year. Non-GAAP total revenues were up 6% to $5.7bn. Non-GAAP software revenues were up 8% to $4.6bn and non-GAAP software license updates and product support revenues were up 15% to $2.9bn.

Without the $0.03 per share impact of the US dollar strengthening compared to foreign currencies, Oracle's reported Q2 non-GAAP earnings per share would have been up 18% to $0.37, with non-GAAP net income up 17%, non-GAAP total revenues up 13%, non-GAAP total software revenues up 15%, and non-GAAP software license updates and product support revenues up 21%.

Oracle Executive Vice President and CFO, Jeff Epstein said:

"Our non-GAAP operating income grew 25% in constant currency to $2.6bn in Q2, resulting in operating margins of 46%."

"In addition, Oracle generated $7.6bn in free cash flow in the past twelve months, up 15% over the same period last year," he added.

"We signed our largest on-demand sales force automation contract this quarter," said Oracle CEO, Larry Ellison. "This was just one of several recent wins over salesforce.com. We also sold our first database machine, launching an all new and important business for Oracle."