Business software sellers recover from credit crunch

Though earnings season won't start in earnest until next month, financial reports and earnings forecasts from companies as varied as Adobe, Red Hat, Oracle and Qualcomm this week indicate that sales across a range of technology products are recovering from the Great Recession.

Share

Though earnings season won't start in earnest until next month, financial reports and earnings forecasts from companies as varied as Adobe, Red Hat, Oracle and Qualcomm this week indicate that sales across a range of technology products are recovering from the Great Recession.

Oracle reported financial results for the three month period ending February 28, saying profit was dragged down by restructuring charges incurred in the wake of the company's purchase of Sun Microsystems, which closed in January. Earnings declined by 10 percent compared to the year-earlier quarter, to $1.2 billion.

However, new licence sales, key to the growth of any software company, increased 13 percent to $1.7 billion. Total revenue was up 17 percent to $6.4 billion.

Oracle shares declined by $0.27 to $25.82 in after-market trading after the announcement, possibly because investors wanted to see stronger earnings. The bellwether software vendor's revenue increases, however, indicate that enterprise software sales are picking up.

Red Hat, reporting quarterly results, also had a good sales story to tell. Total revenue for the three month period ending February 28 was $195.9 million, an 18 percent increase from a year earlier. Net income for the quarter was $23.4 million, compared with $16.4 million a year earlier.

Find your next job with computerworld UK jobs

"Recommended For You"

IBM says profit and revenue down but expectations up Szulik out at Red Hat; former Delta exec tapped as CEO