Oracle prelim $0.75 vs $0.71 Capital IQ Consensus Estimate; revs $10.8 bln vs $10.74 bln Capital IQ Consensus Estimate

Reports Q4 (May) earnings of $0.75 per share, excluding non-recurring items, $0.04 better than the Capital IQ Consensus Estimate of $0.71; revenues rose 11.9% year/year to $10.78 bln vs the $10.74 bln consensus. Both GAAP and non-GAAP new software license revenues were up 19% to $3.7 bln. Both GAAP and non-GAAP software license updates and product support revenues were up 15% to $4.0 bln. Both GAAP and non-GAAP hardware systems products revenues were down 6% to $1.2 bln. Non-GAAP operating income was up 19% to $5.2 bln, and non-GAAP operating margin was 48%. “In Q4, we achieved a 19% new software license growth rate with almost no help from acquisitions. This strong organic growth combined with continuously improving operational efficiencies enabled us to deliver a 48% operating margin in the quarter. As our results reflect, we clearly exceeded even our own high expectations for Sun’s business. In addition to record setting software sales, our Exadata and Exalogic systems also made a strong contribution to our growth in Q4. Today there are more than 1,000 Exadata machines installed worldwide. Our goal is to triple that number in FY12. In FY11 Oracle’s database business experienced its fastest growth in a decade. Over the past few years we added features to the Oracle database for both cloud computing and in-memory databases that led to increased database sales this past year. Lately we’ve been focused on the big business opportunity presented by Big Data.”