Oracle Shows How It's Done, Still Wants Sun (ORCL, SAP, JAVA)

Oracle Corp. (NASDAQ: ORCL) has posted its earnings at $0.29 EPS on a GAAP basis, but $0.39 EPS on a non-GAAP basis.  Revenues were $5.86 billion for the quarter.  Thomson Reuters had estimates pegged at $0.36 EPS (non-GAAP) and $5.69 billion in revenues.  The interesting take here is that Oracle is again claiming market share gains against SAP AG (NYSE: SAP), but noted that the gains were in every region around the world.  As far as Sun Microsystems, Inc. (NASDAQ: JAVA), Oracle is looking to close this deal after hurdles at the European Union.

This represents a 15% gain in non-GAAP earnings from a year ago on a 3% revenue gain. This also represents non-GAAP operating income gains of 9% to $2.9 billion with a 280 basis point gain in operating margins to 49%.

On the share against SAP, it noted: In constant currency, applications business grew 1% in the Americas and 2% in Asia Pacific versus a negative 35% and negative 34% respectively for SAP.

On Sun, noted was as follows by Oracle President Safra Catz: “We expect the European Commission to unconditionally clear the acquisition of Sun in January. I want to thank all of our customers for the overwhelming support they have given us during this process.”

Guidance was not offered, but shares are responding very well considering the bias of the market today.  Shares closed down 1% at $22.88 on the day, and shares are trading up around $23.80 in the after-hours session.  If that holds up, this will mark a clear break above the $23.46 high seen over the last year.

JON C. OGG