Consolidation and integration of IT systems fuels Oracle Q1 revenues in EMEA region

On September 23rd, Oracle announced key customer wins signed during the first quarter of its fiscal year 2006 across Europe, Middle East and Africa (EMEA). The telecommunications industry sector provided substantial revenues, along with financial services and public services.

During the quarter, a key reason cited by customers for selecting Oracle solutions over that of its competitors was the consolidation and integration of disparate IT systems and platforms to achieve cost efficiencies and better information in real time.

Oracle provides the software and services that allow organisations to gain the most up-to-date and accurate information from their business systems, and customers in the EMEA region are endorsing these benefits. The move away from disparate databases and systems to a centralised model is increasing notably throughout the region.

Increased Worldwide Uptake of Oracle Fusion Middleware

Additionally, Oracle saw increased worldwide customer interest in and adoption of Service-Oriented Architectures for business process automation, facilitated through Oracle Fusion Middleware.

"Our standards based Fusion Middleware new license sales grew 33 percent in the quarter and 26 percent over the last year while BEA's middleware license sales declined over the last year," said Oracle CEO, Larry Ellison. "We are optimistic about becoming number one in the middleware business."

Oracle Reports 38% Increase in Income in Q1

On a global level, Oracle announced fiscal 2006 Q1 GAAP earnings per share of $0.10. Non-GAAP earnings per share were $0.14, up 38 percent over the prior year. Quarterly GAAP net income was $519 million while non-GAAP net income was $738 million, up 38 percent compared with the same quarter last year. GAAP operating income for the quarter was $712 million, while non-GAAP operating income was up 36 percent to $1.02 billion. Total GAAP revenues increased 25 percent to $2.77 billion while total non-GAAP revenues increased 31 percent to $2.91 billion for the quarter.

First quarter GAAP total software revenues were up 23 percent to $2.13 billion while non-GAAP total software revenues were up 31 percent to $2.27 billion. Quarterly GAAP database and middleware new license revenues were up 1 percent to $492 million, while GAAP applications new license revenues were up 84 percent to $127 million. GAAP services revenues were up 34 percent to $637 million.

"This week at Oracle OpenWorld, 35,000 customers and partners embraced our innovative next-generation Fusion Middleware with hot-pluggable components," said Oracle President, Charles Phillips. "Hot-pluggable interoperability with IBM middleware puts us in a strong and unique position in the middleware business."

"This quarter delivered exceptionally strong applications performance driven by the successful integration of PeopleSoft," said Oracle President and CFO, Greg Maffei. "Cash flow and margins also reached record levels."

Many organisations in EMEA adopted or expanded implementations of Oracle E-Business Suite, Oracle Fusion Middleware, Oracle Database, Oracle Real Application Clusters and Oracle Grid technologies in the first quarter of fiscal 2006 across a wide range of industries.