Oracle Report Sun Profit for 2010 Q4
Oracle announce a $400 million gain in non-GAAP operating income and more job cuts.
According to Oracle’s latest financial report (pdf), Sun has contributed over $400 million to non-GAAP operating income in the fourth quarter of 2010.
This translates to earnings of $0.46 per share. In the report, Oracle contrasts this against Sun’s quarter ending June of last year, when it recorded a loss. Indeed, this is a a 24% increase over the same period last year. Additionally, new software license revenues rose 14% to $3.1 billion in the quarter, indicating that the long drawn-out acquisition and subsequent departure of many prominent Sun employees, hasn’t shaken everyone’s confidence in Oracle.
Oracle themselves imply that this is the post-acquisition turnaround for Sun Microsystems.
“Now that Sun is profitable, we have increased confidence that we will meet or exceed our goal of Sun contributing $1.5 billion to non-GAAP operating income in FY2011, and $2.0 billion in FY2012,” said Oracle President Safra Catz.
In a conference call on Thursday, Catz stated that users have been reassured by Oracle taking control of the company, and that the new support policy for Sun products has been “very well-received” by customers. “A lot of customers that had not been on support have come back to Sun,” she said.
However, this profit hasn’t been achieved without causalities. Oracle have reported that the integration of Sun Microsystems cost the company an estimated $325 million. And now, another wave of job cuts are on the horizon for Europe and Asia. In a regulatory filing, Oracle state that reducing the workforce in this way “eliminates redundant costs resulting from the acquisition of Sun and reflects improved efficiencies in operations.”
According to the filing, Oracle began notifying affected employees on May 28rd, 2010.