Software major Oracle Corporation has reported a growth of four per cent in net income at $1.1 billion in the first quarter ended on August 31 this year, while it suffered a 5.5 per cent drop in revenues.
Total revenues decreased to $5.05 billion in first quarter 2010 fiscal from $5.33 billion in the same period last year, Oracle Corp said in a statement.
Analysts said the fall in revenues was due to companies slashing their expenditures and refraining from buying new softwares.
The software company’s GAAP operating margins increased by 590 basis points to 34 per cent.
“By substantially improving operating margins, we were able to increase Q 1 earnings per share even though revenues decreased slightly,” Oracle President Safra Catz said.
In addition, Oracle has declared a cash dividend of $0.05 per share of outstanding common stock to be paid to stockholders.
“Software licence updates and product support revenues grew 11 per cent to $3.1 billion for the quarter when adjusted for the change in the US dollar since last year,
“This growth, coupled with our disciplined expense management, was key to our ability to generate a record $8.5 billion in free cash flow over the last twelve months,” Oracle Executive Vice President and CFO, Jeff Epstein said.