Oracle's Hardware Slip: Don't Panic |
| TheStreet.com - Jun 24, 2011 |
Investors bugged by Oracle's(ORCL_) fourth-quarter hardware numbers should rest easy -- the database giant's falling hardware revenue is just a small part of a bigger, positive picture.
Oracle shares tanked in the aftermath of the results, released after market close on Thursday. Investors reacted negatively to the decrease in hardware systems revenue, which dipped 6% to $1.2 billion. Oracle's overall revenue, however, climbed 12% to $10.8 billion.
"[The hardware number] spooks investors, but I believe they're reaching the wrong conclusion," said Richard Davis, an analyst at Canaccord Genuity, in an email to TheStreet.
"We do not want to overreact to trends in a business representing 10% of Oracle's revenue mix," added Karl Keirstead, an analyst at BMO Capital Markets, in a note released Friday. "The other 90% of Oracle is performing well."
Closer inspection also revealed some positive numbers within Oracle's hardware business, which relies heavily on technology acquired last year from Sun Microsystems. For one thing, Oracle pushed its hardware gross margin up to 56% from 46% in the prior year's quarter.
Read Full Article from TheStreet.com
- Posted: 2011-06-24 11:23:48
| More Stock Investor Place Company News |
 |
|
|
|
| Stock Investor Place Company News Archive |
|
|
|
