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Oracle Posts Weak Hardware Sales Last Quarter

Oracle Corporation has posted surprisingly poor hardware sales in last quarter’s stock report, leaving analysts baffled.

Redwood Shores, California-based Oracle Corp. on Thursday posted a six percent downturn in computer sales during its fourth quarter, ending May 31, to $1.2 billion, Bloomberg (opens in new tab) reports.

The poor showing has raised questions upon Oracle’s hugely ambitious acquisition of Java developer firm Sun Microsystems last year. Oracle had called the $7.4 billion acquisition a very important part of its future growth.

“The hardware decline is likely the reason for the sell-off, This is really the first full year-over-year compare for the hardware business, and it has started on the wrong foot," said Josh Olson, an analyst at Missouri-based Edward Jones & Co.

According to Oracle's chief executive officer Larry Ellison, who spearheaded the acquisition of Sun Microsystems, Oracle is trying to capitalise on the newly acquired technology in several ways. However, while speaking at the conference call, Ellison also mentioned that the downturn in hardware department has made no one notice the profit earned by the sale of new licenses.

Oracle is also pursuing up to $6 billion in damages from Google for allegedly violating patents owned by Sun. If Oracle received anywhere near that amount it would practically pay for the acquisition.