Oracle's Organic Growth Leaves a Lot to Be Desired
Software giant Oracle (NYSE: ORCL) reported 18% year-over-year revenue growth for its fiscal third quarter, which ended on Feb. 28. That sounds impressive, but almost all that growth came from the company's mega-acquisition of healthcare technology company Cerner.
Oracle doled out $28.3 billion to acquire Cerner in a deal that closed last June. Of the company's $12.4 billion third-quarter revenue, $1.5 billion came from Cerner. Kudos to Oracle for actually disclosing that number -- some prolific acquirers leave it as an exercise for investors to figure out how much acquisitions contributed to the top line.
If you back out the contribution from Cerner, Oracle's organic revenue grew by just 3.8%. Given the mission-critical nature of much of Oracle's portfolio, headlined by its iconic database software, it's not surprising that the company's revenue is holding up in a tough economy. But low-single-digit growth is far from impressive.
Source Fool.com
