Oracle fiscal 2nd-qtr net income falls slightly, but beats Wall Street predictions

The Associated Press 0

NEW YORK, N.Y. – Oracle’s fiscal second-quarter net income edged down slightly, hurt by flat revenue from new software licenses and cloud software subscriptions, but still managed to beat Wall Street predictions.

The business software maker earned $2.55 billion, or 56 cents per share, compared with $2.58 billion, or 53 cents per share, in the same quarter a year ago. Excluding charges, the company posted an adjusted profit of 69 cents per share for the recent quarter.

Revenue rose 2 per cent to $9.28 billion from $9.09 billion.

Analysts, on average, expected a profit of 67 cents per share on $9.18 billion in revenue, according to FactSet.

Revenue from new software licenses and cloud software subscriptions was flat at $2.38 billion, but rose 1 per cent excluding the effects of currency exchange rates.

Oracle president and chief financial officer Safra Catz noted that the company’s new software and subscriptions revenue faced tough comparisons with results from a year ago. Excluding the effects of currency fluctuations, revenue from new software licenses and cloud software subscriptions rose 18 per cent in the year-ago quarter.

In the recent quarter, revenue from software license updates and product support increased 6 per cent to $4.52 billion. Revenue from hardware systems was flat at $1.32 billion, as higher revenue from services offset a drop in revenue from products.

Oracle’s board also declared a quarterly cash dividend of 12 cents. The dividend will be paid on Jan. 28 to shareholders of record as of Jan. 7.

Shares of Redwood Shores, Calif.-based Oracle Corp. fell 75 cents, or 2 per cent, to $33.85 in aftermarket trading after the results were released.

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