Oracle posts 2 pct increase in fiscal 3rd-qtr net income, but falls short of predictions

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NEW YORK, N.Y. – Oracle said Tuesday its fiscal third-quarter net income rose 2 per cent, helped by higher cloud software subscription revenue, but investors wanted more growth and the company’s stock fell in late trading.

For the three months through Feb. 28, the business software maker earned $2.57 billion, or 56 cents per share, up from $2.5 billion, or 52 cents per share, in the same quarter the year before. Excluding one-time items, the company posted an adjusted profit of 68 cents per share.

Revenue rose 4 per cent, to $9.31 billion from $8.96 billion.

Analysts polled by FactSet expected a profit of 70 cents per share on $9.36 billion in revenue.

Revenue from new software licenses and cloud software subscriptions increased 4 per cent to $2.42 billion, as bookings for the company’s cloud applications jumped more than 60 per cent. Revenue from software license updates and product support rose 5 per cent to $4.56 billion.

Shares of Redwood Shores, Calif.-based Oracle Corp. fell $1.70, or 4.4 per cent, to $37.14 in aftermarket trading. The stock has gained 7.8 per cent over the past 12 months.

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