Oracle Earns 69 Cents Per Share

Oracle ($ORCL) just reported earnings of 69 cents per share which was two cents better than expectations.

The company reported a 1 percent decrease in new software sales and Internet-based software subscriptions for the quarter.

Oracle had forecast that new software sales and subscriptions would be between down 4 percent and up 6 percent in the second quarter, which ended in November. Investors scrutinize new software sales because they generate high-margin, long-term maintenance contracts and are an important indicator of future profit.

Revenue from Oracle’s hardware systems products, which it acquired through the $5.6 billion purchase of Sun Microsystems in 2010, fell 3 percent to $714 million in the second quarter.

Oracle’s hardware revenue has fallen since it bought Sun, with Ellison saying much of that decline is due to phasing out older low-margin systems in favor Oracle’s premium hardware.

Oracle had forecast that hardware product revenue for the November quarter would decline as much as 9 percent or grow as much as 1 percent.

The shares initially rose in the after-hours session, but then they gave back those gains. They’ll offer guidance during the conference call.

Posted by on December 18th, 2013 at 4:49 pm


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