Oracle Corp, a business software and database company, reported fourth-quarter profit and revenue below analysts’ average estimates, hurt by a strong dollar and lower revenue from new software licenses business.

Shares of Oracle, seen as a barometer for the technology sector, fell 7 percent to $41.75 in after-hours trading.

Oracle’s net income fell to $2.76 billion, or 62 cents per share, in the fourth quarter ended May 31, from $3.65 billion, or 80 cents per share, a year earlier.

On an adjusted basis, the company earned 78 cents per share.

Revenue fell 5.4 percent to $10.71 billion. Revenue rose 3 percent on a constant currency basis.

Analysts had expected a profit of 86 cents per share on revenue of $10.92 billion, according to Thomson Reuters I/B/E/S.

Revenue in the company’s cloud-computing software and platform service, an area keenly watched by investors, rose 29 percent to $416 million.

Oracle’s success in beefing up its cloud divisions is a gauge for how well the company can fight off competition from cloud-software companies such as Salesforce.com Inc.

The four-decade old company is putting up a strong fight against newer, smaller software sellers, but risks shrinking profit margins.

(Reporting By Lehar Maan in Bengaluru; Editing by Savio D’Souza)

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