Oracle's profit tops Street, but worries surface

Jun 23, 2011 By JORDAN ROBERTSON , AP Technology Writer
In this March 22, 2011 file photo, the exterior of Oracle headquarters is shown in Redwood City, Calif. Oracle Corp. is scheduled to report its fiscal third quarter results Thursday, June 23, 2011, after the market close.(AP Photo/Paul Sakuma, file)

(AP) -- Oracle Corp.'s latest quarterly results Thursday underscore the critical role its software business plays despite its push to become a more well-rounded technology vendor by selling computer servers.

Oracle's net income increased 36 percent as new sales of business software were at the high end of its expectations. Revenue rose 13 percent.

But Oracle's hardware division stumbled. The company's stock fell.

Oracle said net income was $3.21 billion, or 62 cents per share, in the fiscal fourth quarter, which ended May 31. That compares with $2.36 billion, or 46 cents per share, a year ago.

Excluding stock-based compensation and one-time expenses, Oracle earned 75 cents per share, higher than the 71 cents per share that analysts polled by FactSet expected.

Revenue of $10.78 billion was slightly higher than the $10.76 billion that analysts expected.

Oracle's software revenue rose 17 percent to $7.70 billion. Revenue from new software licenses - a key metric for predicting future revenue - came in at the high end of Oracle's previous forecast,

But revenue in its hardware division was flat at $1.83 billion. Stronger sales of hardware support contracts masked a 6 percent decline in revenue from actual computers sold.

Investors appeared unsettled by what they saw. Oracle's stock fell $2.36, or 7.3 percent, to $30.40 in extended trading, after the results were reported.

Explore further: India on tap as first market for Microsoft Lumia 535

not rated yet
add to favorites email to friend print save as pdf

Related Stories

Oracle fiscal 3Q net income up 78 pct

Mar 24, 2011

(AP) -- Database software maker Oracle Corp. said Thursday its net income rose 78 percent in the fiscal third quarter, helped by a rise in new software license sales and the benefit of three full months of ...

TI 2Q revenue rises 42 pct as demand roars back

Jul 19, 2010

(AP) -- Texas Instruments Inc.' second-quarter income and revenue jumped as demand continued to recover after the recession. The company predicted even better results in the new quarter.

Oracle profit slips, but software revenue rises

Mar 25, 2010

(AP) -- Oracle Corp.'s profit fell 10.5 percent in the latest quarter as the business software maker absorbed Sun Microsystems and its expenses for building and supporting computer servers.

EBay first-quarter profit rises 20 percent

Apr 27, 2011

(AP) -- EBay Inc. on Wednesday said its first-quarter profit rose 20 percent on reinvigorated auctions activity and continued swift growth at its PayPal payment service.

Qualcomm stock tumbles on cautious forecast

Jan 27, 2010

(AP) -- Qualcomm Inc., whose chips and other technologies are used in vast numbers of cell phones, sounded a cautious note on the economy on Wednesday, saying a "subdued" recovery forced it to slightly dial ...

Oracle expects EU to approve Sun deal next month

Dec 17, 2009

(AP) -- Oracle Corp. said Thursday that its profit jumped 12.5 percent in the latest quarter and that it expects the European Union will finally approve its $7.4 billion purchase of Sun Microsystems Inc. ...

Recommended for you

EU Parliament votes to break up Google

4 hours ago

The European Parliament voted overwhelmingly for the break-up of Google Thursday in a largely symbolic vote that nevertheless cast another blow in the four-year standoff between Brussels and the US Internet ...

Toyota finds new air bag issue, recalls more cars

8 hours ago

Toyota Motor Corp. recalled more than 40,000 vehicles in Japan on Thursday as part of a worldwide scare over defective air bags and is investigating a new type of air bag problem that could lead to further recalls.

Netflix sues Yahoo CIO for alleged kickbacks

22 hours ago

Netflix is suing a former company vice president who is now chief information officer at Yahoo, accusing him of receiving money from vendors he hired to work with the video streaming company.

User comments : 0

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.